GeoPark publishes LatAm operations update

Press release from GeoPark:

Santiago, Chile - June 3, 2019 - 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, Chile and Ecuador, today announced new operational successes across its Latin American asset platform.

Colombia Flowline On Stream

The flowline connecting the Llanos 34 block (GeoPark operated, 45% WI) to the Oleoducto de los Llanos (ODL), one of Colombia’s principal pipelines, is now fully operational with oil flowing from the Jacana oil field to the ODL regional infrastructure. The flowline (with a capacity of up to 100,000 bopd) supports future production growth in the Llanos 34 block, reduces overall operational risk and contributes to further reductions in transportation and operating costs. Net capital expenditures totaled approximately $16 million (gross $36 million), within budget.

Brazil Oil Field Discovery

GeoPark drilled and completed the Praia dos Castelhanos 1 exploration well in the REC-T-128 block (GeoPark operated, 70% WI) to a total depth of 8,431 feet. A production test in the Agua Grande formation resulted in a production rate of approximately 300 bopd of 34 degrees API, with no water. Long-term testing is expected to begin in the coming weeks. Additional production history is required to determine stabilized flow rates and the extent of the reservoir.

Exploration drilling in Brazil is expected to continue during 3Q2019 with the drilling of an exploration well in the POT-T-747 block (GeoPark operated, 70% WI), in the mature, onshore Potiguar basin.

Chile Gas Discovery

GeoPark drilled and completed the Jauke 2 gas well in the Fell block (GeoPark operated, 100% WI) to a total depth of 9,701 feet to the Tobifera formation which is deeper than the formation currently under production. A production test resulted in an average production rate of 5.9 million standard cubic feet of gas per day (988 boepd) with a wellhead pressure of 1,646 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 already in place, the well is in production, and the gas is being sold to Methanex.

The Jauke gas field was discovered during August 2018 with production in the Springhill formation. It forms part of the large Dicky geological structure, which has the potential for multiple development drilling opportunities targeting the Springhill and the Tobifera formations. Petrophysical analysis also indicates hydrocarbon potential in the shallower El Salto formation which will be tested in the future.

Additional drilling is expected during 2H2019 to continue developing and delineating the large Jauke/Dicky geological structure.

Ecuador Blocks Final Signature

On May 22, 2019, GeoPark signed final participation contracts for the Espejo (GeoPark operated, 50% WI) and Perico (GeoPark non-operated, 50% WI) blocks in Ecuador, which were awarded to GeoPark in the Intracampos Bid Round held in Quito, Ecuador in March 2019.

The Espejo and Perico blocks are attractive, low-risk exploration blocks located in the northeastern part of Ecuador, in the Oriente basin. Both blocks are covered with 3D seismic and are adjacent to multiple discoveries, producing fields and existing infrastructure. From existing 3D seismic and other relevant data, more than five multilayer, ready-to-drill light oil prospects and leads have been identified. Geoscience evaluation is ongoing and field operations are expected to start in late 2019 or early 2020.

The Oriente basin is one of the most prolific petroleum systems in Latin America, currently producing more than 500,000 bopd, with access to infrastructure, spare capacity and a well-developed service industry.

James F. Park, Chief Executive Officer of GeoPark, said: "The richness and variety of GeoPark’s deep organic project inventory, over our expansive Latin American platform, provides multiple upside growth drivers and secures downside protection across this big, exciting, underexplored continent."