SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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GeoPark Limited
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By:
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/s/ Andrés
Ocampo
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Name:
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Andrés Ocampo
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Title:
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Chief Financial Officer
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Date:
February 6, 2018
Item
1
GEOPARK ANNOUNCES RECORD CERTIFIED 2P
OIL AND GAS RESERVES OF 159 MMBOE FOLLOWING A 261% RESERVE REPLACEMENT –
WITH A NPV10 VALUATION OF $2.3 BILLION
IN COLOMBIA: 2P RESERVES INCREASED 31%
TO 88.2 MMBOE
EQUAL TO A NET DEBT-ADJUSTED VALUE OF
$15.8 PER SHARE
Bogota, Colombia
– February 5, 2018 - 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, Chile, Brazil,
Argentina, and Peru, today announced its independent oil and gas reserves assessment, certified by DeGolyer and MacNaughton Corp.
(D&M), under PRMS methodology, as of December 31, 2017.
All figures are
expressed in US Dollars. Definitions of terms used herein, are provided in the Glossary on page 13.
Year-End
2017 D&M Certified Oil and Gas Reserves and Highlights:
Consolidated
Reserves Growth
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·
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After
producing 10.2 million barrels of oil equivalent in 2017, D&M certified reserves are:
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o
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Net proven developed producing (PDP) reserves increased 47% to 28.5 mmboe
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o
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Net proven reserves (1P) increased 24% to 97.0 mmboe
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o
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Net proven and probable reserves (2P) increased 11% to 159.2 mmboe
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·
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Invested
$106 million and increased 1P NPV10 by $430 million
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Finding & Development (F&D) costs for 2017 remained low
at just $3.6 per boe for 1P reserves and $4.0 per boe for 2P reserves
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2P
reserve replacement index (RRI) of 261%
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New
year-end Argentina asset acquisition (with closing targeted for 1Q2018) may add another 12-14 mmboe 2P reserves (uncertified internal
estimate)
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Colombia Reserves
Growth
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·
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After
producing 8.0 million barrels of oil equivalent in Colombia in 2017, D&M certified reserves are:
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o
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Net PDP reserves increased 89% to 21.6 mmboe
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o
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Net 1P reserves increased 64% to 66.1 mmboe
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Net 2P reserves increased 31% to 88.2 mmboe
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·
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F&D
costs were just $2.4 per boe for 1P and $2.8 per boe for 2P reserves
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Tigana/Jacana
oil fields complex certified with 164 mmboe 2P reserves gross, with field delineation continuing
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Higher Per-Share
Value
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2017
work and investment program created more value per share:
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Consolidated net debt-adjusted 2P NPV10 of $29.2 per share
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o
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Colombia net debt-adjusted 2P NPV10 of $15.8 per share
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James F. Park,
Chief Executive Officer of GeoPark, said: “Our business is to economically find, develop and produce oil and gas reserves
– and the independent reserve certification is the scorecard of how efficiently we invest our capital to continue growing
and becoming a more valuable company every year. Our results this year demonstrate that, even following record high oil and gas
production, we continue building our Company with record high oil and gas reserves and a record high net asset value. For every
barrel produced, we replaced it with almost three proven barrels. And all was paid for from internally generated cash from our
own operations – which also had a big increase from the year before. We invested $106 million of our cash flow and were able
to increase our proven reserve value by $430 million – taking our total 2P net present value to over $2 billion. Congratulations
to the GeoPark team for another successful year of delivering results and value creation – and extending our 15 year track-record
of growth across our unique Latin American platform.”
2P
Net Reserves Growth (mmboe)
2017 Year-End Reserves Summary
GeoPark engaged
D&M to carry out an independent appraisal of reserves as of December 31, 2017, covering 100% of the current assets in Colombia,
Chile, Brazil, Peru and Argentina.
Following oil and
gas production of 10.2 mmboe in 2017, D&M certified 2P net reserves of 159.2 mmboe (composed of 85% oil and 15% natural gas)
as of December 31, 2017. By country, 55% were in Colombia, 21% in Chile, 20% in Peru, 3% in Brazil and 1% in Argentina.
