Restored Indico Field Production in the
CPO-5 Block
More Exploration Success in Colombia and
Ecuador
Multiple Exploration Catalysts
Underway
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent Latin American oil and gas explorer, operator
and consolidator, today announces its operational update for the
three-month period ended September 30, 2023.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20231018554166/en/
Recent Exploration Successes and Upcoming
Catalysts in the Llanos Basin in Colombia (Graphic: Business
Wire)
Oil and Gas Production Back Online
- GeoPark is currently producing approximately 39,000 boepd1
- 3Q2023 consolidated average oil and gas production of 34,778
boepd, below its potential mainly due to temporarily shut-in
production in the CPO-5 block (GeoPark non-operated, 30% WI) in
Colombia and in the Fell block (GeoPark operated, 100% WI) in
Chile
- 12 rigs currently in operation (7 drilling rigs and 5 workover
rigs), including 5 drilling rigs on exploration and appraisal
wells
Colombia - Llanos Basin: New Exploration Success and Drilling
High-Potential Prospects
Llanos 34 Block (GeoPark operated, 45% WI):
- The third horizontal development well initiated testing in
early October 2023 and is currently producing approximately 1,800
bopd from the Mirador formation
- GeoPark has already spudded the fourth and fifth horizontal
wells, which are expected to reach total depth in November
2023
- The block is currently producing approximately 54,200 bopd
gross (vs 53,367 bopd gross in 3Q2023)
CPO-5 Block:
- The operator spudded the Halcon 1 exploration well in late
September, targeting the exploration potential of the Guadalupe
formation in the northern part of the CPO-5 block, close to the
southern part of the Llanos 34 block, expected to reach total depth
in late October 2023
- In late September 2023, the operator received approval from the
regulator (ANH) to resume production in the Indico 6 and Indico 7
wells2, which are currently producing 7,500-8,000 bopd gross in
aggregate. These wells could potentially increase and stabilize
their combined production at approximately 9,000 bopd gross before
year-end, depending on reservoir performance
- The block is currently producing approximately 23,800 bopd
gross (vs 16,877 bopd gross in 3Q2023)
Llanos 123 Block (GeoPark operated, 50% WI-Hocol 50% WI):
- The Toritos 1 exploration well reached total depth in September
2023
- Logging information indicated hydrocarbon potential in the
Barco (Guadalupe) and Gacheta formations
- The well initiated testing activities in late September 2023
and is currently producing approximately 1,370 bopd of 14 degrees
API with a 1.5% water cut from the Barco (Guadalupe) formation
- The block is currently producing approximately 2,140 bopd gross
(vs 626 bopd gross in 3Q2023)
Ecuador - Oriente Basin: New Exploration Success
Perico Block (GeoPark non-operated, 50% WI):
- The Perico Centro 1 exploration well reached total depth in
September 2023
- Preliminary logging information indicated hydrocarbon potential
in the U-sand formation
- The well initiated testing in late September 2023 and is
currently producing approximately 830 bopd of 28 degrees API with a
1% water cut
- The block is currently producing approximately 2,400 bopd gross
(vs 1,318 bopd gross in 3Q2023)
Returning More Value to Shareholders and Maintaining a Strong
Balance Sheet
- Quarterly Dividend of $0.132 per share, or $7.5 million, paid
on September 7, 2023, representing an annualized dividend of
approximately $30 million (or $0.52 per share), a 5% dividend
yield3
- Repurchased 2.2 million shares, or 4% of total shares
outstanding, for $23.6 million since January 1, 2023
- Cash and cash equivalents of $106 million4 as of September 30,
2023
Upcoming Catalysts
- Drilling 10-12 gross wells in 4Q2023, targeting attractive
conventional, short-cycle development and exploration projects
- Key projects include:
- CPO-5 block: Currently drilling the Halcon 1 exploration
well
- Llanos 123 block: Currently drilling the Bisbita Centro 1
exploration well
- Llanos 87 block (GeoPark operated, 50% WI-Hocol 50% WI):
Currently drilling the Zorzal Este 1 exploration well
- Llanos 34 block: Currently drilling 2 additional horizontal
development wells
- Perico block: Currently drilling the Perico Norte 4 appraisal
well
GeoPark Chief Financial Officer Transition
GeoPark announced that Veronica Davila, Chief Financial Officer,
will be stepping down from her role to pursue new career
opportunities effective November 30, 2023. The Company has
commenced a formal search process for a replacement and has
appointed Ignacio Mazariegos to serve as interim Chief Financial
Officer, upon Ms. Davila’s departure.
