Oil & Gas 360 Publishers Note: GeoPark will be presenting at EnerCom Dallas at 10:05 Tuesday Febuary 11th. The presentation will be live streamed at enercomdallas.com
IN COLOMBIA: 1P, 2P AND 3P RESERVE REPLACEMENT RATIOS OF 200+%
AND 2P RESERVES INCREASED 10% TO 129 MMBOE VALUED AT $2.1 BILLION
Bogota, Colombia – February 10, 2020 – 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 independent oil and gas reserves assessment, certified by DeGolyer and MacNaughton (D&M), under PRMS methodology, as of December 31, 2019.
D&M’s assessment as of December 31, 2019 does not include reserves or any other information related to the recent acquisition of Amerisur Resources Plc (“Amerisur”) that closed in January 2020. All reserves included in this release refer to GeoPark working interest reserves before royalties paid in kind. All figures are expressed in US Dollars. Definitions of terms are provided in the Glossary on page 11.
Year-End Certified 2019 D&M Oil and Gas Reserves and Highlights:
Colombia Reserves Growth
- PD Reserves: Proven developed (PD) reserves in Colombia increased 17% to 42.4 mmboe, with a PD reserve life index (RLI) of 3.6 years
- 1P Reserves: Proven (1P) reserves in Colombia increased 15% to 95.9 mmboe, with a 1P RLI of 8.1 years. Net present value after tax discounted at 10% (NPV10) of 1P reserves increased by 15% to $1.6 billion despite using lower price decks
- 2P Reserves: Proven and probable (2P) reserves in Colombia increased 10% to 129.0 mmboe (16% adjusting for divested blocks), with a 2P RLI of 10.9 years. NPV10 of 2P reserves increased by 10% to $2.1 billion
- 3P Reserves: Proven, probable and possible (3P) reserves in Colombia increased 11% to 168.9 mmboe, with a 3P RLI of 14.3 years. NPV10 of 3P reserves increased by 10% to $2.6 billion
- Reserve Additions and Replacement Ratios: After record production of 11.8 mmboe, the Company added 17.9 mmboe of PD reserves, 24.3 mmboe of 1P reserves, 24.0 mmboe of 2P reserves and 28.1 mmboe of 3P reserves, achieving, respectively, a 152%, 206%, 203% and 238% reserve replacement of PD, 1P, 2P and 3P reserves
- Finding and Development Costs: Finding and development costs (F&D Costs) for 2019 in Colombia were $2.9 per boe on a 1P basis and $2.6 per boe on a 2P basis
Consolidated Reserves Growth
- PD Reserves: PD reserves increased 14% to 52.4 mmboe, with a PD RLI of 3.6 years
- 1P Reserves: 1P reserves increased 11% to 130.6 mmboe, with 1P RLI of 8.9 years. NPV10 of 1P reserves increased by 11% to $2.0 billion
- 2P Reserves: 2P reserves increased 4% to 197.3 mmboe (7% adjusting for divested blocks), with a 2P RLI of 13.5. NPV10 of 2P reserves increased by 3% to $2.8 billion
- Reserve Additions and Replacement Ratios: After record production of 14.6 mmboe, the Company added 21.2 mmboe of PD reserves, 27.3 mmboe of 1P reserves, and 22.7 mmboe of 2P reserves, achieving, respectively, a 145%, 187% and 155% reserve replacement of PD, 1P, and 2P reserves
- Finding and Development Costs: F&D Costs for 2019 were $4.3 per boe on a 1P basis and $4.5 per boe on a 2P basis
Net Present Value and Value Per Share
- GeoPark’s 2P NPV10 increased by 3% to $2.8 billion from $2.7 billion, despite using lower price decks
- GeoPark’s net debt-adjusted 2P NPV10 increased by 6% to $42.5 per share ($29.6 per share corresponding to Colombia)
Recent Amerisur Acquisition (Closed in January 2020)
- Accretive acquisition of Amerisur, providing reserves, production and cash flow growth and enriching GeoPark’s inventory of short, medium and long-term exploration opportunities
- Amerisur reserves included 15.0 mmbbl and 21.8 mmbbl of 1P and 2P reserves with an estimated NPV10 of 2P reserves of $0.3 billion (certified by McDaniel & Associates as of end-July 2019)
James F. Park, Chief Executive Officer of GeoPark, said: “This year-end certification is a good scorecard of the ‘nuts-and-bolts’ of our business and how our team consistently performs and delivers growth in value. Our operations team continues to safely and cleanly produce more oil and gas barrels every year – a record in 2019. Our exploration team continues to find even more oil and gas barrels in the subsurface to replace our increasing production and still grow our overall reserve base – another record year. Plus our continually-improving operational efficiency contributes by making every barrel of our reserves more valuable. And, none of these record 2019 achievements include the exciting new production, reserves and resources now in-house from the Amerisur acquisition and the 1+ million new acres acquired in the Llanos basin – which we will be putting to work in 2020.”
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