Consolidated
Reserve Life Index and Replacement Ratio
Reserves Category
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December 2017
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December 2016
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Consolidated
(years)
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RLI PDP
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2.8
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2.4
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RLI 1P
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9.5
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9.5
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RLI 2P
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15.6
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17.4
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RLI 3P
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23.7
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28.6
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(percent)
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RRR PDP
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189%
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126%
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RRR 1P
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284%
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187%
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RRR 2P
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261%
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312%
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RRR 3P
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166%
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346%
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Reserves Summary
by Country and Category
Country
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Reserves Category
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December 2017
(mmboe)
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% Oil
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December 2016
(mmboe)
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% Change
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Colombia
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1P
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66.1
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100%
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40.4
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64%
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2P
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88.2
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100%
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67.4
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31%
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3P
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101.7
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100%
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94.9
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7%
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Chile
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1P
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7.9
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54%
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13.9
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-43%
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2P
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34.0
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40%
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38.3
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-11%
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3P
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66.6
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30%
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73.2
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-9%
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Brazil
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1P
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4.3
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2%
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5.4
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-20%
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2P
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4.4
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2%
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5.6
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-21%
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3P
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4.6
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2%
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5.9
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-22%
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Peru
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1P
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18.7
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100%
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18.6
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1%
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2P
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31.5
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100%
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31.5
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0%
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3P
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62.2
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100%
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60.8
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2%
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Argentina
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1P
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0.0
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100%
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-
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-
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2P
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1.1
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100%
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-
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-
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3P
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6.4
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100%
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-
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-
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Total
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PDP
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28.5
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79%
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19.4
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47%
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(D&M Certified)
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PDNP
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9.5
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100%
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9.6
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-1%
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PUD
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59.1
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97%
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49.3
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20%
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1P
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97.0
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92%
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78.3
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24%
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2P
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159.2
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85%
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142.8
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11%
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3P
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241.6
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79%
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234.8
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3%
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Analysis
by Business Segment
Colombia
After record production
of 8.0 mmboe in 2017 (up 40% compared to 2016), GeoPark’s 2P D&M certified reserves increased by 31% to 88.2 mmboe compared
to 2016. Net additions of 33.7 mmbbl and 28.8 mmbbl, respectively, of 1P and 2P reserves resulted from the successful exploration,
development and appraisal drilling in the Llanos 34 block (GeoPark operated, 45% WI), partially offset by 2017 production.
The table below
details GeoPark’s Colombian D&M certified net oil reserves by category as of December 31, 2017, as compared to the previous
year:
Reserves Category
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December
2017
1
(mmboe)
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% Oil
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December 2016
(mmboe)
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% Change
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PDP
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21.6
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100%
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11.4
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89%
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PUD
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44.5
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100%
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29.0
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53%
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1P
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66.1
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100%
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40.4
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64%
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2P
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88.2
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100%
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67.4
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31%
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3P
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101.7
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100%
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94.9
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7%
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1P reserves in
Colombia represent 75% of 2P D&M certified reserves (vs. 60% in 2016). 2P reserves in Colombia represent 87% of 3P D&M
certified reserves (vs. 71% in 2016).
For each barrel
of oil extracted in Colombia, 4.2 barrels of 1P reserves were added, resulting in a 1P RRI of 421%. Similarly, 3.6 barrels of 2P
reserves were added, resulting in a 2P RRI of 360%. The 1P RLI increased from 7.1 in 2016 to 8.3 years, while 2P RLI decreased
slightly from 11.8 to 11.0 years.
As of December
31, 2017, D&M certified 2P gross reserves of 164 mmbbl in the Tigana/Jacana oil fields in the Llanos 34 block, including approximately
50-60 future development drilling locations (2P, gross). The Llanos 34 block represented 94% of GeoPark’s Colombian 2P D&M
certified reserves as of December 31, 2017.
