GeoPark Announces First Quarter 2021 Operational Update - GeoPark
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GeoPark Announces First Quarter 2021 Operational Update

April 13, 2021

CAPITAL EFFICIENT AND LOW BREAKEVEN PRODUCTION DRIVES STRONG FREE CASH FLOW GENERATION

Bogota, 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, Ecuador, Chile, Brazil, and Argentina, today announced its operational update for the three-month period ended March 31, 2021 (“1Q2021”).

All figures are expressed in US Dollars. Growth comparisons refer to the same period of the prior year, except when otherwise specified.

Highlights

Oil and Gas Production and Reserves

  • Consolidated oil and gas production of 38,131 boepd
  • CPO-5 block (GeoPark non-operated, 30% WI) oil production increased to 13,213 bopd gross (compared to 7,833 bopd in 1Q2020 and 10,310 bopd in 4Q2020)
  • Proven developed reserves of 58.5 mmboe, 1P reserves of 109.3 mmboe, 2P reserves of 174.7 mmboe and 3P reserves of 270.9 mmboe
  • 1P and 2P reserve life index (RLI) of 7.4 and 11.9 years

Activity Accelerating

Llanos 34 block (GeoPark operated, 45% WI):

  • Successful drilling of four new producing wells and two disposal wells
  • Third drilling rig mobilized to start drilling in 2Q2021
  • Currently spudding the Batara 1 exploration well

CPO-5 block:

  • Ongoing 250 sq km of 3D seismic acquisition expected to add new exploration targets
  • Work underway preparing to spud the Indico 4 development well by the end of 2Q2021

Platanillo block (GeoPark operated, 100% WI):

  • Temporarily shut-in operations due to local community protests against the eradication of illegal coca plantations, production currently restored to approximately 2,400 bopd

PUT-8 block (GeoPark operated, 50% WI):

  • Ongoing 3D seismic acquisition of 112 sq km expected to be finished by 2Q2021

Fully Funded and Expanded 2021 Work Program

  • Full-year 2021 work program of $130-150 million, targeting 41,000-43,0001 boepd average production and operating netbacks of $330-370 million (assuming Brent at $50-55 per bbl)2
  • Flexible work program, quickly adaptable to any oil price scenario

Strong Risk-Managed Balance Sheet

  • Expected debt reduction with recently announced tender offer for up to $255 million of the Company’s 6.500% Senior Notes due 2024
  • $187 million of cash & cash equivalents as of March 31, 20213
  • $75 million oil prepayment facility, with $50 million committed and no amounts drawn

→ Read the full press release.

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1  2021 production assumes full-year production from the Manati gas field in Brazil (currently under a divestiture process that is subject to certain conditions and regulatory approvals) and excludes potential production from exploration drilling.
2 Brent price assumption from March to December 2021, assuming $3-4/bbl Vasconia-Brent differential.
3 Unaudited.