Media Room >‘The gas deficit creates an opportunity for companies like GeoPark’ Felipe Bayón – PortafolioBogota, ColombiaAugust 13, 2025 Interview by Portafolio with Felipe Bayón, GeoPark President. Published on August 12, 2025 https://www.portafolio.co/energia/el-deficit-de-gas-abre-una-oportunidad-para-companias-como-geopark-felipe-bayon-637519 As part of reshaping its growth strategy around profitability and higher shareholder returns, oil company GeoPark has placed its bets on its natural vocation to acquire assets in Argentina’s Vaca Muerta formation, a highly strategic area for fracking, and on taking advantage of inorganic growth opportunities. This is the message of GeoPark President Felipe Bayón Pardo, who points out that the gas deficit facing the country, which could reach 30% in 2026, is an opportunity for companies with financial muscle such as this oil company, which expects to end the year with production of between 26,000 and 28,000 barrels per day. In an interview with Portafolio, the executive also said that to increase production in the energy sector fracking should be allowed, considering the results that it has shown. After the accounting impact on GeoPark’s lower profits in the first half of the year, how do you see the second half?Optimistically. The accounting impact in the second quarter was related to the specific decision to sell our assets in Ecuador. This decision was announced in the first quarter of the year and is due to a broader process of portfolio optimization that was already underway. This decision was made because those resources can be better invested in assets with more potential that allow us to increase production and generate better returns. Putting the divestment to one side, profits in the quarter were over $20 million, higher than in the previous quarter. As for the rest of the year, we are accelerating. We recently increased our capital expenditure forecast from between $80-100 million for the whole year to a range of $90-120 million. That’s no coincidence. It is a clear sign of our confidence in the business and in our ability to operate and grow with discipline. I have been at GeoPark for a little over 2 months and one of the first things I did was to deepen the entire portfolio review process. This aimed to understand how the portfolio stands and to ask ourselves difficult questions, look for opportunities, question assumptions, and above all to make sure that each investment makes sense as part of a vision of long-term value creation. What we’re doing is a serious strategic evaluation focused on three fronts: first, protecting and improving what we already do well; second, redesigning the portfolio so that it has more scale and more return; and third, returning to a clear path of growth. And that means looking at opportunities in Colombia and especially in Argentina, because Argentina is a world-class platform for a company like GeoPark. Why did you divest the Perico and Espejo blocks in Ecuador?We sold those assets because they had neither the scale nor the return that GeoPark is looking for. As I said, the decision is part of a strategic portfolio review that we announced in the first quarter that is part of our approach of reallocating capital to assets with higher potential. These assets are a very good strategic fit for the buyer. What are your projections and plans for the fields you have in Colombia? We expect to close the year with a total production of between 26,000 and 28,000 barrels per day, leveraged above all by the good performance of our key asset, the Llanos 34 Block, and also by CPO-5 and Llanos 123, which has become more important in our organic growth strategy. Llanos 123 is in the heart of the basin and has excellent potential. At Llanos 34 we continue to make improvements: we are reducing costs, increasing recovery, and we aim to end the year above our target. We are also applying new technologies to increase the recovery factor and reduce risks: stimulations to optimize wells, specific works to improve water injection efficiency, and horizontal wells to expand reservoir drainage. Enhanced oil recovery is not just technical differences but a different way of thinking and is part of our commitment to extend the useful life of fields and contribute to the country’s energy security. How much has the price of oil impacted the company’s operations and what other factors have an effect?The price of oil continues to be a critical variable but at GeoPark we start from a very clear premise: we do not control Brent and what we do control is how we operate. That is why we focus on efficiency, flexibility and discipline, which are key to how we handle complex scenarios and continue to generate value, even in challenging environments. The hedge policy has been key. In 2025 we will guarantee that 87% of production has floor prices between $68-70 per barrel, protecting cash and allowing us to capture part of price upsides. We already have hedges for some of the 2026 production with floors of $65. In operations, we reduced production costs to $12.3 