GeoPark’s
2018 work program in Colombia is focused on the Llanos 34 block with an expected investment of approximately $90 million, which
includes the drilling of 20+ gross wells to continue developing and appraising the Tigana/Jacana oil fields and targeting new exploration
prospects within and adjacent to the Llanos 34 block. The program also includes construction of a new flowline and facilities to
continue reducing transport and operating costs. These represent low-cost, low-risk, quick cash flow generating projects with high-expected
economic returns.
Chile
After producing
1.1 mmboe in 2017, GeoPark’s 2P D&M certified reserves in Chile decreased by 11% to 34.0 mmboe compared to 2016.
____________________
1
Reserves in Colombia are stated after royalties in kind. Before royalties in kind (Company gross), PDP reserves totaled
23.6 mmboe (100% oil), PUD reserves totaled 49.2 mmboe, 1P reserves totaled 72.8 mmboe (100% oil), 2P reserves totaled 92.3 mmboe
(100% oil) and 3P reserves totaled 106.2 mmboe (100% oil).
The table below
details GeoPark’s Chilean D&M certified net oil and natural gas reserves by category as of December 31, 2017:
Reserves Category
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December 2017
(mmboe)
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% Oil
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December 2016
(mmboe)
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% Change
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PDP
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2.6
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32%
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2.7
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-4%
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PUD
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5.3
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65%
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11.2
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-52%
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1P
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7.9
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54%
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13.9
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-43%
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2P
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34.0
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40%
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38.3
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-11%
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3P
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66.6
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30%
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73.2
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-9%
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The 1P RLI decreased
to 7.2 years versus 9.9 years in 2016.
Total 2P and 3P
reserves decreased by 11% and 9%, to 34.0 mmboe and 66.6 mmboe, respectively, due to reserve reductions in the Fell block (GeoPark
operated, 100% WI). Delays in expected development plans, technical revisions and, to a lesser extent, the impact of oil prices
on some marginal fields, explained the fall in reserves.
The Fell block
represented 99% of GeoPark’s Chilean 2P D&M certified reserves and consisted of 40% oil and 60% gas, similar to 2016
levels.
GeoPark’s
2018 work program in Chile, with an expected investment of $1-2 million, is focused on business optimization in addition to environmental
and unconventional studies in the Fell block.
Brazil
After production
of 1.1 mmboe in 2017, GeoPark’s 2P D&M certified reserves in Brazil decreased 21% by the amount produced to 4.4 mmboe
compared to 2016.
The table below
details GeoPark’s Brazilian D&M certified net natural gas and condensate reserves by category as of December 31, 2017:
Reserves Category
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December 2017
(mmboe)
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% Condensate
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December 2016
(mmboe)
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% Change
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PDP
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4.3
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2%
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5.4
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-20%
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PUD
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0.0
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0%
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0.0
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0%
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1P
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4.3
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2%
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5.4
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-20%
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2P
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4.4
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2%
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5.6
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-21%
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3P
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4.6
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2%
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5.9
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-22%
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The 2P RLI decreased
to 4.0 years compared to 5.2 years in 2016.
The Manati Field
(GeoPark non-operated, 10% WI) represented 100% of GeoPark’s Brazilian D&M certified reserves and is 98% gas.
GeoPark’s
2018 work program in Brazil, with an expected investment of $3-4 million, is focused on exploration drilling in the Reconcavo and
Potiguar onshore blocks (GeoPark operated, 70 and 100% WI, respectively). The work program includes two shallow exploration wells
and seismic studies.
Peru
In December 2016,
the Peruvian Government approved an agreement with Petróleos del Perú S.A. (“Petroperu”) for GeoPark
to acquire an interest in and operate the Morona block (GeoPark operated, 75% WI), located in northern Peru covering an area of
1.9 million acres in the Marañon basin. The Morona block contains the Situche Central oil field, which has been delineated
by two wells (which tested approximately 2,400 and 5,200 bopd) and by 3D seismic.
