MercoPress. South Atlantic News Agency

Successful drilling of new gas well in Magallanes region

GeoPark operates and has a 100% working interest in the Fell Block.

GeoPark Holdings has announced the successful drilling and testing of a new gas well - Yagan 1 - on the Fell Block in the extreme south of Chile at an initial production test rate exceeding 10 million cubic feet per day (mmcfpd) of gas.

The company reported that a production test in the Springhill formation, at approximately 3,024 metres in a 13 metre perforated interval, flowed without stimulation, at a rate of approximately 10.06 mmcfpd of gas and 136 barrels per day (bpd) of condensate, with no water, through a choke of 10 millimetres (mm) and with a well head pressure of 2,844 pounds per square inch (psi).

The Yagan 1 well also tested a low oil rate (approximately 10 bpd) in the deeper Tobifera formation at 3,093 metres which represents a potential zone for further testing and stimulation.

Flow-lines are now being constructed to connect Yagan 1 to the main gas pipeline infrastructure from where it will be sold to the large Punta Arenas methanol plant located adjacent to the Fell Block and operated by the Methanex Corporation. Targeted hook-up of the well is two weeks.

Yagan 1 represents a new productive well in a new pool which extends the southwest-northeast trend discovered by GeoPark in the centre of the Fell Block and which includes the Nika Oeste and Manekenk wells to the southwest.

The Latinamerican company which operates in Chile and Argentina, has identified further prospect opportunities on this trend and is currently defining new drilling locations.

Last year GeoPark was successful in eleven of twelve drillings, and this year is planning seven to nine wells in the Fell Block. The company is also scheduled to begin exploration activities in two new blocks in Chile, Tranquilo and Otway, which over an area of 12.000 kilometres.

Energy dependent Chile has opened the Magallanes and Tierra del Fuego regions in the extreme south of the country to hydrocarbons private exploration and production.

The area at one time, approximately three decades ago supplied 25% of Chile’s oil and gas demand. However rising costs and abundant international supply relegated exploration efforts.