Latin American driller GeoPark sees production tick higher
Latin America-focused oil and gas explorer GeoPark said December 20 that production inched higher from October to November, though operations were curtailed recently by pipeline issues.
GeoPark offered a business and operational update for its licenses across Latin America. The company in November realised net oil and gas production of 38,915 barrels of oil equivalent (boe)/day, up 3% from the third quarter average and 7% higher than October.
Operations from the Manati gas field in Brazil were suspended for 10 days ending December 17, however, due to necessary valve repairs on the field’s pipeline. The field is controlled by Petrobras, with GeoPark holding a 10% working interest.
In Colombia, the company said it was conducting appraisal work and putting new rigs into service across its acreage. New wells, meanwhile, were spud in Peru.
Even with the temporary setback in Brazil, GeoPark’s recent report marks a reversal from earlier this year when it said production was impacted by “extensive protests and demonstrations.”
Strikes across Colombia greeted an April tax reform proposal. Working to alleviate chronic debt, Colombian president Ivan Duque proposed a higher tax for middle- and high-income earners, sparking a major public backlash.
Protests that rocked the country from mid-May to early June blocked the transportation of crude oil, drilling equipment and personnel from reaching its operated Llanos 32 and other assets in the country. GeoPark was forced to curtail production starting in early May as a result, but said that production returned to normal in early July.
The company now says it plans on spending between $160mn-180mn next year for as many as 48 gross wells, with at least 15 of those going toward exploration or appraisal.
Assuming a Brent crude oil price of between $65-$70/barrel, GeoPark said it expects to generate as much as $140mn in free cash flow for next year.