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London-listed GeoPark (AIM: GPK) plans to invest US$220mn-240mn as part of its 45-55 well drilling campaign across its Latin American assets in 2012, according to a quarterly operations update.
Drilling operations for 1Q12 mainly focused on reserve development and appraisal in Chile and the initiation of exploration at its Colombian prospects.
Oil and gas production averaged 11,987b/d in Q1, with approximately 63% representing crude oil. Total production jumped 110% year-on-year due to the production increase in the Chilean Fell license and the Colombian acquisitions of the Winchester Luna and Hupecol firms for a total of US$105mn.
During the first quarter, GeoPark drilled 15 new wells, performed 2D and 3D seismic activities and shale formation potential assessments, and signed a new commercial agreement with Canadian methanol producer Methanex (Nasdaq: MEOH) to explore gas reserves in Chile.
GeoPark also executed two CEOP special operating contracts for the exploration of hydrocarbons at the Flamenco and Isla Norte blocks in southern Chile. The CEOP for the Campanario block is scheduled for 2Q12.
GeoPark's assets in Latin America include 19 hydrocarbon blocks in Chile, Colombia and Argentina.
To read the update, follow this link.