GeoPark Announces Second Quarter 2023 Operational Update Bogota, Colombia July 17, 2023 INCREASING ACTIVITY IN THE SECOND HALF OF 2023 ACCELERATING SHAREHOLDER RETURNS GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator, today announces its operational update for the three-month period ended June 30, 2023 (“2Q2023”). All figures are expressed in US Dollars. Growth comparisons refer to the same period of the prior year, except when otherwise specified. Oil and Gas Production Consolidated average oil and gas production of 36,581 boepd, below its production potential of approximately 39,500-40,500 boepd, as previously announced on March 8, April 11 and May 3, 2023, mainly due to temporarily shut-in production in the CPO-5 block (GeoPark non-operated, 30% WI) in Colombia and to a lesser extent, in the Fell block (GeoPark operated, 100% WI) in Chile 9 rigs in operation in June 2023 (5 drilling rigs and 4 workover rigs), with 3 more rigs to be added in 3Q2023 (two drilling rigs and one workover rig) Colombia – Llanos Basin Llanos 34 block (GeoPark operated, 45% WI): Average gross production of 55,307 bopd (up 1% vs 1Q2023) Three drilling and four workover rigs currently in operation Spudded a second horizontal development well in the Tigana Field The well was drilled to a total depth of 14,030 feet and a horizontal lateral length of 1,680 feet Total depth reached in July 2023, expecting to complete the well and initiate testing in late July 2023 Second horizontal well was drilled within budget and ahead of time. Also, was drilled 16% faster, 10% lower drilling costs, and with 32% longer lateral length as compared to the first horizontal well The Company is evaluating drilling 3-4 additional horizontal wells in 2H2023 CPO-5 block: Average gross production of 17,807 bopd (up 6% vs 1Q2023), below its production potential of approximately 25,000-26,000 bopd gross, due to shut-in production of the Indico 6 and Indico 7 wells The operator is currently executing civil works and expects to resume production of the Indico 6 and Indico 7 wells in August 2023 These two wells were drilled in late 2022 and together tested over 11,000 bopd gross (or 3,300 bopd net to GeoPark). The wells are expected to stabilize production at approximately 8,000 bopd gross The two wells remained shut in for most of 1H2023[1] after the regulator (ANH) asked the operator to suspend production pending completion of required surface facilities Resuming drilling activities in 3Q2023 with one drilling rig, targeting to drill two wells in 2H2023 Pre-drilling activities underway for the Halcon 1 well, targeting an exploration prospect in the northern part of the block, close to the Llanos 34 block, expected to be spudded in September/October 2023 Llanos 87 block (GeoPark operated, 50% WI): Additional drilling activities planned for 2H2023 updip of the Zorzal 1 well discovery, where there is incremental potential identified in the Barco formation (subject to joint venture partner approval) Llanos 123 block (GeoPark operated, 50% WI): One drilling rig currently in operation Saltador 1 exploration well was spudded in late May 2023 and reached total depth in early July 2023 Preliminary logging information indicated hydrocarbons in the Barco and Mirador formations Testing activities are expected to start in July/August 2023 Pre-drilling activities underway, targeting to spud the Toritos 1 exploration well in August 2023 Llanos 124 block (GeoPark operated, 50% WI) One drilling rig currently in operation The Cucarachero 1 exploration well was spudded in July 2023 and is expected to reach total depth in August 2023 Llanos 86 and Llanos 104 blocks (GeoPark operated, 50% WI) Preliminary activities currently underway targeting to acquire over 650 square kilometers of 3D seismic, expected to start in early 2024 Once executed, this project would be one of the three biggest onshore seismic acquisition projects in Colombia 3D seismic acquisition is expected to add additional exploration prospects to GeoPark’s deep organic exploration inventory in the Llanos basin. The Llanos 86 and Llanos 104 blocks are adjacent to the CPO-5 block Colombia – Putumayo Basin Platanillo block (GeoPark operated, 100% WI): Average gross production of 2,456 bopd (up 8% vs 1Q2023) resulting from successful development drilling activities Put-8 block (GeoPark operated, 50% WI): Currently working on environmental licensing for the Bienparado exploration prospect Public hearing held in July 2023, the final decision by the regulatory body is pending Ecuador – Oriente Basin Perico block (GeoPark non-operated, 50% WI) Initiated drilling activities in July 2023, targeting to drill the Yin 2 development well and the Yang 1 exploration well in 3Q2023 Chile – Magallanes Basin Fell block (GeoPark operated, 100% WI) Ongoing commercial negotiations with ENAP, the oil offtaker in Chile, expecting to resume shut-in production of approximately 400 bopd in 3Q2023 Implemented a restructuring initiative in Chile in April 2023 to provide further cost reductions, in conjunction with a process to evaluate farm-out/divestment opportunities Enhanced ESG Performance Installed a photovoltaic solar system in the OBA export pipeline (running from the Platanillo block) that will allow GeoPark to reduce its GHG emissions and reduce energy and maintenance costs 2023 Work Program: Growing Production and Giving Back to Shareholders 2023 annual production guidance of 38,000-40,000 boepd Fully-funded 2023 capital expenditures program of $180-200 million At $80-90 per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $490-560 million and a free cash flow of $120-140 million[2] Targeting to return approximately 40-50% of free cash flow after taxes to shareholders Accelerating Shareholder Returns While Maintaining a Strong Balance Sheet Returned $15 million in cash dividends in 1H2023 ($7.5 million on March 31 and May 31, respectively, or an annualized dividend of approximately $30 million, a 5% dividend yield[3]) Acquired 1.7 million shares for $18.6 million in 1H2023 ($7.5 million in 1Q2023 and $11.1 million in 2Q2023), representing approximately 3% of shares outstanding Cash and cash equivalents of $86 million[4] as of June 30, 2023 (after paying approximately $88 million in cash taxes in 2Q2023) Upcoming Catalysts Drilling 20-25 gross wells in 2H2023, targeting attractive conventional, short-cycle development and exploration projects Key projects include: Llanos 34 block: Testing a second horizontal well and drilling 3-4 new horizontal wells Llanos 87 block: Drilling the Zorzal 2 well (subject to joint venture partner approval) CPO-5 block: Drilling two wells, including the Halcon 1 exploration well Llanos 123 block: Testing the Saltador 1 exploration well and drilling the Toritos 1 exploration well Llanos 124 block: Drilling the Cucarachero 1 exploration well Perico block: Drilling the Yang 1 exploration well and the Yin 2 development well → Read the full press release. [1] Indico 6 was shut in in December 2022 and Indico 7 was shut in in early January 2023. [2] Free cash flow is used here as Adjusted EBITDA less capital expenditures, mandatory interest payments and cash taxes. 2023 cash taxes include GeoPark’s preliminary estimates of the full impact of the new tax reform in Colombia, irrespective of the timing of its cash impact, expected in 2023 or early 2024. The Company is unable to present a quantitative reconciliation of the 2023 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of its necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2023 free cash flow forecast. Adjusted EBITDA assumes a Brent to Vasconia differential averaging $4-5 per bbl from May to December 2023. [3] Based on GeoPark’s average market capitalization from July 1 to July 12, 2023. [4] Unaudited. For further information, please contact: INVESTORS: Stacy Steimel ssteimel@geo-park.com Shareholder Value Director T: +562 2242 9600 Miguel Bello mbello@geo-park.com Market Access Director T: +562 2242 9600 Diego Gully dgully@geo-park.com Investor Relations Director T: +5411 4312 9400 MEDIA: Communications Department communications@geo-park.com SHARE
