GeoPark Limited (“GeoPark” or the “Company”) (NYSE: “GPRK”), a
leading independent Latin American oil and gas explorer, operator
and consolidator with operations and growth platforms in Colombia,
Peru, Argentina, Brazil, Chile and Ecuador, today announced new
operational successes across its Latin American asset platform.
Colombia Flowline On Stream
The flowline connecting the Llanos 34 block (GeoPark operated,
45% WI) to the Oleoducto de los Llanos (ODL), one of Colombia’s
principal pipelines, is now fully operational with oil flowing from
the Jacana oil field to the ODL regional infrastructure. The
flowline (with a capacity of up to 100,000 bopd) supports future
production growth in the Llanos 34 block, reduces overall
operational risk and contributes to further reductions in
transportation and operating costs. Net capital expenditures
totaled approximately $16 million (gross $36 million), within
budget.
Brazil Oil Field Discovery
GeoPark drilled and completed the Praia dos Castelhanos 1
exploration well in the REC-T-128 block (GeoPark operated, 70% WI)
to a total depth of 8,431 feet. A production test in the Agua
Grande formation resulted in a production rate of approximately 300
bopd of 34 degrees API, with no water. Long-term testing is
expected to begin in the coming weeks. Additional production
history is required to determine stabilized flow rates and the
extent of the reservoir.
Exploration drilling in Brazil is expected to continue during
3Q2019 with the drilling of an exploration well in the POT-T-747
block (GeoPark operated, 70% WI), in the mature, onshore Potiguar
basin.
Chile Gas Discovery
GeoPark drilled and completed the Jauke 2 gas well in the Fell
block (GeoPark operated, 100% WI) to a total depth of 9,701 feet to
the Tobifera formation which is deeper than the formation currently
under production. A production test resulted in an average
production rate of 5.9 million standard cubic feet of gas per day
(988 boepd) with a wellhead pressure of 1,646 pounds per square
inch. Additional production history is required to determine
stabilized flow rates of the well and the extent of the reservoir.
Surface facilities are already in place, the well is in production,
and the gas is being sold to Methanex.
The Jauke gas field was discovered during August 2018 with
production in the Springhill formation. It forms part of the large
Dicky geological structure, which has the potential for multiple
development drilling opportunities targeting the Springhill and the
Tobifera formations. Petrophysical analysis also indicates
hydrocarbon potential in the shallower El Salto formation which
will be tested in the future.
Additional drilling is expected during 2H2019 to continue
developing and delineating the large Jauke/Dicky geological
structure.
Ecuador Blocks Final Signature
On May 22, 2019, GeoPark signed final participation contracts
for the Espejo (GeoPark operated, 50% WI) and Perico (GeoPark
non-operated, 50% WI) blocks in Ecuador, which were awarded to
GeoPark in the Intracampos Bid Round held in Quito, Ecuador in
March 2019.
The Espejo and Perico blocks are attractive, low-risk
exploration blocks located in the northeastern part of Ecuador, in
the Oriente basin. Both blocks are covered with 3D seismic and are
adjacent to multiple discoveries, producing fields and existing
infrastructure. From existing 3D seismic and other relevant data,
more than five multilayer, ready-to-drill light oil prospects and
leads have been identified. Geoscience evaluation is ongoing and
field operations are expected to start in late 2019 or early
2020.
The Oriente basin is one of the most prolific petroleum systems
in Latin America, currently producing more than 500,000 bopd, with
access to infrastructure, spare capacity and a well-developed
service industry.
James F. Park, Chief Executive Officer of GeoPark, said: "The
richness and variety of GeoPark’s deep organic project inventory,
over our expansive Latin American platform, provides multiple
upside growth drivers and secures downside protection across this
big, exciting, underexplored continent."
GeoPark can be visited online at www.geo-park.com
NOTICE
Additional information about GeoPark can be found in the
“Investor Support” section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION
This press release contains statements that constitute
forward-looking statements. Many of the forward-looking statements
contained in this press release can be identified by the use of
forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’
‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’
‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in
this press release include, but are not limited to, statements
regarding the intent, belief or current expectations, regarding
various matters, including expected production growth, planned
drilling activities, payback timing, IRR and capital expenditures
plan. Forward-looking statements are based on management’s beliefs
and assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties,
and actual results may differ materially from those expressed or
implied in the forward-looking statements due to various
factors.
Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update
them in light of new information or future developments or to
release publicly any revisions to these statements in order to
reflect later events or circumstances, or to reflect the occurrence
of unanticipated events. For a discussion of the risks facing the
Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190603005408/en/
INVESTORS:Stacy Steimel – Shareholder Value
DirectorSantiago, ChileT: +562 2242 9600ssteimel@geo-park.com
Miguel Bello – Market Access DirectorSantiago, ChileT: +562 2242
9600mbello@geo-park.com
MEDIA:Jared Levy – Sard Verbinnen & CoNew York, USAT:
+1 (212) 687-8080jlevy@sardverb.com
Kelsey Markovich – Sard Verbinnen & CoNew York, USAT: +1
(212) 687-8080kmarkovich@sardverb.com
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