GeoPark Announces 2021 Work Program and Investment Guidelines


Self-Funded and Versatile Work Program with Low-Value Manufacturing Progress, Improvement of the Excessive-Potential CPO-5 Block and Returning Worth to Shareholders

GeoPark Restricted (“GeoPark” or the “Firm”) (NYSE: GPRK), a number one impartial Latin American oil and fuel explorer, operator and consolidator with operations and progress platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador, immediately introduced its work program and funding tips for 2021. (All figures are expressed in US {Dollars}).

A convention name to debate third quarter 2020 monetary outcomes and the 2021 work program and funding tips will likely be held on November 5, 2020 at 10:00 a.m. Jap Normal Time.

2021 Work Program: Most important Ideas and Method

GeoPark has authorised a self-funded and risk-balanced 2021 work program aimed toward offering tangible worth to its shareholders by worth returns and the persevering with improvement of its distinctive low-cost, low-risk challenge portfolio, contemplating the next ideas:

Technical

  • Environment friendly improvement of the Llanos 34 block (GeoPark operated, 45% WI)

  • Speed up improvement & exploration actions within the CPO-5 block (GeoPark non-operated, 30% WI)

  • Outline new performs, leads and prospects on its seven million acreage land place in ten basins

  • Provoke exploration research and drilling in GeoParks giant, low-risk Llanos basin exploration acreage

  • Begin-up actions in Ecuador to provoke drilling in 2H2021 or early 2022

  • Improve base manufacturing ranges in Chile, Argentina and Brazil

Financial

  • Allocate funding capital to greatest shareholder value-adding tasks decided on 4 key standards: technical upside, strategic worth, financial return and social and environmental affect

  • Confirmed versatile capital expenditure program absolutely funded inside cashflow

  • Ongoing price discount efforts to additional enhance GeoParks main price efficiencies

  • Protect stability sheet power with instruments and security nets in place

  • Maximize web asset worth per share

  • Proceed returning worth to shareholders

Strategic

  • Confirmed versatile program, adaptable to decrease oil value situations

  • Develop and add new short-cycle tasks with low breakevens

  • Develop strategic partnerships with Ecopetrol/Hocol, ONGC and Boru Vitality

  • Promote innovation and the adoption of greatest practices throughout the portfolio

Environmental, Social and Governance

  • Keep protocols and disaster response plans to maintain folks working safely and manufacturing flowing with groups decreased to minimal and again up groups in place

  • Strengthen ESG+ metrics with GeoParks confirmed inside SPEED program

  • Proceed constructing robust relationships with neighbors and communities

  • Accomplice with the United Nations Improvement Program (UNPD) to cut back social inequality in areas of affect

  • Grid connection and renewable tasks within the Llanos 34 block to additional scale back carbon footprint anticipated to be operational by 2022

2021 Steering ($40-45/bbl Brent)

The 2021 manufacturing steerage displays common manufacturing of 40,000-42,000 boepd, excluding the potential manufacturing from the 2021 exploration drilling program.

The 2021 work program of $100-120 million consists of drilling of 31-34 gross wells, with roughly 65% to be allotted to improvement actions and 35% to exploration actions.

Utilizing the bottom case value assumption of $40-45/bbl Brent, GeoPark can execute a risk-balanced work program to proceed rising its enterprise by producing, creating and exploring its portfolio of belongings, absolutely funded inside cashflow, sustaining a powerful stability sheet and returning worth to its shareholders.

The 2021 work program displays additional enhancements to the Firms main prices efficiencies with an working netback to capital expenditures ratio of two+ occasions and an working netback to improvement capital of three.5+ with Brent at $40-45 per bbl.

