==
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 sobre los resultados del
período de seis meses, finalizado el 30 de junio 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,
‘ Pedro Aylwin Chiofrini
pp. GEOPARK LIMITED
Nuestra Señora de los Ángeles 179 – Las Condes, Santiago – Chile
Tel. (+56 2) 2429600 – infoWgeo-park.com – www.geo-park.com
GEOPARK LIMITED
30 JUNE 2013
GEOPARK
Embargoed for release at 7:00 am 2 September 2013
GEOPARK LIMITED
RESULTS FOR THE FIRST HALF ENDED 30 JUNE 2013
GeoPark Limited (“GeoPark”), the Latin American oil and gas explorer, operator and
consolidator with operations and production in Chile, Colombia, Brazil and Argentina (AIM:
GPK), is pleased to announce its first half financial results ended 30 June 2013.
Operational Highlights
e Oil Production Up 49% to 10,798* bopd in 202013 vs 2Q2012
+ Total Oil and Gas Production Up 12% to 13,020* boepd in 202013 vs 2Q2012
+ 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)
+ Adjusted EBITDA Up 20% to US$84.0* million (as of 30 June)
+. Cash Position of US$149.4 million
Strategic Highlights
e Risk-balanced entry into Brazil with acquisition of 10% interest in Manati Field and award
of seven exploration blocks in Potiguar and Reconcavo Basins
* Operational and Financial figures do not include results from new Brazilian production acquisition, completion of which is expected in 2H2013.
GEOPARK LIMITED
30 JUNE 2013
In accordance with the AIM Rules, the information in this announcement has been reviewed
by Salvador Minniti, a geologist with 32 years of oil and gas experience and Director of
Exploration of GeoPark.
GeoPark can be visited online at www.geo-park.com
For further information please contact:
GeoPark Limited
Juan Pablo Spoerer (Chile)
Pablo Ducci (Chile) +56 2 2242 9600
Oriel Securities – Nominated Adviser and Joint Broker
Michael Shaw (London) +44 (0)20 7710 7600
Tunga Chigovanyika (London)
Macquarie Capital (Europe) Limited – Joint Broker
Steve Baldwin (London) +44 (0)20 3037 2000
GEOPARK LIMITED
30 JUNE 2013
Pra
ln ll
GEOPARK
GEOPARK LIMITED
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
For the six months ended 30 June 2012 and 2013
GEOPARK LIMITED
30 JUNE 2013
CONTENTS
Page
3 Consolidated Statement of Income and Statement of Comprehensive Income
4 Consolidated Statement of Financial Position
5 Consolidated Statement of Changes in Equity
6 Consolidated Statement of Cash Flow
7 Selected explanatory notes
GEOPARK LIMITED
30 JUNE 2013
CONSOLIDATED STATEMENT OF INCOME
Six-months Six-months
period ended period ended 30 Year ended
30 June 2013 June2012” 31 December
Amounts in US$ “000 Note (Unaudited) (Unaudited) 2012
NET REVENUE 2 160,806 121,991 250,478
Production costs 4 (81,147) (54,668) (129,235)
GROSS PROFIT 79,659 67,323 121,243
Exploration costs 5 (13,587) (10,199) (27,890)
Administrative costs 6 (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 7 604 318 892
Financial expenses 8 (21,166) (7,662) (17,200)
Bargain purchase gain on acquisition of Ñ
subsidiaries 14 8,401 8,401
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
to owners of the Company. Diluted 0.19 0.44 0.27
STATEMENT OF COMPREHENSIVE INCOME
Six-months Six-months
period ended period ended30 Year ended
30 June 2013 June2012’” 31 December
Amounts in US$ “000 (Unaudited) (Unaudited) 2012
Profit for the period / year 14,235 25,362 18,446
Other comprehensive income – – –
Currency translation differences (363) – –
Total comprehensive Income for the period / year 13,872 25,362 18,446
Attributable to:
Owners of the parent 8,253 19,904 11,879
Non-controlling interest 5,619 5,458 6,567
(1)
(see Note 1).
30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
GEOPARK LIMITED
30 JUNE 2013
At 30 June At 30 June
2013 2012 Year ended 31
Amounts in US$ “000 Note (Unaudited) (Unaudited) December 2012
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 9 544,151 388,423 457,837
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 10 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 11 290,624 127,404 165,046
Provisions for other long-term liabilities 12 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 11,172 27,488 27,986
Current income tax 2,716 1,615 7,315
Trade and other payables 13 117,732 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)
(see Note 1).
