CORPORATE PRESENTATION
N o v e m b e r 2 0 2 3
GeoPark
DISCLAIMER
The information contained herein has been prepared by GeoPark Limited ("GeoPark", "we" or "us") solely for informational purposes. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein and nothing shall be relied upon as a promise or representation as to performance of any investment or otherwise. The information in this presentation is current only as of the date on its cover. For any time after the cover date of this presentation, the information - including information concerning our business, financial condition, results of operations and prospects - may have changed.
This presentation includes forward-looking statements. Forward-looking statements 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 including future capex, production growth and Adjusted Ebitda among other appear in a number of places in this presentation and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management's beliefs and assumptions and on information currently available to our 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 GeoPark 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.
This presentation includes forward-lookingnon-GAAP measures. The Company is unable to present a quantitative reconciliation of the 2023 Adjusted EBITDA because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2023 free cash flow forecast.
Statements related to resources are deemed forward-looking statements as they involve, based on certain estimates and assumptions, the implied assessment that the resources will be discovered and can be profitably produced in the future. Specifically, forward-looking information contained herein regarding resources may include: estimated volumes and value of the Company's oil and gas resources and the ability to finance future development, as well as the conversion of a portion of resources into reserves.
The information included in this presentation regarding GeoPark's estimated quantities of proved, probable and possible reserves in Chile, Colombia, Brazil and Ecuador as of December 31, 2022; is derived, in part, from the reports prepared by DeGolyer and MacNaughton ("D&M"), independent reserves engineers. Certified reserves refers to net reserves independently evaluated by D&M. The reserves estimates in the reports prepared by D&M were prepared in accordance with the Petroleum Resource Management System Methodology (the "PRMS") approved in 2007 and revised in 2018 by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists, the Society of Petroleum Evaluation Engineers, the Society of Exploration Geophysicists, the Society of Petrophysicists and Well Log Analysts, and the European Association of Geoscientists & Engineers. PRMS proved (1P) reserves are estimated quantities of oil, condensate and natural gas from which there is geological and engineering data that demonstrate with reasonable certainty that they are recoverable in future years from known reservoirs under existing economic and operating conditions. PRMS probable reserves (2P) are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than proved reserves but more certain to be recovered than possible reserves. PRMS possible reserves (3P) are those additional reserves that analysis of geoscience and engineering data indicates are less likely to be recoverable than probable reserves.
The accuracy of any resource estimate is a function of the quality of the available data and of engineering and geological interpretation. Results of drilling, testing and production that postdate the preparation of the estimates may justify revisions, some or all of which may be material. Accordingly, resource estimates are often different from the quantities of oil and gas that are ultimately recovered, and the timing and cost of those volumes that are recovered may vary from that assumed.
Reserves estimates prepared in accordance with SEC rules and regulations may differ significantly from reserves estimates prepared in accordance with PRMS guidelines. Therefore, the 1P reserves estimates presented in this presentation may differ significantly from the 1P reserves estimates presented in our annual report for the year ended December 31, 2022, which was filed with the SEC on March 30, 2023.
