News

May 20, 2009

GeoPark Holdings Raises US$11.7 Million As Investors Subscribe To Its Fast-Growing Chilean Oil And Gas Business

Showing that it is possible to raise substantial funding despite the general financial malaise, GEOPARK Holdings has successfully raised US$11.7 million through a share placing. The placing, reported to be substantially oversubscribed, was taken up by institutional investors in the UK and Chile, along with the IFC and directors of the company, including chairman Gerald O’Shaughnessy, who now holds 20.96 per cent of the enlarged share capital, and chief executive James Park, who now holds 18.45 per cent. The success of the placing and the willingness of directors to link their fortunes to those of the company is a mark of the confidence placed in this Latin America focused business, which is on track to deliver substantial production growth in the years to come.

The funds will be used to promote drilling on the company’s Fell Block in Chile.  In all, the AIM firm plans to invest US$25 to US$35 million in Chile and Argentina this year in a bid to double production.  Last year GEOPARK produced an average of 3,390 barrels of oil equivalent per day, up 138 per cent on 2007 levels, with a year-end run rate of over 6,500 boepd.  Production has already moved ahead in 2009 and this month is running at 8,000 boepd, comprising 38 million cubic...