30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
GEOPARK LIMITED
30 JUNE 2013
Attributable to owners of the Company
Retained Non –
Share Share Other Translation (Losses) “ontrolling
Amount in US$ ‘000 Capital Premium Reserve Reserve Earnings Interest Total
Equity at 1 January 2012 43 112,231 114,270 894 (18,549) 41,763 250,652
Profit for the first half of the year – – – – 19,904 5,458 25,362
Total comprehensive income for the . . . .
period ended 30 June 2012 19,904 5,458 25,362
Proceeds from transaction with Non-
controlling interest 7 5,696 8,736 – – 7,134 21,566
Shared-based payment – – – – 2,415 – 2,415
– 5,696 8,736 – 2,415 7,134 23,981
Balance at 30 June 2012 ‘” (Unaudited) 43 117,927 123,006 894 3,770 54,355 299,995
Balance at 31 December 2012 43 116,817 127,527 894 (5,860) 72,665 312,086
Profit for the first half of the year – – – – 8,616 5,619 14,235
Currency translation differences – – – (363) – – (363)
Total comprehensive income for the
period ended 30 June 2013 : : : (363) 8,616 5,619 13,872
Proceeds from transaction with Non-
controlling interest – – – 5,175 5,175
Shared-based payment – 60 – – 3,486 – 3,546
– 60 – – 3,486 5,175 8,721
Balance at 30 June 2013 (Unaudited) 43 116,877 127,527 531 6,242 83,459 334,679
(1)
30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see Note 1).
GEOPARK LIMITED
30 JUNE 2013
CONSOLIDATED STATEMENT OF CASH FLOW
Six-months Six-months
period ended period ended Year ended
30 June 2013 30 June 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 (Note 14) – (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 (Note 14) – (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)
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
(1)
Note 1).
(2)
30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see
Proceeds from transaction with Non-controlling interest for the period ended 30 June 2013 includes: US$ 5,175,000 from
capital contributions received in the period; and US$ 31,138,000 as result of collection of receivables included in
Prepayment and other receivables as of 31 December 2012, relating to equity transactions made in 2012 and 2011.
GEOPARK LIMITED
30 JUNE 2013
SELECTED EXPLANATORY NOTES
Note 1
General information
GeoPark Limited (the Company) is a company incorporated under the law of Bermuda. The Registered
Office address is Cumberland House, 9th Floor, 1 Victoria Street, Hamilton HM11, Bermuda. The Company
is quoted on the AIM market of London Stock Exchange plc.
The principal activity of the Company and its subsidiaries (“the Group”) are exploration, development and
production for oil and gas reserves in Chile, Colombia and Argentina. The Group has working interests
and/or economic interests in 19 hydrocarbon blocks.
On 30 July 2013 the shareholders approved the change of the Company’s name from GeoPark Holdings
Limited to GeoPark Limited.
This consolidated interim financial report was authorised for issue by the Board of Directors on
29 August, 2013.
Basis of Preparation
The consolidated interim financial report of GeoPark Limited is presented in accordance with lAS 34
“Interim Financial Reporting”. It does not include all of the information required for full annual financial
statements, and should be read in conjunction with the annual financial statements as at and for the years
ended 31 December 2011 and 2012, which have been prepared in accordance with IFRSs.
The consolidated interim financial report has been prepared in accordance with the accounting policies
applied in the most recent annual financial statements. For further information please refer to GeoPark
Limited’s consolidated financial statements for the year ended 31 December 2012.
The comparative information for the period ended 30 June 2012 has been restated from the original
condensed financial statements at that date to include the final estimation of the purchase price allocation
for the business combination related to the acquisition in Colombia shown in Note 14.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected
total annual profit or loss.
The activities of the Company are not subject to significant seasonal changes.
Leases in which substantially all of the risks and rewards of ownership are transferred to the lessee are
classified as finance leases. Under a finance lease, the Company as lessor has to recognize an amount
receivable equal to the aggregate of the minimum lease payments plus any unguaranteed residual value
accruing to the lessor, discounted at the interest rate implicit in the lease (see Note 9).
