GeoPark Begins
Production at Fell Block in Chile
GeoPark Holdings 5/31/2006
GeoPark Holdings Limited has started production at the Ovejero and Nika
Fields in the Fell Block in Chile. This new production builds on
production from the Molino field which started-up in early May 2006,
and brings GeoPark's total production in Chile to approximately 6
million cubic feet per day of gas and 60 barrels per day of condensate;
or approximately 1,060 barrels of oil equivalent per day (boepd). The
gas production is being delivered and sold to Methanex, the largest
regional gas consumer and major global methanol producer, under the
terms of a contract signed between GeoPark and Methanex in April 2006.
Condensate production will be sold to Empresa Nacional de Petroleo
(ENAP), the Chilean state-owned oil and gas company.
GeoPark, which operates three blocks in Argentina and one block in
Chile covering over 700,000 acres, is the only independent upstream oil
and gas company operating in Chile other than the state-owned ENAP.
GeoPark's aggregate production from Argentina and Chile will now be
around 1,240 boepd.
Commenting on these developments, Gerald O'Shaughnessy, Executive
Chairman of GeoPark, said:
"Since the completion of our IPO in May 2006, the Company has secured a
100+ACU- interest in the Fell Block and accelerated the build up of its oil
and gas production. This latest increase in production will generate
additional cash flows and allow us to pursue the growth strategy
articulated at the time of our IPO.
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