“These results are provisional and it will require a complete accounting to determine the volume of flow and the extent of the reservoir,” Geopark said in a report to Chile’s market regulator.

Last month, Geopark announced that they had completed Alakuf 2 and Alakuf 3, two oil and gas wells. Both are found in the Fell block and are part of a government program meant to promote exploration and development in the area.

According to Geopark, they have a plan to drill nine wells this year. Furthermore, they have expanded into two areas in southern Chile called “Tranquillo” and “Otway.” Together, these two areas contain up to 12,000 kilometers of surface area that make for a lot of growth for Geopark.

The President of Geopark, Gerald O’Shaughnessy, told Reuters that, “We hope to drill new wells for development in the fourth quarter of 2009.”

Since its creation, Geopark has grown quickly. They have three blocks in Brazil and three in Chile. They were the first private company to produce oil and gas and operate in Chile. Its base of headquarters is in Buenos Aires, Brazil.

US drilling outlays soar to $226.4 billion in 2007

WASHINGTON, DC, Jan. 5 — US oil and gas drilling expenditures soared to a record $226.4 billion in 2007, more than doubling the previous record of $109.8 billion a year earlier, the American Petroleum Institute said on Jan. 5.

API said the Joint Association Survey of Drilling Costs for 2007, the latest year for which figures are available, showed that records also were set in average costs per well and per foot.

Average costs per US oil well grew 82% to $4 million in 2007 from $2.2 million, while per foot costs climbed 78% year-to-year to an average of $717 from $412, according to API. It said that average costs per domestic natural gas well rose 105% to $3.9 million in 2007 from $1.9 million in 2006 as average costs per foot grew 74% year-to-year to $604 from $348.

I guess for those who would argue that they aren’t spending enough, how much should they spend? Part of this was due to much higher costs for drilling rigs – driven by high demand, but companies also drilling more wells:

“But despite a doubling of the cost to drill and develop wells, we also witnessed a rise in both the number of wells drilled, which increased 4% from 2006, and the average depth of those wells, which increased 9%,” he continued.

I think it’s a safe bet, though, that drilling outlays will fall substantially in 2008.