Mr. Mazariegos joined GeoPark in 2010 and currently serves as
Director of New Business, where he leads and supports the Company’s
growth and profitability through acquisitions and strategic
partnerships. Mr. Mazariegos and Ms. Davila will work closely over
the coming weeks to ensure a smooth transition.
Andres Ocampo, Chief Executive Officer said: “On behalf of our
entire team, I would like to thank Veronica for her commitment and
contributions to GeoPark. Since joining the Company in 2016,
Veronica has been a valuable team member, and we wish her well in
her future endeavors.”
Breakdown of Quarterly Production by Country
The following table shows production figures for 3Q2023, as
compared to 3Q2022:
3Q2023
3Q2022
Total (boepd)
Oil (bopd)a
Gas (mcfpd)
Total (boepd)
% Chg.
Colombia
31,780
31,668
672
33,338
-5%
Ecuador
659
659
-
1,194
-45%
Chile
1,565
172
8,361
2,425
-35%
Brazil
774
11
4,578
1,439
-46%
Total
34,778
32,510
13,610
38,396
-9%
a)
Includes royalties and other economic
rights paid in kind in Colombia for approximately 5,045 bopd in
3Q2023. No royalties were paid in kind in Ecuador, Chile or Brazil.
Production in Ecuador is reported before the Government’s
production share of approximately 194 bopd.
Quarterly Production
(boepd)
3Q2023
2Q2023
1Q2023
4Q2022
3Q2022
Colombia
31,780
33,045
32,580
33,749
33,338
Ecuador
659
634
990
1,259
1,194
Chile
1,565
1,690
1,988
2,291
2,425
Brazil
774
1,212
1,020
1,134
1,439
Total a
34,778
36,581
36,578
38,433
38,396
Oil
32,510
33,672
33,801
35,451
34,875
Gas
2,268
2,909
2,777
2,982
3,521
a)
In Colombia, production includes royalties
paid in kind, and in Ecuador it is shown before the Government’s
production share.
Oil and Gas Production Update
Consolidated:
Oil and gas production in 3Q2023 was 34,778 boepd, down by 9%
compared to 3Q2022, due to lower production in Colombia, Chile,
Brazil and Ecuador. Oil represented 93% and 91% of total reported
production in 3Q2023 and 3Q2022, respectively.
GeoPark is currently producing approximately 39,000 boepd5.
Colombia:
Average net oil and gas production in Colombia decreased by 5%
to 31,780 boepd in 3Q2023 compared to 33,338 boepd in 3Q2022,
mainly resulting from lower production in the Llanos 34 and CPO-5
blocks, partially offset by higher production in the Platanillo
block (GeoPark operated, 100% WI) and to a lesser extent, new
production coming on in the Llanos 123 block.
Oil and gas production in GeoPark’s main blocks in Colombia:
- Llanos 34 block net average production decreased by 7% to
24,015 bopd (or 53,367 bopd gross) in 3Q2023 compared to 3Q2022,
mainly due to the natural decline of the fields and to a lesser
extent temporary local blockades that partially affected production
and operations for 10 days
- CPO-5 block net average production decreased by 10% to 5,063
bopd (or 16,877 bopd gross) in 3Q2023 compared to 3Q2022.
