Geopark Hldgs (LON:GPK), the AIM listed oil and gas group active in Latin America, has successfully drilled and tested a new oil well on the Guanaco oil field on the Fell Block in Chile, where GeoPark operates and has a 100% working interest. The Guanaco 4 well represents the ninth successful well drilled by GeoPark in 2010 out of ten wells drilled, completed and tested. Testing and further operations will now be carried out on the Yagan Norte 2, Ayelen 2 and Alakaluf 9 wells during the third and fourth quarter of this year.

GeoPark drilled and completed Guanaco 4 to a total depth of 2,760 metres. A production test in the Springhill formation, at approximately 2,627 metres in a 2.5 metre perforated interval, flowed at a rate of approximately 1,660 barrels per day (bpd) of oil with no water through a choke of 14 millimetres (mm) and with a well head pressure of 426 pounds per square inch (psi). The company said the results were preliminary and that further production history would be required to determine stabilised flow rates (projected to be approximately 1,000 bpd) and the extent of the reservoir. Petrophysical analysis also indicates the potential for additional production by perforating above the current interval. The well is currently being produced and marketed under temporary facilities while permanent surface facilities are being constructed.

Following the drilling of this well and preliminary interpretation of available seismic, the Guanaco field structure appears to have an area of approximately 6 sq km, suggesting a preliminary 2P reserve estimate (internal) of approximately 2.8m barrels of oil with multiple drilling opportunities. The Guanaco field is located in the south central area of the Fell Block and the new 3D seismic survey conducted during 2010 indicates possible additional structuring and resources in an up-dip position to the south. The Guanaco 5 well is programmed to be drilled during the fourth quarter of 2010. The new 3D seismic survey currently being interpreted also suggests an attractive prospect, Municion, to the east.

James F. Park, the chief executive of GeoPark, said: “We are pleased with this new drilling result from the Guanaco field which has an attractive development potential to increase crude oil production and which opens up the south-central area on the Fell Block to further new exploration. This…

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