==
al
GEOPARK
Santiago, 29 de noviembre 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 tercer trimestre de
2013.
La información adjunta consiste en comunicado de prensa
de veintisiete 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,
p 7%
í é
Y 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
rr
A
GEOPARK
QUARTERLY OPERATIONAL AND FINANCIAL RESULTS
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2013
Operational Highlights*
Oil Production up 57% to 11,163 bopd in 3Q2013 vs 3Q2012
Total Oil and Gas Production up 21% to 12,992 boepd in 3Q2013 vs 3Q2012
New Gas discovery: Cerro Sutlej gas field in Fell Block, Chile
Drilled Tigana 1 exploration well in Llanos 34, Colombia to be tested in 4Q2013
Financial Highlights*
Revenues up 49% to $89.7 million in 3Q2013 vs 3Q2012
Gross Profit up 57% to 41.0 million in 3Q2013 vs 3Q2012
Adjusted EBITDA up 33% to $125.9 million (as of September 30, 2013)
Cash position of $104.8 million
* Operational and Financial figures do not include results from new Brazilian acquisition, which is expected to close in 4Q2013 or 1Q2014.
Strategic Highlights
CONTACTS:
Andrés Ocampo
Pablo Ducci
Strategic alliance with Tecpetrol to identify, study and potentially acquire upstream oil
and gas opportunities in Brazil
Registration process underway with the United States Securities and Exchange
Commission, SEC, to consider alternate public market to obtain additional capital and
increased financial flexibility
GeoPark is a Latin American oil and gas explorer, operator and consolidator with
assets and production in Chile, Colombia, Argentina and Brazil.
Tel: +56 2 22429600 – email: irOgeo-park.com
Santiago, Chile
www.geo-park.com/ir
Quarterly Production
In 3Q2013, oil and gas production increased by 21% to 12,992 boepd (3Q2012: 10,694 boepd)
Crude oil production increased by 57% to 11,163 bopd in 3Q2013 (3Q2012: 7,117 bopd) driven
by an increase in production in Colombia and Chile, representing 86% and 14% respectively .
The following table shows production figures for 3Q2013, as compared with 3Q2012. In addition,
it includes pro-forma information related to Brazil, which refers to the pending acquisition of Rio
das Contas (which holds a 10% working interest in the offshore Manati gas field), that is expected
to close by 4Q2013 or 1Q2014.
Third Quarter 2013 Third Quarter 2012
PES Oil (bopd) Gas (mcfpd) nd % Chg.
Chile 5,829 4,024 10,825 7,025 -17% (1)
Colombia 7,096 7,088 50 3,605 97%
Argentina 67 50 101 64 5%
Total 12,992 11,163 10,977 10,694 21%
Plus:
Brazil 3,733 64 22,016
Total Pro-Forma 16,725 11,226 32,993
(1) The lower production in Chile was driven by a decrease in gas production of 25% as a result of the temporary
Methanex plant shut-in from April to September 2013.
18000,0
16000,0
EN
14000,0 13258
12000,0 BEAT
10000,0
3577,189
8000,0
6000,0 AO
4000,0 MATO
2000,0
302012 302013
mBrazil (2) Gas moOil
(2) Brazil production included on a pro-forma basis. Production and results from the Manati asset will be accounted
for after the closing of the transaction, which is expected in 4Q2013 or 1Q2014.
Nine-month Production
Oil and natural gas production increased by 14% to 13,148 boepd in the nine-month period
ended September 30, 2013 (11,533 boepd as of September 30, 2012). In this period oil
production increased 47% due to higher production in Colombia, 81% increased, and Chile, 19%
increased. Oil production accounted for 82% and 64% of the total production for the nine-month
period ended September 30, 2013 and 2012.
Considering the pending Rio das Contas acquisition, on a pro forma basis, the Company would
have produced an average of 16,869 boepd during the first nine months of 2013, with Chile,
Colombia and Brazil representing 42%, 36% and 22% of the total production respectively, and
with oil representing 64% of this total production. For the nine-month period ended September
30, 2013, Rio das Contas produced an average of 3,721 boepd (including 98% natural gas and
2% oil).
Drilling and Work Program
GeoPark’s 2013 work program includes the drilling of 35-45 new wells (gross) with capital
expenditures of $200-230 million.
In 3Q2013, the Company invested $44.4 million, including $24.2 million in Chile, and
$15.6 million in Colombia.
For the first nine months of 2013, GeoPark drilled 32 new wells (23 of them corresponding to
exploration wells), 14 in Chile and 18 in Colombia. In addition, the Company invested a total
amount of $191.5 million, including $115.4 million in Chile, and $71.5 million in Colombia.
Amounts directed to exploration were $111.3 million as of September 30, 2013.
302013 Drilling Program
In 3Q2013, GeoPark’s program included the drilling of exploration, appraisal and development
wells, in addition to workovers of existing wells, as indicated below:
Chile
The following table indicates activities in Chile during 3Q2013, as well as current status:
Type of Geological Depth Principal
Block WI Well Well Formation (Meters) Hydrocarbon Current Status
Chile Fell 100% Cerro Sutlej Norte 1 Exploration Tobifera 3,150 Gas On Production
Chile Fell 100% Molino Norte 1 Exploration Tobifera 3,130 Oil Under Evaluation
Chile Fell 100% Konawentru 7 Development Tobifera 3,145 Oil On Production
Chile Fell 100% Yagán Norte 9D” Development Tobifera 3,110 Oil On Production
Chile Fell 100% Bump Hill 1 Workover Tobifera 2,948 Oil On Production
Chile Fell 100% Yagán Norte 1 Workover Tobifera 3,080 Oil On Production
Chile Fell 100% Guanaco 4 Workover Tobifera 2,610 Oil. Converted to Injector
Highlights
e Exploration well Cerro Sutlej Norte 1 on the Fell Block (GeoPark operated with a 100% WI)
was drilled to a depth of 3,150 meters and tested gas in the Springhill formation. The well
was put into production with a current rate of approximately 4.2 mmcfpd of gas.
e Exploration well Molino Norte 1 on the Fell Block (GeoPark operated with a 100% WI) was
drilled to a depth of 3,130 meters. Initial tests proved uneconomic and further analysis is
underway.
e Development well Konawentru 7 on the Fell Block (GeoPark operated with a 100% WI) was
drilled to a depth of 3,145 meters and tested oil in the Tobifera formation. The well was put
into production with a current rate of approximately 360 bopd.
