TIDMGPK
RNS Number : 2607U
Geopark Limited
29 November 2013
QUARTERLY OPERATIONAL AND FINANCIAL RESULTS
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2013
Operational Highlights*
-- Oil Production up 57% to 11,163 bopd in 3Q2013 vs 3Q2012
-- Total Oil and Gas Production up 21% to 12,992 boepd in 3Q2013 vs 3Q2012
-- New Gas discovery: Cerro Sutlej gas field in Fell Block, Chile
-- Drilled Tigana 1 exploration well in Llanos 34, Colombia to be tested in 4Q2013
Financial Highlights*
-- Revenues up 49% to $89.7 million in 3Q2013 vs 3Q2012
-- Gross Profit up 57% to 41.0 million in 3Q2013 vs 3Q2012
-- Adjusted EBITDA up 33% to $125.9 million (as of September 30, 2013)
-- Cash position of $104.8 million
* Operational and Financial figures do not include results from
new Brazilian acquisition, which is expected to close in 4Q2013 or
1Q2014.
Strategic Highlights
-- Strategic alliance with Tecpetrol to identify, study and
potentially acquire upstream oil and gas opportunities in
Brazil
-- Registration process underway with the United States
Securities and Exchange Commission, SEC, to consider alternate
public market to obtain additional capital and increased financial
flexibility
For further information please contact:
GeoPark Limited
Juan Pablo Spoerer (Chile) +56 2 2242 9600
Pablo Ducci (Chile)
Oriel Securities - Nominated Adviser and Joint Broker
Michael Shaw (London) +44 (0)20 7710 7600
Tunga Chigovanyika (London)
Macquarie Capital (Europe) Limited - Joint Broker
Steve Baldwin (London) +44 (0)20 3037 2000
OPERATIONAL HIGHLIGHTS
Quarterly Production
In 3Q2013, oil and gas production increased by 21% to 12,992
boepd (3Q2012: 10,694 boepd)
Crude oil production increased by 57% to 11,163 bopd in 3Q2013
(3Q2012: 7,117 bopd) driven by an increase in production in
Colombia and Chile, representing 86% and 14% respectively.
The following table shows production figures for 3Q2013, as
compared with 3Q2012. In addition, it includes pro-forma
information related to Brazil, which refers to the pending
acquisition of Rio das Contas (which holds a 10% working interest
in the offshore Manati gas field), that is expected to close by
4Q2013 or 1Q2014.
Third Quarter
Third Quarter 2013 2012
Total (boepd) Oil (bopd) Gas (mcfpd) Total % Chg.
(boepd)
------------- ------------------------- --------------------- -------------------- ------------- -------- ------
Chile 5,829 4,024 10,825 7,025 -17% (1)
Colombia 7,096 7,088 50 3,605 97%
Argentina 67 50 101 64 5%
Total 12,992 11,163 10,977 10,694 21%
Plus:
Brazil(2) 3,733 64 22,016
------------- ------------------------- --------------------- --------------------
Total
Pro-Forma 16,725 11,226 32,993
------------- ------------------------- --------------------- --------------------
(1) The lower production in Chile was driven by a decrease in
gas production of 25% as a result of the temporary Methanex plant
shut-in from April to September 2013.
(2) Brazil production included on a pro-forma basis. Production
and results from the Manati asset will be accounted for after the
closing of the transaction, which is expected in 4Q2013 or
1Q2014.
Nine-month Production
Oil and natural gas production increased by 14% to 13,148 boepd
in the nine-month period ended September 30, 2013 (11,533 boepd as
of September 30, 2012). In this period oil production increased 47%
due to higher production in Colombia, 81% increased, and Chile, 19%
increased. Oil production accounted for 82% and 64% of the total
production for the nine-month period ended September 30, 2013 and
2012.
Considering the pending Rio das Contas acquisition, on a pro
forma basis, the Company would have produced an average of 16,869
boepd during the first nine months of 2013, with Chile, Colombia
and Brazil representing 42%, 36% and 22% of the total production
respectively, and with oil representing 64% of this total
production. For the nine-month period ended September 30, 2013, Rio
das Contas produced an average of 3,721 boepd (including 98%
natural gas and 2% oil).
Drilling and Work Program
GeoPark's 2013 work program includes the drilling of 35-45 new
wells (gross) with capital expenditures of $200-230 million.
In 3Q2013, the Company invested $44.4 million, including $24.2
million in Chile, and $15.6 million in Colombia.
For the first nine months of 2013, GeoPark drilled 32 new wells
(23 of them corresponding to exploration wells), 14 in Chile and 18
in Colombia. In addition, the Company invested a total amount of
$191.5 million, including $115.4 million in Chile, and $71.5
million in Colombia. Amounts directed to exploration were $111.3
million as of September 30, 2013.
3Q2013 Drilling Program
In 3Q2013, GeoPark's program included the drilling of
exploration, appraisal and development wells, in addition to
workovers of existing wells, as indicated below:
Chile
The following table indicates activities in Chile during 3Q2013,
as well as current status:
Block WI Well Type of Well Geological Depth Principal Current
Formation (Meters) Hydrocarbon Status
======= ======= ===== ============== ============= ============== ============== ============== ==============
Cerro Sutlej
Chile Fell 100% Norte 1 Exploration Tobifera 3,150 Gas On Production
Molino Norte Under
Chile Fell 100% 1 Exploration Tobifera 3,130 Oil Evaluation
Chile Fell 100% Konawentru 7 Development Tobifera 3,145 Oil On Production
Yagán
Chile Fell 100% Norte 9D Development Tobifera 3,110 Oil On Production
Chile Fell 100% Bump Hill 1 Workover Tobifera 2,948 Oil On Production
Yagán
Chile Fell 100% Norte 1 Workover Tobifera 3,080 Oil On Production
Converted to
Chile Fell 100% Guanaco 4 Workover Tobifera 2,610 Oil Injector
------- ------- ----- -------------- ------------- -------------- -------------- -------------- --------------
Highlights
-- Exploration well Cerro Sutlej Norte 1 on the Fell Block
(GeoPark operated with a 100% WI) was drilled to a depth of 3,150
meters and tested gas in the Springhill formation. The well was put
into production with a current rate of approximately 4.2 mmcfpd of
gas.
-- Exploration well Molino Norte 1 on the Fell Block (GeoPark
operated with a 100% WI) was drilled to a depth of 3,130 meters.
Initial tests proved uneconomic and further analysis is
underway.
-- Development well Konawentru 7 on the Fell Block (GeoPark
operated with a 100% WI) was drilled to a depth of 3,145 meters and
tested oil in the Tobifera formation. The well was put into
production with a current rate of approximately 360 bopd.
-- Development well Yagán Norte 9-D on the Fell Block (GeoPark
operated with a 100% WI) was drilled to a depth of 3,110 meters and
tested oil in the Tobifera formation. The well was put into
production with a current rate of approximately 370 bopd.
