GeoPark Limited (“GeoPark” or the “Company”) (NYSE: “GPRK”), a leading
independent Latin American oil and gas explorer, operator and
consolidator with operations and growth platforms in Colombia, Peru,
Argentina, Brazil and Chile, today announced the successful drilling and
testing of the Jauke 1 exploration well in the Fell block (GeoPark
operated, 100% WI) in Chile.
GeoPark drilled and completed the Jauke 1 exploration well to a total
depth of 9,592 feet. A production test through different chokes in the
Springhill formation resulted in an average production rate of 5.8
million standard cubic feet per day of gas (or 970 boepd) with a
wellhead pressure of 2,738 pounds per square inch. Additional production
history is required to determine stabilized flow rates of the well and
the extent of the reservoir. Surface facilities are in place, the well
is in production, and the gas is being sold to Methanex through a long
term gas contract. Drilling and completion costs are estimated at $3.4
million, and at current gas prices and testing rates, this well is
expected to have a payback period of 6-7 months.
The Jauke gas field is part of the large Dicky geological structure in
the Fell block – and has the potential for multiple development drilling
opportunities. Petrophysical analysis also indicates hydrocarbon
potential in the shallower El Salto formation which will be tested in
the future.
The Jauke exploration effort is part of GeoPark’s 2018 overall 40-45
well drilling program in Colombia, Argentina, Brazil, and Chile – with
five drilling rigs currently in operation.
James F. Park, Chief Executive Officer of GeoPark said: “This discovery
illustrates the hydrocarbon-generating capacity of GeoPark’s unique
Latin American multi-country platform. In addition to the new gas
production, revenues, reserves, and upside this new field will
contribute to our bottom-line, we are pleased to congratulate our
younger generation geoscience team for this new success – further
demonstrating the depth and range of the long term oil-finding capacity
being continuously developed within GeoPark.”
NOTICE
Additional information about GeoPark can be found in the “Investor
Support” section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and percentages
included in this press release have been rounded for ease of
presentation. Percentage figures included in this press release have not
in all cases been calculated on the basis of such rounded figures, but
on the basis of such amounts prior to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking
statements. Many of the forward-looking statements contained in this
press release can be identified by the use of forward-looking words such
as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’
‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among
others.
Forward-looking statements that appear in a number of places in this
press release include, but are not limited to statements regarding the
intent, belief or current expectations, regarding various matters,
including preliminary production test results and hydrocarbon
production, Forward-looking statements are based on management’s beliefs
and assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties, and
actual results may differ materially from those expressed or implied in
the forward-looking statements due to various factors.
Forward-looking statements speak only as of the date they are made, and
the Company does not undertake any obligation to update them in light of
new information or future developments or to release publicly any
revisions to these statements in order to reflect later events or
circumstances, or to reflect the occurrence of unanticipated events. For
a discussion of the risks facing the Company which could affect whether
these forward-looking statements are realized, see filings with the U.S.
Securities and Exchange Commission.
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