GeoPark discovers oil at two Chilean wells

GeoPark Holdings Limited (GPK) is pleased to provide an update on its drilling activities on the Fell Block in Chile including the successful testing of two new oil wells - Alakaluf 6 and Alakaluf 8. GeoPark operates and has a 100% working interest in the Fell Block.

Well Alakaluf 6 was drilled and completed to a total depth of 2,244 meters. A production test in the Springhill formation, at approximately 2,182 meters in a 10 meter perforated interval, flowed at a rate of approximately 774 barrels per day (bpd) of oil with no water through a choke of 16 millimeters and with a well head pressure of 137 pounds per square inch. Surface facilities have been constructed and oil is now being produced and marketed. (These are preliminary results and further production history will be required to determine stabilised flow rates.)

Well Alakaluf 8 was drilled and completed to a total depth of 2,263 meters. A production test in the Springhill formation, at approximately 2,176 meters in an 8 meter perforated interval, tested at a rate of approximately 234 bpd of oil with no water. Surface facilities are being constructed and a beam-pumping unit being installed, with a production target of approximately 200 bpd of oil, and a start date of 3 March 2010. (These are preliminary results and further production history will be required to determine stabilised flow rates.)

Well Dicky 16 was drilled and completed to a total depth of 2,895 meters. Several production tests were performed in the Springhill formation, at approximately 2,835 meters, that tested water and some gas. However, a mechanical failure of the bridge plug occurred which may have influenced the results and the test is considered inconclusive. Further testing will be conducted in the future since the upper zones remain prospective.

Well Guanaco 3 was drilled and completed to a total depth of 2,751 meters. Production testing in the Springhill formation shall begin next week with results expected in early March 2010.

Well Aonikenk Sur 1 began drilling on 15 February and is targeted to reach total depth in March 2010.

For 2010, GeoPark is planning a work and investment program totaling US$50+ million and consisting of a 14-18 well drilling program, 2D and 3D seismic surveys and an expansion of its production infrastructure. GeoPark's production is currently 7,800 barrels of oil per day equivalent (boepd).

Commenting, Gerald E. O'Shaughnessy, Chairman, said: "We are pleased with the successful results from the Alakaluf field, which allows us to continue to build our crude oil production. During 2010, we estimate revenues will result 60% from crude oil production and 40% from natural gas production. New seismic interpretations on the Alakaluf field also suggest an extension of the field reservoir to the southeast and which shall be tested in subsequent wells. These results represent a good start to our ambitious drilling and investment program for 2010."



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