GeoPark Announces Third Quarter 2020 Operational Update - GeoPark
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GeoPark Announces Third Quarter 2020 Operational Update

October 14, 2020

INCREASED PRODUCTION AND RESUMED DRILLING ACTIVITY PRIORITIZING SHORT-CYCLE LOW-COST DEVELOPMENT AND EXPLORATION PROJECTS START-UP DRILLING ON CPO-5 BLOCK

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 September 30, 2020 (“3Q2020”).

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

Highlights

Increasing Production and Re-engaging Work Program

  • Consolidated oil and gas production of 38,845 boepd in 3Q2020, up 5% compared to 2Q2020
  • Reopening temporary shut-ins and resuming drilling campaign with three new wells put on production in
  • the Llanos 34 block (GeoPark operated, 45% WI)
  • Producing approximately 40,000 boepd by the end of 3Q2020
  • Full-year 2020 work program of $65-75 million ($25-35 million during 2H2020) targeting 40,000-42,000
  • boepd annual average production and operating netbacks of $230-260 million assuming Brent of $35-40
  • per bbl¹
  • Fully funded and flexible work programs, quickly adaptable to any oil price scenario

Capital Strength and Risk Management Levers

  • Combination of cost and investment reductions exceed $290 million across regional platform
  • $163 million of cash and cash equivalents as of September 30, 2020²
  • $75 million oil prepayment facility, with $50 million committed and no amounts drawn
  • $140.3 million in uncommitted credit lines³
  • Long-term financial debt maturity profile with no principal payments until September 2024
  • Continuously adding new hedges for the next 15 months

Health and Safety Actions and Results

  • Protocols, preventive measures and crisis response plans in place across six-country regional platform
  • Field teams sharply reduced to a minimum with back-up teams and contingencies in place to keep
  • people working safely and production flowing
  • First company in the E&P sector to obtain Bureau Veritas certification on biosecurity protocols to mitigate and manage the impact of Covid-19 in GeoPark Colombia operations
  • GeoPark closely engaged with local communities implementing an extraordinary range of measures to fight Covid-19 with efforts coordinated at local, regional and federal levels to support and compensate for limited local resources

→ Read the full press release.

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¹ Brent price assumption from July to December 2020, assuming a Brent to Vasconia differential averaging $5 per bbl.
² Unaudited.
³ As of June 30, 2020 (unaudited).