GeoPark Ltd (NYSE: GPRK) said on Oct. 23 it has inked a joint venture agreement with CEPSA Columbia SA, an affiliate of CEPSA SAU, for new ‘high-potential’ exploration acreage in the Llanos Basin in Colombia.
Through the partnership, GeoPark and CEPSA landed the Tiple Block acreage, which is adjacent to Gropark’s prolific Llanos 34 Block.
GeoPark has discovered more than 230 million barrels of oil, 3P gross and increased production from zero to over 50,000 barrels of oil per day gross in less than five years within the basin. The exploration area covers approximately 21,000 acres and has full 3-D seismic coverage.
The agreement provides for GeoPark to drill one exploration well in the Tiple Block acreage. In the event of a commercial discovery, GeoPark would acquire and operate 85% of the Tiple Block acreage, subject to other contractual conditions being met.
The well is scheduled to be drilled in the first half of 2018, with a total estimated investment of $7 million to $8 million—including drilling, completion, civil works and other facilities.
“This is a meaningful addition to our large oil and gas acreage inventory because of its geographic and geologic proximity to our rapidly-growing and highly-successful Llanos 34 Block,” James F. Park, CEO of GeoPark, said.
“It gives us more valuable land and prospects to further expand the high-impact structural and stratigraphic oil play we are pioneering in the Llanos Basin. We look forward to our first partnership with the CEPSA group – which has an important presence and track-record of success in Latin America,” he added.
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