The company drilled and completed the Guanaco 4 well to a total depth of 2,760m, and a production test in the Springhill formation, at approximately 2,627m in a 2.5m perforated interval, flowed at a rate of approximately 1,660 barrels per day (bpd) of oil with no water through a choke of 14 millimetres and with a well head pressure of 426 pounds psi.
Further production history will be required to determine stabilized flow rates (projected to be approximately 1,000bpd) and the extent of the reservoir.
Petrophysical analysis also indicates the potential for additional production by perforating above the current interval, and the well is currently being produced and marketed under temporary facilities while permanent surface facilities are being constructed.
Following the drilling of this well and preliminary interpretation of available seismic, the Guanaco field structure appears to have an area of approximately 6sqkm, suggesting a preliminary 2P reserve estimate (internal) of approximately 2.8 million barrels of oil with multiple drilling opportunities.
The Guanaco field is located in the south central area of the Fell Block and the new 3D seismic survey conducted during 2010 indicates possible additional structuring and resources in an up-dip position to the south.
The Guanaco 5 well is programmed to be drilled during the fourth quarter of 2010, and the new 3D seismic survey currently being interpreted also suggests an attractive prospect, Municion, to the east.
The Guanaco 4 well represents the ninth successful well drilled by GeoPark in 2010 out of ten wells drilled, completed and tested.
Testing and further operations will now be carried out on the Yagan Norte 2, Ayelen 2 and Alakaluf 9 wells during the third and fourth quarter of this year.