New and amended standards adopted by the Group
As from 1 January, 2013, the Company applied IFRS 10, ‘Consolidated financial statements”, IFRS 11,
“Joint arrangements’, IFRS 12, ‘Disclosures of interests in other entities”. Those standards did not materially
affect the Company’s financial condition or results of the operations.
GEOPARK LIMITED
30 JUNE 2013
Also, as from 1 January 2013 the Company applied IFRS 13 “Fair value measurement” . This standard has
not have a significant impact on the balances recorded in the financial statements but would require the
company to apply different valuation techniques to certain items (e.g. debt acquired as part of a business
combination) recognised at fair value as and when they arise in the future.
Estimates
The preparation of interim financial information requires the use of certain critical accounting estimates. It
also requires management to exercise ¡ts judgement in the process of applying the Group’s accounting
policies. Actual results may differ from these estimates
In preparing these condensed consolidated interim financial statements, the significant judgements made
by management in applying the group’s accounting policies and the key sources of estimation uncertainty
were the same as those that applied to the consolidated financial statements for the year ended 31
December 2012.
Financial risk management
The Company’s activities expose it to a variety of financial risks: currency risk, price risk, credit risk-
concentration, funding and liquidity risk, interest risk and capital risk. The interim condensed consolidated
financial statements do not include all financial risk management information and disclosures required in
the annual financial statements, and should be read in conjunction with the Company’s annual financial
statements as at 31 December 2012.
There have been no changes in the risk management since year end or in any risk management policies.
Subsidiary undertakings
The following chart illustrates the Group structure (*) as of 30 June 2013:
A
IS
AO)
29.9% 29,9% 100%
[ [ [ : ]100%
o 11%
GeoPark Colombia GeoPark Brazil O ! GeoPsrk Argentina
Cobperatie U.A. Cobperatie U.A. +] Limited-B ; Limited – Bermuda
(Holanda) (Holanda) 4 ) ! (Bermuda)
; pepa :
10.1% 10.19% : [ ; [
Vent GeoPadLatin ‘ GeoPak Argentina
America Limited ‘ imited –
Agencia en Chile ! Argentinean
(Chile) ‘ Branch (Argentina)
20% [80% 99.9% [ ! 100% 80% ]
:
:
GeoPark Chile SA GeoParkS.A. ; GeoPark Brazil GeoPark Colombia 20% ]
LG International |– (Chile) Chile) | Sa cria ca LG International
114% do
! 80% 100% 99% +; 99.9% 0.1% 100% 100% 100%
GeoPark Brazil
GeoPark TáF S.A. ¡GeoPark Fell SpA. E e Luna SAS is Llanos
(Chile) (Chile) Limitada (Chile) Producio de Petró (c $ SAS (C: > SAS(C: e
a e Gás Ltda. (Brazil)
[100% [100% [100%
La Luna Co. Ltd GeoPark Colombia O
20.5% S.A. (Panama) PNS.A (Panama) (United States)
Servicios Southern [ [ [
– Cross Limitada
(Chile) La Luna Sucursal , GeoParí Cuerva
Colombia a Sucursal Colombia
(Colombis) A (Colombia)
(*) LG International is not a subsidiary, instead of it is Non-controlling interest.
10
GEOPARK LIMITED
30 JUNE 2013
During 2013, with the purpose of conducting its multilocation activities and for allowing future business structures, the
Company has incorporated certain wholly owned subsidiaries, that are dormant companies at the date of the issuance
of these interim financial statements.
Details of the subsidiaries and jointly controlled assets of the Company are set out below:
Subsidiaries
Jointly controlled assets
o
o
22338
Indirectly owned.
Dormant companies.
Name and registered office
GeoPark Argentina Ltd. – Bermuda
GeoPark Argentina Ltd. – Argentine Branch
GeoPark Latin America
GeoPark Latin America – Agencia en Chile
GeoPark S.A. (Chile)
GeoPark Brazil Exploracao y Producao de Petróleo e
Gas Ltda. (Brazil)
GeoPark Chile S.A. (Chile)
GeoPark Fell S.p.A. (Chile)
GeoPark Magallanes Limitada (Chile)
GeoPark TdF S.A. (Chile)
GeoPark Colombia S.A. (Chile)
GeoPark Luna SAS (Colombia)
GeoPark Colombia SAS (Colombia)
GeoPark Llanos SAS (Colombia)
La Luna Oil Co. Ltd. (Panama)
GeoPark Colombia PN S.A. (Panama)
GeoPark Cuerva LLC (United States)
Sucursal La Luna Oil Co. Ltd. (Colombia)
Sucursal GeoPark Colombia PN S.A. (Colombia)
Sucursal GeoPark Cuerva LLC (Colombia)
GeoPark Brazil S.p.A. (Chile)
Raven Pipeline Company LLC (United States)
GeoPark Colombia Cooperatie U.A. (The
Netherlands)
GeoPark Brazil Cooperatie U.A. (The Netherlands)
Tranquilo Block (Chile)
Otway Block (Chile)
Flamenco Block (Chile)
Isla Norte Block (Chile)
Campanario Block (Chile)
LG International has 20% interest.