Production in 3Q2023 has been below its potential due to shut-ins
of the Indico 6 and Indico 7 wells, which are currently producing
approximately 7,500-8,000 bopd gross in aggregate. These two wells
could potentially increase and stabilize their combined production
at approximately 9,000 bopd gross before year-end, depending on
reservoir performance
- Platanillo block average production increased by 35% to 2,027
bopd in 3Q2023 compared to 3Q2022
- Llanos 123 block net average production was 313 bopd (or 626
bopd gross) in 3Q2023, reflecting partial production from the
Saltador 1 exploration well that initiated testing during the
quarter
Recent Activity in the Llanos
Basin
Llanos 34 Block
- The third horizontal development well initiated testing in
early October 2023 and is currently producing approximately 1,800
bopd from the Mirador formation
- GeoPark has already spudded the fourth and fifth horizontal
wells, which are expected to reach total depth in November
2023
CPO-5 Block
- The operator spudded the Halcon 1 exploration well in late
September, targeting the exploration potential of the Guadalupe
formation in the northern part of the CPO-5 block, close to the
southern part of the Llanos 34 block
- Preliminary activities are underway to acquire over 230 square
kilometers of 3D seismic, expected to be executed in early
2024
- This 3D seismic acquisition is expected to add additional
exploration prospects to GeoPark’s organic exploration
inventory
Llanos 123 Block
- The Toritos 1 exploration well reached total depth in September
2023
- Logging information indicated hydrocarbon potential in the
Barco (Guadalupe) and Gacheta formations
- Testing activities initiated in late September 2023, and the
well is currently producing approximately 1,370 bopd of 14 degrees
API with a 1.5% water cut from the Barco (Guadalupe) formation
- The Saltador 1 exploration well, which started testing in July
2023, was the first exploration success in the Llanos 123 block and
continues producing approximately 760 bopd of 16 degrees API with a
4% water cut from the Barco (Guadalupe) formation
- Based on these positive results, on October 12, 2023, GeoPark
spudded a new exploration well, Bisbita Centro 1, targeting an
exploration prospect located 1.5 km south of the Saltador 1
well
Llanos 87 Block
- GeoPark spudded the Zorzal Este 1 exploration well on October
5, 2023, and it is expected to reach total depth in early November
2023
Llanos 124 Block (GeoPark operated, 50%
WI-Hocol 50% WI):
- Cucarachero 1 exploration well reached total depth in August
2023
- The well encountered reservoir in the Cuervo formation with no
evidence of hydrocarbons
Llanos 86 and Llanos 104 Blocks
(GeoPark operated, 50% WI-Hocol 50%
WI):
- The Llanos 86 and Llanos 104 blocks are adjacent to the eastern
side of the CPO-5 block
- Preliminary activities are underway to acquire over 650 square
kilometers of 3D seismic, expected to be executed in early
2024
- This 3D seismic acquisition is expected to add additional
exploration prospects to GeoPark’s organic exploration
inventory
Ecuador:
Average net oil production in Ecuador before the Government’s
share decreased 45% to 659 bopd in 3Q2023, (approximately 465 bopd
after the Government’s share), compared to 1,194 bopd in 3Q2022,
mainly due to the natural decline of the fields.
Ecuador is currently producing approximately 2,400 bopd gross,
following the successful drilling and testing of the Yin 2 and the
Perico Centro 1 wells.
The Government’s production share varies with oil prices and is
approximately 30-40%, considering an Oriente crude oil price of
$70-100 per bbl.
Recent Activity in the Perico
Block
- The Perico Centro 1 exploration well reached total depth in
September 2023
- Preliminary logging information indicated hydrocarbon potential
in the U-sand formation
- The well initiated testing in late September 2023 and is
currently producing approximately 830 bopd of 28 degrees API with a
1% water cut
- The Yin 2 well started production tests in mid-August 2023 and
is currently producing approximately 740 bopd of 30 degrees API
with a 1% water cut from the U-sand formation
- Based on these positive results, on October 8, 2023 the
operator spudded a new appraisal well, the Perico Norte 4, which is
expected to reach total depth in late October 2023
Chile:
Average net production in Chile decreased 35% to 1,565 boepd in
3Q2023 compared to 2,425 boepd in 3Q2022, resulting from the
natural decline of the fields, limited drilling activities and
temporarily shut-in oil production due to commercial negotiations.