per barrel and have made cost reductions throughout the company that will have an annual impact of more than $17 million. What level of crude oil prices do you work with? Do you see a risk of lower profitability due to the recent decision by OPEC+ to raise production quotas?GeoPark has historically demonstrated its ability to adapt to complex environments. As I mentioned, in highly volatile contexts such as the one at present, the company maintains a clear cash protection strategy with hedges that help stabilize revenues. The other very important effort is to work on an efficient cost structure and, above all, to have the necessary flexibility to reduce investments if prices fall even more. In situations like the OPEC+ decision, the important thing is to be prepared and have a good response. What’s the role of companies other than Ecopetrol?Their role is not to replace, but to strategically complement. Colombia needs a robust energy ecosystem, where multiple actors – large, medium and small – use their technical, operational and financial capacities to guarantee the sustainability of the sector, energy security, and the well-being of millions of Colombians. It is about having a diverse, dynamic, and technically sound industry. Companies such as GeoPark have shown things can be done well. In Casanare, where we are the main oil producer, we have drilled more than 250 wells, produced more than 200 million barrels and we continue to develop opportunities in new blocks such as Llanos 123. That is not marginal and is a real contribution to growth through generating employment, social investment, royalties and, above all, providing the energy that Colombians need. What investments are you planning in Colombia, or are investments on hold until the new government takes office? Colombia continues to be a priority for GeoPark. In 2025 we plan to invest $90-120 million, with a drilling plan of 13-19 wells including new wells and workovers. Beyond the numbers, we believe that companies, and especially those of us who operate responsibly, must play an active role in today’s Colombia. Operating well, thinking in the long term and building real relationships with the regions defines the way we work. Are you interested in more gas-focused operations in Colombia through partnerships? What opportunities are there, since there are no bidding rounds? Gas is a strategic opportunity in the evolution of Colombia’s energy sector and will undoubtedly play a leading role in the energy transition as it is a cleaner, more flexible and more reliable source of energy. Colombia is facing an expected gas deficit that could reach 30% by 2026, and that opens a window of opportunity for companies like ours with financial muscle, technical knowledge and a long-term vocation. We are always open to strategic partnerships that allow us to expand our participation in the industry, including the gas sector. At a regional level, do you see possibilities of acquiring new fields?We are actively evaluating new opportunities in the region. From the beginning I was clear in saying that GeoPark must return to growth, and inorganic business is part of that. Vaca Muerta in Argentina remains a strategic priority. It is a world-class formation, with scale, productivity, and perhaps most importantly, there is committed engagement between the public and private sectors. We have had very constructive conversations with authorities and companies, and we are exploring ways to participate in keeping with our vision and risk profile. Colombia and Argentina are the focus. What opportunities do you see in Brazil apart from your stake in the Manati field stake and where the Government has not closed new exploration? Brazil is a market that we are looking at carefully to identify opportunities that, as I said, add scale and value to our current portfolio. What should Colombia do so that its oil sector does not decline prematurely?Colombia has an enormous opportunity to continue taking advantage of its energy resources responsibly, with a long-term vision and pragmatic decisions. I have mentioned energy sovereignty – developing the country’s resources for the benefit of all Colombians – and this requires the removal of obstructions to projects that have been awarded and guaranteeing conditions that create the confidence to invest. In the medium term, we must build a consensual roadmap for an orderly energy transition. The energy transition is not a destination but a path on which oil and gas cannot be ignored. Gas is key, as a firm energy source and as a bridge to renewables. It is also important to put aside polarization and create spaces for technical, evidence-based conversation involving everyone: government, companies, academia and civil society. The industry is ready to contribute and invest and continue supplying the energy that is critical to development. Energy is invisible but everywhere, allowing surgeons to operate, food to be refrigerated, and school buses to start. Without energy there’s no growth. LEIDY JULIETH RUIZ CLAVIJO Portafolio Journalist SHARE