AIM-listed Latin American oil and gas explorer GeoPark has commenced a new exploration drilling in Tierra del Fuego in Chile through its partnership with Empresa Nacional de Petroleo de Chile,(ENAP), with the spudding of the Chercn 1 well on the Flamenco Block.
Chercn 1 is the first of 21 exploratory wells on the Flamenco, Campanario and Isla Norte Blocks in Tierra del Fuego and is part of an approximately $100m investment commitment during the First Exploration Period, the company said.
The company, which also has operations in Colombia and Argentina, said that as part of the program, approximately 1,000 sq km of 3D seismic was carried out over the three blocks; out of a total 3D seismic program of approximately 1,500 sq km.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Through the partnership with ENAP, GeoPark operates and has a 50% working interest in the Flamenco and Campanario Blocks and a 60% working interest in the Isla Norte Block. ENAP, the Chilean state-owned company, owns the remaining working interests in each Block.
James Park, Chief Executive Officer of GeoPark, commented: "We are pleased to announce the start-up of the exploratory drilling campaign in Tierra del Fuego in partnership with ENAP."
He added: "Similar to our experience on the Fell Block in Chile, we believe this region represents a high potential opportunity to discover and produce oil and gas in a stable and economically-prosperous country. Our partnership with ENAP adds an additional value-adding dimension by allowing our two companies to work together and collaborate in exploring, developing and investing in the Magallanes region."
GeoPark's share price was up 2.68% to 575p at 10am on Thursday.
MF
-
Is a mortgage in retirement always a bad idea?A mystery shopper exercise shows high street lenders are “shunning” retirees looking to take out a mortgage. Are they right to do so?
-
Three funds to consider as UK small caps trade at 30% discountUK small caps have been unloved for some time, but a shifting economic environment could give them a boost