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L E A D I N G I N D E P E N D E N T L A T A M E & P C O M P A N Y
LONG-TERM VALUE PROPOSITION
ENDURING
PRINCIPLES
AND APPROACH
Energy | Oil & Gas | Latin America | GeoPark Approach |
Building the Right Team
Proven Team and Unique Culture
20 Year Track Record
From Zero to 37,000-40,000 BOEPD Discovered 430+ MMBOE of 2P Reserves Value Created* $1.8 BN 2P NPV10
Leading Oil and Gas Finders
Drilling Success Rate** 75%+
SPEED = ESG+
Net Zero Commitment (Scope 1 & 2)
Majority Independent Directors
Neighbor and Employer of Choice
BRAZIL
Low-Cost Operator
~90% of Production is Cash Flow Positive at $25-30 Brent
11% CAGR CONSOLIDATED (2013-2024E)
18% CAGR COLOMBIA (2013-2024E)
Increasing Shareholder Returns
2023 Will Exceed Shareholder Return Target
of 40-50% of Free Cash Flow
37,000-40,000
CHILE
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023E | 2024E | * As of December 31, 2022. |
** GeoPark operated wells 2006 - 2022. | ||||||||||||
Net Daily Production in Colombia (BOEPD) | Net Daily Production in Other Countries (BOEPD) |
3
RIGHT
NEIGHBORHOOD
4
R I G H T N E I G H B O R H O O D
LLANOS 34: A WORLD-CLASS ASSET
VENEZUELA | Chachalaca | Chiricoca | K E Y M E T R I C S | |||||||
Llanos | ||||||||||
Basin | Tilo | |||||||||
LL-34 | ||||||||||
COLOMBIA | Tigana | Max | ||||||||
ECUADOR | BRAZIL | |||||||||
PERU | 53,367 | 94% | 9.7 kgCO2e/BOE | 9.4 Years* | ||||||
Guaco | Tua | Tarotaro | ||||||||
Gross BOPD | Production efficiency | Low emissions | 2P Reserve Life Index | |||||||
GeoPark Producing Oil Fields | (3Q2023) | (3Q2023) | (2022) | (2022) | ||||||
Curucucú | Structural high | |||||||||
Jacana | Aruco | |||||||||
Tigui | Jacamar | N E T P R O D U C T I O N A N D R E S E R V E S G R O W T H | ||||||||
10 km | ||||||||||
45% Operated WI | Net Production (BOEPD) | 25,657 | Net 2P Reserves* (MMBOE) | |||||||
88 | ||||||||||
O V E R V I E W | 2 0 2 4 C A M P A I G N | 65 | ||||||||
14,890 | ||||||||||
- Block acquired in 2012 with no reserves or production
- 13 oil fields discovered
- 150+ gross wells drilled
- 160+ gross MMBBL produced (2012-2022)
- Tigana & Jacana rank among top 10 producing oil fields in Colombia
- Drilling 18-20 gross development and injector wells, including 5-7 wells to continue the horizontal drilling campaign
- Drilling 1 exploration well
GeoPark
Acquisition
Zero Production
2012 | 2016 | 2022 |
* 2022 D&M certified 2P reserves.
GeoPark
Acquisition
Zero Reserves
2012 | 2016 | 2022 |
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R I G H T N E I G H B O R H O O D
LLANOS 34: BIGGEST DISCOVERY IN THE LAST 20 YEARS IN COLOMBIA
G R O S S O I L P R O D U C T I O N P R O F I L E S I N C E A C Q U I S I T I O N
ACQUIRED WITH ZERO PRODUCTION AND ZERO PROVEN RESERVES
Gross Oil Production (BOPD) | |
80.000 | Cumulative Gross Oil Production |
(MMBBL) |
VALUATION
70.000 | |||||||||||||
Purchase Price (45% WI) | $30 Million | ||||||||||||
(BOPD) | 60.000 | Net Cash Flow 2012-9M2023 (Before Tax)* | $2.0 Billion | ||||||||||
50.000 | 2022 D&M 2P NPV (Before Tax) | $2.2 Billion | |||||||||||
PRODUCTIONOIL | 30.000 | ||||||||||||
40.000 | |||||||||||||