LG International has 20% interest through GeoPark Chile S.A. and a 14% direct interest.
During the first quarter of 2012, the Company entered into a business combination acquiring 100% interest in
each entity (see Note 14).
During 2013, the Company has started a merger process by which a sole company will continue the
operations related to the referred companies. The Company estimates that the process will be completed by
year end.
Ownership interest
100%
100% (a)
100%
100% (a)
100% (a) (b)
In April 2013, the Group voluntarily relinquished to the Chilean Government all of our acreage in the Otway
Block, except for 49,421 acres. In May 2013, our partners under the joint operating agreement governing the
Otway Block decided to withdraw from such joint operating agreement and to apply to withdraw from the
Otway Block CEOP, such that, subject to the Chilean Ministry of Energy’s approval, the Group will be the sole
participant, and have a working interest of 100%, in our two remaining areas in the Otway Block.
GeoPark is the operator in all blocks with a share of 60% for Isla Norte Block and 50% for the other 2 blocks
(See Note 16).
11
GEOPARK LIMITED
30 JUNE 2013
Note 2
Net revenue
Six-months Six-months Year ended
period ended 30 period ended 30 31 December
Amounts in US$ ‘000 June 2013 June 2012 2012
Sale of crude oil 149,817 104,893 221,564
Sale of gas 10,989 17,098 28,914
160,806 121,991 250,478
Note 3
Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the strategic steering
committee. This committee is integrated by the CEO, Managing Director, CFO and managers in charge of
the Geoscience, Drilling, Operations and SPEED departments. This committee reviews the Group’s internal
reporting in order to assess performance and allocate resources. Management has determined the
operating segments based on these reports.
The committee considers the business from a geographic perspective.
The strategic steering committee assesses the performance of the operating segments based on a
measure of adjusted earnings before interest, tax, depreciation, amortisation and certain non cash items
such as write offs and share based payments (Adjusted EBITDA). This measurement basis excludes the
effects of non-recurring expenditure from the operating segments, such as impairments when it is result of
an isolated, non-recurring event. Interest income and expenditure are not included in the result for each
operating segment that is reviewed by the strategic steering committee. Other information provided, except
as noted below, to the strategic steering committee is measured in a manner consistent with that in the
financial statements.
Six-months period ended 30 June 2013
Amounts in US$ ‘000 Total Argentina Chile Brazil Colombia Corporate
NET REVENUE 160,806 733 82,855 – 77,218 –
GROSS PROFIT 79,659 19 49,167 – 30,473 –
OPERATING PROFIT / (LOSS) 41,889 (1,822) 33,239 (1,365) 17,801 (5,964)
Adjusted EBITDA 84,014 (1,284) 52,267 (1,341) 38,296 (3,924)
12
GEOPARK LIMITED
30 JUNE 2013
Note 3 (Continued)
Segment Information (Continued)
Six-months period ended 30 June 2012
Amounts in US$ ‘000 Total Argentina Chile Brazil Colombia Corporate
NET REVENUE 121,991 664 85,320 – 36,007 –
GROSS PROFIT 67,323 146 52,135 – 14,888 154
OPERATING PROFIT / (LOSS) 35,168 (2,714) 36,572 – 4,625 (3,315)
Adjusted EBITDA 70,274 (808) 59,028 – 15,310 (3,256)
Total Assets Total Argentina Chile Brazil Colombia Corporate
30 June 2013 808,310 7,207 424,743 31,200 259,640 85,520
31 December 2012 628,017 6,108 405,674 – 213,202 3,033
30 June 2012 563,166 6,108 377,165 – 177,552 2,341
A reconciliation of total Adjusted EBITDA to total profit before income tax is provided as follows:
Six-months period
Six-months period
ended 30 June 2013 ended 30 June 2012
Adjusted EBITDA for reportable segments 84,014 70,274
Depreciation (32,605) (23,395)
Accrual of stock awards (3,486) (2,415)
Write-off of unsuccessful efforts (11,788) (8,564)
Others 5,754 (732)
Operating profit 41,889 35,168
Financial results (20,562) (7,344)