+ Development well Yagán Norte 9-D on the Fell Block (GeoPark operated with a 100% WI) was
drilled to a depth of 3,110 meters and tested oil in the Tobifera formation. The well was put
into production with a current rate of approximately 370 bopd.
e Workover activities on Fell Block (GeoPark operated with a 100% WI) included the Bump Hill 1
and Yagán Norte 1 wells to enhance production, and Guanaco 4 well to convert into a water
injector well.
Colombia
The following table indicates activities in Colombia during 3Q2013, as well as current status:
Type of Geological Depth Principal
Block WI Well Well Formation (Meters) Hydrocarbon Current Status
Operated
Colombia Llanos 34 45% Tarotaro 5 Appraisal Gacheta 3,242 oil On Production
Colombia Llanos 34 45% Tigana 1 Explo. Guadalupe/Mirador 3,434 Oil. Awaiting Completion
Non- Type of Geological Depth Principal
Operated Block WI Well Well Formation (Meters) Hydrocarbon Current Status
Colombia Arrendajo 10% Azor 4 Appraisal Carbonera 7,469 Oil Abandoned
Highlights
e Appraisal well Tarotaro 5 on the Llanos 34 Block (GeoPark operated with a 45% WI), was
drilled to a depth of 3,242 meters and tested oil in the Gacheta formation. The well was put
into production with a current rate of approximately 465 bopd.
e Exploration well Tigana 1 on the Llanos 34 Block (GeoPark operated with a 45% WI), was
drilled to a depth of 3,434 meters with favorable electric log readings in the Mirador and
Guadalupe formations. Testing operations will be carried out during 4Q2013.
e Appraisal well Tarotaro 3 on Llanos 34 Block (GeoPark operated with a 45% WI) was tested in
the Guadalupe formation and is currently producing approximately 780 bopd (gross).
Key Upcoming Wells
2013 drilling program is designed to increase oil and gas production, reserves and cash flow,
improve project economics and performance, and manage risk through a mix of exploration and
development drilling.
Prospect Unrisked
Resources CoS in Principal
Block Country wI Operator N P90-P10(*) %% (*) Hydrocarbon
ame MMbbI
Flamenco Chile 50% GeoPark Chilco 1 1.9-6.7 36 Gas
Flamenco Chile 50% GeoPark Tenca 1 0.15-0.47 44 Oil
Flamenco Chile 50% GeoPark Taguas 1 0.26-1.1 42 oil
Fell Chile 100% GeoPark Konawentru 9 – – oil
Llanos 34 Colombia 45% GeoPark Tua 6 – – oil
Llanos 34 Colombia 45% GeoPark Aruco 1 0.5-2.5 43 Oil
Llanos 34 Colombia 45% GeoPark Tigana Sur 1 1.8-6.1 60 Oil
(*) Only for exploration wells. GeoPark estimates of unrisked resources.
Current Activities
On the Flamenco Block (GeoPark operated with 50%) in Tierra del Fuego, the drilling have begun
with the exploration well Chilco. Two additional exploration wells, Tenca 1 and Taguas 1 are
expected to be drilled during 4Q2013.
In Colombia, testing operations will be carried out on the Tigana 1 and Tigana Sur 1 wells in the
Llanos 34 Block.
FINANCIAL HIGHLIGHTS
Nine-month period ended September 30, 2013 compared to nine-month period ended
September 30, 2012
Nine-month period ended September 30,
% Change
from
(In thousands of $, except for percentages) 2013 2012 prior period
(unaudited)
Revenues
Net oil sales …. 235,225 158,309 49%
Net gas sales 15,305 23,830 (36)%
Net revenue .. 250,530 182,139 38%
Production costs 129,834 88,656 46%
Gross profit …….. 120,696 93,483 29%
Gross margin (%) . 48% 51% (6)%
Exploration costs… (16,012) (21,742) (26)%
Administrative costs. (32,050) (20,910) 53%
Selling expenses (12,526) (15,650) (20)%
Other operating income 4,555 681 569%
Operating profit….. 64,663 35,862 80%
Financial results, net. (27,200) (13,598) 100%
Bargain purchase gain on acquisition of subsidiaries – 8,401 (100)%
Profit before income tax 37,463 30,665 22%
Income tax expense … (12,260) (6,266) 96%
Profit for the period 25,203 24,399 3%
Non-controlling interest 9,436 6,566 44%
Profit for the period attributable to owners of the Company 15,767 17,833 (12)%
Net production volumes
Oil (mbbl).. 2,953 1,784 66%
Gas (mcf).. 3,820 6,862 (44)%
Total net production (mboe). 3,589 2,927 23%
Average net production (boepd). 13,148 11,533 14%
Average realized sales price
Oil ($ per bbl) … 82.5 91.8 (7)%
Gas ($ per mcf). 4.6 4.0 15%
Average realized sales price per boe ($) 73.5 66.6 10%
Production costs (1) 36.2 30.3 19%
Exploration costs .. 4.5 7.4 (39)%
Administrative costs 8.9 7.1 25%
Selling expenses 3.5 5.3 (34%
Average Adjusted EBITDA per boe ($) 35.1 32.4 8%
(1) Calculated pursuant to FASB ASC 932.
Geographical Segment Reporting
The Company divides its business into geographical segments, being Chile and Colombia the
principal countries of operation for the nine-month period ended September 30, 2013 and 2012.
In the description of results of operations that follows, the “Other” operations reflect non-Chilean
and non-Colombian operations, primarily consisting of Argentine, Brazilian* and corporate head
office operations.
In 2012 the Company has accounted for the results of its operations in Colombia since the
acquisition dates which occurred during the first quarter of 2012. Including the Colombian
acquisitions on a proforma basis (i.e. for the whole of the first quarter), Revenues and Adjusted
EBITDA would have been US$24 million and US$8 million higher during the first quarter of 2012,
respectively.
Unaudited
(In thousands of $)
Net FevenUe..ocooccoccoconnonnonos
GrOSS PIOfit …ocoocccccnccnccncons
Depreciati0N ….occocococcccocono.
Impairment and write-offs….