GROSS | 20.000 | ||||||||||||
10.000 | |||||||||||||
0 | |||||||||||||
Jan-12 | Jan-13 | Jan-14 | Jan-15 | Jan-16 | Jan-17 | Jan-18 | Jan-19 | Jan-20 | Jan-21 | Jan-22 | Jan-23 |
200 | |
180 | |
160 | (MMBBL) |
140 | |
120 | PRODUCTION |
100 | OIL |
80 | GROSS |
60 | CUMULATIVE |
40
20
0
Oct 23
* Net Cash Flow refers to Operating Netback less Capital Expenditures (excluding the effect of realized hedge losses or gains). | 6 |
R I G H T N E I G H B O R H O O D
CPO-5: UNLOCKING THE UPSIDE
Llanos 34 block | K E Y M E T R I C S | ||||||||
VENEZUELA | Jacana Field | ||||||||
CPO-5 | Cabrestero block | ||||||||
Perico 1 | |||||||||
Halcon 1 | |||||||||
Exploration | |||||||||
COLOMBIA | Mariposa Well | Exploration | |||||||
ECUADOR | Well | ||||||||
Field | 16,877 | 7 | 2.5x | 6.2 Years | |||||
PERU | |||||||||
Indico Field | |||||||||
Gross BOPD | Producing | Production increase | 2P Reserve | ||||||
E X P L O R A T I O N | (3Q2023) | wells** | since acquisition | Life Index*** | |||||
R E S O U R C E S | (2022) | ||||||||
0.4-0.8* | 8x | ||||||||
BILLION BOE GROSS | |||||||||
(UNRISKED) | SIZE OF | ||||||||
10 km | LLANOS 34 | ||||||||
P R O D U C T I O N | & | R E S E R V E | G R O W T H | S I N C E A C Q U I S I T I O N | |||||
30% Non-operated WI | |||||||||
GeoPark Producing Oil Fields | 3D Seismic to be acquired | Gross Production (BOPD) | Gross Reserves (MMBOE)*** | ||||||
Other Producing Oil Fields | Existing 3D Seismic | ||||||||
O V E R V I E W | 2 0 2 4 C A M P A I G N | +149% | 20,193 | ||||||
+34% | |||||||||
- Acquired in 2020
- Adjacent to core Llanos 34 block
- Indico ranks among top 10 producing oil fields in Colombia
• Drilling 3-4 development and appraisal | 8,116 | |||
wells | 67 | |||
50 | ||||
• Drilling 1-2 exploration wells | 32 | 43 | ||
• Acquire over 230 sq km of 3D seismic
R E C E N T A C T I V I T Y | December 2019 | December 2022 | July 2019 | 2022 Year-end |
- Currently drilling the Perico 1 exploration well
2P Certified Gross Reserves | 3P Certified Gross Reserves |
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- Exploration resources correspond to GeoPark's aggregate Mean-P10 unrisked recoverable oil volumes in leads and prospects individually audited by Gaffney & Cline as of December 31, 2020, excluding leads and prospects drilled in 2021, 2022 and 2023 YTD.
** In late September 2023, the operator of the CPO-5 block received approval from the | *** 2022 D&M certified 2P |
ANH to resume production at the Indico 6 and Indico 7 wells. | Reserves. |
R I G H T N E I G H B O R H O O D
CPO-5 BLOCK: FASTEST GROWING ASSET IN COLOMBIA
G R O S S P R O D U C T I O N P R O F I L E S I N C E A C Q U I S I T I O N I N 2 0 2 0
SIGNIFICANT EXPLORATION INVENTORY & POTENTIAL UPSIDE TO CONTINUE GROWING PRODUCTION & RESERVES
25.000 | VALUATION | ||
Purchase Price (30% WI) | $225 Million* | ||
20.000 | Net Cash Flow 2020-9M2023 (Before Tax)** | $202 Million | |
(BOPD) | 2022 D&M 2P NPV (Before Tax) | $300 Million | |
OIL PRODUCTION | 15.000 | ||
10.000 | |||
GROSS | |||
5.000 |
Gross Oil Production (BOPD) | ||
Cumulative Gross Oil Production | ||
(MMBBL) | 25 | |
20 | (MMBBL) | |
