GeoPark Ltd., Bogota, Colombia, reached gross production of 56,000–57,000 b/d from Llanos 34 block in Colombia in April, the highest level in 12 months, and more than the block’s first-quarter 2024 average gross production of 53,001 b/d.
The increased production is attributed to successful development drilling and workover activities, the company noted in an Apr. 25 release.
Two horizontal wells were drilled in the year’s first quarter, including a first horizontal well in Jacana field that initiated testing in April 2024. Seven horizontal wells in aggregate have been put on production since the beginning of the horizontal well drilling program in early 2023 and are now producing 9,300 b/d gross. The block is currently producing 54,000–55,000 b/d gross.
Under a new offtake and prepayment agreement, GeoPark will sell and deliver to Vitol a minimum of 20,000 b/d of oil from the GeoPark-operated Llanos 34 block (45%).
The agreement improves GeoPark’s price realizations by 15¢/bbl compared with the current agreement, the company said in a release May 9. The offtake agreement will begin July 1, 2024, for a minimum of 20 months and up to 36 months.
As part of the deal, GeoPark gains access to committed funding from Vitol for up to $300 million, with an option to increase by another $200 million, in prepaid future oil sales over the period of the offtake contract.