Latin American oil and gas firm GeoPark's run of recent bad luck has continued with an underwhelming test result from exploration well Cerro Iturbe Oeste 1 in the Fell Block in Chile.
The well was tested in September 2012 in the Springhill and Tobifera formations and showed low productivity from both reservoirs. The company is currently evaluating hydraulic fracture in the Springhill formation.
The company is close to its recently lowered production guidance of an end-year total of 11,000 to 12,000 barrels of oil equivalent per day (boepd), having increased oil and gas production in the third quarter by 21% to 10,723 boepd from 8,883 boepd the year before. However, this production level was down from the 11,930 boepd achieved in the first six months of 2012.
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The year-on-year increase resulted from growth in Chile oil production (from 3,018 bopd to 3,474 bopd) and new production from Colombian assets (3,625 bopd).
Around two-thirds of GeoPark's total production is oil, up from 35% a year earlier, and production of the black stuff rose 131% year-on-year to 7,147 barrels per day from 3,088 barrels per day in the third quarter of 2011.
The company had previously indicated it would drill between 42 and 48 new wells in 2012 but has now reduced the top end of this range to 46. The firm said it will add around 12 new wells to its already ambitious fourth quarter drilling programme.
"We believe our fourth quarter programme will further improve these results and carry us into 2013 with significant momentum and the opportunity to increase our rate of growth," said James Park, Chief Executive Officer.
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