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, Chile and Ecuador, today announced its operational update for the three-month period ended September 30, 2019 ("3Q2019").
All figures are expressed in US Dollars and growth comparisons refer to the same period of the prior year, except when otherwise specified.
Third Quarter 2019 Highlights
Oil and Gas Production Growth (16 Straight Years of Continuous Growth)
New Exploration and Development Successes
In Colombia on the Llanos 34 block (GeoPark operated, 45% WI)
In Brazil on the REC-T-128 block (GeoPark operated, 70% WI)
High Potential Acreage Expansion, including New Partnership with Ecopetrol/Hocol in Colombia
Continued Returning Value to Shareholders
Catalysts: 4Q2019
Breakdown of Quarterly Production by Country
The following table shows production figures for 3Q2019, as compared to 3Q2018:
3Q2019 |
3Q2018 |
|||||
Total
|
Oil
|
Gas
|
Total
|
% Chg. |
||
Colombia |
31,578 |
31,394 |
1,104 |
|
29,139 |
+8% |
Brazil |
2,299 |
41 |
13,549 |
|
3,124 |
-26% |
Chile |
3,358 |
692 |
15,996 |
|
2,632 |
+28% |
Argentina |
2,384 |
1,566 |
4,906 |
|
2,319 |
+3% |
Total |
39,619 |
33,693 |
35,555 |
37,214 |
+6% |
Quarterly Production Evolution
(boepd) |
3Q2019 |
2Q2019 |
1Q2019 |
4Q2018 |
3Q2018 |
|
Colombia |
31,578 |
32,191a |
32,131 |
30,641 |
29,139 |
|
Brazil |
2,299 |
1,693 |
1,960 |
2,894 |
3,124 |
|
Chile |
3,358 |
2,952 |
2,961 |
2,823 |
2,632 |
|
Argentina |
2,384 |
2,365 |
2,505 |
2,383 |
2,319 |
|
Total |
39,619 |
39,201 |
39,557 |
38,741 |
37,214 |
|
Oil |
33,693 |
34,261 |
34,358 |
32,859 |
31,266 |
|
Gas |
5,926 |
4,940 |
5,199 |
5,882 |
5,948 |
Oil and Gas Production Update
Consolidated:
Overall oil and gas production grew by 6% to 39,619 boepd in 3Q2019 from 37,214 boepd in 3Q2018, due to increased production in Colombia, Chile and Argentina, partially offset by lower production in Brazil. Oil represented 85% of total reported production compared to 84% in 3Q2018.
On July 1, 2019, GeoPark completed the divestiture of the La Cuerva and Yamu blocks. Adjusting for the sale of these blocks (1,007 bopd in 3Q2018), the Company's consolidated oil and gas production increased by 9% in 3Q2019 and Colombian production increased by 12%.
Colombia:
Average net oil and gas production in Colombia grew 8% to 31,578 boepd in 3Q2019 compared to 29,139 boepd in 3Q2018, reflecting continued successful exploration, appraisal and development drilling in the Llanos 34 block.
Adjusting for the sale of the La Cuerva and Yamu blocks, Colombian production increased by 12%.
The main operational highlights for the Llanos 34 block in 3Q2019 were:
Exploration drilling:
Development and appraisal drilling:
Infrastructure update:
Acreage Expansion in Colombia in Partnership with Ecopetrol/Hocol:
Brazil:
Average net production in Brazil decreased by 26% to 2,292 boepd in 3Q2019 compared to 3,124 boepd in 3Q2018 (98% gas in both 3Q2019 and 3Q2018). However, compared to 2Q2019, Brazilian production increased by 35% due to higher demand in the Manati gas field.
Exploration drilling in the Reconcavo and Potiguar basins:
Acreage expansion in Brazil:
Chile:
Average net production in Chile increased by 28% to 3,358 boepd, representing the highest level since 4Q2016. Higher production in 3Q2019 resulted from the successful discovery and development of the Jauke gas field. The production mix during 3Q2019 was 79% gas and 21% light oil (compared to 73% gas and 27% light oil in 3Q2018).
Exploration drilling in the Fell block (GeoPark operated, 100% WI):
Argentina:
Average net production in Argentina increased by 3% to 2,384 boepd in 3Q2019 (66% oil, 34% gas) compared to 2,319 boepd in 3Q2018 (65% oil, 35% gas). Higher production in 3Q2019 resulted from a successful and ongoing optimization project initiated in 2018 focused on enhancing oil production levels.
Exploration drilling in the Aguada Baguales block (GeoPark operated, 100% WI):
4Q2019 Drilling Schedule
The following is a summary of expected drilling and testing activities scheduled for 4Q2019:
|
Prospect/Wella |
Country |
Block |
WI |
Type |
|
1 |
Tigana Norte 13 b |
Colombia |
Llanos 34 |
45% |
Development |
|
2 |
Tigana Norte 15 |
Colombia |
Llanos 34 |
45% |
Development |
|
3 |
Tigana Norte 18 |
Colombia |
Llanos 34 |
45% |
Development |
|
4 |
Jacana 33 b |
Colombia |
Llanos 34 |
45% |
Development |
|
5 |
Jacana 35 |
Colombia |
Llanos 34 |
45% |
Development |
|
6 |
Tigui 18 |
Colombia |
Llanos 34 |
45% |
Development |
|
7 |
Tigui 21 |
Colombia |
Llanos 34 |
45% |
Development |
|
8 |
Jauke Oeste 1 |
Chile |
Fell |
100% |
Exploration |
|
9 |
Aguada Baguales Sur 1b |
Argentina |
Aguada Baguales |
100% |
Exploration |
|
10 |
Mandacaru 1 |
Brazil |
POT-T-747 |
70% |
Exploration |
OTHER NEWS / RECENT EVENTS
Reporting dates for 3Q2019 results release, conference call and the work program and investment guidelines for 2020
GeoPark will report its 3Q2019 financial results on November 6, 2019, after the market close. In conjunction with the 3Q2019 results press release, GeoPark management will host a conference call on November 7, 2019 at 10:00 am (Eastern Time) to discuss 3Q2019 financial results and the work program and investment guidelines for 2020.
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: 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.
GLOSSARY
Adjusted EBITDA |
Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, 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 deliveries |
ANP |
Brazil's National Agency of Petroleum, Natural Gas and Biofuels |
|
|
Operating netback per boe |
Revenue, less production and operating costs (net of depreciation charges and accrual of stock options and stock awards) and selling expenses, divided by total boe deliveries. Operating netback is equivalent to Adjusted EBITDA net of cash expenses included in Administrative, Geological and Geophysical and Other operating costs |
Bbl |
Barrel |
|
|
Boe |
Barrels of oil equivalent |
Boepd |
Barrels of oil equivalent per day |
Bopd |
Barrels of oil per day |
CEOP |
Contrato Especial de Operación Petrolera (Special Petroleum Operations Contract) |
D&M |
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 |
Mboe |
Thousand barrels of oil equivalent |
Mmbo |
Million barrels of oil |
Mmboe |
Million barrels of oil equivalent |
Mcfpd |
Thousand cubic feet per day |
Mmcfpd |
Million cubic feet per day |
Mm3/day |
Thousand cubic meters per day |
NPV10 |
Present value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual rate of 10% |
PRMS |
Petroleum Resources Management System |
SENACE |
Servicio Nacional de Certificación Ambiental Para Las Inversiones Sostenibles |
Sq km |
Square Kilometer |
WI |
Working Interest |
|
|
NOTICE
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 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 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.
_____________________________
1 Independently audited by Gaffney, Cline and Associates
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