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Geopark Holdings, Nautical Petroleum, Dragon Oil, Europa Oil & Gas, Baobab Resources news briefs

By Fox-Davies Capital

Geopark Holdings has formed a new strategic partnership with LG International Corporation ("LGI"), the Korean conglomerate to jointly acquire and develop upstream oil and gas projects in Latin America. LGI is the energy, natural resource and trading affiliate of LG Corporation, the large international Korean company with 147 subsidiaries operating in over 50 countries and with annual sales exceeding US$100 billion. LGI has successfully invested and operated in the oil and gas exploration and production business for over twenty years including current upstream oil and gas projects in Oman, Vietnam and Kazakhstan. LGI has adopted a long term strategy of investing in oil and gas upstream assets in emerging resource-rich countries and has targeted Latin America as a new growth region. The objective of the LGI-GeoPark strategic growth partnership is to build a risk-balanced portfolio of upstream opportunities across Latin America - a rich under-explored hydrocarbon region whose economic future is dependent on the development of secure energy supplies. The intent is to leverage the platform and experience of both partners to identify and carry out side-by-side acquisitions; initially targeting upstream projects in the US$100-500m range size. GeoPark will be the manager of the strategic partnership and Operator of acquired projects. GeoPark will have the right to earn additional equity interests in each project, in addition to its working interest, in accordance with a formula based upon the financial performance of each acquired project. The initial term of the partnership is three years and the target for closing the first acquisition is during 2010.

Nautical Petroleum announced that the Rig Agreement for the drilling of the Catcher prospect has been signed. The Tertiary (Paleocene) Catcher prospect, operated by EnCore Oil plc, in UK Central North Sea block 28/9, is expected to be spudded in May 2010.

Dragon Oil completed the initial testing of both the Dzheitune (Lam) A/142 and 13/143 development wells. Dzheitune (Lam) A/142 well was drilled to a depth of 3,961m by the Iran Khazar rig. The well tested at a combined rate of 2,103bopd with the short string contributing 1,180bopd and the long string contributing 923bopd. Dzheitune (Lam) 13/143 was drilled to a depth of 3,450m by Rig 40. The well tested at a combined rate of 2,168bopd with the short string and the long string contributing 1,144bopd and 1,024bopd respectively. Further testing and optimisation of both wells are scheduled to take place over the coming weeks. The Iran Khazar rig has repositioned to workover a well on the same platform in order to enhance its production. Rig 40 has skidded to Slot 1 on the Dzheitune (Lam) 13 platform and will shortly commence drilling the Dzheitune (Lam) 13/144 well.

Europa Oil & Gas provided an operational update on the Hykeham-1Z well. Since running perforating guns over the 4m of Basal Sandstone in February, operations have concentrated on lifting the reservoir fluids without success. Casing pressure testing conducted yesterday to approximately 4,000psi without leaking-off has confirmed what was becoming clear to management: that the original perforation charges failed to penetrate the casing and there is no connection to the reservoir. Earlier pressure readings on the tubing head indicate a leaking packer. The well therefore remains completely untested. The forward programme on the well will involve perforating the pay interval with more substantial perforating guns, likely to be run on tubing. Planning this will take around 2 weeks.

Baobab Resources announced the resumption of drilling at the Tete project in Mozambique. Scout diamond drilling at the Chimbala prospect commenced on Wednesday and will include both diamond and reverse circulation (RC) drilling for a combined total of approximately 12,000m and focus will be on improving confidence in the 400 to 700Mt Exploration Target estimated in 2009.