-- Workover activities on Fell Block (GeoPark operated with a
100% WI) included the Bump Hill 1 and Yagán Norte 1 wells to
enhance production, and Guanaco 4 well to convert into a water
injector well.
Colombia
The following table indicates activities in Colombia during
3Q2013, as well as current status:
Type Geological Depth Principal
Block WI Well of Well Formation (Meters) Hydrocarbon Current
Status
=========== =========== ===== =========== ========== ================== ========== ============= =============
Operated
On
Colombia Llanos 34 45% Tarotaro 5 Appraisal Gacheta 3,242 Oil Production
Awaiting
Colombia Llanos 34 45% Tigana 1 Explo. Guadalupe/Mirador 3,434 Oil Completion
Type
Non- of Geological Depth Principal Current
Operated Block WI Well Well Formation (Meters) Hydrocarbon Status
=========== =========== ===== =========== ========== ================== ========== ============= =============
Colombia Arrendajo 10% Azor 4 Appraisal Carbonera 7,469 Oil Abandoned
Highlights
-- Appraisal well Tarotaro 5 on the Llanos 34 Block (GeoPark
operated with a 45% WI), was drilled to a depth of 3,242 meters and
tested oil in the Gacheta formation. The well was put into
production with a current rate of approximately 465 bopd.
-- Exploration well Tigana 1 on the Llanos 34 Block (GeoPark
operated with a 45% WI), was drilled to a depth of 3,434 meters
with favorable electric log readings in the Mirador and Guadalupe
formations. Testing operations will be carried out during
4Q2013.
-- Appraisal well Tarotaro 3 on Llanos 34 Block (GeoPark
operated with a 45% WI) was tested in the Guadalupe formation and
is currently producing approximately 780 bopd (gross).
Key Upcoming Wells
2013 drilling program is designed to increase oil and gas
production, reserves and cash flow, improve project economics and
performance, and manage risk through a mix of exploration and
development drilling.
Block Country WI Operator Prospect Unrisked CoS Principal
Resources in % Hydrocarbon
(*)
========== ========== ===== ========= ====== =============
Name P90-P10(*)
MMbbl
========== ========== ===== ========= =========== =========== ====== =============
Flamenco Chile 50% GeoPark Chilco 1 1.9-6.7 36 Gas
Flamenco Chile 50% GeoPark Tenca 1 0.15--0.47 44 Oil
Flamenco Chile 50% GeoPark Taguas 1 0.26-1.1 42 Oil
GeoPark Konawentru
Fell Chile 100% 9 - - Oil
Llanos GeoPark
34 Colombia 45% Tua 6 - - Oil
Llanos
34 Colombia 45% GeoPark Aruco 1 0.5-2.5 43 Oil
Llanos Tigana Sur
34 Colombia 45% GeoPark 1 1.8-6.1 60 Oil
---------- ---------- ----- --------- ----------- ----------- ------ -------------
(*) Only for exploration wells. GeoPark estimates of unrisked
resources.
Current Activities
On the Flamenco Block (GeoPark operated with 50%) in Tierra del
Fuego, the drilling have begun with the exploration well Chilco.
Two additional exploration wells, Tenca 1 and Taguas 1 are expected
to be drilled during 4Q2013.
In Colombia, testing operations will be carried out on the
Tigana 1 and Tigana Sur 1 wells in the Llanos 34 Block.
FINANCIAL HIGHLIGHTS
Nine-month period ended September 30, 2013 compared to
nine-month period ended September 30, 2012
Nine-month period ended September
30,
--------------------------------------
% Change
from
(In thousands of $, except for percentages) 2013 2012 prior period
------------------------------------------------------------------------------
(unaudited)
Revenues
Net oil
sales.....................................................................
........ 235,225 158,309 49%
Net gas
sales.....................................................................
....... 15,305 23,830 (36)%
----------- ---------
Net
revenue.....................................................................
......... 250,530 182,139 38%
Production
costs.....................................................................
.. (129,834) (88,656) 46%
----------- ---------
Gross
profit......................................................................
......... 120,696 93,483 29%
Gross margin
(%)..................................................................... 48% 51% (6)%
Exploration
costs.......................................................................
... (16,012) (21,742) (26)%
Administrative
costs..................................................................... (32,050) (20,910) 53%
Selling
expenses....................................................................
...... (12,526) (15,650) (20)%
Other operating
income................................................................ 4,555 681 569%
Operating
profit......................................................................
.. 64,663 35,862 80%
Financial results,
net..................................................................... (27,200) (13,598) 100%
Bargain purchase gain on acquisition of
subsidiaries........................ - 8,401 (100)%
----------- ---------
Profit before income
tax.......................................................... 37,463 30,665 22%
Income tax
expense..................................................................... (12,260) (6,266) 96%
----------- ---------
Profit for the
period................................................................. 25,203 24,399 3%
Non--controlling
interest................................................................. 9,436 6,566 44%
----------- ---------
Profit for the period attributable to owners
of the Company.. 15,767 17,833 (12)%
Net production volumes
Oil
(mbbl)....................................................................
............ 2,953 1,784 66%
Gas
(mcf).....................................................................
........... 3,820 6,862 (44)%
Total net production
(mboe).................................................... 3,589 2,927 23%
Average net production
(boepd).................................................... 13,148 11,533 14%
Average realized sales price
Oil ($ per
bbl)......................................................................
..... 82.5 91.8 (7)%
Gas ($ per
mcf)......................................................................
.. 4.6 4.0 15%
Average realized sales price per boe
($)........................................ 73.5 66.6 10%
Production costs
(1)................................................................. 36.2 30.3 19%
Exploration
costs.....................................................................
. 4.5 7.4 (39)%
Administrative
costs.................................................................. 8.9 7.1 25%
Selling
expenses..................................................................
..... 3.5 5.3 (34)%
----------- --------- --------------
Average Adjusted EBITDA per boe ($) 35.1 32.4 8%
------------------------------------------------------------------------------ ----------- --------- --------------
(1) Calculated pursuant to FASB ASC 932.
Geographical Segment Reporting
The Company divides its business into geographical segments,
being Chile and Colombia the principal countries of operation for
the nine-month period ended September 30, 2013 and 2012.
In the description of results of operations that follows, the
"Other" operations reflect non--Chilean and non--Colombian
operations, primarily consisting of Argentine, Brazilian(1) and
corporate head office operations.
In 2012 the Company has accounted for the results of its
operations in Colombia since the acquisition dates which occurred
during the first quarter of 2012. Including the Colombian
acquisitions on a proforma basis (i.e. for the whole of the first
quarter), Revenues and Adjusted EBITDA would have been US$24
million and US$8 million higher during the first quarter of 2012,
respectively.
