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.
Oil and Gas Production Back Online
Colombia - Llanos Basin: New Exploration Success and Drilling High-Potential Prospects
Llanos 34 Block (GeoPark operated, 45% WI):
CPO-5 Block:
Llanos 123 Block (GeoPark operated, 50% WI-Hocol 50% WI):
Ecuador - Oriente Basin: New Exploration Success
Perico Block (GeoPark non-operated, 50% WI):
Returning More Value to Shareholders and Maintaining a Strong Balance Sheet
Upcoming Catalysts
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
|
Oil
|
Gas
|
Total
|
% 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:
Recent Activity in the Llanos Basin
Llanos 34 Block
CPO-5 Block
Llanos 123 Block
Llanos 87 Block
Llanos 124 Block (GeoPark operated, 50% WI-Hocol 50% WI):
Llanos 86 and Llanos 104 Blocks (GeoPark operated, 50% WI-Hocol 50% WI):
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
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.
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