==
al
GEOPARK
Santiago, 02 de septiembre de 2013
Geopark Limited
Inscrito en el Registro de Valores Extranjeros bajo N* 045
Señor
Fernando Coloma Correa
Superintendente de Valores y Seguros
Av. Libertador Bernardo O’Higgins N* 1449, piso 1
PRESENTE
REF.: Adjunta información relevante que
se publicó el día de hoy en el AlM
del Mercado Bursátil de Londres.
Señor Superintendente:
En virtud de lo establecido en la Norma de Carácter
General N*217 sección ll, por medio de la presente adjunto información considerada
como relevante para la empresa, que ha sido entregada el día de hoy, en el
Alternative Investment Market, mercado secundario de la London Stock Exchange,
en donde mediante un comunicado de prensa se informa los resultados
operacionales y financieros de la Compañía correspondientes al segundo trimestre
de 2013.
La información adjunta consiste en comunicado de prensa
de veintidós páginas en idioma inglés. Con respecto a la traducción del comunicado
al idioma español, se informa que la misma será publicada en esta Superintendencia
dentro de los próximos días.
Sin otro particular, saluda atentamente a Usted,
7) Pedro Aylwin Chiorrini
pp. GEOPARK LIMITED
Nuestra Señora de los Ángeles 179 – Las Condes, Santiago – Chile
Tel. (+56 2) 2429600 – infoWgeo-park.com – www.geo-park.com
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GEOPARK
QUARTERLY OPERATIONS AND FINANCIAL RESULTS 2013
Operational Highlights
e Oil Production Up 49% to 10,798* bopd in 2Q2013 vs 2Q2012
e Total Oil and Gas Production Up 12% to 13,020* boepd in 2Q2013 vs 2Q2012
e New Oil and Gas Discoveries:
– Chercan gas field in Flamenco Block in Tierra del Fuego, Chile
– Tarotaro oil field in Llanos 34 Block, Colombia
– Potrillo oil field in Yamu Block, Colombia
Financial Highlights
+ Revenues Up 32% to US$160.8* million (as of 30 June)
e Adjusted EBITDA Up: 20% to US$84.0* million (as of 30 June)
e Cash Position of US$149.4 million
* Operational and Financial figures do not include results from new Brazilian production acquisition, completion of which is expected in 242013.
Strategic Highlights
e Risk-balanced entry into Brazil with the acquisition of a 10% interest in the Manati
Field and the award of seven exploration blocks in Potiguar and Reconcavo Basins
GeoPark is a Latin American oil and gas explorer, operator and
consolidator with assets and production in Chile, Colombia, Argentina
and Brazil.
CONTACTS:
Juan Pablo Spoerer
Pablo Ducci
Tel: +56 2 22429600 – email: irWgeo-park.com
Santiago, Chile
www.geo-park.com
GeoPark Results
Key achievements during 2Q2013 include:
Higher Production: Discovery and Development of New Fields in Colombia
Oil and gas production increased by 12% to 13,020 boepd in 2Q2013 (2Q2012: 11,674
boepd). Crude oil production increased by 49% to 10,798 bopd in 2Q2013 (2Q2012: 7,247
bopd).
Second Quarter 2013 Second Quarter 2012
Total Oil Gas Total
% Chg.
(boepd) (bopd) (mcfpd) (boepd)
Chile 6,803 4,595 13,248 8,511 -20%
Colombia 6,157 6,157 – 3,097 99%
Argentina 60 47 81 66 -8%
Total 13,020 10,798 13,329 11,674 12%
Brazil(1) 3,884 64 22,918
Total Pro-Forma 16,904 10,863 36,247
18,000
16,000
14,000
12,000
10,000 Mm Brazil (1)
8,000 M Gas
moil
6,000
4,000
2,000
202012 202013
(1) 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 the second half of 2013.
Drilling and Work Program
GeoPark’s 2013 work program includes the drilling of 35-45 new wells (gross) with a capital
expenditure of US$200-230 million. The drilling program in 2Q2013 was mainly focused on
reserve appraisal and development in Chile and Colombia. Results are set out below:
Chile
202013 Block A e A A a
Wells Drilled/Completed
Awaiting
Chile Fell 100% Molino Oeste 1 Exploration Springhill 3,030 Gas Completion
Chile Flamenco 50% Chercán 1 Exploration Tobifera 1,920 Gas On Production
Chile Flamenco 50% Yakamush 1 Exploration Springhill 1,960 Oil Under Evaluation
Chile Flamenco 50% Omeling 1 Exploration Tobifera 2,040 Oil On Production
Chile Fell 100% Yagán Norte 4 Workover Springhill 3,005 Gas On Production
Chile Fell 100% Yagán 1 Workover Tobifera 3,080 Oil On Production
Chile Fell 100% Tetera 4 Workover Tobifera 3,023 Oil On Production
Chile Fell 100% Kiuaku 1 Workover Tobifera 3,075 Oil On Production
Highlights
Development well Yagan Norte 4 on the Fell Block (GeoPark operated with a 100% WI) tested
gas in the Springhill formation at a rate of 3.3 mmcfpd of gas.
Exploration well Chercán 1 on the Flamenco Block (GeoPark operated with a 50% WI), which
was GeoPark’s first exploratory well in Tierra del Fuego, tested gas in the Tobifera formation at
a gross rate of approximately 4.0 mmcfpd of gas and 35 bopd through a choke of 8 millimetres
(mm), currently with a well head pressure of 1,800 pounds per square inch (psi). Facilities are
currently under construction.
Exploration well Omeling 1 on the Flamenco Block (GeoPark operated with a 50% WI) tested oil
in the Tobifera formation at a gross rate of approximately 270 bopd through a choke of 10 mm,
with a well head pressure of 554 psi. Facilities have been constructed and current production is
approximately 40 bopd.