Unaudited Nine-month ended September 30,
--------------------------------------------------------------------------------------
2013 2012
======================== ------------------------------------------- -----------------------------------------
(In thousands of
$) Chile Colombia Other Total Chile Colombia Other Total
------------------------ --------- ------------- ------ --------- --------- --------- -------- ---------
Net
revenue...............
...................... 119,359 130,053 1,118 250,530 117,244 63,923 972 182,139
Gross
profit................
..................... 69,546 50,214 936 120,696 68,314 24,867 302 93,483
Depreciation..........
......................
.... (21,835) (27,477) (234) (49,546) (22,178) (13,249) (801) (36,228)
Impairment and
write--offs...........
...... (8,711) (3,244) - (11,955) 13,627) (4,727) (1,944) (20,298)
Adjusted EBITDA
per boe 38.4 36.7 - 35.1 34.4 36.7 - 32.4
------------------------ --------- --------- ---------- --------- --------- --------- -------- ---------
[1]As of the date of this press release the Company does not
currently perform operations in Brazil as the acquisition of Rio
das Contas is still pending and the Company has not commenced any
operations related to the seven exploration licenses awarded.
However, in the nine month period ended September 30, 2013 GeoPark
has incurred in some expenses related to the start-up or our
expected operations in such country.
Results of Operations: Jan-Sep/2013 compared with
Jan-Sep/2012
Net Revenue
For the nine-month period ended September 30, 2013, 94% and 6%
of the total revenues were derived from crude oil sales and natural
gas sales, respectively, as compared with 87% and 13% in the
nine-month period ended September 30, 2012.
Change from prior
Nine-month period ended September 30, period
------------------------------------------ -------------------
Consolidated
(in thousands of $) 2013 2012 %
-----------------------------------------------------
(unaudited)
Sale of crude oil 235,225 158,309 49
Sale of
gas................................................
...................................................
............ 15,305 23,830 36
--------------------- ------------------- -------------------
Total..............................................
...................................................
...................... 250,530 182,139 38
--------------------- ------------------- -------------------
Nine-month period ended September 30, Change from prior period
---------------------------------------- -------------------------
By country
(in thousands of $) 2013 2012 %
-----------------------------------------------
(unaudited)
Chile........................................ 119,359 117,244 2
Colombia................................. 130,053 63,923 103
Other....................................... 1,118 972 15
------------------- ------------------- -------------------------
Total....................................... 250,530 182,139 38
------------------- ------------------- -------------------------
Net revenue increased 38%, to $250.5 million for the nine-month
period ended September 30, 2013 ($182.1 million for the nine-month
period ended September 30, 2012), primarily as a result of an
increase in oil deliveries due to the incorporation of a full
nine-month of Colombian operations in the results (as compared to
the similar period in 2012) and due to increase in production and
deliveries in such country.
The increase in net revenue is explained by:
-- An increase of $92.9 million in oil deliveries,
-- An increase of $3.6 million from the realized price for gas sold.
Partially offset by
-- A decrease of $16.0 million from the realized price for oil sold, and
-- A decrease of $12.1 million in gas deliveries.
Operations in Chile
Net revenue attributable to the operations in Chile increased by
2% to $119.4 million for the nine-month period ended September 30,
2013 ($117.2 million for the nine-month periods ended September 30,
2012), representing 48% as compared to 64% of the total
consolidated sales for the nine-month period ended September 30,
2012.
Sales of crude oil increased by 16% to 1,244 mbbl in 2013 (1,072
mbbl for the corresponding period in 2012), due to new discoveries
made in the Tobıfera formation, which increased production at the
Konawentru field. This was partially offset by a decrease in the
average realized prices per barrel of crude oil of $3.4 per barrel,
or 3.9%, from $87.1 per barrel for the nine-month period ended
September 30, 2012 to $83.7 per barrel for the nine-month period
ended September 30, 2013, of which $3.6 per barrel was attributable
to quality discounts in the oil produced, partially offset by a
slight increase in the WTI price.
Gas sales decreased by 36% to $15.3 million for the nine-month
period ended September 30, 2013 ($23.8 million for the nine-month
period ended September 30, 2012). The lower gas sales resulted from
reduced drilling activity for gas prospects, as the focus is on oil
prospects, and from the temporary shutdown of the Methanex plant,
the sole purchaser of the gas produce in Chile. During the
temporary shut-in, from April 2013 to September 23, 2013, GeoPark
reduced the gas deliveries to Methanex by 25%.
Operations in Colombia
Net revenue attributable to operations in Colombia increased by
103.5% to $130.1 million for the nine-month periods ended September
30, 2013 ($63.9 million for the nine-month period ended September
30, 2012) respectively, representing 52% and 35% of the total
consolidated sales respectively.
Sales of crude oil increased by 169% to 1,508 mbbl for the
nine-month period ended September 30, 2013 (561 mbbl for the
nine-month period ended September 30, 2012). This increase resulted
from (i) the incorporation of an additional three months of
Cuerva's results in the nine-month period ended September 30, 2013
and the incorporation of an additional month of Winchester and
Luna's operations (the revenues for the corresponding period that
were not included in the nine-month period ended September 30, 2012
were $23.8 million) as compared to the same period in 2012, and
(ii) the development of the Max and Tua fields and the discoveries
of the Tarotaro field in the Llanos 34 Block and the Potrillo field
in Yamú Block. This was partially offset by a decrease in the
average realized prices per barrel of crude oil from $101.5 per
barrel to $81.7 per barrel.
This decrease is explain by (i) the change in the commercial
strategy in Colombia (whereas the historically delivered point for
all the production was the port of Covenas, in 2013, the Company
began selling a portion of its production at wellhead.
Consequently, transportation costs, recorded in selling expenses,
were reduced, which resulted in a corresponding reduction in sales
price), and (ii) a decrease of 4% in in the price of Brent.
Production costs
The following table summarizes the production costs for the
nine-month periods ended September 30, 2013 and 2012, on a
consolidated basis and by country.
Nine-month period ended September 30,
----------------------------------------------------
Consolidated % Change from
(in thousands of $, except for percentages) 2013 2012 prior period
----------------------------------------------------------------
(unaudited)
Depreciation..................................................
............................. (48,423) (35,529) 36%
Royalties.....................................................
............................... (13,010) (9,900) 31%
Staff
costs.........................................................
......................... (12,195) (6,102) 100%
Transportation
costs.........................................................
........... (8,494) (5,112) 66%
Well and facilities
maintenance...................................................
.. (13,423) (5,749) 133%
Consumables...................................................
........................... (11,636) (7,639) 52%
Equipment
rental........................................................
................. (5,562) (5,504) 1%
Other
costs.........................................................
........................ (17,091) (13,121) 30%
------------------- ------------- ----------------
Total.........................................................
