GeoPark finishes 2011 flush with cash

GeoPark Holdings, a Latin America-focused oil and gas company, was in demand after announcing a positive endto a busy 2011.

In the final three months of last year GeoPark bought three new blocks around the Tierra del Fuego archipelago off the coast of South America.

It also achieved production rates of 9,400 barrels of oil equivalent in December.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Geopark drilled 25 wells in 2011 with a 70% success rate including the discovery of the new Punta Delgada Norte gas field.

The sale of a 10% interest in its Chilean business to LG international also raised $78m and, probably more importantly, established a valuation for the assets of $780m.

Year end cash resources were "in excess" of $200m.

The company's chief executive, James Park, said of the results: "Our existing attractive acreage inventory continues to provide consistent and reliable performance growth and the exciting expansion into Tierra del Fuego will allow us to apply a proven oil and gas finding approach to a new high potential area."

Despite today's rise, GeoPark's stock value has dropped 48% in the last twelve months.

BS