Seismic acquisition: As of June 30, 2013, approximately 85% of the 1,500 km2 3D seismic
commitment program on the Tierra del Fuego blocks has been completed. The remaining
seismic program will be completed in early 2014.
Colombia
Operatea Block WI e e e ermation (Meters) Hydrocarbon June30
Wells Drilled/Completed in 2Q2013
Colombia Cuerva 100% Cuerva 8C Development C5 1,402 Oil On Production
Colombia Cuerva 100% Cuerva 1C Exploration C5 1,362 oil On Production
Colombia – Llanos 34 45% Tua4 Appraisal Gacheta 3,432 oil On Production
Colombia – Llanos 34 45% Tarotaro 1 Exploration Guadalupe 3,175 oil On Production
Colombia Llanos 34 45% Tarotaro 2 Appraisal Guadalupe 3,259 Oil On Production
Colombia Llanos 34 45% Tarotaro 3 Appraisal Guadalupe 3,117 Oil Being Drilled
Colombia Yamu 75% Potrillo 1 Exploration C7 3,560 Oil On Production
GeoPark Results
Colombia Type of Geological Depth Principal Status at
Non-Operated Block WI Well Well Formation (Meters) Hydrocarbon June 30
Wells Drilled/Completed in 2Q2013
Celeus Awaiting
Colombia Llanos 17 37% Sur 1 Exploration Mirador 3,524 Oil Completion
Colombia Arrendajo 10% Yaguazo 2 Appraisal C5 2,012 Oil Dry
Mirla
Colombia Arrendajo 10% Blanca 1 Exploration C5 2,067 Oil Dry
Highlights
e Exploration well Potrillo 1 on the Yamu Block (GeoPark operated with a 75% WTI) tested oil and
was put into production from the Carbonera C7 formation. Current production is approximately
300 bopd (gross) with a watercut of 76%. (The Potrillo field represents the third oil discovery
by GeoPark in Colombia)
e Exploration well Tarotaro 1 on the Llanos 34 Block (GeoPark operated with a 45% WI) tested oil and
was put into production from the Guadalupe formation. Current production is approximately 2,000
bopd (gross) with a watercut below 1%. (The Tarotaro field represents the fourth oil discovery of
GeoPark in Colombia)
e Development well Cuerva 8C on La Cuerva Block (GeoPark operated with a 100% WI) tested oil
and was put into production from the Carbonera C5 formation. Current production is
approximately 80 bopd.
e Exploration well Cuerva 1C on la Cuerva block (GeoPark operated with a 100% LWI) tested oil
and was put into production from the Carbonera C5 formation. Current production is
approximately 250 bopd.
e Seismic acquisition: As of June 30, 2013, approximately 88% of the 250 km2 3D seismic
program on the Llanos 34 Block scheduled for 2013 has been completed. As of today the full
seismic program has been completed.
Key Upcoming Wells
The Company’s 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.
Unrisked
Block Country WI Operator DA PoP1O0 a rad
MMbbl
Llanos 34 Colombia 45% GeoPark Tigana 1 8 – 18 43 Exploration
Llanos 34 Colombia 45% GeoPark Aruco 1 1.7 – 3.6 32 Exploration
Llanos 34 Colombia 45% GeoPark Tua 6 n/a n/a Appraisal
Fell Chile 100% GeoPark Co Sutlej N 1 0.2- 1.0 45 Exploration
Fell Chile 100% GeoPark Molino N 1 0.3 – 0.9 36 Exploration
Flamenco Chile 50% GeoPark Tagua 1 0.3 – 1.1 43 Exploration
(*) Only for exploratory wells. Unrisked resources are Company estimates.
FINANCIAL HIGHLIGHTS
GeoPark Results
Six-months period ended June 30, 2013 compared to six-months period ended June 30,
2012
Six months ended June 30
Change, June
2013 vs.
(in thousands of US$, except for percentages) 2013 2012 June 2012
(unaudited)
Revenues
Net Oil Sales ….ococcocccnncnncnnnncnnnonancnnnonancnnnnnanannnnnanannnnnananos 149,817 104,893 43%
Net gas SalesS ..0coccoconnncnnnnnnncnnnonancnnnnnanannnnnanrnnnnnanannnnnnnanns 10,989 17,098 (36)%
Total net revenue ……o.cooccoccccnccnnnncncnnnnnnncnnnonancnnn nan ncnnnnnnns 160,806 121,991 32%
Production costs. (81,147) (54,668) 48%
Gross profit……. 79,659 67,323 18%
Exploration costs … (13,587) (10,199) 33%
Administrative costs.. (20,730) (13,562) 53%
Selling expenses………. (7,658) (7,981) (4%
Other operating expense 4,205 (413) 1,118%
Operating profit .. 41,889 35,168 19%
Financial results, net (20,562) (7,344) 180%
Bargain purchase gain on acquisition of subsidiaries. . – 8,401 (100)%
Profit before income taX…..o.o.ooconccccnccncnccnconancnnnonanananonanos 21,327 36,225 (41)%
INCOME tax EXPeNSe ..oconcncnnccnnncnnnonanannnonanannnonanannrnnanannnnnanens (7,092) (10,863) (35)%
Profit for the period… 14,235 25,362 (44)%
Non-controlling interest ……oconcoccccnnnncnnnnnnncnnnnnancnnnonanannnonanes 5,619 5,458 3%
Profit for the period attributable to owners of the
COMPANY .occccncc con cc cnc na nc nn conan cnn cnn nn cnn nn n rra nan nr na narnnnnanans 8,616 19,904 (57)%
Net production volumes
Oil (mbbl) 1,926 1,129 71%
Gas (mcf) 2,803 4,889 (43)%
Total net production (Mbo8e)………ocoococcnccncnccncnnnncnncnnnnnnns 2,393 1,944 23%
Average net production (bDOepd) …ococcoccncnccncnnnnnnncnnnnnnnananonnns 13,221 11,939 11%
Average realized sales price
Oil (US$ per bbl) 80.5 94.6 (15)%
Gas (US$ per mcf). . 4.5 4.1 10%
Average realized sales price per boe (US$) …cococcnccccncnncnnnnnnns 70.6 66.7 6%
Average unit costs per boe (US$)
Producti0n COSES …ccooccnnccnconnnnnancnannnannncnnranonananonanoncanananano 33.9 28.1 21%
Exploration costs … 5.7 5.2 10%
Administrative costs.. 8.7 7.0 24%
Selling expensesS….omcoccocncnncnnnnnnncnnnnnnns 3.2 4.1 (22)%
Average Adjusted EBITDA per boe (US$) 35.1 36.1 (33%
GeoPark Results
Geographical Segment Reporting
The Company divides ¡ts business into four geographical segments-Chile, Colombia, Brazil and
Argentina-that correspond to its principal jurisdictions of operation. Activities not falling into these
four geographical segments are reported under a separate corporate segment that primarily
includes certain corporate administrative costs not attributable to another segment. For the six
month period ended June 30, 2013, the Chilean segment contributed US$82.9 million, or 51.5%, of
GeoPark revenues, the Colombian segment contributed US$77.2 million, or 48.0%, of revenues and
the Argentine segment contributed US$0.7 million, or 0.5%, of revenues.