Adjusted EBITDA per boe
Nine-month ended September 30,
2013 2012
Chile Colombia Other Total Chile Colombia Other Total
119,359 130,053 1,118 250,530 117,244 63,923 972 182,139
69,546 50,214 936 120,696 68,314 24,867 302 93,483
(21,835) (27,477) (234) (49,546) (22,178) (13,249) (801) (36,228)
(8,711) (3,244) – (11,955) 13,627) (4,727) (1,944) (20,298)
38.4 36.7 – 35.1 34.4 36.7 – 32.4
Y As of the date of this press release the Company does not currently perform operations in Brazil as the acquisition of Rio das Contas ¡is still
pending and the Company has not commenced any operations related to the seven exploration licenses awarded. However, in the nine
month period ended September 30, 2013 GeoPark has incurred in some expenses related to the start-up or our expected operations in
such country.
Results of Operations: Jan-Sep/2013 compared with Jan-Sep/2012
Net Revenue
For the nine-month period ended September 30, 2013, 94% and 6% of the total revenues were
derived from crude oil sales and natural gas sales, respectively, as compared with 87% and 13%
in the nine-month period ended September 30, 2012.
Change
from prior
Nine-month period ended September 30, period
Consolidated
(in thousands of $) 2013 2012 %
(unaudited)
Sale of crude oil 235,225 158,309 49
Sale Of GAS ..occoccoccncnncnncnncnnnnncnnnnnns 15,305 23,830 36
LAA 250,530 182,139 38
Change
from prior
Nine-month period ended September 30, period
By country
(in thousands of $) 2013 2012 %
(unaudited)
ChilO .ooooccccccnnnnonononononcnccononananononos 119,359 117,244 2
Colombia . 130,053 63,923 103
Other… … 1,118 972 15
Total coooooccccnoncccccnnnccncnononanannnnnins 250,530 182,139 38
Net revenue increased 38%, to $250.5 million for the nine-month period ended September 30,
2013 ($182.1 million for the nine-month period ended September 30, 2012), primarily as a result
of an increase in oil deliveries due to the incorporation of a full nine-month of Colombian
operations in the results (as compared to the similar period in 2012) and due to increase in
production and deliveries in such country.
The increase in net revenue is explained by:
e Anincrease of $92.9 million in oil deliveries,
e Anincrease of $3.6 million from the realized price for gas sold.
Partially offset by
e Adecrease of $16.0 million from the realized price for oil sold, and
e A decrease of $12.1 million in gas deliveries.
Operations in Chile
Net revenue attributable to the operations in Chile increased by 2% to $119.4 million for the
nine-month period ended September 30, 2013 ($117.2 million for the nine-month periods ended
September 30, 2012), representing 48% as compared to 64% of the total consolidated sales for
the nine-month period ended September 30, 2012.
Sales of crude oil increased by 16% to 1,244 mbbl in 2013 (1,072 mbbl for the corresponding
period in 2012), due to new discoveries made in the Tobifera formation, which increased
production at the Konawentru field. This was partially offset by a decrease in the average realized
prices per barrel of crude oil of $3.4 per barrel, or 3.9%, from $87.1 per barrel for the nine-
month period ended September 30, 2012 to $83.7 per barrel for the nine-month period ended
September 30, 2013, of which $3.6 per barrel was attributable to quality discounts in the oil
produced, partially offset by a slight increase in the WTI price.
Gas sales decreased by 36% to $15.3 million for the nine-month period ended September 30,
2013 ($23.8 million for the nine-month period ended September 30, 2012). The lower gas sales
resulted from reduced drilling activity for gas prospects, as the focus is on oil prospects, and from
the temporary shutdown of the Methanex plant, the sole purchaser of the gas produce in Chile.
During the temporary shut-in, from April 2013 to September 23, 2013, GeoPark reduced the gas
deliveries to Methanex by 25%.
Operations in Colombia
Net revenue attributable to operations in Colombia increased by 103.5% to $130.1 million for the
nine-month periods ended September 30, 2013 ($63.9 million for the nine-month period ended
September 30, 2012) respectively, representing 52% and 35% of the total consolidated sales
respectively.
Sales of crude oil increased by 169% to 1,508 mbbl for the nine-month period ended September
30, 2013 (561 mbbl for the nine-month period ended September 30, 2012). This increase
resulted from (i) the incorporation of an additional three months of Cuerva’s results in the nine-
month period ended September 30, 2013 and the incorporation of an additional month of
Winchester and Luna’s operations (the revenues for the corresponding period that were not
included in the nine-month period ended September 30, 2012 were $23.8 million) as compared to
the same period in 2012, and (ii) the development of the Max and Tua fields and the discoveries
of the Tarotaro field in the Llanos 34 Block and the Potrillo field in Yamú Block. This was partially
offset by a decrease in the average realized prices per barrel of crude oil from $101.5 per barrel
to $81.7 per barrel.
This decrease is explain by (i) the change in the commercial strategy in Colombia (whereas the
historically delivered point for all the production was the port of Covenas, in 2013, the Company
began selling a portion of its production at wellhead. Consequently, transportation costs, recorded
in selling expenses, were reduced, which resulted in a corresponding reduction in sales price),
and (ii) a decrease of 4% in in the price of Brent.
Production costs
The following table summarizes the production costs for the nine-month periods ended
September 30, 2013 and 2012, on a consolidated basis and by country.
