GeoPark Announces Consolidated 2022 Certified 2P Reserves of 128 Million BOE With Net Present Value (after Tax) of $1.8 Billion - GeoPark
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GeoPark Announces Consolidated 2022 Certified 2P Reserves of 128 Million BOE With Net Present Value (after Tax) of $1.8 Billion

Bogotá, Colombia
February 3, 2023

In Colombia:
2022 Certified 2P Reserves of 110 Million BOE
With Net Present Value (after Tax) of $1.6 Billion
105% Reserve Replacement of Proven Developed Reserves

GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator, today announced its independent oil and gas reserves assessment, certified by DeGolyer and MacNaughton Corp. (D&M), under PRMS methodology, as of December 31, 2022.

All reserves included in this release refer to GeoPark working interest reserves before royalties paid in kind, except when specified. All figures are expressed in US Dollars. Definitions of terms are provided in the Glossary on page 11.

2022 Year-End D&M Certified Oil and Gas Reserves and Highlights:

Colombia Reserves

  • PD Reserves: Proven developed (PD) reserves in Colombia of 50.4 mmboe, with a PD reserve life index (RLI) of 4.1 years
  • 1P Reserves: Proven (1P) reserves in Colombia of 69.9 mmboe, with a 1P RLI of 5.7 years. Net present value after tax discounted at 10% (NPV10 after tax) of 1P reserves of $1.1 billion
  • 2P Reserves: Proven and probable (2P) reserves in Colombia of 109.9 mmboe, with a 2P RLI of 8.9 years. NPV10 after tax of 2P reserves of $1.6 billion
  • 3P Reserves: Proven, probable and possible (3P) reserves in Colombia of 163.6 mmboe, with a 3P RLI of 13.3 years. NPV10 after tax of 3P reserves of $2.2 billion
  • Future Development Capital: Future development capital to develop 1P, 2P and 3P reserves in Colombia of $2.2 per barrel, $2.1 per barrel and $2.2 per barrel, respectively

Consolidated Reserves

  • PD Reserves: PD reserves of 56.0 mmboe, with a PD RLI of 4.0 years
  • 1P Reserves: 1P reserves of 76.1 mmboe, with a 1P RLI of 5.4 years. NPV10 after tax of 1P reserves of $1.2 billion
  • 2P Reserves: 2P reserves of 128.4 mmboe, with a 2P RLI of 9.1 years. NPV10 after tax of 2P reserves of $1.8 billion
  • 3P Reserves: 3P reserves of 196.3 mmboe, with a 3P RLI of 13.9 years. NPV10 after tax of 3P reserves of $2.6 billion
  • Future Development Capital: Future development capital to develop 1P, 2P and 3P reserves of $2.1 per barrel, $2.7 per barrel and $2.8 per barrel, respectively

Net Present Value and Value Per Share

  • 2P NPV10 after tax of $1.8 billion
  • Net debt-adjusted 2P NPV10 after tax of $24.7 per share ($21.0 per share in Colombia)

Recent Events (Not included in the 2022 Year-End D&M Certification)

  • Llanos 34 (GeoPark operated, 45% WI): Guaco Sur 1 exploration well was spudded and reached total depth in December 2022. Initial testing activities carried out in the Guadalupe formation currently show a production rate of 976 bopd of 22 degrees API with 11% water cut, after two days of testing
  • CPO-5 (GeoPark non-operated, 30% WI): Spudded the Yarico 1 exploration prospect in late January 2023, targeting an exploration prospect adjacent to the Mariposa field, expecting to reach total depth in late February or early March 2023. Yarico 1 is expected to be followed by the Halcon 1 exploration well, targeting an exploration prospect in the northern part of the block, adjacent to the Llanos 34 block
  • Llanos 87 (GeoPark operated, 50% WI): Tororoi 1 exploration well reached total depth in December 2022, with preliminary logging information indicating hydrocarbons in the Ubaque, Guadalupe (Barco) and Mirador formations. Currently drilling the Zorzal 1 exploration well, targeting to reach total depth by mid-February 2023
  • Platanillo (GeoPark operated, 100% WI): Alea NW 1 exploration well was spudded in September 2022 with preliminary logging information indicating hydrocarbons in the U and N formations. Production tests in the N formation started in January 2023, with initial rates of 245 bopd

2023 Work Program: Growing Production, Drilling More Wells and Giving Back to Shareholders

  • 2023 production guidance of 39,500-41,500 boepd (assuming no production from the exploration drilling program)
  • Self-funded 2023 capital expenditures program of $200-220 million to drill 50-55 gross wells (including 10-15 low-risk high-potential exploration and appraisal wells)
  • At $80-90 per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $510-580 million and a free cash flow1 of $120-140 million2
  • Targeting to return approximately 40-50% of free cash flow after taxes to shareholders

Andrés Ocampo, Chief Executive Officer of GeoPark, said: “On the back of our large inventory of low-risk, low-cost and profitable reserves, once again GeoPark increased production, cash flow and shareholder returns in 2022. We begin 2023 uniquely positioned to continue generating value through development of our multi-year project inventory with more production and more drilling, including an extensive exploration program on proven acreage that can be quickly converted to production and cash flow and a strong commitment to return 40-50% of free cash flow to shareholders.”

 

→ Read the full press release.

 

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1 The Company is unable to present a quantitative reconciliation of the 2023 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2023 free cash flow forecast.

2 Free cash flow is used here as Adjusted EBITDA less capital expenditures, mandatory interest payments and cash taxes. 2023 cash taxes include GeoPark’s preliminary estimates of the full impact of the new tax reform in Colombia, irrespective of the timing of its cash impact, expected in 2023 or early 2024.

 

INVESTORS:

Stacy Steimel
ssteimel@geo-park.com
Shareholder Value Director
T: +562 2242 9600

Miguel Bello
mbello@geo-park.com
Market Access Director
T: +562 2242 9600

Diego Gully
dgully@geo-park.com
Investor Relations Director
T: +5411 4312 9400

MEDIA:
Communications Department
communications@geo-park.com

Source: GeoPark Limited