GeoPark Announces Fourth Quarter 2020 Operational Update - GeoPark
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GeoPark Announces Fourth Quarter 2020 Operational Update

January 7, 2021

DESPITE PANDEMIC-DRIVEN INDUSTRY COLLAPSE,
GEOPARK’S UNIQUE GROWTH TRACK RECORD IS EXTENDED TO 18 CONSECUTIVE YEARS

SELF-FUNDED 2020 WORK PROGRAM COMPLETED WITH 87% DRILLING SUCCESS INCLUDING SUCCESSFUL APPRAISAL IN THE CPO-5 BLOCK AND RESUMPTION OF DIVIDENDS AND SHARE BUYBACKS

FULLY FUNDED 2021 CAPITAL ALLOCATION
BALANCING LOW-COST GROWTH AND RETURNING VALUE TO SHAREHOLDERS

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 December 31, 2020 (“4Q2020”).

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

Highlights

Extending 18-Year Production Growth Track Record and Hitting Production Targets

  • Annual average production of 40,192 boepd in 2020, hitting 40,000-42,000 boepd guidance
  • 2020 exit production over 40,000 boepd
  • Consolidated oil and gas production of 39,304 boepd
  • CPO-5 block (GeoPark non-operated, 30% WI) production increased to 10,310 bopd gross, 55% higher compared to 3Q2020

Effective Work Program Execution and Capital Efficiency

  • Successful drilling of Indico 2 appraisal well in the CPO-5 block in 4Q2020, currently producing 6,200 bopd of light oil with an estimated payback under 3 months
  • 2020 cost and investment reductions totaled over $290 million across regional platform
  • 2020 work program reduced by 65% to $65-75 million including 23 gross wells drilled (21 operated) with an 87% success rate, comprising development, appraisal and exploration wells

Cash Generation / Preservation Provided Resumption of Shareholder Returns

  • 2020 Extraordinary Cash Dividend of $0.0206 per share ($1.25 million), paid on December 9, 2020
  • 2020 Quarterly Dividend of $0.0206 per share ($1.25 million), paid on December 9, 2020
  • Resumed discretionary share buyback program, having acquired 106,486 shares for $1.0 million since November 6, 2020, while executing self-funded and flexible work programs

Strong Risk-Managed Balance Sheet

  • $201 million of cash & cash equivalents as of December 31, 20201  ($163.7 million as of Sept. 30, 2020)
  • $75 million oil prepayment facility, with $50 million committed and no amounts drawn
  • $132.9 million in uncommitted credit lines2
  • Long-term financial debt maturity profile with no principal payments until September 2024
  • Continuously adding new hedges over the next 12 months

→ Read the full press release.

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1  Unaudited.
2  As of September 30, 2020 (unaudited).