Nine-month period ended September 30,
Consolidated % Change from
(in thousands of $, except for percentages) 2013 2012 prior period
(unaudited)
DepreciatiON…occooccoccocconoocnnconnoncnnnnnnonnnnnonnonnonnonnonnonnonnonnncnncnnnnnnnnnnes (48,423) (35,529) 36%
Royalti8S..ooocccocconcccnnnnnonnnnonannnononnonononnnrnnnonnnnnnnronornnnnnnnnnnnnnnnnannnnnnnes (13,010) (9,900) 31%
STO COSES. ..cccccoccncnnononcononcnnnnnnnnn nro n no rnnn nn rnnnn rn nnnnnnnrrnnnrnnnnnancnnnnnnnnns (12,195) (6,102) 100%
Transportation costs ………. (8,494) (5,112) 66%
Well and facilities maintenance .. o (13,423) (5,749) 133%
ComsuMablES .oooccccnnonccnnnnnncnnnnonnonennnnnnnnnnnnnnnnnonnnnnnnnnnnrnnnonanrnaronnnnnnnns (11,636) (7,639) 52%
Equipment rental……oocccoonccnccnoonnnncnnnonnnncnanonconcnononnonnnnnrnnonnnoncnanoncnnoa (5,562) (5,504) 1%
Other costs …. . (17,091) (13,121) 30%
Total ococccoccooocccaccaccccnnnnnnnnnnnnnnnnononononnnnnnnnnnnnnnnnnnnnonnnnnnnnnnoninnnnnnnnns (129,834) (88,656) 46%
Nine-month period ended September 30,
2013 2012
By country
(in thousands of $) Chile Colombia Chile Colombia
(unaudited)
Depreciati0N….oooocococcccnnncnnonononcncnnonenencnnnnonencnnonononcnnononenenannanencnans (21,008) (27,380) (21,770) (13,180)
ROYalti8S…..oocoocccccnccncnncnnnnncnnnnncnnnononnrononnroncnnrnnrnnrnnrnnannancancnnanncnnss (5,669) (7,208) (5,547) (4,215)
SHAÍE COSES .oocococcncncnconcnnncnnononnnrnrnnnnnnrnrnrnrnnrnrnrnnnnrnrnrnrnrrneninrnrrnennns (5,730) (7,508) (5,521) (1,837)
Transportation costs ………. (4,937) (3,399) (4,583) (388)
Well and facilities maintenance .. e (5,391) (7,733) (4,168) (1,415)
CONSUMAbIES …occccccnccccncononcnconcnnncnnnncnnnnnnnnnanennnnnnnnnnnnnannnnancnenananes (1,391) (10,180) (2,215) (5,368)
Equipment rental….cooccoccnccnccncnncnnnnncnnnanananonanannnannnnannnnnannannanannnanos – (5,562) – (5,504)
Other costs …. o (5,687) _ (10,869) (5,126) (7,149)
Total coooooccccconcccccnnnccccnnnnncncnnnnonnnononinannnnnanncnnnnncnnnnnnnnanannnacnnnnninans (49,813) (79,839) (48,930) _(39,056)
Production costs increased by 46% to 129,8 for the nine-month period ended September 30,
2013 ($88.7 million for the nine-month period ended September 30, 2012), primarily as a result
of the incorporation of a full nine months of the Colombian operations into the results, in addition
to an increase in oil production. The above resulted in the revenue mix to be 93.9% oil and 6.1%
gas as compared with 87% and 13% for the nine-month period ended September 30, 2013 and
2012, respectively.
Operations in Chile
For the nine-month period ended September 30, 2013, in Chile, operating costs (production costs
less depreciation, royalties and share-based payments) increased by 25% to $11.5 per boe ($9.2
per boe in the same period in 2012). This increase was driven by the continuing change in
revenue mix from gas to oil, as operating costs for oil are higher than for gas, and the increase in
well and facilities maintenance. In the first nine months of 2013, the revenue mix for Chile was
87.2% oil and 12.8% gas, whereas for the same period in 2012 it was 79.7% oil and 20.3% gas.
10
Operations in Colombia
Operating costs in Colombia increased 107.3% for the nine-month period ended September 30,
2013 as compared to the corresponding period in 2012, primarily due to the incorporation of a
full nine months of the Colombian operations in the results (operating costs for the corresponding
period that were not included in the nine-month period ended September 30, 2012 were $14.4
million) due to the increases in production and deliveries. However, operating costs per boe in
Colombia decreased by 17% to $27.1 per boe for the nine-month period ended September 30,
2013 ($32.8 per boe for the corresponding period in 2012) resulting from fixed costs spread over
increased production.
Exploration costs
Nine-month period ended Change from
September 30, prior period
(In thousands of $, except for percentages) 2013 2012 %
(unaudited)
Chill cocoocccccnccncnncnncnncnncnncnncnncnnconcnnnoncnncnncnncnnroncnacanennes
(9,684) (14,448) (4,764) (33)
COlOMbiA …occoccnccncnncnncnncnncnncnnconcnaconcnncnncnncnnconcnnconannns
(3,853) (4,889) (1,036) (21)
Of cocccnccnccncnncnncnncnncnncnnconcnnnonannnoncnncnncnncnncnncnncnncnnes
(2,475) (2,405) 70 3
Total ..ooocooncccccccnncconcnonononononocnnonnnoncnnnonnnnnnnnnnanonannnanos
(16,012) (21,742) _ (5,730) (26)
Exploration costs decreased by 26%, to $16.0 million for the nine-month period ended
September 30, 2013 ($21.7 million for the nine-month period ended September 30, 2012),
primarily as the result of the recognition of lower write-offs of unsuccessful efforts. Resulting from
the above, the unsuccessful efforts amounted to $11.9 million in the nine month period ended
September 30, 2013 (In Chile includes one well in the Fell Block for $3.6 million, one well in the
Tranquilo Block for $1.1 million, seismic surveys and other costs in the Otway Block for
$4.0 million and three wells in Colombia for $3.2 million), as compared to $20.3 million (two wells
in the Fell Block for $7.3 million, one well in the Tranquilo Block for $6.3 million, seismic surveys
in the Del Mosquito Block for $1.9 million and costs associated with three wells in Colombia for
$4.7 million) in such write-offs in the same period in 2012.
11
Administrative costs
Nine-month period ended Change from
September 30, _ prior period
(In thousands of $, except for percentages) 2013 2012 o
(unaudited)
Chill cococcnccnccncnncnncnncnncnncnncnncnncnncnnanncnncnncnncnnnnnannnnnrnncnncnnnnncnnnnncnnnnnanos
(12,157) (6,332) 5,825 92
COLOMbIA …occoccnccncnncnncnncnncnncnnnonannnnncnnannanncnnannnnnannnnncnncnnnnnnnncnncnnannnnns
(9,919) (4,311) 5,608 130
Of cooccnccnccncnncnncnncnncnncnnnnnannnnnannnnncnnnnnannannannannannnnncnncnnnnncnnnnncnnannnnns
(9,974) (10,267) (293) (3)
Total ..ooocoonccnncccnccconcnoncnoncnnnnrononononcnnnrnnnnnnononanononnrnnnrnnnnrnnonannananrnnnnos
(32,050) (20,910) 11,140 _53
Administrative costs increased by 53% to $32.1 million for the nine-month period ended
September 30, 2013 ($20.9 million for the nine-month period ended September 30, 2012),
primarily as a result of an increase in costs in: (1) Chilean operations, from $6.3 million in the
first nine months of 2012 to $12.2 million in the first nine months of 2013, mainly due to the
startup of the operations in Tierra del Fuego; and (2) Colombian operations, from $4.3 million in
the first nine months of 2012 to $9.9 million in the first nine months of 2013 mainly due to the
incorporation of the full Colombian operations into results.
