Oil and gas exploration company GeoPark announced Wednesday the acquisition of two blocks in Ecuador, Kallanish Energy reports.
The purchase is the first investment in Ecuador for the company, headquartered in Chile, with operations in other South American countries.
The two blocks are Espejo and Perico, located in the onshore Oriente Basin, in the country’s northeast region. The blocks cover 15,650 acres and 17,700 acres, respectively. Analysis shows potential for light oil, with field operations expected to commence between the end of 2019 and early 2020.
The Oriente Basin is one of the most prolific in Latin America, producing more than 500,000 barrels per day of crude. GeoPark’s total investment is expected to be $60 million over the next four years, with regulatory approvals and execution of contracts are expected in Q2.
“Our entry into Ecuador gives GeoPark an exciting new platform in the country with the third largest reserves in Latin America, and further advances one of our key long-term growth strategies, tying together the common petroleum system of southern Colombia, Ecuador and northern Peru,” said CEO James F. Park.
This post appeared first on Kallanish Energy News.