TIDMGPK
RNS Number : 7987X
Geopark Limited
16 January 2014
Embargoed for release at 7:00 16 January 2014
am
FOURTH QUARTER AND 2013 OPERATIONS AND PRODUCTION UPDATE
2014 DRILLING AND WORK PROGRAM
GeoPark Limited ("GeoPark"), the Latin American oil and gas
explorer, operator and consolidator with operations and producing
properties in Chile, Colombia, Brazil and Argentina (AIM: GPK) is
pleased to announce its fourth quarter and annual update for 2013
and its drilling and work program for 2014.
For the year ended 31 December 2013, GeoPark's crude oil and gas
production increased by 20% to 13,517 boepd as compared to 11,292
boepd for the year ended 31 December 2012, reaching the targeted
production levels announced for the year 2013, and increased by 51%
to 17,097 boepd on a pro-forma basis, including production from the
pending Manati acquisition.*
Commenting, James F. Park, CEO of GeoPark, said: "Our team's
ability to perform was demonstrated again by our production
increase of 20% for the year 2013, meeting our 2013 target, and
representing our eighth consecutive year of production growth. In
addition, our pro-forma production, including our pending Manati
acquisition, exceeded 20,000 boepd during December 2013. As we move
forward in 2014, we will continue to build on our long term growth
track-record and have embarked on an ambitious drilling and work
program across our expanding asset portfolio."
Fourth Quarter 2013
Oil and Gas Production:
In 4Q2013, GeoPark's oil and gas production increased by 37% to
14,548 boepd (as compared to 10,627 boepd for 4Q 2012).
Oil production accounted for 82% of total production (as
compared to 75% for 4Q 2012) and increased by 50% to 11,938 bopd in
4Q2013 (as compared to 7,939 bopd for 4Q2012) primarily driven
by:
-- A 92% increase in oil production in Colombia, mainly due to
the development of and new discoveries made in the Llanos 34 Block
and the Yamú Block.
-- A 7% increase in oil production in Chile, which resulted from
the continuing development of the Tobifera formation in the Fell
Block.
Operational Highlights:
Chile:
-- Development well Yagan Norte 2 on the Fell Block (GeoPark
operated with a 100% WI) introduced the first electrical
submersible pump ("ESP") in the Magellan Basin and reached a
production of 560 bopd.
-- Punta Delgada Norte 4 well on the Fell Block (GeoPark
operated with a 100% WI) was tested in the Tertiary formation at
2,198 feet and flowed at a rate of approximately 1.8 million
standard cubic feet per day (mmcfpd) of gas through a choke of 12
millimetres, with a well head pressure of 448 pounds per square
inch, representing a new gas field discovery.
Colombia:
-- Exploration well Tigana 1 on the Llanos 34 Block (GeoPark
operated with a 45% WI) was drilled and tested in the Mirador
formation. The well is currently producing approximately 2,126 bopd
gross of 20.2 degree API oil from the Mirador Formation. In
addition, the deeper Guadalupe formation was tested at a rate of
approximately 1,465 bopd gross of 15.2 degree API oil.
-- Exploration well Tigana Sur 1 on the Llanos 34 Block (GeoPark
operated with a 45% WI) was drilled and tested in the Guadalupe
formation. The well is currently producing approximately 1,598 bopd
gross of 15.3 degree API oil.
Brazil:
-- GeoPark was awarded two new blocks in Round 12 conducted by
the Brazilian National Petroleum, National Gas and Biofuels Agency
("ANP"). The new blocks are located in the Paranaiba Basin in the
State of Maranhao and the Sergipe Alagoas Basin in the State of
Alagoas and are subject to ANP final signature and approval.
Full Year 2013
Oil and Gas Production:
For the year ended 31 December 2013, GeoPark's oil and gas
production increased by 20% to 13,517 boepd (as compared to 11,292
boepd for the year ended 31 December 2012).
Crude oil production increased by 48% to 11,113 bopd for the
year ended 31 December 2013 (as compared to 7,491 bopd for the year
ended 31 December 2012) primarily as a result of 89% higher
production in Colombia and a 14% increase in Chile. Oil production
accounted for 82% of the total production for the year ended 31
December 2013 (as compared to 66% of total production for the year
ended 31 December 2012).