Selling expenses
Nine-month period ended Change from
September 30, prior period
(In thousands of $, except for percentages) 2013 2012 o
(unaudited)
¡AAN
(3,194) (3,916) (722) (18)
COlOMbIA ..coccoccnccnccncnncnnnnncnncnnnnncnnnnnnnnannannnnnnnnannnnnnnnnnnnonannnonios
(8,935) (11,511) (2,576) (22)
Of cooccnccnccncnncnncnnnnncnncnnannnnncnncnncnnannnnnannnnnnnnnnnannnoncnnronananoniss
(397) (223) 174 78
Total ..ooooooccccccccncccnccnoncncncnonononcnnornnnncnonrnnnnnnanrannnnenrnannnnannnnons
(12,526) (15,650) (3,124) (20)
Selling expenses decreased by 20%, to $12.5 million for the nine-month period ended
September 30, 2013 ($15.7 million for the nine-month period ended September 30, 2012),
primarily due to the change in the delivery point for certain production in the Colombian
operations. In the Chilean operations, selling expenses were 18% lower compared to the same
period of the prior year, primarily as a result of the impact of a deliver or pay penalty paid to
Methanex in 2012, partially offset by the increase in oil deliveries in Chile.
12
Net Financial Results
Financial loss increased by 100% to $ 27.2 million for the nine-month period ended September
30, 2013($13.6 million for the nine-month period ended September 30, 2012) due to the
accelerated amortization of debt issuance costs incurred in connection with the redemption of the
Notes due 2015 in an amount of $ 8.6 million following the issuance of the Notes due 2020 in the
nine-month period ended September 30, 2013, the incorporation of a full nine months of the
Colombian operations into the results and higher interest expenses generated by the issuance of
the Notes due 2020 in an amount of $6.3 million incurred to finance the capital expenditures
program and to further expand operations.
Profit before income tax
Nine-month period ended Change from
September 30, prior period
(In thousands of $, except for percentages) 2013 2012 %
(unaudited)
Chill coooccoccnccncnnccncnnnnncnncnncnncnnnnncnnnnnnnnannnnnnnnannncnnnnnnnnnnnnnnnnns
36,696 33,376 3,320 10
COlOMbIA ..coccoccnccnccnccncnncnncnncnncnnnnnannnnnannnnnannnnnannnnnnnnnnnnnnnnnns
24,270 8,994 15,276 170
Other (l)ecccncncnconencncononenencnconenennnronrnnnnnrnnrnrnrnrnnrnrnrnrrannnnenes
(23,503) (11,705) (11,798) (101)
Total ..ooocoonccnccccnccconcnoncncncnnnncnnnnnnonnnnnrnnnnnnnnonanrnnoncnanrnnnnnnnos
37,463 _ 30,665 6,798 22
(1) The “Other” line includes Argentinean, Brazilian, Corporate head office operations and financial results, net. For the nine-month
period ended September 30, 2013, financial results, net included in the “Other” line amounts to a loss of $10.8 million.
Profit before income tax increased by 22% to $37.5 million ($30.7 million for the nine-month
period ended September 30, 2012), primarily due to the incorporation of a full nine months in the
Colombian operations, and increase in production and deliveries in such country and to a lesser
extent, due to higher profits from the Chilean operations, partially offset by the occurrence of two
non-recurring events: (1) accelerated amortization of debt issuance costs described above; and
(2) the comparative effect of a bargain purchase gain on acquisition of subsidiaries of $8.4 million
as a result of the acquisitions of Winchester and Luna recorded in the nine-month period ended
September 30, 2012.
Income tax
Nine-month
period ended Change from
September 30, prior period
(In thousands of $, except for percentages) 2013 2012 o
(unaudited)
Chill cococccnonnconcnonnnnncnonnnonnononnnonnnnnnnnonnnnnnnnonnnnnnnconnnnon (5,262) (6,968) 1,706 24
Colombia . (9,312) 702 (10,014) (1,426)
Other… o 2,314 – 2,314 100
TOA incio nociones (12,260) (6,266) (5,994) 96
13
Income tax increased by 96%, to $12.3 million for the nine-month period ended September 30,
2013 ($6.3 million for the nine-month period ended September 30, 2012), as a result of
increased profit before income taxes described in the above mentioned paragraphs. GeoPark’s
effective tax rate for the nine-month period ended September 30, 2013 was 33% as compared to
20% in the nine-month period ended September 30, 2012. The effective tax rate was mainly
influenced by an increase in profits from the Colombian operations in the results, which are
subject to a higher tax rate than other operations, and the impact of a non-recurring tax
exempted bargain purchase gain on acquisition of subsidiaries in Colombia, that was recorded in
the nine-month period ended September 30, 2012.
Profit for the period
Nine-month period ended Change from
September 30, prior period
(In thousands of $, except for percentages) 2013 2012 %
(unaudited)
Chill cocoocccccnccncnncnncnncnncnncnncnncnnconcnnnoncnncnncnncnnroncnacanennes
31,434 26,408 5,026 19
COlOMbiA …occoccnccncnncnncnncnncnncnnconcnaconcnncnncnncnnconcnnconannns
14,958 9,696 5,262 54
Of cocccnccnccncnncnncnncnncnncnnconcnnnonannnoncnncnncnncnncnncnncnncnnes
(21,189) (11,705) (9,484) (81)
25,203 24,399 804 3
Profit for the period increased by 3% to $25.2 million for the nine-month period ended
September 30, 2013 ($24.4 million for the nine-month period ended September 30, 2012), asa
result of the factors described above.