................................ (129,834) (88,656) 46%
------------------- ------------- ----------------
Nine-month period ended September 30,
----------------------------------------------------
2013 2012
-------------------------- ------------------------
By country
(in thousands of $) Chile Colombia Chile Colombia
----------------------------------------------------------------
(unaudited)
Depreciation..................................................
............................. (21,008) (27,380) (21,770) (13,180)
Royalties.....................................................
............................... (5,669) (7,208) (5,547) (4,215)
Staff
costs.........................................................
......................... (5,730) (7,508) (5,521) (1,837)
Transportation
costs.........................................................
........... (4,937) (3,399) (4,583) (388)
Well and facilities
maintenance...................................................
.. (5,391) (7,733) (4,168) (1,415)
Consumables...................................................
........................... (1,391) (10,180) (2,215) (5,368)
Equipment
rental........................................................
................. - (5,562) - (5,504)
Other
costs.........................................................
........................ (5,687) (10,869) (5,126) (7,149)
------------ ------------ ----------- -----------
Total.........................................................
................................ (49,813) (79,839) (48,930) (39,056)
------------ ------------ ----------- -----------
Production costs increased by 46% to 129,8 for the nine-month
period ended September 30, 2013 ($88.7 million for the nine-month
period ended September 30, 2012), primarily as a result of the
incorporation of a full nine months of the Colombian operations
into the results, in addition to an increase in oil production. The
above resulted in the revenue mix to be 93.9% oil and 6.1% gas as
compared with 87% and 13% for the nine-month period ended September
30, 2013 and 2012, respectively.
Operations in Chile
For the nine-month period ended September 30, 2013, in Chile,
operating costs (production costs less depreciation, royalties and
share-based payments) increased by 25% to $11.5 per boe ($9.2 per
boe in the same period in 2012). This increase was driven by the
continuing change in revenue mix from gas to oil, as operating
costs for oil are higher than for gas, and the increase in well and
facilities maintenance. In the first nine months of 2013, the
revenue mix for Chile was 87.2% oil and 12.8% gas, whereas for the
same period in 2012 it was 79.7% oil and 20.3% gas.
Operations in Colombia
Operating costs in Colombia increased 107.3% for the nine-month
period ended September 30, 2013 as compared to the corresponding
period in 2012, primarily due to the incorporation of a full nine
months of the Colombian operations in the results (operating costs
for the corresponding period that were not included in the
nine-month period ended September 30, 2012 were $14.4 million) due
to the increases in production and deliveries. However, operating
costs per boe in Colombia decreased by 17% to $27.1 per boe for the
nine-month period ended September 30, 2013 ($32.8 per boe for the
corresponding period in 2012) resulting from fixed costs spread
over increased production.
Exploration costs
Nine-month period ended September 30, Change from prior period
--------------------------------------- ---------------------------
(In thousands of $, except for percentages) 2013 2012 %
----------------------------------------------
(unaudited)
Chile.......................................
............................................
.................... (9,684) (14,448) (4,764) (33)
Colombia....................................
............................................
................. (3,853) (4,889) (1,036) (21)
Other.......................................
............................................
................... (2,475) (2,405) 70 3
------------------ ------------------- ------------------- ------
Total.......................................
............................................
................... (16,012) (21,742) (5,730) (26)
------------------ ------------------- ------------------- ------
Exploration costs decreased by 26%, to $16.0 million for the
nine-month period ended September 30, 2013 ($21.7 million for the
nine-month period ended September 30, 2012), primarily as the
result of the recognition of lower write--offs of unsuccessful
efforts. Resulting from the above, the unsuccessful efforts
amounted to $11.9 million in the nine month period ended September
30, 2013 (In Chile includes one well in the Fell Block for $3.6
million, one well in the Tranquilo Block for $1.1 million, seismic
surveys and other costs in the Otway Block for $4.0 million and
three wells in Colombia for $3.2 million), as compared to $20.3
million (two wells in the Fell Block for $7.3 million, one well in
the Tranquilo Block for $6.3 million, seismic surveys in the Del
Mosquito Block for $1.9 million and costs associated with three
wells in Colombia for $4.7 million) in such write--offs in the same
period in 2012.
Administrative costs
Nine-month period ended September 30, Change from prior period
---------------------------------------- ---------------------------
(In thousands of $, except for percentages) 2013 2012 %
-----------------------------------------------
(unaudited)
Chile........................................
.............................................
.................. (12,157) (6,332) 5,825 92
Colombia.....................................
.............................................
............... (9,919) (4,311) 5,608 130
Other........................................
.............................................
................. (9,974) (10,267) (293) (3)
------------------- ------------------- ---------------- ---------
Total........................................
.............................................
................. (32,050) (20,910) 11,140 53
------------------- ------------------- ---------------- ---------
Administrative costs increased by 53% to $32.1 million for the
nine-month period ended September 30, 2013 ($20.9 million for the
nine-month period ended September 30, 2012), primarily as a result
of an increase in costs in: (1) Chilean operations, from $6.3
million in the first nine months of 2012 to $12.2 million in the
first nine months of 2013, mainly due to the startup of the
operations in Tierra del Fuego; and (2) Colombian operations, from
$4.3 million in the first nine months of 2012 to $9.9 million in
the first nine months of 2013 mainly due to the incorporation of
the full Colombian operations into results.
Selling expenses
Nine-month period ended September 30, Change from prior period
---------------------------------------- ---------------------------
(In thousands of $, except for percentages) 2013 2012 %
-----------------------------------------------
(unaudited)
Chile........................................
.............................................
....................... (3,194) (3,916) (722) (18)
Colombia.....................................
.............................................
.................... (8,935) (11,511) (2,576) (22)
Other........................................
.............................................
....................... (397) (223) 174 78
------------------- ------------------- ---------------- ---------
Total........................................
.............................................
...................... (12,526) (15,650) (3,124) (20)
------------------- ------------------- ---------------- ---------
Selling expenses decreased by 20%, to $12.5 million for the
nine-month period ended September 30, 2013 ($15.7 million for the
nine-month period ended September 30, 2012), primarily due to the
change in the delivery point for certain production in the
Colombian operations. In the Chilean operations, selling expenses
were 18% lower compared to the same period of the prior year,
primarily as a result of the impact of a deliver or pay penalty
paid to Methanex in 2012, partially offset by the increase in oil
deliveries in Chile.
Net Financial Results
Financial loss increased by 100% to $ 27.2 million for the
nine-month period ended September 30, 2013($13.6 million for the
nine-month period ended September 30, 2012) due to the accelerated
amortization of debt issuance costs incurred in connection with the
redemption of the Notes due 2015 in an amount of $ 8.6 million
following the issuance of the Notes due 2020 in the nine-month
period ended September 30, 2013, the incorporation of a full nine
months of the Colombian operations into the results and higher
interest expenses generated by the issuance of the Notes due 2020
in an amount of $6.3 million incurred to finance the capital
expenditures program and to further expand operations.