In the description of results of operations that follows, the “Other” operations reflect non-Chilean
and non-Colombian operations, primarily consisting of Argentine, Brazilian 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$8 million higher during the first quarter of 2012,
respectively.
The following table summarizes certain financial and operating data.
Unaudited Six months ended June 30,
2013 2012
(In thousands of US$) Chile Colombia Other Total Chile Colombia Other Total
Net revenue ..cccooccnnnncnnnnnono 82,855 77,218 733 160,806 85,320 36,007 664 121,991
GrOSS PrOfit…ooccccnnccnnnnccnn os 49,167 30,473 19 79,659 52,135 14,888 300 67,323
Depreciati0N …ooocccnoccnnnnnoro 15,437 17,027 141 32,605 15,859 7,005 531 23,395
Impairment and write-offs .. 8,753 3,035 – 11,788 5,945 2,619 – 8,564
Adjusted EBITDA per boe 37.9 38.1 – 35.1 36.8 46.4 – 36.1
Net Revenue
For the six-month period ended June 30, 2013, 93.2% and 6.8% of total revenues were derived
from crude oil sales and natural gas sales, respectively.
Six months ended June 30,
Consolidated
(in thousands of US$) 2013 2012
Sale Of crude Oil …coccoccccncnncnnnncnncnnnnannnnnn nan ncnnnnnnncnnnnnnncnnannnnennnnnnnennnnnanenannnnns 149,817 104,893
Sale Of DAS ..ococcnccnnncnncnnnnnnncnnnnnancnnn nan ncnnnnnnnrrnn rre nrrnrnnrnerna rar nennnnnnnennnnnnnennnnanns 10,989 17,098
Total nono nccnno conc nn cc cnn cn o nor rro nr nn nn rr nr nn rr rn nr rn rr r rr nn rr rr cnn rn rr rr rara r a rn rr nn cnc nana 160,806 121,991
6
GeoPark Results
Change, June 2013
vs.
Six months ended June 30, June 2012
Net Revenue By country
(in thousands of US$) 2013 2012 %
Chill coocccnnnccnnnncnnnonononarann nara nro rononnrnn nn nrnnnnrrrnnnrnnnnrrnnnnrcnnns 82,855 85,320 (2,465) (3)
COlO0Mbia ..occcconccnnoncnnnarononarannnrcnnnnrnnnnncnnnnrrnnnnrnnnnncnnnnrcnnns 77,218 36,007 41,211 114
O(NOS coccccnnccnnnncnnnorononarononarnnnnrnnonnrnnnnnrnnnnrrnnnnrnnnnnrnnnnrcnnns 733 664 69 10
Total nncnnncccnnoccno no rann nara n nn rr no nora nn nr r nn nn raro nar rn nn rrnnnrnnn nn 160,806 121,991 38,815 32
Net revenue increased 31.8% to US$160.8 million (1H 2013: US$122.0 million)
The increase in net revenue is explained by:
e An iincrease of US$60.6 million in oil deliveries
e Aniincrease of US$1.9 million from the realized price for gas sold;
partially offset by:
e A decrease of US$8.1 million in gas deliveries, and
e A decrease of US$15.6 million from the realized price for oil sold.
Net revenue attributable to the operations in Chile decreased by 2.9% to US$82.9 million,
representing 51.5% of total consolidated revenues (1H2012: US$85.3 million; 69.9% of total
consolidated revenues).
Sales of crude oil increased by 16.4% to 883 mbbl (1H2012: 758 mbbl), mainly due to new
discoveries in Tobifera formation. This was partially offset by (i) a decrease in the average realized
prices per barrel of crude oil of US$8.2 per barrel, or 9.1%, to US$81.4 per barrel (1H2012:
US$89.6 per barrel), of which US$2.8 per barrel was attributable to oil quality discounts and the
remaining to WTI variation, and (ii) a reduction in Chilean gas sales in an amount of US$6.1
million, or 35.7%, to US$11.0 million (1H 2012: US$17.1 million). The lower gas sales resulted
from reduced drilling activity for gas prospects, as we focused on oil prospects and the temporary
shutdown in the Methanex Plant, where GeoPark delivers its gas. During the shutdown, which
started at the end of April 2013, the Company delivered to Methanex a reduced volume of gas of
approximately of 11.5 mmcfpd. The Company has been informed by Methanex that the plant will
reassume activities by the end of September 2013.
