Geopark Successfully Tests Yagan Gas Well in Chile's Fell Block
Geopark has announce the successful drilling and testing of a new gas well -- Yagan 1 -- on the Fell Block in Chile at an initial production test rate exceeding 10 million cubic feet per day (mmcfpd) of gas. Geopark operates and has a 100% working interest in the Fell Block.
Geopark directionally drilled and completed the Yagan 1 well to a total depth of 3,148 meters. A production test in the Springhill formation, at approximately 3,024 meters in a 13 meter perforated interval, flowed without stimulation, at a rate of approximately 10.06 mmcfpd of gas and 136 barrels per day (bpd) of condensate, with no water, through a choke of 10 millimetres (mm) and with a well head pressure of 2,844 pounds per square inch (psi). These are preliminary results and further production history will be required to determine stabilized flow rates from this well and the extent of the reservoir. The Yagan 1 well also tested a low oil rate (approximately 10 bpd) in the deeper Tobifera formation at 3,093 meters which represents a potential zone for further testing and stimulation.
Flowlines are now being constructed to connect Yagan 1 to the main gas pipeline infrastructure from where it will be sold to the large methanol plant located adjacent to the Fell Block and operated by the Methanex Corporation. Targeted hook-up of the well is two weeks.
Yagan 1 represents a new productive well in a new pool which extends the southwest-northeast trend discovered by Geopark in the center of the Fell Block and which includes the Nika Oeste and Manekenk wells to the southwest. The Company has identified further prospect opportunities on this trend and is currently defining new drilling locations.
During 2009, Geopark is planning to build on its successful 2008 drilling results, which saw 11 productive wells of the 12 wells completed, by drilling 7-9 new wells and initiating the start-up of activities on its two new blocks in Chile -- Tranquilo and Otway (covering an area of approximately 12,000 square kilometers).
Commenting, James F. Park, CEO of Geopark, said, "We are pleased with the results from the Yagan well which will provide an immediate contribution to our production, revenues and reserves. A fundamental element of Geopark's long term strategy has been to build an exceptional technical team -- and we believe these continuing positive results confirm the strength and competence of our team. Our investments in facilities and pipeline infrastructure over the past few years also enable us to rapidly commercialize new discoveries and therefore grow our financial results in parallel with our technical successes. With these elements in place, Geopark has the agility and foundation to continue to deliver organic growth in 2009, to navigate unexpected challenges arising from the current world environment and to take advantage of an increasing number of external opportunities."
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