Restoring Indico Field Production in the
CPO-5 Block
Second Exploration Success in the Llanos 123
Block
New Exploration Success in Ecuador
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent Latin American oil and gas explorer, operator
and consolidator, provides an update on operations in the CPO-5
(GeoPark non-operated, 30% WI), Llanos 123 (GeoPark operated, 50%
WI-Hocol 50% WI), Llanos 87 (GeoPark operated, 50% WI-Hocol 50%
WI), Llanos 34 (GeoPark operated, 45% WI) and Perico (GeoPark
non-operated, 50% WI) blocks.
Colombia
Production Back Online in the CPO-5 Block
In late September 2023, the operator of the CPO-5 block received
approval from the regulator (Agencia Nacional de Hidrocarburos,
ANH) to resume production at the Indico 6 and Indico 7 wells.
The Indico 7 well restarted production in late September 2023
and is gradually increasing its production, targeting to reach
4,000 bopd gross in the next few days. The Indico 6 well restarted
production on October 1, 2023 and is also expected to gradually
increase its production to approximately 4,000 bopd gross.
The Indico 6 and Indico 7 wells have the potential to increase
and stabilize their combined production at approximately 9,000 bopd
gross before year-end, depending on reservoir performance.
These two wells were drilled in late 2022 and have been shut-in1
following the ANH request that the operator suspend production
until certain required surface facilities were completed.
Current Drilling Activities in the CPO-5
Block
The operator spudded the Halcon 1 exploration well on September
29, 2023, targeting the exploration potential of the Barco
(Guadalupe) formation in the northern part of the CPO-5 block,
closer to the southern part of the Llanos 34 block.
New Exploration Success in the Llanos Basin
Llanos 123 Block – Second Exploration Success
The Toritos 1 exploration well reached total depth in September
2023 with logging information indicating hydrocarbon potential in
the Barco (Guadalupe) and Gacheta formations. Testing activities
are ongoing and the well is currently producing approximately 1,400
bopd of 14 degrees API with a 1% water cut from the Barco
(Guadalupe) formation. The complete testing program is underway and
additional production history will be required to determine
stabilized flow rates of the well and the extent of the
reservoir.
The Saltador 1 well2 was the first exploration success in the
Llanos 123 block. It continues to produce approximately 765 bopd of
16 degrees API with 3% water cut from the Barco (Guadalupe)
formation.
The Llanos 123 block is currently producing over 2,100 bopd
gross, and its production is already being delivered to GeoPark’s
off-takers.
Based on these positive results, GeoPark is adding a new
exploration well in the Llanos 123 block, the Bisbita Centro 1
well, targeting an exploration prospect located 1.5 km south of
Saltador 1, to be spudded in early 4Q2023 (subject to joint venture
approval).
Current Drilling Activities in the Llanos
87 Block
GeoPark is targeting to spud the Zorzal Este 1 exploration well
this week, which is expected to reach total depth in mid-November
2023.
Horizontal Well Drilling Campaign in the Llanos 34
Block
In the Llanos 34 block, GeoPark drilled and completed the third
horizontal well which is currently initiating production tests in
the Mirador formation.
This well was drilled 36% faster, with 18% lower drilling costs,
and a 172% longer lateral length compared to the first horizontal
well.
GeoPark already spudded the fourth horizontal well, expected to
reach total depth in early-November 2023. A fifth horizontal well
is expected to spud by mid-October 2023.
Ecuador
New Exploration Success in the Perico Block
The Perico Centro 1 exploration well reached total depth in
September 2023 with preliminary logging information indicating
hydrocarbon potential in the U-sand formation. The well was
completed and is initiating testing with current production of
approximately 800 bopd of 28 degrees API with 1% water cut.
The Yin 2 well reached total depth in late July 2023.
Preliminary logging information confirmed development potential in
the Hollin formation and also encountered a new zone with 40 feet
of potential net pay in the U-sand formation. The Yin 2 well
started production tests by mid-August 2023 and is currently
producing approximately 767 bopd of 30 degrees API with 1% water
cut from the U-sand formation.
Based on these positive results, GeoPark and its joint venture
partner are adding a new appraisal well, the Perico Norte-4, to be
spudded in early-October 2023.
GeoPark plans to publish its 3Q2023 operational update in
mid-October 2023.
Other News
GeoPark Appoints New Chief Exploration Officer
GeoPark is pleased to announce the appointment of James
Deckelman to the position of Chief Exploration Officer. James is a
highly successful explorer with over 25 years of experience in
Latin America, the Middle East, Africa, Southeast Asia and North
America, leading projects ranging from ultra-deepwater to
unconventional. James added over a billion barrels of recoverable
resources for companies including ConocoPhillips, BP and Talisman
Energy. In Latin America, James has led projects and transactions
in Colombia, Venezuela, Peru, Ecuador, Mexico, Brazil and
Argentina.
Andrés Ocampo, Chief Executive Officer of GeoPark, said: “Thanks
and congratulations to the GeoPark team for the new exploration
successes in our premium acreage in Colombia and Ecuador. We have
developed new prospects with joint venture partners, pursued a
horizontal drilling campaign fast and successfully, put production
back online, and strengthened and expanded our leadership and
technical capabilities. We are executing an exciting multi-year
drilling program which is yielding real, tangible results.”
NOTICE
Additional information about GeoPark can be found in the Invest
with Us 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.
This press release contains certain oil and gas metrics,
including information per share, operating netback, reserve life
index and others, which do not have standardized meanings or
standard methods of calculation and therefore such measures may not
be comparable to similar measures used by other companies. Such
metrics have been included herein to provide readers with
additional measures to evaluate the Company’s performance; however,
such measures are not reliable indicators of the future performance
of the Company and future performance may not compare to the
performance in previous periods.
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, production guidance, shareholder
returns, Adjusted EBITDA, capital expenditures, cash income taxes
and free cash flow, as well as tax obligations to be paid during
2023. 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 (SEC).
Oil and gas production figures included in this release are
stated before the effect of royalties paid in kind, consumption and
losses. Annual production per day is obtained by dividing total
production by 365 days.
Information about oil and gas reserves: The SEC permits
oil and gas companies, in their filings with the SEC, to disclose
only proven, probable and possible reserves that meet the SEC’s
definitions for such terms. GeoPark uses certain terms in this
press release, such as “PRMS Reserves” that the SEC’s guidelines do
not permit GeoPark from including in filings with the SEC. As a
result, the information in the Company’s SEC filings with respect
to reserves will differ significantly from the information in this
press release.
NPV10 for PRMS 1P, 2P and 3P reserves is not a substitute for
the standardized measure of discounted future net cash flow for SEC
proved reserves.
The reserve estimates provided in this release are estimates
only, and there is no guarantee that the estimated reserves will be
recovered. Actual reserves may eventually prove to be greater than,
or less than, the estimates provided herein. Statements relating to
reserves are by their nature forward-looking statements.
___________________
1 Indico 6 was shut in in December 2022
and Indico 7 was shut in in early January 2023.
2 The Saltador 1 well started testing in
July 2023.
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version on businesswire.com: https://www.businesswire.com/news/home/20231003389950/en/
INVESTORS:
Stacy Steimel ssteimel@geo-park.com Shareholder Value Director
T: +562 2242 9600
Miguel Bello mbello@geo-park.com Market Access Director T: +562
2242 9600
Diego Gully dgully@geo-park.com Investor Relations Director T:
+55 21 99636 9658
MEDIA:
Communications Department communications@geo-park.com
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