GeoPark Reports Results for the Second Quarter Ended June 30, 2015 - GeoPark
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GeoPark Limited (“GeoPark”) (NYSE: “GPRK”), the Latin American oil and gas explorer, operator and consolidator with operations in Colombia, Chile, Brazil, Argentina, and Peru1 reports its quarterly results for the second quarter 2015.

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



  • Oil and gas production reached 19,575 boepd in 2Q2015 led by continuing production growth in Colombia
  • GeoPark’s drilling campaign restarted in June 2015 with two rigs operating in Colombia
  • Oil production in Llanos 34 Block (operated by GeoPark with 45% WI) achieved record production of 27,000 bopd gross by the end of 2Q2015
  • Construction of facilities underway for Ache Gas Field in Fell Block (operated by GeoPark with 100% WI) in Chile with an expected start-up in 4Q2015
  • Surface compression plant completed in the Manati Field (non-operated with 10% WI) in Brazil with start-up scheduled for 3Q2015
  • Re-opening of La Cuerva oil field (temporarily shut-in since 1Q2015) with more efficient cost structure (operating costs reduced by over 50%) to generate positive cash flows at low oil prices
  • Exploration well Chachalaca 1 in Llanos 34 Block (operated by GeoPark with 45% WI) was drilled to a total depth of 12,300 feet, with indications of hydrocarbons from electric log interpretations in both the Guadalupe and Mirador formations. Testing operations are currently underwayFinancial:
  • Adjusted EBITDA increased to $28.1 million in 2Q2015 (67% increase compared to 1Q2015) and operating netback increased to $23.2 per boe (44% increase compared to 1Q2015) due to continuing cash cost reductions and improved oil prices
  • Cash position of $105.3 million at the end of 2Q2015, representing a $14 million increase since the end of 1Q2015
  • Capital expenditures were reduced by 84% to $10.5 million in 2Q2015 compared to $65.7 million in 2Q2014 (and compared to $10.3 million in 1Q2015)
  • Cash costs were reduced by 33% to $20 per boe in 2Q2015, as compared to 2Q2014, resulting from ongoing cost reduction efforts and improved efficiencies, combined with the depreciation of local currencies. (Cash costs includes Production and Operating costs, G&G, G&A and Selling expenses)
  •  Net loss of $9.4 million in 2Q2015
  • Long-term financial debt maturity with over 80% due in 20201 Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval, expected in 2015.

Strategic / New Business Highlights:

  • Acquired a 50% interest in a high potential low cost Neuquen Basin block (CN-V) in Argentina in partnership with Wintershall, which includes two shallow light oil prospects (GeoPark estimation of 23-42 gross million barrels) with additional leads and plays, including upside potential in the Vaca Muerta shale play
  • Released an exploration resource evaluation of GeoPark’s Latin American asset platform (conducted by Gaffney, Cline & Associates) with exploration resources estimated to be 770 Million – 1.5 Billion boe
  • Signed an amendment to the gas sales contract with Petrobras in Brazil to cover 100% of Manati field gas reserves
  • Signed concession contract for the Exploratory Block PN-T-597 in the Parnaiba Basin in Brazil (that had been awarded in Round 12 in November 2013)


James F. Park, Chief Executive Officer of GeoPark, said: “At the end of 2014, we moved quickly to adjust our work programs and cost structure to prepare for and accommodate a sustained period of lower oil prices in the $45-50 per barrel range. Our results during the second quarter reflect these ongoing adjustments with lower operating, production and G&A costs, significantly reduced capital expenditures, and an increased cash position, while generally maintaining production levels. Our cost efficiency efforts in the first half of the year have allowed us to restart a shut-in oil field and we have also restarted our successful drilling program in Colombia, with some initial positive indications. Likewise, we are moving forward to find exceptional shareholder value-adding acquisitions and are pleased to partner again with Wintershall, in the CN-V Neuquen block which has a good strategic fit (with respect to geology, potential, cost and timing) with our existing asset portfolio in proven hydrocarbon basins across Latin America. GeoPark’s asset mix, agility and regional reputation are generating attractive opportunities – both organic and inorganic – to continue on our steady long term growth track record.”

Read the full press release.