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

GeoPark Announces 2020 Work Program and Investment Guidelines

November 6, 2019 GMT

BOGOTA, Colombia--(BUSINESS WIRE)--Nov 6, 2019--

(“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 2020. (All figures are expressed in US Dollars).

A conference call to discuss third quarter 2019 financial results and the 2020 work program and investment guidelines will be held on November 7, 2019 at 10:00 a.m. Eastern Standard Time.

2020 Work Program: Main Principles and Approach




2020 Guidance ($60-65/bbl Brent)

The 2020 production guidance reflects 5-10% growth over 2019 average production and excludes potential production from the 2020 exploration drilling program.

The 2020 work program of $130-145 million includes drilling of 36+ gross wells, with approximately 75% of the total amount expected to be allocated to development capital and 25% to exploration activities.

Using the base case price assumption of $60-65/bbl Brent, GeoPark can execute a risk-balanced work program to continue growing its business by producing, developing and exploring its portfolio of assets, fully funded within cashflow, and maintaining a strong balance sheet.

The table below provides main highlights of the 2020 work program:

2020 Work Program

Base Case ($60-65/bbl Brent)

Production Growth


Total 2020 Capital Expenditures

$130-145 million

Maintenance Capital

$50-60 million

Operating Netback 1

$420-460 million

Development/Appraisal Wells (Gross)

30-32 wells

Exploration Wells (Gross)

6-8 wells

Total Wells (Gross)

36-40 wells

2020 Work Program Details

Work Program Flexible at Different Oil Price Scenarios

Consistent with the Company’s approach in prior years, GeoPark’s 2020 work program can be rapidly adapted to different oil price scenarios, which illustrates the high quality of its assets and strong financial performance in lower or volatile oil price environments.

GeoPark currently has commodity risk management contracts in place covering a portion of its production for 2020 with floors of $55/bbl Brent. GeoPark monitors market conditions on a continuous basis and may enter into new commodity risk management contracts to secure minimum oil prices for its 2020 production and beyond.


GeoPark will host its Third Quarter 2019 Financial Results conference call and webcast on November 7, 2019, at 10:00 a.m. Eastern Standard Time.

Interested parties may participate in the conference call by dialing the numbers provided below:

United States Participants: 866-547-1509
International Participants: +1 920-663-6208
Passcode: 9391975

Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast. An archive of the webcast replay will be made available in the Investor Support section of the Company’s website at www.geo-park.com after the conclusion of the live call

1 Assuming $4/bbl Vasconia-Brent differential.


Adjusted EBITDA

Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, the effect of IFRS 16, 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 boe

Adjusted EBITDA divided by total boe sales volumes





Barrels of oil equivalent



Barrels of oil equivalent per day



Barrels of oil per day



Contrato Especial de Operacion Petrolera (Special Petroleum Operation Contract)



DeGolyer and MacNaughton


F&D costs

Finding and development costs, calculated as capital expenditures divided by the applicable net reserves additions before changes in Future Development Capital


“High price” royalty


An additional royalty incurred in Colombia when each oil field exceeds 5 mmbbl of cumulative production and is determined by a combination of API gravity and WTI oil prices



Thousand barrels of oil equivalent



Million barrels of oil



Million barrels of oil equivalent



Thousand cubic feet per day



Million cubic feet per day


Mm 3 /day

Thousand cubic meters per day



Present value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual rate of 10%


Operating netback

Revenue, less production and operating costs (net of depreciation charges and accrual of stock options and stock awards, the effect of IFRS 16), selling expenses, and realized results on commodity risk management contracts and other non-recurring events. Operating Netback is equivalent to Adjusted EBITDA net of cash expenses included in Administrative, Geological and Geophysical and Other operating costs



Petroleum Resources Management System



Society of Petroleum Engineers



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 expected 2019 and/or 2020 production growth and capital expenditures plan. 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.

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.

Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses.

View source version on businesswire.com:https://www.businesswire.com/news/home/20191106006113/en/


Stacy Steimel – Shareholder Value Director

Santiago, Chile

T: +562 2242 9600

ssteimel@geo-park.comMiguel 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

Copyright Business Wire 2019.

PUB: 11/06/2019 05:54 PM/DISC: 11/06/2019 05:54 PM