Net revenue attributable to the operations in Colombia was US$77.2 million, representing 48.0% of
total consolidated revenues (1H2012: US$36.0 million; 29.5% of total consolidated revenues).
GeoPark Results
Sales of crude oil increased by 199% to 906 mbbl (1H2012: 303 mbbl), due to the development of
the Max and Tua fields and the discoveries of the Tarotaro and Potrillo fields. This was partially
offset by a decrease in the average realized prices per barrel of crude oil from US$107.9 per barrel
to US$79.7 primarily as a result of a change in the Company’s commercial strategy whereby the
Company had been historically delivering all its Colombian production at Coveñas, while in 2013 the
Company started selling part of its production at the wellhead. Consequently the selling price has
been reduced and the transportation costs (Selling Expenses) have been reduced by a similar
amount. In addition the Vasconia marker decreased 32% in 1H 2013 in respect of 1H2012.
Production Costs
The following table summarizes production costs for the six-month periods ended June 30, 2013
and 2012, on a consolidated basis, and by country.
Unaudited Six months ended June 30,
Change, June
Consolidated 2013 vs.
(in thousands of US$, except for percentages) 2013 2012 June 2012
Depreciati0N ….coconcncnocnnnncnnnonancnnnonancnnannnncnnnnnnnrnnrnnanannrnnnnannnnnnnannnnnnns 31,898 22,950 39%
ROYAalti8sS …coococcoccnnncnnnonancnononancnnnonancnnnnnancnnnnnanrnnronanennrnnanennannnnennnnanns 8,650 6,283 38%
Operating COSTS …ococcoccncncnncnnnncnnnonancnnnonancnnnonanonnnonanrnncnnanrnncnnnnannnnncnss 39,625 24,557 61%
Other COSES ..ococccnccncncncnnnnonanoncnnncnnannncnnnnonanoncnnnnananonannnnananonannncanaconinss 974 878 11%
O AN 81,147 54,668 48%
Six months ended June 30,
Unaudited 2013 2012
By country
(in thousands of US$) Chile Colombia Chile Colombia
Depreciati0N ….coccoocncnncnnnncnnnnnnncnnnonanannnnnancnnnnnancnnannnnrnnnnnanes 14,936 16,949 15,562 6,957
ROYAalti8sS ..ocoococcnccnnncnnnnnnncnnnonancnnnonanannnnnnnrnnnnnancnncnnananncnnnnss 3,912 4,674 4,097 2,093
SHO COSES occooocccnnnnnnnnncnnnonononarannnrcnonarnnnnncnnnnrenonnrnnnnarannniens 3,019 4,676 3,588 1,738
Transportati0N COStS….coococcncnnnncnnnnnnncnnnonanonanonanannnonanannnnnnnss 3,113 1,741 2,836 296
Well and facilities Maintenance…….occoccccncnncnnnncnncnnnnannnnnnnnnns 4,252 4,544 2,483 1,523
CONSUMADIES cccoccncnccncnnnncnncnnnnannnonanannnonanannnonanrnnrnnananennnanens 925 5,639 1,381 2,580
Equipment rental ….occoccncncnncnnnncnnnonancnnnnnanannnonancnnnnnanannnnnanns – 2,360 3,044
GeoPark Results
Other COSTS ..cocccccncncnncnnnncnncnnnnnnnnnnanannnnnanannnonanrnnrnnanannnnnanans 3,531 6,162 3,236 2,888
Total cinco nono 33,688 46,745 33,185 21,119
Production costs increased 48% to US$81.1 million (1H2012: US$54.7 million), primarily as the
result of the incorporation of full six months of the Colombian operations into the Company’s
results, which resulted in revenue mix to be 93.2% oil and 6.8% gas.
Operating costs per boe increased to US$10.5 per boe (1H2012: US$8.1 per boe). This increase
was driven by an increase in well and facilities maintenance, primarily pulling costs increase of
US$1.5 million recorded therein and the continuing change in revenue mix (particularly influenced
by the Methanex shutdown) from gas to oil, which has higher production costs than gas. In the first
six months of 2013, the revenue mix for Chile was 87% oil and 13% gas, whereas for the same
period in 2012 it was 80% oil and 20% gas.
Operating costs in Colombia increased 106% primarily due to the increase in production. However,
operating costs per boe in Colombia decreased to US$24.7 per boe (1H2012: US$36.6 per boe),
with the increased production resulting in a dilution of fixed costs.
Exploration Costs
Unaudited Change, June 2013
vs.
Six months ended June 30, June 2012
(In thousands of US$, except for percentages) 2013 2012 %
Cdill coocccnnncnnnnncnonorono carac nnrrnnnnrnn ona rnnnnrrnonnrnnnnncnn nano 8,992 7,206 1,786 25
COlO0Mbia ..occccoccnnnnccnnnarnnnnannnnnrano cacao nnrcnonnrnnnoncnonarens 3,050 2,718 332 12
O(NOC coccccnnccnnnnnnn corona narannnncnonaranonnrnnnnrrnnnnrrnnnncnnnnrens 1,545 275 1,270 462
Total Loco cccnnoccnn na cn cnn c no nor cnn r nn nor r ro nr nr nn rr n nn 13,587 10,199 3,388 33
Exploration costs increased 33%, to US$13.6 million (1H2012: US$10.2 million), primarily as the
result of the recognition of write-offs of unsuccessful efforts in an amount of US$11.8 million (one
well in the Fell Block for US$3.6 million, one well in the Tranquilo Block for US$1.1 million, seismic
and others in Otway Block for US$ 4.1 million, and three wells in Colombia for US$3.0 million), as
compared to US$8.5 million (two wells in the Fell Block for US$5.9 million and drilling costs
associated to four wells in Colombia for US$ 2.6 million) in such write-offs in the same period in
2012.
