GeoPark Announces 2021 Work Program and Investment Guidelines - GeoPark
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GeoPark Announces 2021 Work Program and Investment Guidelines

November 4, 2020

SELF-FUNDED AND FLEXIBLE WORK PROGRAM WITH LOW-COST PRODUCTION GROWTH DEVELOPMENT OF THE HIGH-POTENTIAL CPO-5 BLOCK 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, Peru, Argentina, Brazil, Chile and Ecuador, today announced its work program and investment guidelines for 2021. (All figures are expressed in US Dollars).

A conference call to discuss third quarter 2020 financial results and the 2021 work program and investment guidelines will be held on November 5, 2020 at 10:00 a.m. Eastern Standard Time.

2021 Work Program: Main Principles and Approach

GeoPark has approved a self-funded and risk-balanced 2021 work program aimed at providing tangible value to its shareholders through value returns and the continuing development of its unique low-cost, low-risk project portfolio, considering the following principles:

Technical

  • Efficient development of the Llanos 34 block (GeoPark operated, 45% WI)
  • Accelerate development & exploration activities in the CPO-5 block (GeoPark non-operated, 30% WI)
  • Define new plays, leads and prospects on its seven million acreage land position in ten basins
  • Initiate exploration studies and drilling in GeoPark’s large, low-risk Llanos basin exploration acreage
  • Start-up activities in Ecuador to initiate drilling in 2H2021 or early 2022
  • Enhance base production levels in Chile, Argentina and Brazil

Economic

  • Allocate investment capital to best shareholder value-adding projects determined on four key criteria: technical upside, strategic value, economic return and social and environmental impact
  • Proven flexible capital expenditure program fully funded within cashflow
  • Ongoing cost reduction efforts to further improve GeoPark’s leading cost efficiencies
  • Preserve balance sheet strength with tools and safety nets in place
  • Maximize net asset value per share
  • Continue returning value to shareholders

Strategic

  • Proven flexible program, adaptable to lower oil price scenarios
  • Develop and add new short-cycle projects with low breakevens
  • Grow strategic partnerships with Ecopetrol/Hocol, ONGC and Boru Energy
  • Promote innovation and the adoption of best practices across the portfolio

Environmental, Social and Governance

  • Maintain protocols and crisis response plans to keep people working safely and production flowing with teams reduced to minimum and back up teams in place
  • Strengthen ESG+ metrics with GeoPark’s proven internal SPEED program
  • Continue building strong relationships with neighbors and communities
  • Partner with the United Nations Development Program (UNDP) to reduce social inequality in areas of influence

→ Read the full press release.