GeoPark announces further drilling success in Colombia – hits Y/E production targets

GeoPark, a leading independent Latin  American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Chile, Brazil, Argentina, and Peru, has announced the successful drilling and testing of the Tigana Sur 4 development well in the Tigana oil field in the Llanos 34 Block (GeoPark operated with a 45% working interest) in Colombia, resulting in consolidated net exit production of approx. 24,400 boepd.

GeoPark drilled and completed the Tigana Sur 4 development well to a total depth of 11,414 feet. A test conducted with an electric submersible pump in the Guadalupe formation resulted in a production rate of approximately 1,800 bopd of 14.7 degrees API, with 3% water cut, through a choke of 46/64 mm and wellhead pressure of 78 pounds per square inch. Additional production history is required to determine stabilized flow rates of the well. Surface facilities are in place and the well is already in production.

The Tigana Sur 4 well was drilled to total depth in a record time of 8.8 days, with an estimated drilling and completion cost of $3.1 million. At current oil prices and production rates, this well is expected to have a payback period of less than 6 months and an IRR greater than 500%. The Tigana oil field, discovered by GeoPark in December 2013, has a current production rate of approx. 17,000 bopd gross from 9 wells that have produced over 10 million barrels of oil to-date. Adjacent to Tigana, the Jacana oil field, discovered by GeoPark in September 2015, has a current production rate of approx. 12,600 bopd gross from 6 wells that have produced more than 3 million barrels of oil to-date.

GeoPark has initiated its 2017 work program, with completion activities currently underway in the Chiricoca 1 exploration well – located northwest of the Tigana oil field – with testing expected in mid-January 2017, and with the spudding of the Tigana Sur 6 development well. By the end of January, a second rig will be used to start drilling the Jacana 11 appraisal well.

GeoPark’s dynamic and fully funded 2017 work program includes a Base Case ($45-50/bbl Brent Oil Price) with capital expenditures of $80-90 million to accelerate production growth by 20-25% to 26,500-27,500 boepd with the drilling of approximately 30-35 gross wells and an estimated exit production of 30,000+ boepd. Approx. 70-75% of capital expenditures will be allocated to Colombia where GeoPark expects to continue exploring and appraising the Tigana/Jacana oil field trend to determine the full extent of the oil accumulation.

Further detail on production, operating highlights and drilling schedule will be released on Monday January 9, 2017.