GeoPark Commences Production from Ovejero 2 in Chile's Fell Block

GeoPark Holdings Limited

GeoPark Holdings Limited has announced the successful testing and commencement of production from the new Ovejero 2 well on the Fell Block in Chile. GeoPark operates and owns a 100% working interest in the Fell Block.

GeoPark drilled and completed the Ovejero 2 well to a total depth of 3,106 meters on an existing productive field which had been re-defined following interpretation of GeoPark's 3D seismic program. Following a successful production test in the Springhill formation, at approximately 3,053 meters in a 12 meter perforated interval, a pipeline was constructed and the well is now producing at a rate of approximately 2.5 million cubic feet per day (mmcfpd) of gas, 163 barrels per day (bpd) of oil and 88 bpd of water through a 10 mm choke and with a well head pressure of 1,010 psi. Further production history will be required to determine stabilized flow rates from this well and the extent of the reservoir.

Following construction of required facilities and pipelines, the Ovejero 2 well is already contributing to GeoPark's revenues. The gas is being sold to the Methanex Corporation at its large methanol production facility located 120 kilometers from the Fell Block and the oil is being sold to ENAP (the Chilean state-owned oil company).

To date in 2008, GeoPark has successfully drilled and tested 7 new wells in Chile -- including 4 new field discoveries. Six of these wells are now on production and the seventh well is targeted to begin production during November 2008. GeoPark is currently operating two drilling rigs and a workover rig on the Fell Block in Chile, with drilling currently progressing on two new wells in the Dicky and the Monte Aymond fields.

In 2006, GeoPark became the first private-sector oil and gas producer in Chile, and the Group continues to execute an aggressive US $100+ million capital investment program to explore for and develop oil and gas in the Magallanes region. During 2008, GeoPark's US $57 million capital investment program in Chile involves the drilling of approximately 14-16 wells and construction of new production and infrastructure facilities. The program represents a balanced mix of production, development, and exploration projects focused on both increasing oil and gas production and adding new oil and gas reserves. GeoPark's current production is approximately 4,850 barrels of oil equivalent per day (boepd).

Commenting, Gerald O'Shaughnessy, Chairman of GeoPark, said, "We are pleased with the results from the new Ovejero well which will add to our steady growth in production, revenues and reserves this year. The redefinition of the Ovejero field from our seismic interpretation demonstrates the value being added to our assets by our technical team."