GeoPark Results
Administrative Costs
Unaudited Change, June 2013
vs.
Six months ended June 30, June 2012
(In thousands of US$, except for percentages) 2013 2012 %
Chill coocccnnncnnnnncnonarano nara nn nrnnonarnnnnrrnnnnrcnnnarannnncnnnnss 8,110 4,014 4,096 102
COlOMbIA ..occcnoccnonoccnnnacnnnnrcnnnarannnacnnnnrcnnnarnnnnncnnnass 5,238 2,086 3,152 151
ORNOL coccccnnccnnoncnonorononanannnrcnonarannnarnnnnrnnnnarannnncnnnnss 7,382 7,462 (80) (1)
Total oncnnnocconnoccnn na ccn nn rr non rn non r nn nn rr n o nnrn nn nrrnn nar 20,730 13,562 7,168 53
Administrative costs increased 53% to US$20.7 million (142012: US$13.6 million), as a result of
the incorporation of full six months of the Colombian operations, the startup of the Tierra del Fuego
operations and higher costs associated with new business developments.
Selling Expenses
Unaudited Change, June 2013
Six months ended June vs.
30, June 2012
(In thousands of US$, except for percentages) 2013 2012 %
CdilO coocccnnnccnnnncnonaronnnarnnnnarnonrnnnnnrnnnnrcnnnnrnnnnnrnnnnrcnnns 2,265 2,412 (147) (6)
COlOMbia ..cooccccncnncncnnnonancnnnnnanannnonancnnnnnanrnncnnnnrnncnnnnss 5,145 5,422 (277) (5)
OHNOC coccccnnccnnnncnnnnrononaronnnarnnnnranonnrnnnnrcnnnnrnnnnncnnnnrennns 248 147 101 69
Total Loco conc o ccnn cnn nn cnc no nor ono nn rnn nn rro nn rr nn cra n nn nn 7,658 7,981 (323) (4)
Selling expenses decreased 4% to US$7.7 million (1H2012: US$8.0 million), primarily due to oil
sales in Colombia taking place at wellhead, which reduces transportation costs but also reduces
selling prices for similar amounts. Lower prices offset higher volumes sold. In the Chilean
operations, selling expenses were 6% lower compared to the same period of the prior year. In 2012
in Chile selling expenses included penalties associated with the ‘deliver or pay” clauses in the gas
sales agreement.
Net Financial Results
Financial loss increased 180% to US$20.6 million (1H2012: US$ 7.3 million), due to the accelerated
amortization of debt issuance costs incurred in connection with the redemption of the Notes due
2015 in an amount of US$8.6 million following the issuance of the Notes due 2020 in the six-month
period ended June 30, 2013, the incorporation of a full six months of Colombian operations in the
10
GeoPark Results
first six months of 2013 and higher interest expenses generated by the issuance of the Notes due
2020 in an amount of US$ 3.8 million.
Profit Before Income Tax
Unaudited Change, June 2013
vs.
Six months ended June 30, June 2012
(In thousands of US$, except for
percentages) 2013 2012 %
Chill coocccnnncnnnnncnonaron ona ran ana rro carr nn nr rro nnrnnnnnrrnnnrcnnns 23,107 30,162 (7,055) (23)
byColoMbia…occoccocnccncnnnncnnnnnnnnnncnnnnnnncnnnnnancnnnnnnns 14,369 12,525 1,844 15
ORNOS coccccnnccnnnncnonarononanannnrcnnnnrnnnnrcnnnnrnnnnncannncnnns (16,149) (6,462) (9,687) 150
Total Lonnnnnncconnnccnn nn cnn nor cnn nara n nn rr nr nr rr nn rr nn 21,327 36,225 (14,898) (41)
Profit before income tax decreased by 41% to US$21.3 million (1H2012: US$36.2 million),
primarily influenced by the occurrence of two non-recurring items: (1) accelerated amortization of
debt issuance costs described above for US$8.6 million; and (2) a bargain purchase gain on
acquisition of subsidiaries of US$8.4 million as a result of the acquisitions of Winchester and Luna
registered in the six-month period ended June 30, 2012.
Income Tax
Change, June 2013
vs.
Six months ended June 30, June 2012
(In thousands of US$, except for
percentages) 2013 2012 %
Chill coocccnnncnnnnncnonaron ona ran ana rro carr nn nr rro nnrnnnnnrrnnnrcnnns 3,278 7,947 (4,669) (59)
COlOMbIA ..occcnoccnnnnccnnnncnnnnrcnnnarannnrnnonnrnnnnncnnnnrcnnns 5,812 2,916 2,896 99
ORNOS coccccnnccnnnncnonarononanannnrcnnnnrnnnnrcnnnnrnnnnncannncnnns (1,998) – (1,998) (100)
Total Lonnnnnncconnnccnn nn cnn nor cnn nara n nn rr nr nr rr nn rr nn 7,092 10,863 (3,771) (35)
Income tax decreased 35% to US$7.1 million (142012: US$10.9 million). The effective tax rate
was 33% (1H2012: 30%). The effective tax rate was influenced by the incorporation of full six
months of the Colombian operations in GeoPark’s results, which are subject to a higher tax rate
than the other operations, and the non-recurring tax exempted bargain purchase gain on
acquisition of subsidiaries.
