GeoPark Puts New Gas Well Onstream at Chile's Fell Block

GeoPark Holdings Limited reported the successful drilling and testing of a new development gas well -- Pampa Larga 15 -- on the Fell Block in Chile. GeoPark operates and has a 100% working interest in the Fell Block.

GeoPark drilled and completed the Pampa Larga 15 well to a total depth of 2,900 meters. After testing, the well was put on production and is now flowing, from a 9 meter perforated interval in the Springhill formation at a depth of 2,805 meters, at a rate of approximately 4.0 million cubic feet per day (mmcfpd) of gas, 0.5 barrels per day (bpd) of condensate and 18 bpd of water through a choke of 12 millimeters (mm) and with a well head pressure of 782 pounds per square inch (psi). These are preliminary results and further production history will be required to determine stabilised flow rates and the extent of the reservoir.

Pampa Larga 15 represents the seventh successful well drilled by GeoPark in 2009, out of seven wells drilled. A flowline was constructed and the well connected to GeoPark's pipeline infrastructure system whereby the gas is now being delivered to the large methanol facility located adjacent to the Fell Block and owned by the Methanex Corporation.

During 2009, GeoPark is carrying out a ten well drilling program on the Fell Block -- with testing operations currently being conducted on the recently-drilled Monte Aymond 34 well and with drilling operations currently underway on the Alakaluf 5 well. GeoPark has also initiated start-up of activities on its two new blocks in Chile -- Tranquilo and Otway -- which in total cover an area of approximately 12,000 square kilometers. The Company expects to begin shooting seismic on the Tranquilo Block in January 2010 and on the Otway Block in March 2010.

Commenting, Gerald O'Shaughnessy, Chairman of GeoPark, said, "The successful Pampa Larga well will help GeoPark achieve its targeted doubling of production this year. It also represents an example of the multiple drilling opportunities on the Fell Block and the capabilities of our team in building on its record of success."