Bargain purchase gain on acquisition of subsidiaries – 8,401
Profit before tax 21,327 36,225
13
GEOPARK LIMITED
30 JUNE 2013
Note 4
Production costs
Six-months Six-months Year ended
period ended period ended 31 December
Amounts in US$ ‘000 30 June 2013 30 June 2012 2012
Depreciation 31,898 22,950 52,307
Royalties 8,650 6,283 11,424
Statf costs 7,518 4,310 14,171
Transportation costs 4,946 3,213 7,211
Well and facilities maintenance 9,003 4,127 9,385
Consumables 6,610 3,996 9,884
Equipment rental 2,360 3,044 5,936
Other costs 10,162 6,745 18,917
81,147 54,668 129,235
Note 5
Exploration costs
Six-months Six-months Year ended 31
Amounts in US$ ‘000 period ended30 periodended December
June 2013 30 June 2012 2012
Staff costs 4,084 1,587 4,418
Allocation to capitalised project (1,145) (736) (1,849)
Write-off of unsuccessful efforts 11,788 8,564 25,552
Amortisation of other long-term liabilities
related to unsuccessful efforts (600) – (1,500)
Recovery of abandonments costs (759) – –
Other services 219 784 1,269
13,587 10,199 27,890
14
GEOPARK LIMITED
30 JUNE 2013
Note 6
Administrative costs
Six-months Six-months Year ended 31
period ended 30 period ended
December
Amounts in US$ ‘000 June 2013 30 June 2012 2012
Staff costs 9,976 6,136 9,575
Consultant fees 3,082 2,551 5,122
New projects 661 533 2,927
Office expenses 781 956 3,293
Director fees and allowance 992 1,067 1,516
Travel expenses 1,190 534 1,563
Depreciation 707 445 1,010
Other administrative expenses 3,341 1,340 3,792
20,730 13,562 28,798
Note 7
Financial income
Six-months Six-months Year ended 31
period ended 30 period ended 30 December
Amounts in US$ ‘000 June 2013 June 2012 2012
Exchange difference 2 70 348
Interest received 602 248 544
604 318 892
Note 8
Financial expenses
Six-months Six-months Year ended 31
period ended period ended December
Amounts in US$ ‘000 30 June 2013 30 June 2012 2012
Bank charges and other financial costs 1,568 838 1,764
Bond GeoPark Fell SpA cancellation costs 8,603 – –
(Note 11)
Exchange difference 1,483 1,045 2,429
Unwinding of long-term liabilities 505 298 1,262
Interest and amortisation of debt issue costs 9,931 6,132 13,114
Less: amounts capitalised on qualifying assets (924) (651) (1,369)
21,166 7,662 17,200
15
GEOPARK LIMITED
30 JUNE 2013
Note 9
Property, plant and equipment
Buildings Exploration
Furniture, Production and and
Oil 8 gas equipment facilities and improve- Construction evaluation
Amounts in US$’000 properties and vehicles machinery ments in progress assets TOTAL
Cost at 1 January 2012 171,956 2,175 47,102 2,437 32,896 42,140 298,706
Additions 1,083 548 351 – 28,332 54,585 84,899
Disposals (48) (60) (17) – – – (125)
Write-off and impairment (” – – – – – (8,564) (8,564)
Transfers 51,679 – 5,835 466 (36,148) (21,832) –
Acquisitions of subsidiaries 62,384 481 10,865 – 9,359 27,884 110,973
Cost at 30 June 2012 287,054 3,144 64,136 2,903 34,439 94,213 485,889
Cost at 1 January 2013 344,371 3,576 86,949 3,198 54,025 93,106 585,225
Additions 2,502 1,128 10 47 59,479 83,979 147,145
Disposals % (546) (22) (15,870) – – – (16,438)
Write-off and impairment (‘ – – – – – (11,788) (11,788)
Transfers 77,166 – 14,963 927 (61,433) (31,623) –
Cost at 30 June 2013 423,493 4,682 86,052 4,172 52,071 133,674 704,144
Depreciation and write-down
at 1 January 2012 (53,604) (1,123) (18,628) (716) – – (74,071)
Depreciation (19,126) (322) (3,810) (137) – – (23,395)
Depreciation and write-down
at 30 June 2012 (72,730) (1,445) (22,438) (853) – – (97,466)
Depreciation and write-down
at 1 January 2013 (98,156) (1,836) (26,336) (1,060) – – (127,388)
Depreciation (27,418) (427) (4,480) (280) – – (32,605)
Depreciation and write-down
at 30 June 2013 (125,574) (2,263) (30,816) (1,340) – – (159,993)
Carrying amount at 30 June
2012 214,324 1,699 41,698 2,050 34,439 94,213 388,423
Carrying amount at 30 June
2013 297,919 2,419 55,236 2,832 52,071 133,674 544,151
(1 Corresponds to write-off of Exploration and evaluation assets in Colombia US$ 3,035,000 (US$ 2,619,000 in
2012) and Chile US$ 8,753,000 (US$ 5,945,000 in 2012).