11
GeoPark Results
FINANCIAL RATIOS
Financial Debt Evolution Cash Position Evolution
299.4 301.8
193.7
H
=
e
Dn
3
US$ MM
193.0
169.4 165.3
2009 2010 2011 2012 102013 202013 2009 2010 2011 2012 102013 202013
Gross Debt / Adjusted EBITDA(”? Interest Coverage!*?
4.1x 9.3x
2009 2010 2011 2012 102013 202013 2009 2010 2011 2012 102013 202013
Our financial covenants require the Company to comply with the following criteria;
7 Leverage Ratio below 2.75x for the years 2013 and 2014 and 2.5x afterward
= Interest Coverage Ratio above 3.5x
(1) Based on trailing 12 month financial results
12
GeoPark Results
Three-month period from April i to June 30, 2013 compared to three-month period from
April 1 to June 30, 2012
The following table summarizes certain financial and operating data for the second quarter of 2013 and 2012.
Second quarter 2013 vs Second quarter 2012
(in thousands of US$, except for
percentages) 2Q 2013
Average net production (boepd) 13,020
Average realized sales price per boe (US$) 68
Net revenue 71,032
Production costs (42,834)
Adjusted EBITDA 34,362
Profit for the period 4,790
Capital expenditures 68,984
Production
2Q 2012
11,674
70
70,670
(35,306)
36,021
1,074
36,979
Change, 2Q 2013
362
(7,528)
(1,659)
3,716
32,005
vs. 2Q 2012
12%
-2%
1%
21%
-5%
346%
87%
Average net production increased 12% to 13,020 (boepd) for 2Q 2013. In Colombia, total oil
production increased 99.5% to 6,157 bopd and in Chile, total oil production increased 11.8% to
4,595 bopd. The gas production in Chile decreased 50% to 13,248 mcfpd. The lower gas production
resulted from reduced drilling activity for gas prospects, as the drilling activities were focused on oil
prospects and the temporary shutdown in the Methanex Plant.
Net Revenue
Second quarter 2013 vs Second quarter 2012
Change, 2Q 2013
(in thousands of US$, except for
(2,007)
2,373
(4
(362)
percentages) 2Q 2013 2Q 2012
Chile 37,337 39,344
Colombia 33,408 31,035
Other 287 291
Total 71,032 70,670
The increase in net revenue is explained by:
. An increase of US$ 16 million in oil deliveries;
. An increase of US$ 1.1 million from the realized sales prices for gas sold;
vs. 2Q 2012
-5%
8%
-1%
1%
13
GeoPark Results
Partially offset by:
. A decrease of US$4.8 million in gas deliveries, and
. A decrease of US$12.0 million from the realized sales prices for oil sold primarily as a result
of the change in the commercial strategy whereby the Company had been historically
delivering all its Colombian production at Coveñas, while in 2013 the Company started
selling part of its production at the wellhead. Consequently the selling price has been
reduced and the transportation costs (Selling Expenses) have been reduced by a similar
amount.
Production Costs
For the three-month period from April 1 to June 30, 2013
Second quarter 2013 vs Second quarter 2012
(in thousands of US$, except for Change, 2Q 2013
percentages) 2Q 2013 2Q 2012 vs. 2Q 2012
Chile 15,551 16,589 (1,038) -6%
Colombia 26,143 18,471 (7,672) 42%
Other 1,140 246 894 363%
Total 42,834 35,306 7.528 21%
Production costs were 21% higher in 2Q 2013 compared to 2Q 2012. The main driver for this
increase was the increase in oil production of 49%.
In Chile, operating costs (production costs less depreciation and royalties) per boe increased 35%
to US$ 10.7 per boe (2Q2012: US$ 7.9 per boe). This increase was driven by an increase in well
and facilities maintenance, primarily pulling costs and the continuing change in revenue mix from
gas to oil, which has higher production costs than gas.
In Colombia, operating expenditures per boe decreased 31% to US$ 25.1 per boe (2Q2012: US$
36.3 per boe), due to an increase in production which resulted in a dilution of fixed costs.
14
GeoPark Results
Adjusted EBITDA
Second quarter 2013 vs Second quarter 2012
(in thousands of US$, except for Change, 2Q 2013
percentages) 2Q 2013 2Q 2012 vs. 2Q 2012
Chile 23,092 26,564 (3,472) -13%
Colombia 16,259 12,579 3,680 29%
Other (4,989) (3,122) -1,867 60%
Total 34,362 36,021 (1,659) -5%
Adjusted EBITDA decreased 5% or US$ 1.7 million as consequence of a reduction of US$ 3.4 million
in the Chilean Adjusted EBITDA influenced by lower gas sales and the startup of the Tierra del
Fuego operations and an increase of US$ 1.9 million related to corporate expenses (mainly higher
costs associated with new business developments) and the start-up of Brazilian operations. Both
effects were partially offset by an increase of US$ 3.7 million in the Colombian Adjusted EBITDA.
Profit For The Period
Profit for the period increased 346% to US$ 4.8 million, as described in the chart below:
ls) e 4 Ea
EBITDA 20 Depreciation Impairment Financial Income tax Other Net Result 2Q
2013 and write off results 2013
Capital expenditures increased 87% to US$ 69 million, primarily as a result of Chilean operations
where capital expenditures amounted to US$ 45.4 million for 2Q 2013 (including US$ 27.4 million
in Tierra del Fuego, mainly for the seismic program) compared to US$ 15.7 million for 2Q 2012. In
Colombia, capital expenditures amounted to US$ 27 million for 2Q 2013 compared to US$ 20
million for 2Q 2012.
15
GeoPark Results
STRATEGIC HIGHLIGHTS
Risk-Balanced Entry into Brazil
1)
2)
Acquisition of Interest in Manati Producing Gas Field
On May 15, 2013, GeoPark announced it had agreed to acquire Rio das Contas, which holds a
10% working interest in the shallow-depth offshore Manati Field in the Camamu-Almada Basin,
from Panoro Energy for a total cash consideration of US$140.0 million, subject to certain
purchase price and easement adjustments. The Manati Field, which is operated by Petrobras,
the Brazilian national company, is the largest non-associated gas field in Brazil and produces
approximately 9% of the gas produced in Brazil. During the year ended December 31, 2012
and the second quarter of 2013, net production to Rio das Contas was approximately 3,677
boepd and 3,884 boepd, respectively, from the Manati Field. In the year ended December 31,
2012, Rio das Contas generated net income of approximately US$23.2 million and revenues of
approximately US$51.1 million.
The Rio das Contas acquisition will provide GeoPark with a long-term off-take contract with
Petrobras that covers approximately 75% of net proved gas reserves in the Manati Field, a
valuable relationship with Petrobras and an established geoscience and administrative team to
manage the assets and to seek new growth opportunities.
The closing of the acquisition is subject to certain conditions, including approval by the Brazilian
National Petroleum, Natural Gas and Biofuels Agency (“ANP”) and the Brazilian antitrust
authorities. This is expected to occur during the second half of 2013.
Award of Seven Exploration Licenses
On May 15, 2013, following an invitation for bids from the ANP, GeoPark announced it had
been awarded, in an international bidding round, seven new concessions in Brazil, in the
following basins:
e Recóncavo Basin in the State of Bahia: REC-T 94 and REC-T 85 Concessions; and
+ Potiguar Basin in the State of Rio Grande do Norte: POT-T 664, POT-T 665, POT-T 619,
POT-T 620 and POT-T 663Concessions.
GeoPark’s winning bids are subject to confirmation of approval requirements and entry into
concession agreements with the ANP, which is expected to occur in 3Q2013. GeoPark has
committed to invest a minimum of US$ 15.3 million (including bonuses and work program)
during the first three years of the exploratory period. The new concessions cover an area of
approximately 54,850 gross acres.
16
GeoPark Results
CONSOLIDATED STATEMENT OF INCOME
Six-months Six-months
period ended period ended30 Year ended
30 June 2013 June2012” 31 December
Amounts in US$ “000 (Unaudited) (Unaudited) 2012
NET REVENUE 160,806 121,991 250,478
Production costs (81,147) (54,668) (129,235)
GROSS PROFIT 79,659 67,323 121,243
Exploration costs (13,587) (10,199) (27,890)
Administrative costs (20,730) (13,562) (28,798)
Selling expenses (7,658) (7,981) (24,631)
Other operating income / (expense) 4,205 (413) 823
OPERATING PROFIT 41,889 35,168 40,747
Financial income 604 318 892
Financial expenses (21,166) (7,662) (17,200)
Bargain purchase gain on acquisition of Ñ 8,401 8,401
subsidiaries xx ,
PROFIT BEFORE TAX 21,327 36,225 32,840
Income tax (7,092) (10,863) (14,394)
PROFIT FOR THE PERIOD/YEAR 14,235 25,362 18,446
Attributable to:
Owners of the parent 8,616 19,904 11,879
Non-controlling interest 5,619 5,458 6,567
Earnings per share (in US$) for profit attributable
to owners of the Company. Basic 0.20 0.47 0.28
Earnings per share (in US$) for profit attributable
0.19 0.44 0.27
to owners of the Company. Diluted
17
CONSOLIDATED BALANCE SHEET
GeoPark Results
At 30 June At 30 June
2013 20121” Year ended 31
Amounts in US$ “000 (Unaudited) (Unaudited) December 2012
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 544,151 388,423 457,837
Prepaid taxes 14,505 5,504 10,707
Other financial assets 2,145 6,738 7,791
Deferred income tax 16,075 10,434 13,591
Prepayments and other receivables 1,857 610 510
TOTAL NON CURRENT ASSETS 578,733 411,709 490,436
CURRENT ASSETS
Inventories 5,667 8,934 3,955
Trade receivables 31,288 22,569 32,271
Prepayments and other receivables 40,809 47,705 49,620
Prepaid taxes 2,376 5,903 3,443
Cash at bank and in hand 149,437 66,346 48,292
TOTAL CURRENT ASSETS 229,577 151,457 137,581
TOTAL ASSETS 808,310 563,166 628,017
EQUITY
Equity attributable to owners of the Company
Share capital 43 43 43
Share premium 116,877 118,821 116,817
Reserves 128,058 123,006 128,421
Retained earnings (losses) 6,242 3,770 (5,860)
Attributable to owners of the Company 251,220 245,640 239,421
Non-controlling interest 83,459 54,355 72,665
TOTAL EQUITY 334,679 299,995 312,086
LIABILITIES
NON CURRENT LIABILITIES
Borrowings 290,624 127,404 165,046
Provisions for other long-term liabilities 26,015 21,839 25,991
Deferred income tax 25,372 18,827 17,502
TOTAL NON CURRENT LIABILITIES 342,011 168,070 208,539
CURRENT LIABILITIES
Borrowings 11,172 27,488 27,986
Current income tax 2,716 1,615 7,315
Trade and other payables 117,732 65,998 72,091
TOTAL CURRENT LIABILITIES 131,620 95,101 107,392
TOTAL LIABILITIES 473,631 263,171 315,931
TOTAL EQUITY AND LIABILITIES 808,310 563,166 628,017
(1)
30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see Note 1).
18
CONSOLIDATED STATEMENT OF CASH FLOW
GeoPark Results
Six-months Six-months
period ended periodended Year ended
30 June 2013 30June 2012 31 December,
Amounts in US$ ‘000 (Unaudited) – ” (Unaudited) 2012
Cash flows from operating activities
Profit for the period/year 14,235 25,362 18,446
Adjustments for:
Income tax for the period/year 7,092 10,863 14,394
Depreciation of the period/year 32,605 23,395 53,317
Loss on disposal of property, plant and equipment 568 125 546
Write-off of unsuccessful efforts 11,788 8,564 25,552
Amortisation of other long-term liabilities (1,359) (290) (2,143)
Accrual of borrowing’s interests 11,881 5,796 12,478
Unwinding of long-term liabilities 505 298 1,262
Accrual of share-based payment 3,486 2,415 5,396
Deferred income – 2,850 5,550
Income tax paid (4,040) (408) (408)
Exchange difference generated by borrowings (9) 20 35
Bargain purchase gain on acquisition of subsidiaries – (8,401) (8,401)
Changes in working capital 20,177 580 5,778
Cash flows from operating activities – net 96,929 71,169 131,802
Cash flows from investing activities
Purchase of property, plant and equipment (143,775) (84,492) (198,204)
Acquisitions of subsidiaries, net of cash acquired – (105,303) (105,303)
Collections related to financial leases 6,489 – –
Cash flows used in investing activities – net (137,286) (189,795) (303,507)
Cash flows from financing activities
Proceeds from borrowings 292,363 3,923 37,200
Proceeds from transaction with Non-controlling interest 36,313 8,869 12,452
Proceeds from loans from related parties 8,344 – –
Principal paid (179,343) (16,297) (12,382)
19
GeoPark Results
Interest paid (6,175) (5,259) (10,895)
Cash flows from (used in) financing activities – net 151,502 (8,764) 26,375
Net increase (decrease) in cash and cash equivalents 111,145 (127,390) (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 149,437 56,232 38,292
Ending Cash and cash equivalents are specified as
follows:
Cash in banks 149,413 66,324 48,268
Cash in hand 24 22 24
Bank overdrafts – (10,114) (10,000)
Cash and cash equivalents 149,437 56,232 38,292
20
Annex
Below is a summary table of GeoPark’“s oil and gas interests:
GeoPark Results
Gross Area Net 2P Net % Concessio
Country Block Operator WI Basin (thousand Reserves Production oil Expiration
acres) (mmboe)” (boepd)” Pp
Date
Argentina Del Mosquito GeoPark 100% Austral 17.34 – 56 78 2016
C. Doña
Argentina Juana GeoPark 100% Neuquén 28 – – – 2017
Loma
Argentina Cortaderal GeoPark 100% Neuquén 20 – – – 2017
56
Chile Fell GeoPark 100% Magallanes 368 45.5 7,615 66 2032
Chile Tranquilo GeoPark 29% Magallanes 92 – – – 2013/2043
Chile Otway GeoPark 25% Magallanes 49.4 – – – 2017/2044
Chile Isla Norte GeoPark 60% Magallanes 130 – – – 2019/2044
Chile Campanario GeoPark 50% Magallanes 192 – – – 2020/2045
Chile Flamenco GeoPark 50% Magallanes 141 – – – 2019/2044
45.4 7,615
Colombia La Cuerva GeoPark 100% Llanos 47 3.8 1,955 100 2014/2038
Colombia Llanos 34 GeoPark 45% Llanos 82 6.5 2,557 100 2015/2039
Colombia Llanos 62 GeoPark 100% Llanos 44 – – – 2017/2041
Colombia Yamú GeoPark 54.5/75 Llanos 11 0.8 565 100 2013/2036
Colombia Llanos 17 Ramshorn 36.80% Llanos 109 – – – 2015/2039
Colombia Llanos 32 P1 Energy 10% Llanos 100 0.3 218 100 2015/2039
Colombia Jagueyes Columbus 5% Llanos 61 – – – 2014/2038
11.4 5,294
Cam./Alma
Brazil” BCAM-40 Petrobras 10% da 22.8 10.7* 4,015 0
Brazil % REC-T94 GeoPark 100% Reconcavo 7.7 – – –
Brazil% REC-T85 GeoPark 100% Reconcavo 7.7 – – –
Brazil” POT-T 664 GeoPark 100% Potiguar 7.9 – – –
Brazil” POT-T 665 GeoPark 100% Potiguar 7.9 – – –
Brazil” POT-T 619 GeoPark 100% Potiguar 7.9 – – –
Brazil” POT-T 620 GeoPark 100% Potiguar 7.9 – – –
Brazil” POT-T 663 GeoPark 100% Potiguar 7.9 – – –
10.7 4,015
1 Working Interest
21
GeoPark Results
2 Million barrels of Oil Equivalent. Reserves for Chile , Colombia and Argentina has been certified by Degoyler 8 MacNaughton as of
December 31, 2012. Reserves for Brazil has been certified by Gaffney 8 Cline for Panoro energy do Brasil as of December 31,2012.
3 Corresponds to production for the first half of 2013.
4 Manati acquisition announced in May 2013. First and second quarter 2013 production not attributable to Geopark. The closing of the
acquisition is subject to certain conditions, including approval by the Brazilian National Petroleum, Natural Gas and Biofuels Agency (“ANP”)
and the Brazilian antitrust authorities.
5 subject to confirmation of approval requirements and entry into concession agreements with the ANP
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 Agéncia 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 Million of cubic feet per day
Mm*/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.
22
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=4fec75ed77a0ed845419543d01cd2d81VFdwQmVFMTZRVFZOUkVFMFRWUm5NMDUzUFQwPQ==&secuencia=-1&t=1682366909
