The low-risk and low-cost exploration blocks in the Reconcavo and Potiguar basins are expected to strengthen GeoPark existing portfolio
Oil and gas exploration company GeoPark has announced the acquisition of four new exploration blocks in the Reconcavo and Potiguar basins to expand its portfolio in Brazil.
GeoPark is engaged in oil and gas exploration, operation and consolidation with operations and growth platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador.
GeoPark CEO James F Park said: “GeoPark continues to expand block by block in the most attractive proven Latin American hydrocarbon basins and cost-effectively assemble a unique risk-balanced short-, medium-, and long-term inventory of exciting new growth projects.”
GeoPark owns 100% working interest and will serve as operator for the blocks
Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP) has preliminarily awarded the REC-T-58, REC-T-67, REC-T-77 and POT-T-834 blocks through the first cycle of the Permanent Offer.
The company said that the blocks involved in the transaction represent low-risk and low-cost exploration acreage, and are expected to strengthen its existing portfolio in the Reconcavo and Potiguar basins.
In addition, the Reconcavo blocks covering an average of 124km2 area are located close to its recent light oil discovery, Praia dos Castelhanos, in the REC-T-128 block, operated by the company.
Based on existing 3D seismic and other related data, the company has identified multiple oil prospects and leads, and has committed to invest a minimum of approximately $1.3m (£1m) during the first five years of the exploration period.
In March 2019, GeoPark acquired rights to the Espejo and Perico exploration blocks located in the onshore Oriente basin in Ecuador.
The government of Ecuador awarded the blocks to the consortium comprising GeoPark and Frontera, through a production sharing contracts during the Intracampos Bid Round. The two low-risk blocks are located in Sucumbíos Province in the north-eastern region of Ecuador.
Espejo block covers an area of 63km2, while the Perico block spans an area of 72km2 and both the onshore blocks are covered with 3D seismic. The blocks are said to be in proximity to various discoveries, producing fields and already built infrastructure.