The table below
details GeoPark’s Peruvian D&M certified net oil reserves by category as of December 31, 2017:
Reserves Category
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December 2017
(mmboe)
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% Oil
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December 2016
(mmboe)
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% Change
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PDNP
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9.5
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100%
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9.6
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-1%
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PUD
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9.2
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100%
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9.0
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2%
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1P
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18.7
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100%
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18.6
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1%
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2P
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31.5
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100%
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31.5
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0%
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3P
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62.2
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100%
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60.8
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2%
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GeoPark’s
2018 work program in Peru, with an estimated investment of $6-9 million is focused on environmental impact studies and preliminary
engineering works and facilities in the Morona block, with the goal of producing by the end of 2019.
Argentina
In August 2017,
GeoPark announced successful drilling results in CN-V block (GeoPark operated, 50% WI), that resulted in the discovery of the Rio
Grande Oeste oil field. During 4Q2017, GeoPark initiated a long-term test in the Rio Grande Oeste 1 exploration well.
The table below
details GeoPark’s D&M certified net oil reserves in CN-V block by category as of December 31, 2017:
Reserves Category
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December 2017
(mmboe)
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% Oil
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December 2016
(mmboe)
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% Change
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PDP
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0.0
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100%
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-
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-
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PUD
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0.0
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100%
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-
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-
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1P
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0.0
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100%
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-
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-
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2P
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1.1
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100%
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-
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-
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3P
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6.4
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100%
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-
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-
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GeoPark’s
2018 organic work program in Argentina, with an expected investment of $5-8 million, is focused on continued exploration drilling
with one exploration well in CN-V block and six gross exploration wells in Sierra del Nevado and Puelen blocks (GeoPark non-operated,
18% WI).
Argentina Acquisition
(uncertified internal estimates)
On December 18,
2017, GeoPark executed an asset purchase agreement with Pluspetrol to acquire Aguada Baguales, El Porvenir and Puesto Touquet blocks
in Argentina (referenced in this document as “Argentina acquisition”). Closing of the transaction is expected in the
first quarter of 2018.
The table below
details internal GeoPark estimates by category of net oil and gas reserves corresponding to the pending acquisition as of December
31, 2017:
Reserves Category
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December 2017
(mmboe)
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% Oil
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2P
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12.0-14.0
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40%
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3P
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18.0-20.0
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30%
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The blocks are
currently producing 2,700 boepd (70% light oil and 30% gas), and in addition to 2P and 3P reserves included in the table above,
GeoPark estimates exploration resources of 15-30 mmboe.
D&M Net Certified Reserves Change by Country
The following table
shows the net change in 2P net reserves by country from December 31, 2016 to December 31, 2017:
(mmboe)
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Colombia
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Chile
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Brazil
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Peru
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Argentina
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Total
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2P Net Reserves as of Dec. 31, 2016
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67.4
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38.3
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5.6
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31.5
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-
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142.8
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Production 2017
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-8.0
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-1.1
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-1.1
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-
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-
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-10.2
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Net Change
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28.8
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-3.2
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-0.1
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-
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1.1
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26.6
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Acquisitions
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-
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-
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-
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-
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-
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-
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2P Net Reserves as of Dec. 31, 2017
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88.2
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34.0
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4.4
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31.5
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1.1
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159.2
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Net
Present Value Summary
The table below
details D&M certified NPV10 by country and by category of reserves as of December 31, 2017 as compared to 2016:
Country
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Reserves
Category
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NPV10 2017
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NPV10 2016
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($ mm)
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($ mm)
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Colombia
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1P
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1,123
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642
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2P
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1,393
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1,006
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3P
|
1,588
|
1,371
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Chile
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1P
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120
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157
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2P
|
417
|
399
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3P
|
707
|
679
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Brazil
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1P
|
76
|
78
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2P
|
78
|
81
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3P
|
82
|
85
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Peru
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1P
|
230
|
242
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2P
|
395
|
401
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3P
|
773
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773
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Argentina
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1P
|
1
|
-
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2P
|
7
|
-
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3P
|
90
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-
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Total
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1P
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1,549
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1,119
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(D&M Certified)
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2P
|
2,291
|
1,887
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3P
|
3,240
|
2,908
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Lower Oil Price
Forecast
Brent oil prices
average $65 per barrel over the next five years in the 2017 D&M report, as detailed in the table below. That is 8% below 2016
prices, and in spite of the reduction, the NPV10 of 1P, 2P and 3P all increased in value compared to 2016.