15 | PRODUCTIONOILGROSS | |
10 | CUMULATIVE | |
5 |
0 | 0 | ||||||
Jan-20 | Jan-20 | Jan-21 | Jan-22 | Jan-23 | Oct-23 |
* Corresponds to the portion allocated to the CPO-5 block in the Amerisur acquisition. | ** Net Cash Flow refers to Operating Netback less Capital Expenditures (excluding the effect of realized hedge losses or gains). | 8 |
R I G H T N E I G H B O R H O O D
LLANOS BASIN CHAMPION
2 0 2 4 C A M P A I G N
H I G H G R O W T H P O T E N T I A L I N W E L L - K N O W N B A S I N
GeoPark Exploration Blocks
LLANOS BASIN
Consolidated
Activity
CPO-5
GeoPark Non-operated, 30% WI
LLANOS 34
GeoPark Operated, 45% WI
3-4 Exploration Wells
24-33 Development and Appraisal Wells
+880 sq km of 3D Seismic
1-2 Exploration Wells
3-4 Development and Appraisal Wells
+230 sq km of 3D Seismic
- Exploration Well
18-20 Development and Injector Wells
GeoPark Producing Blocks
GeoPark Producing Oil Fields
Other Producing Oil Fields
3D seismic to be acquired in early 2024
LLANOS 124
LLANOS 123
LLANOS 87
LLANOS 32
20x
LLANOS 34 | SIZE OF |
LLANOS 34 |
Tigana
Jacana
LLANOS 104
LLANOS 87 & 123*
GeoPark Operated, 50% WI
LLANOS 86 & 104
GeoPark Operated, 50% WI
-
Exploration Well
3-9 Appraisal Wells
+650 sq km of 3D Seismic**
Mariposa
CPO 4-1 | Indico |
LLANOS 94
CPO-5
LLANOS 86
10 km
MULTIYEAR DEVELOPMENT & EXPLORATION INVENTORY WITH UPSIDE POTENTIAL
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* Subject to joint venture approval. | ** 3rd largest seismic acquisition in Colombia. |
R I G H T N E I G H B O R H O O D
PUTUMAYO & ORIENTE: UNDEREXPLORED PROVEN BASIN
K E Y H I G H L I G H T S P U T U M A Y O | K E Y H I G H L I G H T S O R I E N T E | |||||
VENEZUELA | PUT-36 | |||||
COLOMBIA | 2,027 | 1,318 | ||||
Gross BOPD | Gross BOPD | |||||
Putumayo | Mecaya | |||||
PLATANILLO | (3Q2023) | (3Q2023) | ||||
Basin | ||||||
ECUADOR | BRAZIL | PUT-9 | ||||
PERU | OTA | |||||
PUT-8 | 95% | ~3,480 | ||||
COLOMBIA | Production | |||||
Gross BOPD | ||||||
Coati | Efficiency | |||||
Current production | ||||||
(3Q2023) | ||||||
SOTE | Lago Agrio | |||||
OCP | PERICO | $4/BBL | Developing a complete | |||
structural and stratigraphic | ||||||
Transport Cost | geological model for the | U- | ||||
ECUADOR | sand formation | |||||
ESPEJO | ||||||
10 km | 2 0 2 4 C A M P A I G N | 2 0 2 4 C A M P A I G N | ||||
E X P L O R A T I O N R E S O U R C E S | • Drilling 1-2 gross exploration wells, | • Drilling 2-7 appraisal wells | ||||
adjacent to the Platanillo block | • Drilling 1 exploration well | |||||
0.3-0.6*
BILLION BOE GROSS (UNRISKED)
Oil Fields
GeoPark Producing blocks GeoPark Exploration blocks Pipelines
- Focused on continuing delineation of the U-Sand formation
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* Exploration resources correspond to GeoPark's aggregate Mean-P10 unrisked recoverable oil volumes in leads and prospects individually audited by Gaffney & Cline as of December 31, 2020, excluding leads and prospects drilled in 2021, 2022 and 2023 YTD.
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Disclaimer
Geopark Limited published this content on 26 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2023 14:08:41 UTC.