Profit before income tax
Nine-month period ended September 30, Change from prior period
------------------------------------------ ---------------------------
(In thousands of $, except for
percentages) 2013 2012 %
-------------------------------------------
(unaudited)
Chile....................................
.........................................
................. 36,696 33,376 3,320 10
Colombia.................................
.........................................
.............. 24,270 8,994 15,276 170
Other
(1)......................................
.........................................
.......... (23,503) (11,705) (11,798) (101)
----------------------------- ----------- --------------- ----------
Total....................................
.........................................
................ 37,463 30,665 6,798 22
----------------------------- ----------- --------------- ----------
(1) The "Other" line includes Argentinean, Brazilian, Corporate
head office operations and financial results, net. For the
nine-month period ended September 30, 2013, financial results, net
included in the "Other" line amounts to a loss of $10.8
million.
Profit before income tax increased by 22% to $37.5 million
($30.7 million for the nine-month period ended September 30, 2012),
primarily due to the incorporation of a full nine months in the
Colombian operations, and increase in production and deliveries in
such country and to a lesser extent, due to higher profits from the
Chilean operations, partially offset by the occurrence of two
non--recurring events: (1) accelerated amortization of debt
issuance costs described above; and (2) the comparative effect of a
bargain purchase gain on acquisition of subsidiaries of $8.4
million as a result of the acquisitions of Winchester and Luna
recorded in the nine-month period ended September 30, 2012.
Income tax
Nine-month period ended
September 30, Change from prior period
---------------------------- --------------------------
(In thousands of $, except for
percentages) 2013 2012 %
-------------------------------------------
(unaudited)
Chile....................................
.........................................
................. (5,262) (6,968) 1,706 24
Colombia.................................
.........................................
.............. (9,312) 702 (10,014) (1,426)
Other....................................
.........................................
................. 2,314 - 2,314 100
--------- ---------------------------- ------------- -----------
Total....................................
.........................................
................ (12,260) (6,266) (5,994) 96
--------- ---------------------------- ------------- -----------
Income tax increased by 96%, to $12.3 million for the nine-month
period ended September 30, 2013 ($6.3 million for the nine-month
period ended September 30, 2012), as a result of increased profit
before income taxes described in the above mentioned paragraphs.
GeoPark's effective tax rate for the nine-month period ended
September 30, 2013 was 33% as compared to 20% in the nine-month
period ended September 30, 2012. The effective tax rate was mainly
influenced by an increase in profits from the Colombian operations
in the results, which are subject to a higher tax rate than other
operations, and the impact of a non--recurring tax exempted bargain
purchase gain on acquisition of subsidiaries in Colombia, that was
recorded in the nine-month period ended September 30, 2012.
Profit for the period
Nine-month period ended September 30, Change from prior period
------------------------------------------ ---------------------------
(In thousands of $, except for percentages) 2013 2012 %
---------------------------------------------
(unaudited)
Chile......................................
...........................................
............. 31,434 26,408 5,026 19
Colombia...................................
...........................................
.......... 14,958 9,696 5,262 54
Other......................................
...........................................
............. (21,189) (11,705) (9,484) (81)
--------------------- ------------------- ---------------- ---------
Total......................................
...........................................
............ 25,203 24,399 804 3
--------------------- ------------------- ---------------- ---------
Profit for the period increased by 3% to $25.2 million for the
nine-month period ended September 30, 2013 ($24.4 million for the
nine-month period ended September 30, 2012), as a result of the
factors described above.
Three month period from July 1 to September 30, 2013 compared to
three month period from July 1 to September 30, 2013
(Unaudited) Third Quarter 2013 vs. Third Quarter 2012
============================================= ======================================================================
(In thousands of $, except for percentages) 3Q 2013 3Q 2012 Change, 3Q 2013 vs. 3Q 2012
Average net production (boepd) 12,992 10,694 2,298 21%
Average realized sales price
Oil ($ per mbbl) 86.3 86.8 0.5 -1%
Gas ($ per mcf) 4.6 4.0 0.59 14%
Net revenue 89,724 60,148 29,576 49%
Production costs (48,687) (33,988) (14,699) 43%
Gross Profit 41,037 26,160 14,877 57%
Exploration Costs (2,425) (11,543) 9,118 -79%
Operating Profit 22,774 694 22,080 3182%
Adjusted EBITDA(2) 41,880 24,519 17,361 71%
Profit for the period 10,968 (963) 11,931 1239%
Capital expenditures 44,351 62,709 (18,358) -29%
--------------------------------------------- --------- ------------------ --------- ----------------------------
Production
In 3Q2013, the average oil and gas production increased by 21%
to 12,992 boe per day (10,694 boe per day in 3Q2012). Oil
production increased by 57% to 11,163 barrels per day (7,117
barrels per day in 3Q2012). The increase in oil production was
driven by an increase in production in Colombia and Chile,
representing 86% and 14%, respectively of such increase. Gas
production in Chile decreased by 49% to 10,825 mcfpd. The lower gas
production resulted from reduced drilling activity for gas
prospects, as the drilling activities were focused on oil prospects
and due to the temporary shut-in of the Methanex Plant.
[2] Adjusted EBITDA is not an IFRS measure and it is possible
that it may not be comparable with indicators with the same name
reported by other companies. Adjusted EBITDA should not be
considered as a substitute for operational profit of as a better
measure of liquidity than operational cash flow, both of which are
calculated in accordance with IFRS.
Net Revenue
For the three--month period from July 1 to September 30,
2013
(Unaudited) Third Quarter 2013 vs Third Quarter
2012
================================ ==============================================
Change, 3Q
(In thousands of $, except for 2013 vs. 3Q
percentages) 3Q 2013 3Q 2012 2012
Chile 36,504 31,924 4,580 14%
Colombia 52,835 27,916 24,919 89%
Other 385 308 77 25%
Total 89,724 60,148 29,576 49%
-------------------------------- --------- ---------- ---------- -----------
Net revenue increased by 49%, to $89.7 million in 3Q2013 ($60.1
million for 3Q2012).
The net increase in net revenue is explained by (i) an increase
of $32.2 million in oil deliveries in Colombia and Chile, and an
increase of (ii) $1 million from the realized price for oil sold,
partially offset by a decrease of $3.3 million in gas deliveries
due to reduced drilling activity for gas prospects, as the drilling
activities were focused on oil prospects and the temporary shutdown
in the Methanex Plant.
