15-07-08 GeoPark Holdings, the Latin American oil and gas exploration and production company with producing properties in Chile and Argentina has announced the discovery of a new oilfield on the Fell Block in Chile following the successful drilling and testing of the Aonikenk-1 exploration well.
GeoPark operates and has a 100 % working interest in the Fell Block.

GeoPark drilled and completed the Aonikenk-1 well to a total depth of 2,377 metres. A production test in July 2008 in the Springhill formation, at approximately 2,270 metres in a 5 metre perforated interval, flowed without stimulation, at a rate of approximately 1,201 bpd of oil, 1.2 mm cfpd of gas and 1,465 bpd of water through a choke of 12 mm and with a well head pressure of 896 psi.
These are preliminary results following a six day production test and further production history will be required to determine stabilised flow rates from this well and the extent of the reservoir. The produced oil (approximately 30 degrees API) is currently being trucked to a tank facility near the Fell Block and engineering is underway to construct the necessary processing and selling facilities.

The Aonikenk-1 represents a new field discovery, which was drilled on a geological structure defined following the interpretation of GeoPark's 3D seismic program. Geological and geophysical interpretations suggest the opportunity for further development drilling in the Aonikenk field and a new drilling location has been selected to be drilled in Q4 2008.
GeoPark has drilled and successfully started production on eight new wells in Chile since its long term drilling program began in June 2007. Five other new wells have been drilled and are currently waiting for testing, sidetracking or remedial operations. This includes the Santiago Norte-5 which was recently drilled and which will begin testing operations in late July 2008.

Additionally, a hydraulic fracture stimulation program will be initiated on the Santiago Norte field in late July 2008 upon arrival of the service company frac units. GeoPark's second drilling rig for its Chile operations has now arrived at the Fell Block and is currently being rigged-up at a new location to begin drilling in the Monte Aymond field in August 2008.
GeoPark has been carrying out an aggressive and structured $ 100 mm capital investment program during 2006 to 2008 to explore for and develop oil and gas in the Magallanes region in Chile, where GeoPark became the first private-sector oil and gas producer in 2006.

GeoPark's 2008 capital investment program of $ 57 mm in Chile and Argentina includes the drilling of 17-20 wells and construction of new production and infrastructure facilities. The program represents a balanced mix of production, development, and exploration projects focused on both increasing oil and gas production and adding new oil and gas reserves. GeoPark's current production, including the Aonikenk test production, is over 4,000 boe per day.
Commenting, James F. Park, CEO of GeoPark, said: "We are very pleased with the results from the Aonikenk oil discovery. In addition to representing another increase in both revenues and oil and gas reserves of the company, this new oil production will provide an important balance to our overall gas production and sales mix. The Aonikenk oil discovery also opens up a new potential oil region in the northeast portion of the Fell Block which will be further developed and explored with additional drilling this year."