GeoPark Announces 2020 Work Program and Investment Guidelines - GeoPark
Go Back

GeoPark Announces 2020 Work Program and Investment Guidelines

November 6, 2019

PRODUCTION GROWTH AND MORE FREE CASHFLOW

Bogotá, Colombia – GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador, today announced its work program and investment guidelines for 2020. (All figures are expressed in US Dollars).

A conference call to discuss third quarter 2019 financial results and the 2020 work program and investment guidelines will be held on November 7, 2019 at 10:00 a.m. Eastern Standard Time.

2020 Work Program: Main Principles and Approach

Technical

  • Increase oil and gas production and reserves
  • Effective development and production growth in the Llanos 34 block (GeoPark operated, 45% WI)
  • Define new plays, leads and prospects
  • Initiate exploration studies in the recently acquired exploration acreage adjacent and nearby to GeoPark’s core Llanos 34 block, targeting to start drilling in 2021
  • Initiate exploration drilling in the prolific Oriente basin in Ecuador
  • Test oil prospects in the Tierra del Fuego blocks in Chile

Economic

  • Allocate investment capital to best shareholder value-adding projects
  • Capital expenditure program fully funded within cashflow
  • Grow adjusted EBITDA and operating cashflow
  • Develop and add new projects with break evens below $40-50/bbl oil price
  • Ongoing cost reduction efforts to become lowest cost operator
  • Maximize net present value per share for existing assets
  • Continue returning value to shareholders through dividends and buybacks

Strategic

  • Proven flexible program, adaptable to lower oil price scenarios
  • Achieve scale
  • Continue developing long-term strategy in the Marañon-Oriente-Putumayo petroleum system
  • Testing high-potential unconventional projects
  • Develop and grow strategic partnerships with Ecopetrol/Hocol and ONGC
  • Continue strengthening ESG metrics with GeoPark’s proven internal SPEED program
  • Promote innovation and the adoption of best practices across the portfolio

2020 Guidance ($60-65/bbl Brent)

The 2020 production guidance reflects 5-10% growth over 2019 average production and excludes potential production from the 2020 exploration drilling program.

The 2020 work program of $130-145 million includes drilling of 36+ gross wells, with approximately 75% of the total amount expected to be allocated to development capital and 25% to exploration activities.

→ Read the full press release