Production Costs
For the three--month period from July 1 to September 30,
2013
(Unaudited) Third Quarter 2013 vs Third Quarter
2012
================================ ==============================================
Change, 3Q
(In thousands of $, except for 2013 vs. 3Q
percentages) 3Q 2013 3Q 2012 2012
Chile 16,125 15,745 380 2%
Colombia 33,094 17,937 15,157 82%
Other (532) 306 838 (274)%
Total 48,687 33,988 14.699 43%
-------------------------------- --------- ---------- ---------- -----------
Production costs increased by 43%, to $48.7 million in 3Q2013
($34.0 million in 3Q2012), primarily as a result of increase in oil
production and deliveries in Colombia and Chile, partially offset
by a decrease in gas production.
Adjusted EBITDA
For the three--month period from July 1 to September 30,
2013
(Unaudited) Third Quarter 2013 vs Third Quarter
2012
================================ ==============================================
Change, 3Q
(In thousands of $, except for 2013 vs. 3Q
percentages) 3Q 2013 3Q 2012 2012
Chile 21,303 17,693 3,610 20%
Colombia 22,556 8,955 13,601 152%
Other (1,979) (2,129) 150 7%
Total 41,880 24,519 17,361 71%
-------------------------------- --------- ---------- ---------- -----------
Adjusted EBITDA increased by 71%, to $41.9 million in 3Q2013
($24.5 million in the comparable period of 2012), mainly as a
consequence of an increase of $ 3.6 million and $13,6 million in
the Chilean and Colombian Adjusted EBITDA. Reasons are the impact
of higher revenues, gross profit, and lower exploration expenses
(due to lower write off of unsuccessful efforts in 3Q2013),
partially offset by an increase in administrative costs in 3Q2013,
as compared to 3Q2012.
Financial Ratios
Amounts in US$million Ratios (*)
----------------------------------------------- --------------------------------
Year / Period Financial debt Cash position Gross debt Interest coverage
/ Adjusted
EBITDA(3)
============== =============== ============== ============ ==================
2009 60.4 23.8 3.4x 4.7x
2010 169.4 99.4 4.1x 9.3x
2011 165.3 193.7 2.6x 4.6x
2012 193 48.3 1.6x 7.1x
1Q 2013 299.4 176 2.2x 5.3x
2Q 2013 301.8 149.4 2.2x 4.4x
3Q 2013 296 105 2.2x 5.9x
GeoPark's financial covenants require to comply with the
following criteria;
Leverage Ratio below 2.75x for the years 2013 and 2014 and 2.5x
afterward
Interest Coverage Ratio above 3.5x
(*) Based on trailing 12 month financial results
STRATEGIC HIGHLIGHTS
Strategic alliance with Tecpetrol to identify study and
potentially acquire upstream oil and gas opportunities in
Brazil
On September 30, 2013, GeoPark announced the formation of a new
strategic alliance with Tecpetrol S.A. ("Tecpetrol") to jointly
identify, study and potentially acquire upstream oil and gas
opportunities in Brazil, with a specific focus on the Parnaiba, Sao
Francisco, Reconcavo, Potiguar and Sergipe-Alagoas basins.
Tecpetrol is the oil and gas subsidiary of the Techint Group (a
multinational oilfield and steel conglomerate) having an extensive
track-record as an oil and gas explorer and operator with a
portfolio of assets currently in Argentina, Peru, Colombia,
Ecuador, Mexico Bolivia, Venezuela and the United States, and with
a current net production of over 85,000 barrels of oil equivalent
per day.
Initial Public Offering in Progress with the SEC
On September 10, 2013, GeoPark announced an initiative to
consider listing on the New York Stock Exchange (NYSE) in order to
create a public market for our common shares in the United States
and to facilitate future access to international equity markets, as
well as to obtain additional capital and financial flexibility.
A registration statement relating to the common shares has been
filed by us with the United States Securities and Exchange
Commission (SEC) but has not yet become effective. Our common
shares may not be sold, nor may offers to buy be accepted, in the
United States prior to the time the registration statement becomes
effective.
As of the date of this press release, the Company is evaluating
the optimum timing for the proposed listing and common shares
offering on the NYSE.
Status of Pending Acquisitions in Brazil
-- Concession agreements
On May 14, 2013, GeoPark announced the expansion of our
footprint into Brazil when the ANP awarded us seven new exploratory
licenses in the REC--T 94 and REC--T 85 Concessions in the
Recôncavo Basin in the State of Bahia and the POT--T 664, POT--T
665, POT--T 619, POT--T 620 and POT--T 663 Concessions in the
Potiguar Basin in the State of Rio Grande do Norte, collectively
covering an area of approximately 54,900 gross acres.
On September 17, 2013, GeoPark entered into seven concession
agreements with the ANP for the right to exploit the oil and
natural gas in these seven new license areas. Pursuant to ANP
requirements, actual exploitation of these new concessions will
also depend on obtaining an environmental license from the
(Instituto Brasileiro do Meio--Ambiente e dos Recursos Naturais
Renováveis - IBAMA). The ANP has also qualified GeoPark as a class
B operator, meaning that the Company is recognized as having met
all technical and managerial conditions required to operate safely
in Brazil, both onshore and offshore at water depths of less than
400 meters.
-- Acquisition of Rio das Contas
During 2013, GeoPark agreed to acquire Rio das Contas from
Panoro Energy for a total cash consideration of $140.0 million
(subject to working capital adjustments at closing and further
earn--out payments, if any), which will give us a 10% working
interest in the BCAM--40 Concession, including the shallow--depth
offshore Manati and Camarão Norte Fields, in the Camamu--Almada
Basin in the State of Bahia.
The Manati Field, which is in the production phase, is operated
by Petrobras (with a 35% working interest), the Brazilian national
company and the largest oil and gas operator in Brazil, in
partnership with Queiroz Galvão Exploração e Produção or QGEP (with
a 45% working interest), and Brasoil (with a 10% working
interest).
The acquisition is subject to the approval of the ANP, among
other regulatory authorities, and which is expected by 4Q2013 or
1Q2014.
