Geopark lifted by Colombian update

published 9 July 2012

Latin America-focused oil and gas group GeoPark Holdings has unveiled new exploration discoveries in its recently-acquired Colombian properties.

Well 1 on the Max Oil Field discovery is currently test-flowing around 1,220 barrels of oil per day (bopd), but requires further testing to determine expected and stabilised production rates. The Gacheta formation produced at a rate of 149 barrels of fluid per day (bfpd), the Guadelupe formation produced at a rate of 299 bfpd and the Mirador at a rate of 637 bfpd. Delineation drilling on the Max Field is expected to begin during the third quarter of this year.

On the Tua Oil Field discovery, the exploration well is currently testing at around 1,723 bopd. On the Guadalupe formation the well produced at a rate of 366 bfpd, while on the Mirador Formation it produced at a rate of 1,732 bfpd. Further testing will also be required on this well.

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The firm also reported that the Maniceno 1 exploration well was put into production during July at an initial rate of approximately 3,000 bopd, while the Samaria 1 exploration well has completed drilling in June 2012 with potential oil pay in the Mirador, Guadalupe and Gacheta formations. Testing is expected to begin this month.

James Park, Chief Executive Officer, said: "The new Max and Tua oil discoveries represent an important step forward for GeoPark with our recently-acquired projects in Colombia.

"They demonstrate our ability to build value through the drill bit in a new region for us and represent a significant de-risking of our new Colombian acquisitions by converting exploration potential to new oil production and reserves. We look forward to further results from our 45-50 well drilling program in 2012 in Chile and Colombia."

The share price rose 3.72% to 655p to 08:55.