-- Increased oil production in 2013 in Colombia resulted from
the development of the Max and Tua fields and the discoveries of
the Tarotaro and Tigana fields in the Llanos 34 Block, in addition
to the Potrillo field in the Yamú Block. In Chile, increased oil
production resulted from new discoveries made in the Tobifera
formation in the Fell Block.
-- Gas production decreased by 37% in Chile for the year ended
31 December 2013 to 14,419 mcfpd (as compared to 22,804 mcfpd for
the year ended 31 December 2012), mainly due to the temporary
shut-down of the Methanex plant (from April to September 2013).
2014 Drilling and Work Program
GeoPark's drilling and work program for 2014 includes capital
expenditure of approximately US$220-250 million. The work program
includes the drilling (gross) of approximately 50-60 new wells
(with approximately 40% representing exploration wells) as well as
workovers, seismic surveys and new facility construction.
Chile is expected to represent over 60% of the planned total
capital expenditure, with the drilling of approximately 32-37
wells, together with workovers, seismic surveys and new facility
construction, including oil pipelines.
Colombia is expected to represent over 30% of the planned total
capital expenditure, with the drilling of approximately 18-23
wells, together with workovers and new facility construction,
mainly related to civil works, production facilities in the Tua and
Tigana fields, as well as improvements in the Taro Taro and Max
field facilities.
Approximately 5% of the planned total capital expenditure is
expected to be incurred in Brazil, mainly in relation to seismic
surveys in new exploration blocks in the Potiguar and Recôncavo
Basins.
* Pro forma includes the proposed acquisition of Rio das Contas
(announced by the Company on 15 May 2013) which holds a 10% working
interest in the offshore Manati gas field. The acquisition is
pending final approval by the Brazilian ANP and is expected to
close in 1Q2014, with an effective date of 1 May 2013.
Annex
Breakdown of Quarterly Production by Country
The following table shows production figures for 4Q2013, as
compared with 4Q2012. In addition, it includes pro-forma
information for Brazil, reflecting the pending acquisition of Rio
das Contas (which holds a 10% WI in the offshore Manati gas field),
that is expected to close in 1Q2014.
Fourth Quarter 2013 Fourth Quarter 2012
Total (boepd) Oil (bopd) Gas (mcfpd) Total (boepd) % Chg.
----------------- -------------- ----------- ------------ -------------- --------
Chile 6,748 4,160 15,526 6,546 3%
Colombia 7,725 7,717 48 4,027 92%
Argentina 75 61 88 54 39%
Total 14,548 11,938 15,662 10,627 37%
Plus:
Brazil 3,664 64 21,601
----------------- -------------- ----------- ------------
Total Pro-Forma 18,212 12,002 37,263
----------------- -------------- ----------- ------------
Breakdown of Annual Production by Country
The following table shows production figures for the year ended
31 December 2013, as compared with the year ended 31 December 2012.
In addition, it includes pro-forma information for Brazil,
reflecting the pending acquisition of Rio das Contas (which holds a
10% WI in the offshore Manati gas field), that is expected to close
in 1Q2014.
Full Year 2013 Full Year 2012
Total (boepd) Oil (bopd) Gas (mcfpd) Total (boepd) % Chg.
----------------- -------------- ----------- ------------ -------------- --------
Chile 6,962 4,581 14,283 7,790 -11%
Colombia 6,491 6,482 52 3,440 89%
Argentina 64 50 84 62 3%
Total 13,517 11,113 14,419 11,292 20%
Plus:
Brazil 3,580 60 21,120
----------------- -------------- ----------- ------------
Total Pro-Forma 17,098 11,173 35,539
----------------- -------------- ----------- ------------
GLOSSARY
boe Barrels of oil equivalent
boepd Barrels of oil equivalent per day
bopd Barrels of oil per day
mcfpd Thousands of standard cubic feet per day
mmcfpd Millions of standard cubic feet per day
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.
# # #
NOTICE
Additional information about GeoPark can be found in the
"Investor Support" section on the Web site at
www.geo-park.com/en/investor-support.
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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