CONSOLIDATED STATEMENT OF INCOME
Nine-month
Nine-month period ended
period ended 30 September Year ended
30 September 2012 (1) 31 December
Amounts in thousands of $ 2013 (Unaudited) (Unaudited) 2012
--------------------------------------- ------------------ -------------- -------------
NET REVENUE 250,530 182,139 250,478
Production costs (129,834) (88,656) (129,235)
GROSS PROFIT 120,696 93,483 121,243
Exploration costs (16,012) (21,742) (27,890)
Administrative costs (32,050) (20,910) (28,798)
Selling expenses (12,526) (15,650) (24,631)
Other operating income 4,555 681 823
OPERATING PROFIT 64,663 35,862 40,747
Financial income 1,562 364 892
Financial expenses (28,762) (13,962) (17,200)
Bargain purchase gain on acquisition
of subsidiaries - 8,401 8,401
PROFIT BEFORE TAX 37,463 30,665 32,840
Income tax (12,260) (6,266) (14,394)
PROFIT FOR THE PERIOD/YEAR 25,203 24,399 18,446
Attributable to:
Owners of the parent 15,767 17,833 11,879
Non-controlling interest 9,436 6,566 6,567
Earnings per share (in $) for
profit attributable
to owners of the Company. Basic 0.36 0.42 0.28
Earnings per share (in $) for
profit attributable
to owners of the Company. Diluted 0.34 0.40 0.27
--------------------------------------- ------------------ -------------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Year ended
Amounts in thousands At 30 September At 30 September 31 December
of $ 2013 (Unaudited) 2012 (1) (Unaudited) 2012
------------------------------- ------------------ ---------------------- -------------
ASSETS
NON CURRENT ASSETS
Property, plant and
equipment 571,394 429,639 457,837
Prepaid taxes 17,560 3,208 10,707
Other financial assets 3,952 6,813 7,791
Deferred income tax 21,405 19,451 13,591
Prepayments and other
receivables 1,968 556 510
TOTAL NON CURRENT ASSETS 616,279 459,667 490,436
CURRENT ASSETS
Inventories 5,825 10,641 3,955
Trade receivables 49,729 21,924 32,271
Prepayments and other
receivables 42,355 43,120 49,620
Prepaid taxes 1,778 11,036 3,443
Cash at bank and in
hand 104,797 75,539 48,292
TOTAL CURRENT ASSETS 204,484 162,260 137,581
TOTAL ASSETS 820,763 621,927 628,017
EQUITY
Equity attributable
to owners of the Company
Share capital 43 43 43
Share premium 120,338 112,302 116,817
Reserves 127,848 129,596 128,421
Retained earnings (losses) 15,593 2,948 (5,860)
Attributable to owners
of the Company 263,822 244,889 239,421
Non-controlling interest 88,540 55,463 72,665
TOTAL EQUITY 352,362 300,352 312,086
LIABILITIES
NON CURRENT LIABILITIES
Borrowings 290,490 164,891 165,046
Provisions for other
long-term liabilities 26,619 27,697 25,991
Deferred income tax 23,834 24,218 17,502
Trade and other payables 8,344 - -
TOTAL NON CURRENT LIABILITIES 349,287 216,806 208,539
CURRENT LIABILITIES
Borrowings 5,735 30,873 27,986
Current income tax 13,196 3,054 7,315
Trade and other payables 100,183 70,842 72,091
TOTAL CURRENT LIABILITIES 119,114 104,769 107,392
------------------------------- ------------------ ---------------------- -------------
TOTAL LIABILITIES 468,401 321,575 315,931
------------------------------- ------------------ ---------------------- -------------
TOTAL EQUITY AND LIABILITIES 820,763 621,927 628,017
------------------------------- ------------------ ---------------------- -------------
(1) 30 September 2012 comparative information has been restated
reflecting the finalization of the purchase price allocation
CONSOLIDATED STATEMENT OF CASH FLOW
Nine-month
period ended Nine-month period Year ended
Amounts in thousands of 30 September ended 30 September 31 December,
$ 2013 (Unaudited) 2012 (1) (Unaudited) 2012
---------------------------------- --------------------- ------------------------ ----------------
Cash flows from operating activities
Profit for the period/year 25,203 24,399 18,446
Adjustments for:
Income tax for the period/year 12,260 6,266 14,394
Depreciation of the period/year 49,546 36,228 53,317
Loss on disposal of property,
plant and equipment 568 455 546
Write-off of unsuccessful exploration
and evaluation assets 11,955 20,298 25,552
Amortisation of other long-term
liabilities (1,359) (1,993) (2,143)
Accrual of borrowing's interests 17,913 11,471 12,478
Unwinding of long-term liabilities 1,049 630 1,262
Accrual of share-based payment 5,946 3,664 5,396
Deferred income - 5,550 5,550
Income tax paid (4,040) (408) (408)
Exchange difference generated
by borrowings (14) 39 35
Bargain purchase gain on acquisition
of subsidiaries - (8,401) (8,401)
Changes in operating assets
and liabilities (20,699) 8,542 5,778
Cash flows from operating activities
- net 98,328 106,740 131,802
Cash flows from investing activities
Purchase of property, plant
and equipment (187,237) (147,200) (198,204)
Acquisitions of subsidiaries,
net of cash acquired - (105,303) (105,303)
Collections related to financial 3,839 - -
assets
Collections related to financial 6,734 - -
leases
Cash flows used in investing
activities - net (176,664) (252,503) (303,507)
Cash flows from financing activities
Proceeds from borrowings 292,259 38,883 37,200
Proceeds from transaction with
Non-controlling interest 37,577 10,019 12,452
Proceeds from loans from related 8,344 - -
parties
Proceeds from issuance of shares 3,521 - -
Principal paid (179,359) (16,297) (12,382)
Interest paid (17,511) (5,552) (10,895)
Cash flows from financing activities
- net 144,831 27,053 26,375
Net increase (decrease) in cash
and cash equivalents 66,495 (118,710) (145,330)
Cash and cash equivalents at
1 January 38,292 183,622 183,622
Cash and cash equivalents at
the end of the period/year 104,787 64,912 38,292
Ending Cash and cash equivalents
are specified as follows:
Cash in banks 104,774 75,515 48,268
Cash in hand 23 24 24
Bank overdrafts (10) (10,627) (10,000)
Cash and cash equivalents 104,787 64,912 38,292
---------------------------------------------- ---------------------- ---------------- -----------
Annex: Current Assets
According to the DeGolyer and MacNaughton (or D&M,
independent reserves engineers D&M) Year--end Reserves Report,
as of December 31, 2012, the blocks in Chile, Colombia and
Argentina in which GeoPark has working interests had 16.8 mmboe of
net proved reserves, with 61%, or 10.2 mmboe, and 39%, or 6.6
mmboe, of such net proved reserves located in Chile and Colombia,
respectively.
According to the D&M Brazil and Colombia Reserves Report, as
of June 30, 2013, net proved reserves for certain new discoveries
made in Colombia since December 31, 2012 resulted in an additional
2.4 mmboe of net proved reserves, and net proved reserves
attributable to the pending Rio das Contas acquisition in Brazil
were 8.1 mmboe.
The following table summarizes certain information about the
Chilean, Colombian, Brazilian and Argentine blocks as of September
30, 2013, except as otherwise indicated.
Country Block Operator WI(1)(2) Basin Gross Net 2P Net % Concession
Area Reserves Production oil Expiration
(thousand (mmboe)(4) (boepd)(6) Date
acres)(3)
----------- ------------ ----------- ------------- ------------- ---------- ----------- ----------- ----- -----------
Del
Argentina Mosquito GeoPark 100% Austral 17.3 - 60 77% 2016
Argentina C. D. Juana GeoPark 100% Neuquén 19.6 - - - 2017
L.
