Each one in plain English, with the numbers worked through for a shareholder.
28 Mar 2022drilling result▲ GoodMajor
GeoPark announced a second Ecuador discovery in 2022, the Tui 1 well in the Perico block (50% WI, non-operated). It tested at 1,240 barrels of oil per day after five days, and the two discoveries together now produce about 2,000 bopd gross. Further testing is needed to confirm stable rates, and GeoPark and partner Frontera are evaluating a possible development drilling plan. This continues the Ecuador exploration thread and the Tui 1 spud planned in the January update.
GeoPark announced its first oil and gas discovery in Ecuador, from the Jandaya 1 well in the Perico block (50% WI, non-operated, partner Frontera Energy). Testing showed 890 boepd after five days, and further testing is needed to confirm stable rates and reservoir size. Oil is already being delivered to a pipeline for export sale. This resolves the Jandaya 1 testing thread from the January 19 update.
GeoPark's fourth-quarter 2021 update reported 2021 average production of 37,602 boepd and a 2022 self-funded capex plan of $160-180 million for 40-48 wells, with nine rigs running and its first Ecuador well drilled. It plans to use free cash flow for debt reduction and for more dividends and buybacks. The Manati (Brazil) sale, agreed in November 2020 for R$144.4 million, still had unmet conditions with a March 31, 2022 deadline. Three small Argentine blocks are being sold for $16 million, with closing expected in late January 2022. Cash was $100 million at December 31, 2021, and the company has paid down $105 million of debt in 2021.
GeoPark announced a new gas discovery, Jauke Oeste, in its Fell block in Chile (100% working interest, operated). The first well tested at an average 4.4 million cubic feet of gas per day (729 boepd) plus 52 bopd of condensate. It is already producing and selling. The filing says more production history is needed to confirm stable flow rates and the size of the reservoir. Three more Chile exploration wells are planned: Leun 1 (Flamenco, 100%), Huillin 1 (Isla Norte, 60%) and Koo 1 (Campanario, 50%).