(2)
During 2013, the Company entered into a finance lease for which it has transferred a substantial portion of the
risk and rewards of some assets which had a book value of US$ 14.1 million. As of 30 June 2013 trade
receivables include receivables under finance leases for amount of US$ 7.8 million, which US$ 6.3 million are
maturity no later than one year and US$ 1.5 million between one and five years. Total unearned interest
income amounts to US$ 1.5 million .
16
GEOPARK LIMITED
30 JUNE 2013
Note 10
Share capital
Six-months Six-months
period ended 30 period ended 30 Year ended 31
Issued share capital June 2013 June 2012 December 2012
Common stock (US$ ‘000) 43 43 43
The share capital is distributed as follows:
Common shares, of nominal US$ 0.001 43,495,585 42,474,274 43,495,585
Total common shares in issue 43,495,585 42,474,274 43,495,585
Authorised share capital
US$ per share 0.001 0.001 0.001
Number of common shares (US$ 0.001 each) 5,171,969,000 5,171,969,000 5,171,969,000
Amount in US$ 5,171,969 5,171,969 5,171,969
Note 11
Borrowings
The outstanding amounts are as follows:
Year ended
At At 31 December
Amounts in US$ ‘000 30 June 2013 30 June 2012 2012
Bond GeoPark Latin America Agencia 299,577 Ñ Ñ
en Chile (a)
Bond GeoPark Fell SpA (b) – 128,838 129,452
Methanex Corporation (c) – 8,041 8,036
Banco de Crédito e Inversiones (d) 2,219 7,899 7,859
Overdrafts (e) – 10,114 10,000
Banco Itaú (f) – – 37,685
301,796 154,892 193,032
Classified as follows:
Current 11,172 27,488 27,986
Non-Current 290,624 127,404 165,046
17
GEOPARK LIMITED
30 JUNE 2013
Note 11 (Continued)
Borrowings (Continued)
(a) During February 2013, the Company successfully placed US$ 300 million notes which were offered
under Rule 144A and Regulation S exemptions of the United States Securities laws.
The Notes, issued by the Company’s wholly-owned subsidiary GeoPark Latin America Limited Agencia en
Chile (“the Issuer”), were priced at 99.332% and will carry a coupon of 7.50% per annum to yield 7.625%
per annum. Final maturity of the notes will be 11 February 2020. The Notes are guaranteed by GeoPark
Limited and GeoPark Latin America Chilean Branch and are secured with a pledge of all of the equity
interests of the Issuer in GeoPark Chile S.A. and GeoPark Colombia S.A. and a pledge of certain
intercompany loans. Notes were rated single B by both Standard 8. Poor’s and Fitch Ratings.
The net proceeds of the notes were partially used to repay debt of approximately US$ 170 million, including
the existing Reg S Notes due 2015 and the Itaú loan. The remaining proceeds will be used to finance the
Company’s expansion plans in the region. The transaction extends GeoPark’s debt maturity significantly,
allowing the Company to allocate more resources to its investment and inorganic growth programs in the
coming years.
(b) Private placement of US$ 133,000,000 of Reg S Notes on 2 December 2010. The Notes carried a
coupon of 7.75% per annum and mature on 15 December 2015. These Notes were fully repaid in
March 2013.
