GeoPark Announces Expansion in Colombia Through the Award of a New Hydrocarbon Block In the 2014 Colombia Bidding Round - GeoPark

GeoPark Limited (“GeoPark”) (NYSE: GPRK), the Latin American oil and gas explorer, operator and consolidator with operations and producing properties in Chile, Colombia, Brazil and Argentina, today announces its continued expansion in Colombia through the award of a new exploratory license during the 2014 Colombia Bidding Round, carried out by the Agencia Nacional de Hidrocarburos (“ANH”) on July 23, 2014 in Cartagena, Colombia.

GeoPark was awarded the VIM-3 Block in the Lower Magdalena Basin, covering an area of approximately 225,000 acres. The block has an attractive oil and gas exploration potential in a large area within a proven hydrocarbon system — surrounded by existing oil and gas fields and with sparse exploration activity carried out to date.

GeoPark’s winning bid consisted of committing to a Royalty X Factor of 3% and a minimum investment program of carrying out 200 sq km of 2D seismic and drilling one exploration well, with a total estimated investment of US$22.2 million during the initial three year exploratory period. GeoPark will operate and have a 100% working interest in the block. The winning bid is subject to final signature of the contracts with the ANH, which is currently scheduled for 3Q2014.

James F. Park, CEO of GeoPark, said: “Congratulations to our Colombian team for the award of this new block, which expands and diversifies GeoPark’s existing attractive ten block portfolio in Colombia – and also continues our record of steady new project growth and consolidation throughout Latin America. The new block represents a high potential opportunity to continue to build on GeoPark’s successful track record of finding oil and gas and rapidly growing production in Colombia — in addition to leveraging current operational synergies.”

Read the full press release.