Saturday, June 21, 2014

Chile: GeoPark Ltd. Finds New Natural Gas Block in Tierra del Fuego

According to The Latin American Tribune, GeoPark Ltd. said Thursday (June 19) it has made a new natural gas find at a block it is developing in Chile’s far southern province of Tierra del Fuego.

The company said in a press release that its Ache 1 well – located on the Fell Block, in which GeoPark has a 100% stake, was drilled and completed to a total depth of 9,694 feet.

A production test through different chokes in the Tobifera formation yielded an average production rate of 9.2 million standard cubic feet per day of gas, the release said.

COMMENT: Further production history, however, is necessary to determine stabilized flow rates and the extent of the reservoir, it added.

“Surface facilities and flow lines will be required in order to commercialize this new discovery,” GeoPark said.

The Santiago-based oil and gas explorer, operator and consolidator, which achieved output of 7,400 barrels of oil equivalent per day in the first quarter of 2014, is the first and largest private oil and gas producer in Chile.

GeoPark is carrying out a $150 million investment program in Chile this year, with 15-20 new wells being drilled on the Fell Block and an additional 17 to 23 wells at the Flamenco, Campanario and Isla Norte blocks in Tierra del Fuego.

Chile has very limited hydrocarbon reserves and nearly all oil and gas finds and production activity occur in the country’s far south.