14
Three month period from July 1 to September 30, 2013 compared to three month
period from July 1 to September 30, 2013
(Unaudited) Third Quarter 2013 vs. Third Quarter 2012
(In thousands of $, except for percentages) 3Q 2013 3Q 2012 Change, 3Q 2013 vs. 3Q 2012
Average net production (boepd) 12,992 10,694 2,298 21%
Average realized sales price
Oil ($ per mbbl) 86.3 86.8 0.5 -1%
Gas ($ per mcf) 4.6 4.0 0.59 14%
Net revenue 89,724 60,148 29,576 49%
Production costs (48,687) (33,988) (14,699) 43%
Gross Profit 41,037 26,160 14,877 57%
Exploration Costs (2,425) (11,543) 9,118 -79%
Operating Profit 22,774 694 22,080 3182%
Adjusted EBITDA? 41,880 24,519 17,361 71%
Profit for the period 10,968 (963) 11,931 1239%
Capital expenditures 44,351 62,709 (18,358) -29%
Production
In 3Q2013, the average oil and gas production increased by 21% to 12,992 boe per day (10,694
boe per day in 3Q2012). Oil production increased by 57% to 11,163 barrels per day (7,117
barrels per day in 3Q2012). The increase in oil production was driven by an increase in production
in Colombia and Chile, representing 86% and 14%, respectively of such increase. Gas production
in Chile decreased by 49% to 10,825 mcfpd. The lower gas production resulted from reduced
drilling activity for gas prospects, as the drilling activities were focused on oil prospects and due
to the temporary shut-in of the Methanex Plant.
? Adjusted EBITDA is not an IFRS measure and it is possible that it may not be comparable with indicators with the same name reported by
other companies. Adjusted EBITDA should not be considered as a substitute for operational profit of as a better measure of liquidity than
operational cash flow, both of which are calculated in accordance with IFRS.
15
Net Revenue
For the three-month period from July 1 to September 30, 2013
(Unaudited)
Third Quarter 2013 vs Third Quarter 2012
Change, 3Q 2013
(In thousands of $, except for percentages) 3Q 2013 3Q 2012 vs. 3Q 2012
Chile 36,504 31,924 4,580 14%
Colombia 52,835 27,916 24,919 89%
Other 385 308 77 25%
Total 89,724 60,148 29,576 49%
Net revenue increased by 49%, to $89.7 million in 3Q2013 ($60.1 million for 3Q2012).
The net increase in net revenue is explained by (i) an increase of $32.2 million in oil deliveries in
Colombia and Chile, and an increase of (ii) $1 million from the realized price for oil sold, partially
offset by a decrease of $3.3 million in gas deliveries due to reduced drilling activity for gas
prospects, as the drilling activities were focused on oil prospects and the temporary shutdown in
the Methanex Plant.
Production Costs
For the three-month period from July 1 to September 30, 2013
(Unaudited)
(In thousands of $, except for percentages)
Third Quarter 2013 vs Third Quarter 2012
3Q 2013 3Q 2012 Change, 3Q 2013
vs. 3Q 2012
Chile 16,125 15,745 380 2%
Colombia 33,094 17,937 15,157 82%
Other (532) 306 838 (274)%
Total 48,687 33,988 14.699 43%
Production costs increased by 43%, to $48.7 million in 3Q2013 ($34.0 million in 3Q2012),
primarily as a result of increase in oil production and deliveries in Colombia and Chile, partially
offset by a decrease in gas production.
16
Adjusted EBITDA
For the three-month period from July 1 to September 30, 2013
(Unaudited) Third Quarter 2013 vs Third Quarter 2012
(In thousands of $, except for percentages) 3Q 2013 3Q 2012 Change, 3 z013
Chile 21,303 17,693 3,610 20%
Colombia 22,556 8,955 13,601 152%
Other (1,979) (2,129) 150 7%
Total 41,880 24,519 17,361 71%
Adjusted EBITDA increased by 71%, to $41.9 million in 3Q2013 ($24.5 million in the comparable
period of 2012), mainly as a consequence of an increase of $ 3.6 million and $13,6 million in the
Chilean and Colombian Adjusted EBITDA. Reasons are the impact of higher revenues, gross
profit, and lower exploration expenses (due to lower write off of unsuccessful efforts in 3Q2013),
partially offset by an increase in administrative costs in 3Q2013, as compared to 3Q2012.
17
Financial Ratios
Financial Debt Evolution
299,385 301,796 296,225
US$ ‘000
193,032
169,388 165,256
60,410
2009 2010 2011 2012
102013 202013 3Q2013
Gross Debt / Adjusted EBITDA?”
04x
Cash Position Evolution
193,650
US$ ‘000
176,005
149,437
99,411 104,797
102013 202013 3Q2013
2009 2010 2011 2012
Interest Coverage!”
09x
2009 2010 2011 2012 102013 202013 3Q2013
102013 202013 3Q2013
2009 2010 2011 2012
GeoPark’s financial covenants require to comply with the following criteria;
Leverage Ratio below 2.75x for the years 2013 and 2014 and 2.5x afterward
= Interest Coverage Ratio above 3.5x
(*) Based on trailing 12 month financial results
3 Adjusted EBITDA is not an IFRS measure and it is possible that it may not be comparable with indicators with the same name reported by
other companies. Adjusted EBITDA should not be considered as a substitute for operational profit of as a better measure of liquidity than
operational cash flow, both of which are calculated in accordance with IFRS.
18
STRATEGIC HIGHLIGHTS
Strategic alliance with Tecpetrol to identify study and potentially acquire upstream oil
and gas opportunities in Brazil
On September 30, 2013, GeoPark announced the formation of a new strategic alliance with
Tecpetrol S.A. (“Tecpetrol”) to jointly identify, study and potentially acquire upstream oil and
gas opportunities in Brazil, with a specific focus on the Parnaiba, Sao Francisco, Reconcavo,
Potiguar and Sergipe-Alagoas basins.
Tecpetrol is the oil and gas subsidiary of the Techint Group (a multinational oilfield and steel
conglomerate) having an extensive track-record as an oil and gas explorer and operator with a
portfolio of assets currently in Argentina, Peru, Colombia, Ecuador, Mexico Bolivia, Venezuela and
the United States, and with a current net production of over 85,000 barrels of oil equivalent per
day.
Initial Public Offering in Progress with the SEC
On September 10, 2013, GeoPark announced an initiative to consider listing on the New York
Stock Exchange (NYSE) in order to create a public market for our common shares in the United
States and to facilitate future access to international equity markets, as well as to obtain
additional capital and financial flexibility.
A registration statement relating to the common shares has been filed by us with the United
States Securities and Exchange Commission (SEC) but has not yet become effective. Our
common shares may not be sold, nor may offers to buy be accepted, in the United States prior to
the time the registration statement becomes effective.
As of the date of this press release, the Company ¡is evaluating the optimum timing for the
proposed listing and common shares offering on the NYSE.
