Geopark Tests Positive Oil at Manekenk 1 in Chile
GeoPark Holdings Limited has announced the successful testing of the new Manekenk 1 well on the Fell Block in Chile at an initial rate of approximately 1,300 barrels of oil per day equivalent (boepd). Geopark operates and owns a 100% working interest in the Fell Block.
Geopark drilled and completed the Manekenk 1 well to a total depth of 3,061 meters on a new geological structure and trend that had been defined following the interpretation of Geopark's 3D seismic program. A production test in the Springhill formation, at approximately 2,951 meters in an 11 meter perforated interval, flowed, without stimulation, at a rate of approximately 7.3 million cubic feet per day (mmcfpd) of gas, 102 barrels per day (bpd) of condensate and 20 bpd of water through a choke of 10 millimeters (mm) and with a well head pressure of 2,218 pounds per square inch (psi). These are preliminary results and further production history will be required to determine stabilised flow rates from this well and the extent of the reservoir.
A pipeline is being constructed to the well-site to connect to the main pipeline infrastructure - with a target completion date between 8-12 days. The gas will be 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 nine new wells in Chile -- including four new field discoveries. Seven of these wells are now on production and two wells are targeted to begin production during December 2008. Geopark has recently completed drilling two new wells on the Monte Aymond and Aonikenk fields in the Fell Block and will begin testing operations during December 2008. Geopark is completing a US $57 million capital expenditure program in Chile in 2008 and is currently producing approximately 4,700 boepd. With wells already tested, but not yet on stream, Geopark is on schedule to meet its end of year production target of 6,000 boepd.
Commenting, Gerald E. O'Shaughnessy, Chairman of Geopark, said, "We are pleased with the important result from the new Manekenk well, which will contribute to Geopark's significant growth in production, revenues and reserves during 2008. The Manekenk discovery also validates a promising trend which the Company opened up earlier this year in the central portion of the Fell Block and which will be further tested in a new well during the First Quarter 2009.
"This new well also continues our successful track record of finding and developing oil and gas in Chile where we have the people, infrastructure and long term strategy in place to achieve an excellent return on our capital and also become a significant contributor to energy production."
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