Geopark Infor11 Nov 2019 19:26
Geopark presented its strategy for next year, where it analyzes investments of between US $ 110 million and US $ 115 million that will be focused on a growth of oil and gas production between 5% and 10%. The idea, according to a company statement, is "to allocate investment capital to the best projects that add value to shareholders and to have a program of capital expenditures fully financed with cash flow".
The projects that will receive investments will be those that by profitability work with oil below US $ 40-US $ 50 per barrel in order to protect the cash flow.
Also in the investment projects that reduce costs will be sought in order to be "the operator with the best cost" in the countries where it operates, which include operations and platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador.
Among the projects that are already established, the report highlighted that it will boost the growth of production in the Llanos 34 block and initiate "exploration studies in recently acquired exploration areas that are adjacent to and close to the key GeoPark asset, the block Plains 34, aiming to start drilling in 2021. "
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Exploration drilling will also begin in the Oriente basin of Ecuador and will "test" prospects in Tierra del Fuego in Chile.
The long-term strategy also shows the need to develop and make alliances with Ecopetrol / Hocol and Ongc, in addition to testing high-potential non-conventional projects.
The total 2020 work program will also include investments of between US $ 10; US $ 15 million for Chile; up to US $ 10 million in Ecuador; up to US $ 5 million in Argentina; between US $ 0.5 and US $ 1.5 million in Brazil, and up to US $ 1.5 million in Peru. Thus, in total, between US $ 130 and US $ 145 million in the region, with the focus on Colombia.
That total budget includes the drilling of more than "36 gross wells, with approximately 75% of the total amount planned to be allocated to development capital and 25% to exploration activities," they added.
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