GeoPark Announces Second Quarter 2020 Operational Update

GETTING BACK TO BUSINESS WITH PRODUCTION AND DRILLING RESUMING IN 2H2020

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, Peru, Argentina, Brazil, Chile and Ecuador, today announced its operational update for the three-month period ended June 30, 2020 (“2Q2020”).

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

Highlights

Health and Safety Actions and Results
• Protocols, preventive measures and crisis response plans in place across 6-country regional platform
• Field teams reduced to a minimum with back-up teams and contingencies in place
• Supporting local communities with safety, medical and food supplies
• Office teams moved to work remotely from home

Operational and Cost Savings Actions and Results
• Consolidated oil and gas production of 36,912 boepd in 2Q2020 due to temporary shut-ins, no drilling activity and limited maintenance works during the quarter
• Over $290 million in ongoing cost savings and capital investment reductions across regional platform – including voluntary salary reductions
• Received regulatory approvals to reclassify the flowline connecting the Llanos 34 block to regional infrastructure into a pipeline, contributing to reduced operational risk, further cost savings and reduced carbon footprint

Capital Strength and Risk Management Levers
• $157.7 million of cash and cash equivalents as of June 30, 2020¹
• $75 million oil prepayment facility, with $50 million committed and no amounts drawn
• $130.7 million in uncommitted credit lines²
• Long-term financial debt maturity profile with no principal payments until September 2024
• S&P and Fitch reaffirmed GeoPark’s long-term corporate credit rating at B+
• Added new hedges for the next 12 months, now reaching 27,500 bopd in 3Q2020, 25,500 bopd in 4Q2020, 9,000 bopd in 1Q2021 and 6,500 bopd in 2Q2021. New hedges include a portion providing protection to Vasconia local marker in Colombia

Opening Up Production and Reengaging Work Program
• Reopened 70-80% of temporary production shut-ins totaling 6,500-7,500 boepd
• Resuming drilling campaign in 2H2020 with 6-8 gross wells in the Llanos 34 block (GeoPark operated,
45% WI) and 1-2 gross wells in the CPO-5 block (GeoPark non-operated, 30% WI)
• Expanding full-year 2020 work program to $65-75 million (from prior $45-50 million) targeting 40,000- 42,000 boepd average production and operating netbacks of $220-240 million assuming Brent of $35 per bbl³
• Fully funded and flexible work programs, quickly adaptable to any oil price scenario

→ Read the full press release

_____________________________
¹ Unaudited.
² March 31, 2020 (unaudited).
³ Brent oil price assumption from April to December 2020, assuming a Brent to Vasconia differential averaging $5 per bbl.