Brent Oil Price
($/bbl)
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
2024-2026
|
|
|
2017 Reserves Report
|
60.0
|
62.0
|
65.0
|
68.1
|
71.6
|
74.3
|
78.1-84.6
|
|
2016 Reserves Report
|
62.6
|
66.7
|
71.9
|
74.7
|
77.6
|
79.9
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82.2-86.2
|
|
After 2026, Brent
oil prices in the 2017 D&M report grow 2% per year.
Total
D&M Certified Future Net Revenue (Actual and Discounted)
The table below
sets forth the D&M best estimate of GeoPark’s future net revenue (both actual and discounted at a 10% rate) and its unit
value per boe, by country and by category of certified reserves as of December 31, 2017:
($ mm)
|
Oil and Gas Revenues
|
Royalties
|
Operating Costs
|
Future Development Capital and Abandonment Costs
|
Income Tax
|
Future Net Revenue after tax
|
Future Net Revenue after tax discounted at 10%
|
Unit Value after tax discounted at 10%
($/boe)
|
Colombia
2
|
|
|
|
|
|
|
|
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1P
|
3,343
|
302
|
374
|
187
|
811
|
1,669
|
1,123
|
17
|
2P
|
4,579
|
644
|
472
|
241
|
1,058
|
2,164
|
1,393
|
16
|
3P
|
5,353
|
791
|
512
|
271
|
1,244
|
2,535
|
1,588
|
16
|
Chile
|
|
|
|
|
|
|
|
|
1P
|
365
|
16
|
129
|
58
|
6
|
156
|
120
|
15
|
2P
|
1,526
|
64
|
397
|
267
|
103
|
695
|
417
|
12
|
3P
|
2,840
|
114
|
672
|
492
|
220
|
1,342
|
707
|
11
|
Brazil
|
|
|
|
|
|
|
|
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1P
|
169
|
18
|
40
|
8
|
12
|
91
|
76
|
18
|
2P
|
173
|
19
|
40
|
8
|
12
|
94
|
78
|
18
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3P
|
182
|
20
|
40
|
8
|
14
|
100
|
82
|
18
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Peru
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|
|
|
|
|
|
|
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1P
|
1,491
|
78
|
412
|
236
|
233
|
532
|
230
|
12
|
2P
|
2,598
|
149
|
585
|
428
|
440
|
996
|
395
|
13
|
3P
|
5,297
|
397
|
989
|
858
|
933
|
2,120
|
773
|
12
|
Argentina
|
|
|
|
|
|
|
|
|
1P
|
2
|
0
|
1
|
0
|
0
|
1
|
1
|
-
|
2P
|
74
|
11
|
13
|
33
|
3
|
14
|
7
|
6
|
3P
|
469
|
70
|
49
|
60
|
98
|
192
|
90
|
14
|
Total
|
|
|
|
|
|
|
|
|
1P
|
5,370
|
414
|
956
|
489
|
1,062
|
2,449
|
1,549
|
16
|
2P
|
8,950
|
887
|
1,507
|
977
|
1,616
|
3,963
|
2,291
|
14
|
3P
|
14,141
|
1,392
|
2,262
|
1,689
|
2,509
|
6,289
|
3,240
|
13
|
____________________
2
Oil and gas revenues in Colombia are shown net of earn-out expenses, per IFRS rules, of $124 mm (1P), $159 mm (2P)
and $184 mm (3P). D&M reported these expenses as operating costs.
Net
Present Value per Share by Country
The table below
sets forth GeoPark’s net present value after tax and non-controlling interest, discounted at a 10% rate per share, by country,
of 2P reserves as of December 31, 2017 and 2016.
