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 and Chile, today announced its operational update for
the three-month period ended June 30, 2018 (“2Q2018”).
All figures are expressed in US Dollars and growth comparisons refer to
the same period of the prior year, except when otherwise specified.
Second Quarter 2018 Highlights
37% Growth in Oil and Gas Production
Upcoming 3Q2018 Catalysts
Breakdown of Quarterly Production by Country
The following table shows production figures for 2Q2018, as compared to
a) Includes royalties paid in kind in Colombia for approximately 898
bopd in 2Q2018. No royalties were paid in kind in Brazil, Chile or
Quarterly Production Evolution
Oil and Gas Production Update
Overall oil and gas production grew by 37% to 35,870 boepd in 2Q2018
from 26,123 boepd in 2Q2017, due to increased Colombian production, new
production from the recent Argentina acquisition and increased
production in Brazil and Chile.
Oil represented 85% of total reported production compared to 84% in
Average net production in Colombia grew 33% to 27,940 boepd in 2Q2018
compared to 21,015 boepd in 2Q2017, primarily attributed to successful
appraisal and development drilling in the Tigana and Jacana oil fields
in the Llanos 34 block, which represented 95% of Colombian production in
Llanos 34 block 2Q2018 drilling results:
Exploration and appraisal drilling:
Tiple acreage (GeoPark operated) farm-in drilling results in 2Q2018:
For a summary of upcoming drilling and testing activities, please refer
to the 3Q2018 drilling schedule below.
GeoPark completed the EIA to initiate operations in the Situche Central
oil field in the Morona block.
The EIA was submitted for approval to the Servicio Nacional de
Certificacion Ambiental (SENACE) on July 2, 2018 after more than a year
of collecting data, and in which local communities were also involved.
The Morona block covers an area of 1.9 million acres on the western side
of the Marañon basin, one of the most prolific hydrocarbon basins in
Peru, where more than 1 billion barrels of oil have been produced from
the surrounding blocks. The Morona block contains the Situche Central
oil field, which has been delineated by two wells that tested combined
production rates of 7,500 bopd of light oil with upside potential of 200
mmbo. D&M has certified gross proven and probable (2P) reserves of 42.1
million barrels of oil (mmbo) and 3P reserves of 83.0 mmbo for the
Situche Central oil field. The Morona block also includes a large
exploration potential with high impact prospects and plays – including
unrisked exploration resources ranging from 300 to 500 mmbo, as audited
by Gaffney, Cline & Associates.
Average net production in Argentina totaled 2,467 boepd in 2Q2018 (65%
oil, 35% gas), corresponding to the recent acquisition of the Aguada
Baguales, El Porvenir and Puesto Touquet blocks (GeoPark operated, 100%
WI) in the Neuquen basin.
GeoPark closed the acquisition and initiated operational takeover at the
end of 1Q2018 of the Aguada Baguales, El Porvenir and Puesto Touquet
blocks, which have multiple attractive development and exploration
projects, with the potential to significantly increase production and
reserves from cash flow generated from existing production.
The Company will carry out the following activities in the above-
mentioned blocks during 3Q2018:
Exploration drilling in the CN-V block:
New exploration acreage in the Neuquen basin and YPF partnership:
For further details related to the Los Parlamentos block, please refer
to the release published on June 11, 2018.
Average net production in the Manati gas field (GeoPark non-operated,
10% WI) improved by 9% to 2,904 boepd in 2Q2018, compared to 2,658 boepd
in 2Q2017. The increase in 2Q2018 resulted from increased industrial
consumption and decreased hydroelectric power availability.
The Company is currently carrying out preliminary activities related to
a new exploration well in the REC-T-128 block (GeoPark operated, 70% WI)
in the Reconcavo basin, where it plans to spud the well during October
Average net oil and gas production in Chile increased by 4% to 2,559
boepd in 2Q2018 compared to 2,450 boepd in 2Q2017. Gas production
figures in 2Q2017 were partially affected by a temporary interruption in
gas purchases from the buyer. The production mix during 2Q2018 was 69%
gas and 31% oil (vs. 62% gas and 38% oil in 2Q2017). The Fell block
(GeoPark operated, 100% WI) represented 99% of Chilean production.
Exploration drilling in the Fell block:
3Q2018 Drilling Schedule
The following is a summary of expected drilling activities scheduled for
Drilling initiated in 2Q2018 with testing expected in 3Q2018
OTHER NEWS / RECENT EVENTS
Reporting dates for 2Q2018 results release and conference call
GeoPark will report its 2Q2018 financial results on August 8, 2018,
after the market close. In conjunction with the 2Q2018 results press
release, GeoPark’s management will host a conference call on August 9,
2018 at 10:00 am (Eastern Daylight Time) to discuss 2Q2018 financial
To listen to the call, participants can access the webcast located in
the Investor Support section of the Company’s website at www.geo-park.com.
Interested parties may participate in the conference call by dialing the
numbers provided below:
United States Participants: 866-547-1509International
Participants: +1 920-663-6208Passcode: 3166854
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.
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.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
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
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 2018 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/20180711005219/en/