com:20080616:RnsP7468W
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RNS Number : 7468W  
  
Geopark Holdings Limited  
  
16 June 2008  
  
 
     16 June 2008  
  
  
GEOPARK HOLDINGS LIMITED  
  
DRILLING UPDATE IN CHILE  
  
NIKA OESTE AND BUMP HILL NEW FIELD DISCOVERIES  
  
GeoPark Holdings Limited ("GEOPARK" or the "Company"), the Latin American oil 
and gas exploration and production company with producing properties in Chile 
and Argentina (AIM: GPK), is pleased to announce the discovery of two new gas 
fields - Nika Oeste and Bump Hill -- on the Fell Block in Chile following the 
successful drilling and testing of two new gas wells. GEOPARK operates and has a 
100% working interest in the Fell Block.  
  
GEOPARK drilled and completed the Nika Oeste 3 well to a total depth of 3,023 
metres on a geological structure that had been re-defined following the 
interpretation of GEOPARK's 3D seismic program. A production test in the 
Springhill formation, at approximately 2,960 metres in an 11.5 metre perforated 
interval, flowed, without stimulation, at a rate of approximately 4.7 million 
cubic feet per day (mmcfpd) of gas, 70 barrels per day (bpd) of condensate and 
14 bpd of water through a choke of 10 millimetres (mm) and with a well head 
pressure of 1,470 pounds per square inch (psi). These are preliminary results 
and further production history will be required to determine stabilised flow 
rates from this well and the extent of the reservoir. Geological and geophysical 
interpretations suggest the opportunity for further development drilling 
locations along a structural trend to the northeast. Construction has been 
initiated on a gas pipeline to connect the Nika Oeste 3 well to GEOPARK's Kimiri 
Aike gas process and compression facility which connects with the regional gas 
infrastructure and the Methanex Corporation's methanol plant located 120 
kilometres from the Fell Block.  
  
GEOPARK drilled and completed the Bump Hill 1 well to a total depth of 2,979 
metres on a newly defined geological structure following interpretation of 
GEOPARK's 3D seismic program. A production test in the Springhill formation, at 
approximately 2,820 metres in a 4 metre perforated interval, flowed, without 
stimulation, at a rate of approximately 0.9 million cubic feet per day (mmcfpd) 
of gas, 5 bpd of condensate and 4 bpd of water through a choke of 8 mm and with 
a well head pressure of 420 psi. These are preliminary results and further 
production history will be required to determine stabilised flow rates from this 
well and the extent of the reservoir. Construction has been initiated on a gas 
pipeline to connect the Bump Hill 1 well to GEOPARK's Kimiri Aike gas process 
and compression facility which connects to the regional gas infrastructure and 
to Methanex.   
  
Targeted completion of the two new gas pipelines is July 2008 with an expected 
increase in total sales production of 900 barrels of oil equivalent per day 
(boepd). GEOPARK has drilled and successfully put on production seven new wells 
in Chile since its long term drilling program began in June 2007. Five other new 
wells have been drilled and are currently waiting for testing, sidetracking or 
remedial operations. Facilities are now being prepared to begin testing the 
Aonikenk 1 well at the end of June 2008. GEOPARK is currently drilling the 
Santiago Norte 5 well with an expected completion date in July 2008. GEOPARK 
will also begin a test hydraulic fracture stimulation program on the Santiago 
Norte field in July 2008 upon arrival of the service company frac units. GEOPARK 
is also mobilising a second drilling rig for its Chile operations with an 
expected start-up date on the Fell Block in July 2008.  
  
GEOPARK has been carrying out an aggressive and structured US$100 million 
capital investment program during 2006 to 2008 to explore for and develop oil 
and gas in the Magallanes region in Chile, where GEOPARK became the first 
private-sector oil and gas producer in 2006. GEOPARK's 2008 capital investment 
program of US$57 million in Chile and Argentina includes the drilling of 17-20 
wells and construction of new production and infrastructure facilities. The 
program represents a balanced mix of production, development, and exploration 
projects focused on both increasing oil and gas production and adding new oil 
and gas reserves.  
  
Commenting, Gerald E. O'Shaughnessy, Chairman of GEOPARK, said: "We are pleased 
with the results from the Nika Oeste and Bump Hill discoveries which will 
increase both the revenues and reserves of the Company.  These results also 
increase our inventory of drilling opportunities delineated from GEOPARK's 3D 
seismic campaigns and interpretations. In particular, Nika Oeste is part of a 
larger structural trend which appears to have additional development drilling 
opportunities".    
  
In accordance with the AIM Rules, the information in this report has been 
reviewed by Dr. Carlos Gulisano, PhD, geologist (31 years oil and gas 
experience) and Managing Director of GEOPARK, and Mr. Gustavo Henderson, BS, 
engineer (27 years oil and gas experience) and Director of Operation Services 
for GEOPARK.  
  
GEOPARK can be visited online at www.geo-park.com   
  
 For further information please contact:  
  
 
  GeoPark Holdings                                    
  James F. Park (Buenos Aires)   +54 11 4312 9400     
  Nick Clayton (London)          +44 (0)20 7734 9922  
                                                      
  Oriel Securities                                    
  Richard Crawley (London)       +44 (0)20 7710 7600  
                                                      
  
  
This information is provided by RNS  
  
The company news service from the London Stock Exchange  
  
  END  
  
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