MercoPress. South Atlantic News Agency

Successful testing and marketing of new oil wells in extreme south of Chile

Oil was struck at a depth of 2.200 metres

Latin American oil and gas firm GeoPark Holdings Ltd announced this week it had successfully tested two new oil wells on the Fell Block, Springfield formation, Magallanes basin in the extreme south of Chile, bordering Argentina and the Atlantic access of the Magellan Strait.

GeoPark, which operates and has a 100% working interest in the Fell Block, said the two wells -- Alakaluf 6 and Alakaluf 8 -- flowed at a rate of about 774 barrels per day (bpd) of oil with no water and 234 bpd, respectively.

The company, with offices in Buenos Aires and Punta Arenas, said oil from the Alakaluf 6 well was now being produced and marketed, while it had a production target of about 200 bpd of oil from the Alakaluf 8 well, starting from March 3.

Well Alakaluf 6 was drilled and completed to a total depth of 2,244mt. Well Alakaluf 8 was drilled and completed to a total depth of 2,263mt. GeoPark said its production was currently 7,800 barrels of oil per day equivalent (boepd).

The company also reported on other drillings: well Alakaluf 6 was completed to a total depth of 2,244mt. Well Alakaluf 8 was drilled and completed to a total depth of 2,263mt.

Another well, Dicky 16 was drilled and completed to a total depth of 2,895mt. Several production tests were performed which tested water and gas. However, a mechanical failure of the bridge plug occurred, which may have influenced the results and the test is considered inconclusive.

Well Guanaco 3 was drilled and completed to a total depth of 2,751mt. Production testing in the Springhill formation shall begin next week with results expected in early March 2010. Well Aonikenk Sur 1 began drilling this month and is targeted to reach total depth in March 2010.

“During 2010, we estimate revenue will result 60% from crude oil production and 40% from natural gas production,” Chairman Gerald E. O'Shaughnessy said in a statement.

For 2010, GeoPark is planning a work and investment program totalling 50 million US dollars and consisting of a 14-18 well drilling program, 2D and 3D seismic surveys and an expansion of its production infrastructure anticipated O’Shaughnessy.