2P NPV10 per share
increased by 20% to $34.0, mainly due to a 31% increase in 2P reserves in Colombia. As a result, net debt adjusted 2P NPV10 per
share increased by 24% to $29.2 from $23.6 in 2016.
2017 Net Present Value per Share
|
Colombia
|
Chile
|
Brazil
|
Peru
|
Argentina
|
Total
|
2P NPV10 2017 ($ mm)
|
1,393
|
417
|
78
|
395
|
7
|
2,291
|
Non-controlling Interest
a
($ mm)
|
-145
|
-83
|
-
|
-
|
-
|
-228
|
Subtotal ($ mm)
|
1,248
|
334
|
78
|
395
|
7
|
2,063
|
Shares Outstanding (mm)
|
60.6
|
60.6
|
60.6
|
60.6
|
60.6
|
60.6
|
($/Share)
|
20.6
|
5.5
|
1.3
|
6.5
|
0.1
|
34.0
|
2016 Net Present Value per Share
|
Colombia
|
Chile
|
Brazil
|
Peru
|
Argentina
|
Total
|
2P NPV10 2016 ($ mm)
|
1,006
|
399
|
81
|
401
|
-
|
1,887
|
Non-controlling Interest
a
($ mm)
|
-104
|
-80
|
-
|
-
|
-
|
-184
|
Subtotal ($ mm)
|
902
|
319
|
81
|
401
|
-
|
1,703
|
Shares Outstanding (mm)
|
60
|
60
|
60
|
60
|
-
|
60
|
($/share)
|
15.0
|
5.4
|
1.4
|
6.7
|
-
|
28.4
|
Net Debt Adjusted 2P NPV10 per Share
|
Total 2017
|
Total 2016
|
% Change
|
2P NPV10 ($ mm)
|
2,291
|
1,887
|
|
Non-controlling Interest
a
($ mm)
|
-228
|
-184
|
|
Subtotal ($ mm)
|
2,063
|
1,703
|
|
Shares Outstanding (mm)
|
60.6
|
60.0
|
|
($/share)
|
34.0
|
28.4
|
20%
|
Net Debt
b
/Share ($/share)
|
-4.8
|
-4.8
|
|
Net Debt Adjusted 2P NPV10 /Share ($/share)
|
29.2
|
23.6
|
24%
|
|
a)
|
Non-controlling interest refers to LGI participation in Chilean and Colombian subsidiaries. Estimates
of LGI non-controlling interest in Colombia are calculated considering an initial 20% stake at the Colombian subsidiary level,
but are expected to be reduced to 8% subsequent to LGI recovering its initial investment in accordance with the terms of the existing
agreement.
|
|
b)
|
Net debt adjusted 2P NPV10 per share is shown on a consolidated basis. Net debt is calculated considering
unaudited financial debt of $426 million, less unaudited $135 million of cash and cash equivalents as of December 31, 2017.
|
Finding
and Development Costs by Reserves Category
The table below
sets forth the calculation of F&D costs as of December 31, 2017:
|
December 31, 2017
|
|
1P
|
2P
|
Colombia
1P
|
Colombia
2P
|
Capital Expenditures (unaudited) ($ mm)
|
106
|
106
|
80
|
80
|
Reserve Additions (mmboe)
|
28.9
|
26.6
|
33.7
|
28.8
|
F&D Costs ($/boe)
|
3.6
|
4.0
|
2.4
|
2.8
|
OTHER
NEWS / RECENT EVENTS
Reporting Date
for 4Q2017 Results Release, Conference Call and Webcast
GeoPark will report
its 4Q2017 and Annual 2017 financial results on Wednesday, March 7, 2018 after the market close.
In conjunction
with 4Q2017 results press release, GeoPark’s management will host a conference call on March 8, 2017 at 10:00 am (Eastern
Standard Time) to discuss these 4Q2017 financial results. 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:
866-547-1509
International Participants:
+1 920-663-6208
Passcode: 6197567
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.
