GeoPark Holdings Limited provides 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 metres. A production test in the Springhill formation, at approximately 2,182 metres in a 10 metre perforated interval, flowed at a rate of approximately 774 barrels per day (bpd) of oil with no water through a choke of 16 millimetres 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 metres. A production test in the Springhill formation, at approximately 2,176 metres in an 8 metre 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 metres. Several production tests were performed in the Springhill formation, at approximately 2,835 metres, 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.

Tags: Geopark Holdings Ltd.