(c) The financing obtained in 2007, for development and investing activities on the Fell Block, was
structured as a gas pre-sale agreement with a six year pay-back period and an interest rate of LIBOR flat.
The loan has been fully repaid during 2013.
In addition on 30 October 2009 another financing agreement was signed with Methanex Corporation under
which Methanex have funded GeoPark’s portions of cash calls for the Otway Joint Venture for
US$ 3,100,000. This financing did not bear interest. The loan was fully repaid during 2012.
(d) Facility to establish the operational base in the Fell Block. This facility was acquired through a mortgage
loan granted by the Banco de Crédito e Inversiones (BCI), a Chilean private bank. The loan was granted in
Chilean pesos and is repayable over a period of 8 years. The interest rate applicable to this loan is 6.6%.
The outstanding amount at 30 June 2013 is US$ 273,000.
During the last quarter of 2011, GeoPark TdF obtained short-term financing from BCI. This financing ¡is
structured as letter of credit with a pledge of the seismic equipment acquired to start the operations in the
new blocks. The maturity is February 2014 and the applicable interest rate ranging from 4.45% to 5.45%.
The outstanding amount at 30 June 2013 is US$ 1,946,000.
18
GEOPARK LIMITED
30 JUNE 2013
Note 11 (Continued)
Borrowings (Continued)
(e) At 30 June 2013, the Group has credit lines availables with several banks for approximately
US$ 52,000,000.
(f) GeoPark Limited executed a loan agreement with Banco ltaú BBA S.A., Nassau Branch for
US$ 37,500,000. GeoPark used the proceeds to finance the acquisition and development of the La Cuerva
and Llanos 62 blocks. This loan was fully repaid in February 2013.
Note 12
Provision for other long-term liabilities
The outstanding amounts are as follows:
Year ended
At At 31 December
Amounts in US$ ‘000 30 June 2013 30 June 2012 2012
IS
Deferred income 6,119 6,521 7,369
Other 756 2,305 2,409
26,015 21,839 25,991
Note 13
Trade and other payables
The outstanding amounts are as follows:
Year ended
At At 31 December
Amounts in US$ ‘000 30 June 2013 30 June 2012 2012
Trade payables 89,396 47,499 54,890
Payables to related parties ‘” 8,465 – –
Staff costs to be paid 5,085 3,274 5,867
Royalties to be paid 4,151 4,189 3,909
Taxes and other debts to be paid 5,718 7,194 5,418
To be paid to co-venturers 4,917 3,842 2,007
117,732 65,998 72,091
(1 In December 2012, LGI entered into GeoPark’s operations in Colombia through the acquisition of a 20% of
interest in GeoPark Colombia S.A. As part of the transaction, LGl committed to fund the operations in
Colombia through loans (See Note 35 to the audited Consolidated Financial Statements as of 31 December
2012).
19
GEOPARK LIMITED
30 JUNE 2013
Note 14
Acquisitions in Colombia
In February 2012, GeoPark acquired two privately-held exploration and production companies operating in
Colombia, Winchester Oil and Gas S.A. and La Luna Oil Company Limited S.A. (“Winchester Luna”).
In March 2012, a second acquisition occurred with the purchase of Hupecol Cuerva LLC (“Hupecol”), a
privately-held company with two exploration and production blocks in Colombia.
The following table summarises the combined consideration paid for Winchester Luna and Hupecol, the fair
value of assets acquired and liabilities assumed for these transactions:
Amounts in US$ ‘000 Hupecol Winchester Luna Total
Cash (including working capital
adjustments) 79,630 32,243 111,873
Total consideration 79,630 32,243 111,873
Cash and cash equivalents 976 5,594 6,570
(nclucing mineral interes). 73,791 37,182 110,973
Trade receivables 4,402 4,098 8,500
Prepayments and other receivables 5,640 2,983 8,623
Deferred income tax assets 10,344 5,262 15,606
Inventories 10,596 1,612 12,208
Trade payables and other debt (20,487) (11,981) (32,468)
Borrowings – (1,368) (1,368)
Provision for other long-term liabilities (5,632) (2,738) (8,370)
Total identifiable net assets 79,630 40,644 120,274
Bargain purchase gain on . 8,401 8,401
acquisition of subsidiaries
In 2012, the results of the operations corresponding to Winchester Luna and Hupecol were consolidated
since the acquisition date, February and April, respectively.
See Note 35 to the audited Consolidated Financial Statements as of 31 December 2012.
