GeoPark Announces Independent Exploration Potential Evaluation of Latin American Portfolio of 770 Million – 1.5 Billion Boe - GeoPark
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GeoPark Limited (“GeoPark”) (NYSE: GPRK), the Latin American oil and gas explorer, operator and consolidator with operations and producing properties in Colombia, Chile, Brazil, Argentina and Peru¹, announced today the results of an independent audit of the Company’s exploration resources as of December 31, 2014, prepared by Gaffney, Cline & Associates (“GCA”).

GeoPark has interests in 31 blocks, covering over six million acres, in 12 proven hydrocarbon basins, in five Latin American countries, with a risk-balanced mix of production, development, exploration and unconventional resource opportunities. GeoPark’s current production is approximately 19,500 BOEPD and oil and gas reserves (including Peru), as of December 31, 2014 certified by DeGolyer & MacNaughton, include proven (P1) reserves of 63 MMBOE, proven and probable (2P) reserves of 122 MMBOE, and proven, probable and possible reserves (3P) of 221 MMBOE. DeGolyer & MacNaughton has estimated the Net Present Value (NPV10) of GeoPark’s 2P reserves to be $1.7 Billion (using a forward oil price curve beginning at $50 per barrel for 2015).

GCA’s audit was focused on the evaluation of new prospective exploration resources covering 98% of GeoPark’s total exploration resources beyond its known and certified oil and gas proven, probable and possible reserves.

Year End 2014 Exploration Resource Audit Highlights

  • 768 to 1,465 MMBOE of total exploration resources (including 220 to 597 MMBOE in unconventional oil resources)
  • Total exploration resources are contained in 148 opportunities (112 prospects, 30 leads, 4 plays and 2 unconventional projects) on 31 evaluated blocks in five countries
  • Total exploration resources (best case) include 634 MMbbl of oil (94%) and 251 BCF (42 MMBOE) of natural gas (6%)
  • 38% or 257 MMBOE of the total conventional exploration resources (best case) are in prospects and 35% or 238 MMBOE are in leads and plays. Unconventional resources represent 27% or 181 MMBOE of the Company’s total exploration resources

Commenting, James F. Park, CEO of GeoPark, said: “This exploration resource estimate confirms the extent, depth and potential of GeoPark’s in-house project inventory and the running room we have for continued organic growth. In addition to our already-discovered and significant oil and gas reserve base (with 2P reserves over 122 million BOE), we own a big mix of assets with the potential for finding 770 million to 1.5 billion BOE of new oil and gas reserves. These represent attractive assets, located in proven hydrocarbon basins with existing infrastructure, and which are managed by GeoPark’s geoscience and operations team, with our 70+% drilling success rate since 2008 and consistent nine year growth track record.”

¹Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval