GeoPark Sees Oil Reserve Boost From Block Shared with Parex

  • Oil-producing area in Llanos 34 block continues to grow: CEO
  • Driller seeks acquistions as state-controlled companies divest

Oil driller GeoPark Ltd. said recent drilling successes at its Llanos 34 block in central Colombia will provide a “meaningful increase” to reserves.

The company announced results for the Jacana 5 well in August and will start the Jacana 6 well next month, extending the exploration boundary in the area, Chief Executive Officer James Park said in an interview in Bogota on Tuesday. Proven reserves in Colombia, Chile, Brazil and Peru were 71.1 million barrels of oil equivalent at the end of last year, the company said Feb. 29.

“This is a great project,” Park said. “The size of it keeps expanding -- we don’t know the full extent of it yet. It’s extremely economical in this environment.”

GeoPark operates and has a 45 percent stake at the Llanos 34 block, with Parex Resources Inc. holding the remaining 55 percent. GeoPark plans to acquire oil assets across Latin America as state-controlled operators including Colombia’s Ecopetrol SA, Petroleo Brasileiro SA, Petroleos Mexicanos and Argentina’s YPF SA put prospects for sale because of the plunge in oil prices.

Potential acquisition partners include LG International, the World Bank’s International Finance Corporation and Alfa SAB in Mexico, Park said.

GeoPark is targeting an average net production of 21,500 to 22,500 barrels of oil equivalent a day this year. The Santiago, Chile-based driller plans to more than quadruple production to 100,000 barrels a day of oil equivalent within five years. Development of current assets will take output to about 50,000 barrels a day, the company said.

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