20
GEOPARK LIMITED
30 JUNE 2013
Note 15
Entry in Brazil
Proposed acquisition in Brazil
GeoPark entered into Brazil with the proposed acquisition of a ten percent working interest in the offshore
Manati gas field (“Manati Field”), the largest natural gas producing field in Brazil. On May 14, 2013,
GeoPark executed a stock purchase agreement (“SPA”) with Panoro Energy do Brazil Ltda., the subsidiary
of Panoro Energy ASA, (“Panoro”), a Norwegian listed company with assets in Brazil and Africa, to acquire
all of the issued and outstanding shares of its wholly-owned Brazilian subsidiary, Rio das Contas Produtora
de Petróleo Ltda (“Rio das Contas”), the direct owner of 10% of the BCAM-40 block (the “Block”), which
includes the shallow-depth offshore Manati Field in the Camamu-Almada basin.
The Manati Field is a strategically important, profitable upstream asset in Brazil and currently provides
approximately 50% of the gas supplied to the northeastern region of Brazil and more than 75% of the gas
supplied to Salvador, the largest city and capital of the northeastern state of Bahia. The field is largely
developed with existing producing wells and an extensive pipeline, treatment and delivery infrastructure
and is not expected to require significant future capital expenditures to meet current production estimates.
Additional reserve development may be possible.
The Manati Field is operated by Petrobras (35% working interest), the Brazilian national company, largest
oil and gas operator in Brazil and internationally-respected offshore operator. Other partners in the block
include Queiroz Galvao Exploracao e Producao (45% working interest) and Brasoil Manati Exploracao
Petrolifera S.A. (10% working interest).
GeoPark has agreed to pay a cash consideration of US$140 million at closing, which will be adjusted for
working capital with an effective date of April 30, 2013. The agreement also provides for possible future
contingent payments by GeoPark over the next five years, depending on the economic performance and
cash generation of the Block. 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.
The Manati Field acquisition provides GeoPark with:
– – Asolid foundational platform in Brazil to support future growth and expansion in Brazil – one of the
world’s most attractive hydrocarbon regions.
– Participation in an economically-attractive and strategic asset representing the largest non-
associated gas producing field in Brazil, with a gross production of over 211 million cubic feet per
day of gas and a secure attractively-priced long term off take contract that covers 75% of proven
reserves (100% of proven developed reserves).
21
GEOPARK LIMITED
30 JUNE 2013
Note 15 (Continued)
Entry in Brazil (Continued)
– – Alow-risk and fully-developed producing gas field with no significant drilling or capital expenditure
investments expected.
– – Avaluable partnership with Petrobras, the largest operator in Brazil.
– An established geoscience and administrative team to manage the assets – and seek new growth
opportunities.
New operations in Brazil
On 14 May 2013, the Company has been awarded seven new licenses in the Brazilian Round 11 of which
two are in the Reconcavo Basin in the State of Bahia and five are in the Potiguar Basin in the State of Rio
Grande do Norte.
The licensing round was organized by the ANP and all proceedings and bids have been made public. The
winning bids are subject to final approval of ANP, which is expected to occur during the third quarter of
2013.
For its winning bids on the seven blocks, GeoPark has committed to invest a minimum of US$15.3 million
(including bonus and work program commitment) during the first 3 years of the exploratory period. The new
blocks cover an area of approximately 54,850 acres.
On 25 June 2013, the Company contributed US$ 31 million to the Brazilian subsidiary as a capital
contribution.
Note 16
Drilling operations start-up in Tierra del Fuego
In April 2013, the Company has started the exploration drilling in Tierra del Fuego in Chile in its partnership
with Empresa Nacional de Petroleo de Chile (“ENAP”) with the spudding of the Chercán 1 well on the
Flamenco Block. Chercán 1 is the first of 21 exploratory wells on the Flamenco, Campanario and Isla Norte
Blocks in Tierra del Fuego as part of an estimated US$ 100 million investment commitment during the First
Exploration Period. As of the date of this interim consolidated financial report, more than 1,200 sq km of 3D
seismic have been carried out over the three blocks; out of a total 3D seismic program of approximately
1,500 sq km.
22
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=84d383e0d5aae9ba62993bbbe4852c1dVFdwQmVFMTZRVFZOUkVFMFRWUm5NMDlCUFQwPQ==&secuencia=-1&t=1682366909