The desk under offers the principle highlights of the 2021 work program:

2021 Work Program

Base Case ($40-45/bbl Brent)

Common Manufacturing

40,000-42,000 boepd

Whole 2021 Capital Expenditures

$100-120 million

Improvement Capital

$60-70 million

Working Netback1

$210-280 million

Improvement/Appraisal Wells (Gross)

26-28 wells

Exploration Wells (Gross)

5-6 wells

Whole Wells (Gross)

31-34 wells

2021 Work Program Particulars

  • Manufacturing goal: 40,000-42,000 boepd common manufacturing

  • Capital expenditure program: $100-120 million absolutely funded by cashflow, to be allotted as follows:

    • Colombia – $95-115 million: Deal with creating the Llanos 34 block, accelerating improvement of the CPO-5 block and buying seismic and delineating prospects within the Llanos and Putumayo exploration blocks.

      The work program in Colombia consists of:
      – Llanos 34 block: 23-25 improvement and appraisal wells plus amenities to proceed optimizing working and transportation prices
      – CPO-5 block: 5-6 wells (2 improvement and appraisal and 3-Four exploration wells plus 3D seismic)
      – Llanos 94 block (GeoPark non-operated, 50% WI): one exploration properly
      – Llanos 32 block (GeoPark non-operated, 12.5% WI): one appraisal and one exploration properly
      – Seismic acquisition, reprocessing and different preliminary and preoperational actions in exploration blocks within the Llanos and Putumayo basins

  • Ecuador – $4-5 million: 3D seismic and different preliminary actions to arrange for drilling within the Espejo (GeoPark operated, 50% WI) and Perico (GeoPark non-operated, 50% WI) blocks in 2H2021 or early 2022

  • Chile, Argentina and Brazil – $1-2 million: Effectively intervention actions and amenities to boost base manufacturing ranges

Worth Returns to Shareholders: Money Dividends and Share Buyback Program

As a part of the Firms dedication to return worth to its shareholders, immediately GeoParks Board of Administrators declared a unprecedented and a quarterly money dividend for 2020 and a share buyback program, as follows:

  • 2020 Extraordinary Money Dividend of $0.0206 per share ($1.25 million) payable on December 9, 2020

  • 2020 Quarterly Dividend of $0.0206 per share ($1.25 million) payable on December 9, 2020

  • Share Buyback Program to repurchase as much as 10% of shares excellent starting on November 5, 2020 and expiring on November 15, 2021

For additional particulars, please check with the separate launch revealed immediately.

Work Program Versatile at Completely different Oil Value Eventualities

In keeping with the Firms strategy in prior years, GeoParks 2021 work program might be quickly tailored to totally different oil value situations, illustrating the top quality of its belongings, its low-break-even manufacturing and powerful monetary efficiency in decrease and unstable oil value environments.

  • Above $50/bbl Brent oil value: Capital expenditures might be expanded to $140-160 million by including incremental tasks, focusing on common manufacturing of 42,000-44,000 boepd

  • Under $35/bbl Brent oil value: Capital expenditures might be decreased to $50-85 million specializing in the lowest-risk tasks that produce the quickest cashflow, focusing on common manufacturing of 38,000-40,000 boepd

GeoPark at present has commodity threat administration contracts in place protecting a portion of its manufacturing for 2021. GeoPark screens market circumstances on a steady foundation and expects to enter into extra new commodity threat administration contracts to safe minimal oil costs for its 2021 manufacturing and past.

CONFERENCE CALL INFORMATION

GeoPark administration will host a convention name on November 5, 2020 at 10:00 am (Jap Normal Time) to debate the 3Q2020 outcomes and the work program and funding tips for 2021.

To take heed to the decision, members can entry the webcast positioned within the Investor Assist part of the Firms web site at www.geo-park.com, or by clicking under:

https://event.on24.com/wcc/r/2770543/D46DCDE802A42ABE385B37543F22E6FC

events might take part within the convention name by dialing the numbers offered under:

United States Members: 866-547-1509
Worldwide Members: +1 920-663-6208
Passcode: 2754509

Please permit additional time previous to the decision to go to the web site and obtain any streaming media software program that is perhaps required to take heed to the webcast. An archive of the webcast replay will likely be made out there within the Investor Assist part of the Firms web site at www.geo-park.com after the conclusion of the stay name.

