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Press release content from Business Wire. The AP news staff was not involved in its creation.

GeoPark Announces Fourth Quarter 2019 Operational Update

January 7, 2020 GMT

BOGOTA, Colombia--(BUSINESS WIRE)--Jan 7, 2020--

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 December 31, 2019 (“4Q2019”).

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

Fourth Quarter 2019 Highlights

Production: Hitting New Records and Reaching a 17-Year Consistent Growth Track Record

Operations: Strong Execution with New Exploration, Appraisal and Development Drilling Successes

In Colombia:

In Chile:

Full Year 2019 Drill Bit Success:

Portfolio Growth: Strategic Expansion in Colombia with New Company and Acreage Acquisitions

1 La Cuerva and Yamu blocks sold on July 1, 2019.

2 On November 15, 2019, GeoPark announced that it will acquire the entire issued and to be issued share capital of Amerisur with closing expected in January 2020, subject to customary regulatory approvals.

Catalysts: 1Q2020

Breakdown of Quarterly Production by Country

The following table shows production figures for 4Q2019, as compared to 4Q2018:

   4Q2019     4Q2018











% Chg.

Colombia33,311   33,117   1,16230,641   +9%
Argentina   2,384   1,583   4,804     2,383   0%
Total   41,786   35,456   37,971     38,741   +8%

a) Includes royalties paid in kind in Colombia for approximately 1,587 bopd in 4Q2019. No royalties were paid in kind in Brazil, Chile or Argentina.

Quarterly Production Evolution

(boepd)   4Q2019   3Q2019   2Q2019   1Q2019   4Q2018
Colombia   33,311   31,578   32,191 a   32,131 a   30,641 a
Argentina   2,384   2,384   2,365   2,505   2,383
Total   41,786   39,619   39,201   39,557   38,741

a) Colombian production includes approximately 640 bopd, 765 bopd and 888 bopd during 2Q2019, 1Q2019 and 4Q2018, respectively, from the La Cuerva and Yamu blocks that were sold on July 1, 2019.

Oil and Gas Production Update


Overall oil and gas production grew by 8% to 41,786 boepd in 4Q2019 from 38,741 boepd in 4Q2018, due to increased production in Colombia and Chile, partially offset by lower production in Brazil. Oil represented 85% of total reported production compared to 84% in 4Q2018.

On July 1, 2019, GeoPark completed the divestiture of the La Cuerva and Yamu blocks in Colombia. Adjusting for the sale of these blocks (888 bopd in 4Q2018), the Company’s consolidated oil and gas production increased by 10% in 4Q2019 and Colombian production increased by 12%.


Average net oil and gas production in Colombia grew 9% to 33,311 boepd in 4Q2019 compared to 30,641 boepd in 4Q2018, reflecting continued successful exploration, appraisal and development drilling in the Llanos 34 block. Adjusting for the sale of the La Cuerva and Yamu blocks, Colombian production increased by 12%.

The main operational highlights in Colombia during 4Q2019 were:

Exploration/Delineation drilling in the Llanos 34 block:

Development drilling in the Llanos 34 block:

Exploration drilling in the Llanos 32 block:

Amerisur acquisition:

Strategic exploration acreage expansion in Colombia:


Average net production in Brazil decreased slightly by 3% to 2,799 boepd in 4Q2019 compared to 2,894 boepd in 4Q2018 (96% gas in 4Q2019 and 98% gas in 4Q2018). However, compared to 3Q2019, Brazilian production increased by 22% mainly due to higher demand in the Manati gas field, and to a lesser extent, due to long-term testing activities in the Praia dos Castelhanos oil field in the REC-T-128 block (GeoPark operated, 70% WI).

Exploration drilling in the Reconcavo and Potiguar basins:


Average net production in Chile increased by 17% to 3,292 boepd. Higher production in 4Q2019 resulted from the successful development of the Jauke gas field. The production mix during 4Q2019 was 81% gas and 19% light oil (compared to 74% gas and 26% light oil in 4Q2018).

