Production in Colombia increases by 30%

Latin American producer GeoPark released a first quarter operations update on Monday, describing the results of recent development activities.

GeoPark is primarily active in the Llanos basin in Colombia. The company owns about one million acres in the basin, where it has identified several potential oil plays. Net production in Colombia averaged 19.3 MBOEPD, up 30% from Colombian production in Q1 2016. GeoPark outlined the results of the eight wells drilled in the basin in the first quarter:

  • Chiricoca 1 exploration well was successfully completed and put on production in 1Q2017. The well is currently producing approximately 950 bopd gross, with less than 1% water cut.
  • Tigana Sur 6 development well was drilled, completed and showed a net pay of approximately 57 feet, which represents a significant thickening (~60%) of the average net pay of the lower Guadalupe 3 formation compared to other producing wells in the Tigana oil field. The well is currently producing approximately 1,700 bopd gross.
  • Jacana 11 appraisal well was drilled approximately 2,500 meters south-west of Jacana 6, extending the Tigana/Jacana oil play towards the southern limits of the Llanos. The well is currently producing approximately 2,200 bopd with a 1% water cut.
  • Jacana 7 and Jacana 8 development wells and Jacana Sur 2 appraisal well were drilled with testing expected during April/May.

Drilling in Colombia in the second quarter of 2017 will focus on testing four exploration prospects, according to the company. An additional two wells will develop previously delineated plays in the Llanos basin.

GeoPark Reports Colombian Successes

Source: GeoPark

Additional wells planned for Chile, Argentina

Production in Chile is down 18% from first quarter last year due to field decline. GeoPark’s Chilean properties have seen little drilling activity since 2014, so decline is to be expected. The company reports that it is negotiating with Methanex, a Canadian international methanol supplier, to extend a gas supply agreement with Chile. As a result of these negotiations, first quarter production from Chile has been kept in storage and will likely be sold in Q2 2017.

GeoPark plans to drill three wells in the second quarter of 2017. Two wells will develop previously-established plays, while one will target a new zone in GeoPark’s acreage.

The company plans to begin exploration in the Neuquén basin in Argentina later this month in partnership with BASF, a multinational chemical company. GeoPark’s exploration well recently drilled in Brazil encountered minimal success. The well targeted three zones, but only one zone showed traces of oil. After detailed analysis, the company elected to plug and abandon the well.

GeoPark released its annual report today, which can be found here.

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