Status of Pending Acquisitions in Brazil
+ Concession agreements
On May 14, 2013, GeoPark announced the expansion of our footprint into Brazil when the ANP
awarded us seven new exploratory licenses in the REC-T 94 and REC-T 85 Concessions in the
Recóncavo Basin in the State of Bahia and the POT-T 664, POT-T 665, POT-T 619, POT-T 620 and
POT-T 663 Concessions in the Potiguar Basin in the State of Rio Grande do Norte, collectively
covering an area of approximately 54,900 gross acres.
On September 17, 2013, GeoPark entered into seven concession agreements with the ANP for the
right to exploit the oil and natural gas in these seven new license areas. Pursuant to ANP
requirements, actual exploitation of these new concessions will also depend on obtaining an
environmental license from the (Instituto Brasileiro do Meio-Ambiente e dos Recursos Naturais
Renováveis – IBAMA). The ANP has also qualified GeoPark as a class B operator, meaning that
the Company is recognized as having met all technical and managerial conditions required to
operate safely in Brazil, both onshore and offshore at water depths of less than 400 meters.
19
e Acquisition of Rio das Contas
During 2013, GeoPark agreed to acquire Rio das Contas from Panoro Energy for a total cash
consideration of $140.0 million (subject to working capital adjustments at closing and further
earn-out payments, if any), which will give us a 10% working interest in the BCAM-40
Concession, including the shallow-depth offshore Manati and Camaráo Norte Fields, in the
Camamu-Almada Basin in the State of Bahia.
The Manati Field, which is in the production phase, is operated by Petrobras (with a 35% working
interest), the Brazilian national company and the largest oil and gas operator in Brazil, in
partnership with Queiroz Galváo Exploracáo e Produgáo or QGEP (with a 45% working interest),
and Brasoil (with a 10% working interest).
The acquisition is subject to the approval of the ANP, among other regulatory authorities, and
which is expected by 4Q2013 or 1Q2014.
20
CONSOLIDATED STATEMENT OF INCOME
Nine-month
period ended
30 September
Nine-month
period ended
30 September
Year ended
2013 2012″ 31 December
Amounts in thousands of $ (Unaudited) (Unaudited) 2012
NET REVENUE 250,530 182,139 250,478
Production costs (129,834) (88,656) (129,235)
GROSS PROFIT 120,696 93,483 121,243
Exploration costs (16,012) (21,742) (27,890)
Administrative costs (32,050) (20,910) (28,798)
Selling expenses (12,526) (15,650) (24,631)
Other operating income 4,555 681 823
OPERATING PROFIT 64,663 35,862 40,747
Financial income 1,562 364 892
Financial expenses (28,762) (13,962) (17,200)
Bargain purchase gain on acquisition of Ñ 8,401 8,401
subsidiaries
PROFIT BEFORE TAX 37,463 30,665 32,840
Income tax (12,260) (6,266) (14,394)
PROFIT FOR THE PERIOD/YEAR 25,203 24,399 18,446
Attributable to:
Owners of the parent 15,767 17,833 11,879
Non-controlling interest 9,436 6,566 6,567
Earnings per share (in $) for profit attributable
to owners of the Company. Basic 0.36 0.42 0.28
Earnings per share (in $) for profit attributable
0.34 0.40 0.27
to owners of the Company. Diluted
21
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Amounts in thousands of $
At 30 September
2013 (Unaudited)
At 30 September
2012 (* (Unaudited)
Year ended
31 December 2012
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 571,394 429,639 457,837
Prepaid taxes 17,560 3,208 10,707
Other financial assets 3,952 6,813 7,791
Deferred income tax 21,405 19,451 13,591
Prepayments and other receivables 1,968 556 510
TOTAL NON CURRENT ASSETS 616,279 459,667 490,436
CURRENT ASSETS
Inventories 5,825 10,641 3,955
Trade receivables 49,729 21,924 32,271
Prepayments and other receivables 42,355 43,120 49,620
Prepaid taxes 1,778 11,036 3,443
Cash at bank and in hand 104,797 75,539 48,292
TOTAL CURRENT ASSETS 204,484 162,260 137,581
TOTAL ASSETS 820,763 621,927 628,017
EQUITY
Equity attributable to owners of
the Company
Share capital 43 43 43
Share premium 120,338 112,302 116,817
Reserves 127,848 129,596 128,421
Retained earnings (losses) 15,593 2,948 (5,860)
Attributable to owners of the
Company 263,822 244,889 239,421
Non-controlling interest 88,540 55,463 72,665
TOTAL EQUITY 352,362 300,352 312,086
LIABILITIES
NON CURRENT LIABILITIES
Borrowings 290,490 164,891 165,046
Provisions for other long-term
liabilities 26,619 27,697 25,991
Deferred income tax 23,834 24,218 17,502
Trade and other payables 8,344 – –
TOTAL NON CURRENT
LIABILITIES 349,287 216,806 208,539
CURRENT LIABILITIES
Borrowings 5,735 30,873 27,986
Current income tax 13,196 3,054 7,315
Trade and other payables 100,183 70,842 72,091
TOTAL CURRENT LIABILITIES 119,114 104,769 107,392
TOTAL LIABILITIES 468,401 321,575 315,931
TOTAL EQUITY AND LIABILITIES 820,763 621,927 628,017
(1) 30 September 2012 comparative information has been restated reflecting the finalization of the purchase price allocation
22
CONSOLIDATED STATEMENT OF CASH FLOW
Nine-month period
Nine-month period
ended 30 ended 30 Year ended
September 2013 September 2012 (*? 31 December,
Amounts in thousands of $ (Unaudited) (Unaudited) 2012
Cash flows from operating activities
Profit for the period/year 25,203 24,399 18,446
Adjustments for:
Income tax for the period/year 12,260 6,266 14,394
Depreciation of the period/year 49,546 36,228 53,317
Loss on disposal of property, plant and equipment 568 455 546
Mrts-of of unsuccessful exploration and evaluation 11,955 20,298 25,552
Amortisation of other long-term liabilities (1,359) (1,993) (2,143)
Accrual of borrowing’s interests 17,913 11,471 12,478
Unwinding of long-term liabilities 1,049 630 1,262
Accrual of share-based payment 5,946 3,664 5,396
Deferred income – 5,550 5,550
Income tax paid (4,040) (408) (408)
Exchange difference generated by borrowings (14) 39 35
Bargain purchase gain on acquisition of subsidiaries – (8,401) (8,401)
Changes in operating assets and liabilities (20,699) 8,542 5,778
Cash flows from operating activities – net 98,328 106,740 131,802
Cash flows from investing activities
Purchase of property, plant and equipment (187,237) (147,200) (198,204)
Acquisitions of subsidiaries, net of cash acquired – (105,303) (105,303)
Collections related to financial assets 3,839 – –
Collections related to financial leases 6,734 – –
Cash flows used in investing activities – net (176,664) (252,503) (303,507)
Cash flows from financing activities
Proceeds from borrowings 292,259 38,883 37,200
Proceeds from transaction with Non-controlling 37,577 10,019 12,452
interest
Proceeds from loans from related parties 8,344 – –
Proceeds from issuance of shares 3,521 – –
Principal paid (179,359) (16,297) (12,382)
Interest paid (17,511) (5,552) (10,895)
Cash flows from financing activities – net 144,831 27,053 26,375
Net increase (decrease) in cash and cash
equivalents ( ) 66,495 (118,710) (145,330)
Cash and cash equivalents at 1 January 38,292 183,622 183,622
Cash and cash equivalents at the end of the 104,787 64,912 38,292
period/year
Ending Cash and cash equivalents are specified
as follows:
Cash in banks 104,774 75,515 48,268
Cash in hand 23 24 24
Bank overdrafts (10) (10,627) (10,000)
Cash and cash equivalents 104,787 64,912 38,292
23
Annex: Current Assets
According to the DeGolyer and MacNaughton (or D8M, independent reserves engineers D8M)
Year-end Reserves Report, as of December 31, 2012, the blocks in Chile, Colombia and Argentina
in which GeoPark has working interests had 16.8 mmboe of net proved reserves, with 61%, or
10.2 mmboe, and 39%, or 6.6 mmboe, of such net proved reserves located in Chile and
Colombia, respectively.