GeoPark reached an agreement with the oil off-taker and as of
August 2023 it gradually started reopening temporarily shut-in oil
production of 400 bopd.
The production mix was 89% natural gas (vs 84% in 3Q2022) and
11% light oil (vs 16% in 3Q2022).
Brazil:
Average net production in the Manati field (GeoPark
non-operated, 10% WI) in Brazil decreased 46% to 774 boepd in
3Q2023 compared to 1,439 boepd in 3Q2022. Production in Manati was
temporarily interrupted for 24 days during 3Q2023 due to lower gas
demand. Production restarted in late September 2023 and the Manati
field’s net production is approximately 1,550 boepd.
The production mix was 99% natural gas and 1% oil and condensate
in both 3Q2023 and 3Q2022.
Other News
Notice of change of Auditor (from EY Argentina to EY
Colombia)
GeoPark announced that it changed its auditors from Pistrelli,
Henry Martin y Asociados S.R.L. (or EY Argentina) to Ernst &
Young Audit S.A.S. (or EY Colombia), being both member firms of EY
Global Limited.
EY Argentina resigned as auditor of GeoPark effective September
29, 2023, and GeoPark’s Board of Directors appointed EY Colombia,
as the successor auditor of the Company until the next Annual
General Meeting.
EY Argentina’s audit reports on GeoPark’s consolidated financial
statements as of and for the years ended December 31, 2022 and 2021
did not contain an adverse opinion or disclaimer of opinion and
were not qualified or modified as to uncertainty, audit scope, or
accounting principles. In addition, there have been no reportable
events or disagreements (as defined in Item 16F(a)(1) (iv) and (v)
of Form 20-F) between GeoPark and EY Argentina.
Reporting Date for 3Q2023 Results Release, Conference Call
and Webcast
GeoPark will report its 3Q2023 financial results on Wednesday,
November 8, 2023, after the market close. In conjunction with the
3Q2023 results press release, GeoPark management will host a
conference call on November 9, 2023, at 10:00 am (Eastern Daylight
Time) to discuss the 3Q2023 financial results.
To listen to the call, participants can access the webcast
located in the “Invest with Us” section of the Company’s website at
www.geo-park.com, or by clicking below:
https://events.q4inc.com/attendee/344411932
Interested parties may participate in the conference call by
dialing the numbers provided below:
United States Participants: +1 (646)
904-5544
International Participants: +1 (833)
470-1428
Passcode: 865697
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
“Invest with Us” section of the Company’s website at
www.geo-park.com after the conclusion of the live call.
1
Estimated average production from October
10, 2023, to October 16, 2023.
2
These two wells were drilled in late 2022
and have been shut-in following the ANH request that the operator
suspend production until certain required surface facilities were
completed.
3
Based on GeoPark’s average market
capitalization from September 1 to September 29, 2023.
4
Unaudited.
5
Estimated average production from October
10, 2023, to October 16, 2023.
NOTICE
Additional information about GeoPark can be found in the “Invest
with Us” 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. Percentages included in this press release
have not in all cases been calculated on the basis of such rounded
amounts, but on the basis of such amounts prior to rounding. For
this reason, certain percentages in this press release may vary
from those obtained by performing the same calculations on the
basis of the amounts in the financial statements. Similarly,
certain other amounts included 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 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, production guidance, shareholder
returns, Adjusted EBITDA, capital expenditures and free cash flow.
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 (SEC).
Oil and gas production figures included in this release are
stated before the effect of royalties paid in kind, consumption and
losses. Annual production per day is obtained by dividing total
production by 365 days.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231018554166/en/
INVESTORS: Stacy Steimel Shareholder Value Director T:
+562 2242 9600 ssteimel@geo-park.com Miguel Bello Market Access
Director T: +562 2242 9600 mbello@geo-park.com Diego Gully Investor
Relations Director T: +55 21 99636 9658 dgully@geo-park.com
MEDIA: Communications Department
communications@geo-park.com
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