GeoPark Limited, a leading independent Latin American oil and gas explorer, operator and consolidator, announced its independent oil and gas reserves assessment, certified by DeGolyer and MacNaughton Corp. (D&M), under PRMS methodology, as of December 31, 2022.
2022 Year-End D&M Certified Oil and Gas Reserves and Highlights:
Colombia Reserves
- PD Reserves: Proven developed (PD) reserves in Colombia of 50.4 mmboe, with a PD reserve life index (RLI) of 4.1 years
- 1P Reserves: Proven (1P) reserves in Colombia of 69.9 mmboe, with a 1P RLI of 5.7 years. Net present value after tax discounted at 10% (NPV10 after tax) of 1P reserves of $1.1 billion
- 2P Reserves: Proven and probable (2P) reserves in Colombia of 109.9 mmboe, with a 2P RLI of 8.9 years. NPV10 after tax of 2P reserves of $1.6 billion
- 3P Reserves: Proven, probable and possible (3P) reserves in Colombia of 163.6 mmboe, with a 3P RLI of 13.3 years. NPV10 after tax of 3P reserves of $2.2 billion
- Future Development Capital: Future development capital to develop 1P, 2P and 3P reserves in Colombia of $2.2 per barrel, $2.1 per barrel and $2.2 per barrel, respectively
Consolidated Reserves
- PD Reserves: PD reserves of 56.0 mmboe, with a PD RLI of 4.0 years
- 1P Reserves: 1P reserves of 76.1 mmboe, with a 1P RLI of 5.4 years. NPV10 after tax of 1P reserves of $1.2 billion
- 2P Reserves: 2P reserves of 128.4 mmboe, with a 2P RLI of 9.1 years. NPV10 after tax of 2P reserves of $1.8 billion
- 3P Reserves: 3P reserves of 196.3 mmboe, with a 3P RLI of 13.9 years. NPV10 after tax of 3P reserves of $2.6 billion
- Future Development Capital: Future development capital to develop 1P, 2P and 3P reserves of $2.1 per barrel, $2.7 per barrel and $2.8 per barrel, respectively
- Net Present Value and Value Per Share
- 2P NPV10 after tax of $1.8 billion
- Net debt-adjusted 2P NPV10 after tax of $24.7 per share ($21.0 per share in Colombia)
Recent Events (Not included in the 2022 Year-End D&M Certification)
- Llanos 34 (GeoPark operated, 45% WI): Guaco Sur 1 exploration well was spudded and reached total depth in December 2022. Initial testing activities carried out in the Guadalupe formation currently show a production rate of 976 bopd of 22 degrees API with 11% water cut, after two days of testing
- CPO-5 (GeoPark non-operated, 30% WI): Spudded the Yarico 1 exploration prospect in late January 2023, targeting an exploration prospect adjacent to the Mariposa field, expecting to reach total depth in late February or early March 2023. Yarico 1 is expected to be followed by the Halcon 1 exploration well, targeting an exploration prospect in the northern part of the block, adjacent to the Llanos 34 block
- Llanos 87 (GeoPark operated, 50% WI): Tororoi 1 exploration well reached total depth in December 2022, with preliminary logging information indicating hydrocarbons in the Ubaque, Guadalupe (Barco) and Mirador formations. Currently drilling the Zorzal 1 exploration well, targeting to reach total depth by mid-February 2023
- Platanillo (GeoPark operated, 100% WI): Alea NW 1 exploration well was spudded in September 2022 with preliminary logging information indicating hydrocarbons in the U and N formations. Production tests in the N formation started in January 2023, with initial rates of 245 bopd
2023 Work Program: Growing Production, Drilling More Wells and Giving Back to Shareholders
- 2023 production guidance of 39,500-41,500 boepd (assuming no production from the exploration drilling program)
- Self-funded 2023 capital expenditures program of $200-220 million to drill 50-55 gross wells (including 10-15 low-risk high-potential exploration and appraisal wells)
- At $80-90 per bbl Brent, GeoPark expects to generate an Adjusted EBITDA of $510-580 million and a free cash flow[1] of $120-140 million[2]
- Targeting to return approximately 40-50% of free cash flow after taxes to shareholders
Andrés Ocampo, Chief Executive Officer of GeoPark, said: “On the back of our large inventory of low-risk, low-cost and profitable reserves, once again GeoPark increased production, cash flow and shareholder returns in 2022. We begin 2023 uniquely positioned to continue generating value through development of our multi-year project inventory with more production and more drilling, including an extensive exploration program on proven acreage that can be quickly converted to production and cash flow and a strong commitment to return 40-50% of free cash flow to shareholders.”