Argentina Cortaderal GeoPark 100% Neuquén 28.3 - - - 2017
----------- ------------ ----------- ------------- ------------- ---------- ----------- ----------- ----- -----------
65.2
------------------------------------ ------------- ------------- ---------- ----------- ----------- ----- -----------
Chile Fell GeoPark 100% Magallanes 367.8 45.5 7,013 67% 2032
Chile Tranquilo GeoPark 29% Magallanes 92.4 - - - 2013/2043
Chile Otway GeoPark 25% Magallanes 49.4(8) - - - 2017/2044
Chile Isla Norte GeoPark 60%(7) Magallanes 130.2 - - - 2019/2044
Chile Campanario GeoPark 50%(7) Magallanes 192.2 - - - 2020/2045
Chile Flamenco GeoPark 50%(7) Magallanes 973.3 - - - 2019/2044
973.3 45.5 7,013 67%
------------------------------------ ------------- ------------- ---------- ----------- ----------- ----- -----------
Colombia La Cuerva GeoPark 100% Llanos 47.8 3.8 2,026 100% 2014/2038
Llanos
Colombia 34 GeoPark 45% Llanos 82.2 6.5(5) 3,002 100% 2015/2039
Llanos
Colombia 62 GeoPark 100% Llanos 44.0 - - - 2017/2041
Colombia Yamú GeoPark 54.5/75 Llanos 11.2 0.8(5) 573 100% 2013/2036
Llanos
Colombia 17 Ramshorn 36.80%(9,10) Llanos 108.8 - - - 2015/2039
Llanos
Colombia 32 P1 Energy 10% Llanos 100.3 0.3 202 100% 2015/2039
Colombia Jagueyes Columbus 5% Llanos 61.0 - - - 2014/2038
Colombia Arrendajo Pacific 0%(12) Llanos 78.1 - 169 100% 2041
Colombia Abanico Pacific 0%(12) Magdalena 32.1 - 94 100% 2022
Colombia Cerrito Pacific 0%(12) Catatumbo 10.2 - 9 - 2028
575.7 11.4 6,075 100%
------------------------------------ ------------- ------------- ---------- ----------- ----------- ----- -----------
Brazil(4) BCAM-40 Petrobras 10% Cam./Almada 22.8 10.7 3,721 0%
Brazil
(5) REC-T94 GeoPark 100% Reconcavo
Brazil(5) REC-T85 GeoPark 100% Reconcavo
Brazil(5) POT-T 664 GeoPark 100% Potiguar
Brazil(5) POT-T 665 GeoPark 100% Potiguar
Brazil(5) POT-T 619 GeoPark 100% Potiguar
Brazil(5) POT-T 620 GeoPark 100% Potiguar
Brazil(5) POT-T 663 GeoPark 100% Potiguar
22.8 10.7 3,721 0%
------------------------------------ ------------- ------------- ---------- ----------- ----------- ----- -----------
(1) Working interest corresponds to the working interests held
by our respective subsidiaries in such block, net of any working
interests and/or economic interests held by other parties in such
block.
(2) As of the date of this press release, LGI has a 20% equity
interest in our Chilean operations through GeoPark Chile and a 20%
equity interest in our Colombian operations through GeoPark
Colombia.
(3) Gross area refers to the total acreage of each block.
(4) Reserves for Chile, Colombia and Argentina have been
certified by Degolyer & Macnaughton as of December 31,
2012.
(5) According to the D&M Brazil and Colombia Reserves
Report, as of June 30, 2013, our net proved reserves for certain
new discoveries made in Colombia since December 31, 2012 resulted
in the addition of 2.4 mmboe, composed of 2.2 mmboe in the Llanos
34 Block and 0.2 mmboe in the Yamú Block, to our net proved
reserves.
(6) Reflects net average production for the first nine months of
2013. Net production refers to average production for each block,
net of any working interests or economic interests held by others
in such block but gross of any royalties due to others.
(7) LGI has a 14% direct equity interest in our Tierra del Fuego
operations through GeoPark TdF and a 20% direct equity interest in
GeoPark Chile, for a total 31.2% effective equity interest in our
Tierra del Fuego operations
(8) In April 2013, the Company voluntarily relinquished to the
Chilean government all of its acreage in the Otway Block, except
for 49,421 acres. In May 2013, the Company's partners under the
joint operating agreement governing the Otway Block decided to
withdraw from such joint operating agreement, and applied for an
assignment of rights permit on August 5, 2013. On August 26, 2013,
the Ministry of Energy granted this permit, such that, upon
execution of a deed of assignment of rights containing the
as--approved terms, GeoPark will be the sole participant, and have
a 100% working interest, in the two remaining areas under the Otway
Block CEOP.
(9) Although the Company is the sole title holder of the working
interest in the Yamú Block, other parties have been granted
economic interests in fields in this block. Taking those other
parties' interests into account, GeoPark has a 54.5% interest in
the Carupana Field and a 75% interest in the Yamú Field, both
located in the Yamú Block.
(10) The Company currently has a 40% working interest in the
Llanos 17 Block, although it has assigned a 3.2% economic interest
to a third party. The Company expects to apply to formalize this
assignment with the ANH so that it will be recognized as a working
interest.
(11) The Company currently has a 10% economic interest in the
Llanos 32 Block, although it expects to apply to the ANH to
recognize this as a working interest in the block.
(12) The Company does not have a working interest in those
blocks, though it has a 10% economic interest in the net revenues
of each of these blocks pursuant to various partnership interests
agreements.
GLOSSARY
Adjusted EBITDA Profit for the period before, net finance cost,
income tax, depreciation, amortization certain non-cash items such
as impairments and write offs of unsuccessful efforts, accrual of
stock options and stock awards and bargain purchase gain on
acquisitions of subsidiaries
ANP Agência Nacional do Petróleo, Brazil's National Agency of
Petroleum
boe Barrels of oil equivalent
boepd Barrels of oil equivalent per day
bopd Barrels of oil per day
CEOP Contrato Especial de Operacion Petrolera (Special Petroleum
Operations Contract)
mbbl Thousands of barrels of oil
mmboe Million barrels of oil equivalent
mcfpd Thousands of cubic feet per day
mmcfpd Millions of cubic feet per day
Mm(3) /day Thousands of cubic meters per day
EPS Earnings per share
WI Working interest
In accordance with the AIM Rules, the information in this
announcement has been reviewed by Salvador Minniti, a geologist
with 32 years of oil and gas experience and Director of Exploration
of GeoPark.
Reserve estimates have been compiled in accordance with the 2011
Petroleum Resources Management System produced by the Society of
Petroleum Engineers.
# # #
NOTICE
Additional information about GeoPark can be found in the
"Investor Support" section on the Web site at
www.geo-park.com/ir
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 prospectus 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 appear in a number of places in this
press release and include, but are not limited to, statements
regarding the intent, belief or current expectations.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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