Exploration drilling in the Fell block (GeoPark operated, 100% WI):

Exploration drilling in the Isla Norte block (GeoPark operated, 50% WI):


Average net production in Argentina remained flat, reaching 2,384 boepd in 4Q2019 (66% oil, 34% gas) compared to 2,383 boepd in 4Q2018 (65% oil, 35% gas). Stable production levels during 2019 resulted from a successful and ongoing optimization project initiated in 2018 focused on enhancing base production levels.

1Q2020 Drilling Schedule

The following is a summary of expected drilling and testing activities scheduled for 1Q2020:

    Prospect/Wella   Country   Block   WI   Type
1   Jacana 43   Colombia   Llanos 34   45%   Development
2Jacana 47ColombiaLlanos 3445%Development
3Tigana Norte 19ColombiaLlanos 3445%Development
4Tigana Norte 51ColombiaLlanos 3445%Development
5Tigana Norte 52ColombiaLlanos 3445%Development
6Tigui 3 bColombiaLlanos 3445%Development
7Tigui 17ColombiaLlanos 3445%Development
8Tigui 12 bColombiaLlanos 3445%Appraisal
9Jauke Oeste 1 bChileFell100%Exploration
10Leun 1ChileIsla Norte60%Exploration
11Huillin 1ChileIsla Norte60%Exploration
12Koo 1ChileFlamenco100%Exploration

a) Information included in the table above is subject to change and may also be subject to partner or regulatory approval.

b) Drilling initiated or completed with testing activities expected in 1Q2020.


Adjusted EBITDA   Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payments, unrealized results on commodity risk management contracts and other non-recurring events
Adjusted EBITDA per boeAdjusted EBITDA divided by total boe deliveries
ANPBrazil’s National Agency of Petroleum, Natural Gas and Biofuels
Operating netback per boeRevenue, less production and operating costs (net of depreciation charges and accrual of stock options and stock awards) and selling expenses, divided by total boe deliveries. Operating netback is equivalent to Adjusted EBITDA net of cash expenses included in Administrative, Geological and Geophysical and Other operating costs
BoeBarrels of oil equivalent
BoepdBarrels of oil equivalent per day
BopdBarrels of oil per day
CEOPContrato Especial de Operación Petrolera (Special Petroleum Operations Contract)
D&MDeGolyer and MacNaughton
F&D costsFinding and development costs, calculated as capital expenditures divided by the applicable net reserves additions before changes in Future Development Capital
MboeThousand barrels of oil equivalent
MmboMillion barrels of oil
MmboeMillion barrels of oil equivalent
McfpdThousand cubic feet per day
MmcfpdMillion cubic feet per day
Mm3/dayThousand cubic meters per day
NPV10Present value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual rate of 10%
PRMSPetroleum Resources Management System
Sq kmSquare Kilometer
WIWorking Interest


Additional information about GeoPark can be found in the “Investor Support” section on the website at www.geo-park.com.

Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this press release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.


This press release contains statements that constitute forward-looking statements. Many of the forward- looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.

Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including the Amerisur acquisition, expected production growth, expected schedule, economic recovery, payback timing, IRR, drilling activities, demand for oil and gas, capital expenditures plan, regulatory approvals, reserves and exploration resources. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors. Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses, except when specified.

Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the U.S. Securities and Exchange Commission.

Readers are cautioned that the exploration resources disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. Unrisked prospective resources are not risked for change of development or chance of discovery. If a discovery is made, there is no certainty that it will be developed or, if it is developed, there is no certainty as to the timing of such development. There is no certainty that any portion of the Prospective Resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. Prospective Resource volumes are presented as unrisked.

View source version on businesswire.com:https://www.businesswire.com/news/home/20200107005547/en/


Stacy Steimel – Shareholder Value Director

Santiago, Chile


T: +562 2242 9600Miguel Bello – Market Access Director

Santiago, Chile

T: +562 2242 9600


Jared Levy – Sard Verbinnen & Co

New York, USA

T: +1 (212) 687-8080

jlevy@sardverb.comKelsey Markovich – Sard Verbinnen & Co

New York, USA

T: +1 (212) 687-8080




SOURCE: GeoPark Limited

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PUB: 01/07/2020 07:11 AM/DISC: 01/07/2020 07:11 AM