GeoPark gains after well update in Chile

Shares in GeoPark Holdings rose Wednesday after the Latin American oil and gas explorer announced the successful production of two new wells in Columbia.

Shares in GeoPark Holdings rose Wednesday after the Latin American oil and gas explorer announced the successful production of two new wells in Columbia.

The company started production of the Max 2 well in the Max oil field in the Llanos 34 Block and La Cuerva CH NE 1 in the La Cuerva oil field following successful drilling and testing.

GeoPark drilled the Max 2 well to a total depth of 3,312 metres. A test showed a production rate of about 1,532 barrels of oil per day (bopd).

The La Cuerva was drilled to a total depth of 1,279 with tests revealing a production rate of about 440 bopd.

"Since acquiring our Colombian projects just one year ago, we have hit the ground running and been able to record continuous growth in our crude oil production - both from exploration and development drilling," said Chief Executive Officer, James F. Park.

"We are also pleased that our Colombian drilling activities are matching our recent drilling successes in Chile and leading to overall increases in production and cash flow. We look forward to further positive results from our $200m-plus investment program through 2013."

GeoPark has interests in 10 exploration, development and production blocks in Colombia, six blocks in Chile and three blocks in Argentina.

This year the group will carry out a 35 to 45 well drilling programme in Colombia and Chile, with total investment in projects between $200m to $230m.

Shares were 1.96% higher at 650p by 10:33.

RD

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