For further information
please contact:
INVESTORS:
|
|
Stacy Steimel – Shareholder Value Director
|
ssteimel@geo-park.com
|
Santiago, Chile
|
|
T: +562 2242 9600
|
|
MEDIA:
|
|
|
|
Jared Levy – Sard Verbinnen & Co
|
jlevy@sardverb.com
|
New York, USA
|
|
T: +1 (212) 687-8080
|
|
|
|
Kelsey Markovich – Sard Verbinnen & Co
New York, USA
T: +1 (212) 687-8080
|
kmarkovich@sardverb.com
|
GLOSSARY
1P
|
Proven Reserves
|
2P
|
Proven plus Probable Reserves
|
3P
|
Proven plus Probable plus Possible Reserves
|
boe
|
Barrels of oil equivalent (6,000 cf gas per bbl of oil equivalent)
|
boepd
|
Barrels of oil equivalent per day
|
bopd
|
Barrels of oil per day
|
Certified Reserves
|
Refers to net reserves independently evaluated by the petroleum consulting firm, DeGolyer and MacNaughton Corp. (“D&M”)
|
F&D Costs
|
Finding and development costs, calculated as the unaudited cash flow from investing activities divided by the applicable net reserves additions before changes in Future Development Capital
|
FD&A Costs
|
Finding, development and acquisition costs, calculated as the unaudited cash flow from investing activities plus acquisition costs divided by the applicable net reserves additions before changes in Future Development Capital
|
mboed
|
Thousands of Barrels of oil equivalent per day
|
mmboed
|
Millions of Barrels of oil equivalent per day
|
mmbbl
|
Millions of Barrels of oil
|
mcfpd
|
Thousands of standard cubic feet per day
|
mmcfpd
|
Millions of standard cubic feet per day
|
NPV10
|
Net Present Value after tax discounted at 10% rate
|
PDNP
|
Proven Developed Non-Producing Reserves
|
PDP
|
Proven Developed Producing Reserves
|
PUD
|
Proven Undeveloped Reserves
|
RLI
|
Reserve Life Index
|
RRR
|
Reserve Replacement Ratio
|
sqkm
|
Square kilometers
|
WI
|
Working Interest
|
NOTICE
Additional information
about GeoPark can be found in the “Investor Support” section of the website at www.geo-park.com
The reserve estimates provided in this release
are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove
to be greater than, or less than, the estimates provided herein. Statements relating to reserves are by their nature forward-looking
statements.
Gas quantities
estimated herein are reserves to be produced from the reservoirs, available to be delivered to the gas pipeline after field separation
prior to compression. Gas reserves estimated herein includes fuel gas.
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.
Oil and gas production
figures included in this release are stated before the effect of royalties paid in kind, consumption and losses.
All evaluations
of future net revenue contained in the D&M Reports are after the deduction of cash royalties, development costs, operating
expenses, production and profit taxes, fees, earn out payments, well abandonment costs, and country income taxes from the future
gross revenue. It should not be assumed that the estimates of future net revenues presented in the tables represent the fair market
value of the reserves. The actual production, revenues, taxes and development, and operating expenditures with respect to the reserves
associated with the Company's properties may vary, from the information presented herein, and such variations could be material.
In addition, there is no assurance that the forecast price and cost assumptions contained in the D&M Report will be attained,
and variances could be material.
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 2018 work program, NPV10 and NPV10/share estimations, estimated
future revenues and oil price forecast. 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 the Company’s filings with the U.S. Securities and
Exchange Commission.
Information
about oil and gas reserves:
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proven,
probable and possible reserves that meet the SEC's definitions for such terms. GeoPark uses certain terms in this press
release, such as "PRMS Reserves" that the SEC's guidelines do not permit GeoPark from including in filings with
the SEC. As a result, the information in the Company’s SEC filings with respect to reserves will differ significantly
from the information in this press release. NPV10 for PRMS 1P, 2P and 3P reserves is not a substitute for the standardized measure
of discounted future net cash flows for SEC proved reserves.