____________________________

1 Assuming $4/bbl Vasconia-Brent differential.

GLOSSARY

Adjusted EBITDA

Adjusted EBITDA is outlined as revenue for the interval earlier than web finance prices, revenue tax, depreciation, amortization, the impact of IFRS 16, sure non-cash objects similar to impairments and write-offs of unsuccessful efforts, accrual of share-based funds, unrealized outcomes on commodity threat administration contracts and different non-recurring occasions

Adjusted EBITDA per boe

Adjusted EBITDA divided by complete boe gross sales volumes

Bbl

Barrel

Boe

Barrels of oil equal

Boepd

Barrels of oil equal per day

Bopd

Barrels of oil per day

D&M

DeGolyer and MacNaughton

F&D prices

Discovering and improvement prices, calculated as capital expenditures divided by the relevant web reserves additions earlier than adjustments in Future Improvement Capital

Mboe

Thousand barrels of oil equal

Mmbo

Million barrels of oil

Mmboe

Million barrels of oil equal

Mcfpd

Thousand cubic ft per day

Mmcfpd

Million cubic ft per day

Mm3/day

Thousand cubic meters per day

NPV10

Current worth of estimated future oil and fuel revenues, web of estimated direct bills, discounted at an annual charge of 10%

Working netback

Income, much less manufacturing and working prices (web of depreciation expenses and accrual of inventory choices and inventory awards, the impact of IFRS 16), promoting bills, and realized outcomes on commodity threat administration contracts and different non-recurring occasions. Working Netback is equal to Adjusted EBITDA web of money bills included in Administrative, Geological and Geophysical and Different working prices

PRMS

Petroleum Sources Administration System

SPE

Society of Petroleum Engineers

WI

Working Curiosity

NOTICE

Extra details about GeoPark might be discovered within the “Investor Assist” part on the web site at www.geo-park.com.

Rounding quantities and percentages: Sure quantities and percentages included on this press launch have been rounded for ease of presentation. Share figures included on this press launch haven’t in all instances been calculated on the idea of such rounded figures, however on the idea of such quantities previous to rounding. Because of this, sure share quantities on this press launch might differ from these obtained by performing the identical calculations utilizing the figures within the monetary statements. As well as, sure different quantities that seem on this press launch might not sum on account of rounding.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This press launch comprises statements that represent forward-looking statements. Lots of the forward-looking statements contained on this press launch might be recognized by way of forward-looking phrases similar to anticipate, imagine, might, anticipate, ought to, plan, intend, will, estimate and potential, amongst others.

Ahead-looking statements that seem in quite a lot of locations on this press launch embrace, however are usually not restricted to, statements concerning the intent, perception or present expectations, concerning numerous issues, together with anticipated 2020 and/or 2021 manufacturing progress, monetary efficiency, oil costs and capital expenditures plan. Ahead-looking statements are primarily based on administrations beliefs and assumptions, and on data at present out there to the administration. Such statements are topic to dangers and uncertainties, and precise outcomes might differ materially from these expressed or implied within the forward-looking statements on account of numerous components.

Ahead-looking statements communicate solely as of the date they’re made, and the Firm doesn’t undertake any obligation to replace them in gentle of latest data or future developments or to launch publicly any revisions to those statements with a view to mirror later occasions or circumstances, or to mirror the incidence of unanticipated occasions. For a dialogue of the dangers going through the Firm which might have an effect on whether or not these forward-looking statements are realized, see filings with the U.S. Securities and Change Fee.

Oil and fuel manufacturing figures included on this launch are acknowledged earlier than the impact of royalties paid in sort, consumption and losses.

View supply model on businesswire.com: https://www.businesswire.com/news/home/20201104005799/en/

Contacts

INVESTORS:
Stacy Steimel Shareholder Worth Director
Santiago, Chile
T: +562 2242 9600
ssteimel@geo-park.com

Miguel Bello Market Entry Director
Santiago, Chile
T: +562 2242 9600
mbello@geo-park.com

MEDIA:
Communications Division
communications@geo-park.com

GeoPark might be visited on-line at www.geo-park.com.



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