Kazakhstan: LG-Geopark to drill Block 8 prospect

LG International Corp., Seoul, and GeoPark Holdings Ltd., Buenos Aires, accelerated a strategic partnership entered into in 2010.

March 30, 2011

By OGJ editors
HOUSTON, Mar. 30 – LG International Corp., Seoul, and GeoPark Holdings Ltd., Buenos Aires, accelerated a strategic partnership entered into in 2010.

GeoPark has reached an in-principle agreement to sell to LGI a 10% interest in GeoPark Chile Ltd., a company registered in Bermuda, for $70 million. The transaction is expected to close in the second quarter of 2011.

Separately, and subject to regulatory approvals, GeoPark has reached an in-principle agreement to invest up to $10 million in the drilling of an exploratory well on the Sholkara prospect in LGI-operated Block 8 in Kazakhstan, which would give GeoPark a 25% participating interest in the block.

The Sholkara prospect has an unrisked mean oil resource estimate of 100-400 million bbl.

Both transactions are subject to the signing of definitive legal agreements and final approval of the GeoPark and LGI boards.