According to the D8M Brazil and Colombia Reserves Report, as of June 30, 2013, net proved
reserves for certain new discoveries made in Colombia since December 31, 2012 resulted in an
additional 2.4 mmboe of net proved reserves, and net proved reserves attributable to the pending
Rio das Contas acquisition in Brazil were 8.1 mmboe.
The following table summarizes certain information about the Chilean, Colombian, Brazilian and
Argentine blocks as of September 30, 2013, except as otherwise indicated.
Gross Area Net 2P Net Concession
Country Block Operator woo Basin (thousand Reserves Production % oil Expiration
acres)(3) (mmboe)W (boepd)% Date
Argentina Del Mosquito GeoPark 100% Austral 17.3 – 60 77% 2016
Argentina C. D. Juana GeoPark 100% Neuquén 19.6 – – – 2017
Argentina L. Cortaderal GeoPark 100% Neuquén 28.3 – – – 2017
65.2
Chile Fell GeoPark 100% Magallanes 367.8 45.5 7,013 67% 2032
Chile Tranquilo GeoPark 29% Magallanes 92.4 – – – 2013/2043
Chile Otway GeoPark 25% Magallanes 49.4(8) – – – 2017/2044
Chile Isla Norte GeoPark 60%(7) Magallanes 130.2 – – – 2019/2044
Chile Campanario GeoPark 50%(7) Magallanes 192.2 – – – 2020/2045
Chile Flamenco GeoPark 50%(7) Magallanes 973.3 – – – 2019/2044
973.3 45.5 7,013 67%
Colombia La Cuerva GeoPark 100% Llanos 47.8 3.8 2,026 100% 2014/2038
Colombia Llanos 34 GeoPark 45% Llanos 82.2 6.5(5) 3,002 100% 2015/2039
Colombia Llanos 62 GeoPark 100% Llanos 44.0 – – – 2017/2041
Colombia Yamú GeoPark 54.5/75 Llanos 11.2 0.8(5) 573 100% 2013/2036
36.80%(9,
Colombia Llanos 17 Ramshorn 10) Llanos 108.8 – – – 2015/2039
Colombia Llanos 32 P1 Energy 10% Llanos 100.3 0.3 202 100% 2015/2039
Colombia Jagueyes Columbus 5% Llanos 61.0 – – – 2014/2038
Colombia Arrendajo Pacific 0%(12) Llanos 78.1 – 169 100% 2041
Colombia Abanico Pacific 0%(12) Magdalena 32.1 – 94 100% 2022
Colombia Cerrito Pacific 0%(12) Catatumbo 10.2 – 9 – 2028
575.7 11.4 6,075 100%
Brazil BCAM-40 Petrobras 10% Cam./Almada 22.8 10.7 3,721 0%
Brazil (5 REC-T94 GeoPark 100% Reconcavo
Brazil%) REC-T85 GeoPark 100% Reconcavo
Brazil% POT-T 664 GeoPark 100% Potiguar
Brazil% POT-T 665 GeoPark 100% Potiguar
Braziló? POT-T 619 GeoPark 100% Potiguar
Braziló) POT-T 620 GeoPark 100% Potiguar
Braziló? POT-T 663 GeoPark 100% Potiguar
22.8 10.7 3,721 0%
(1) Working interest corresponds to the working interests held by our respective subsidiaries in such block, net of any working interests
and/or economic interests held by other parties in such block.
(2) Asof the date of this press release, LGI has a 20% equity interest in our Chilean operations through GeoPark Chile and a 20% equity
interest in our Colombian operations through GeoPark Colombia.
(3) Gross area refers to the total acreage of each block.
24
(9)
(10)
(11)
(12)
Reserves for Chile, Colombia and Argentina have been certified by Degolyer 8 Macnaughton as of December 31, 2012.
According to the D8M Brazil and Colombia Reserves Report, as of June 30, 2013, our net proved reserves for certain new discoveries
made in Colombia since December 31, 2012 resulted in the addition of 2.4 mmboe, composed of 2.2 mmboe in the Llanos 34 Block
and 0.2 mmboe in the Yamú Block, to our net proved reserves.
Reflects net average production for the first nine months of 2013. Net production refers to average production for each block, net of
any working interests or economic interests held by others in such block but gross of any royalties due to others.
LGI has a 14% direct equity interest in our Tierra del Fuego operations through GeoPark TdF and a 20% direct equity interest in
GeoPark Chile, for a total 31.2% effective equity interest in our Tierra del Fuego operations
In April 2013, the Company voluntarily relinquished to the Chilean government all of its acreage in the Otway Block, except for
49,421 acres. In May 2013, the Company ‘s partners under the joint operating agreement governing the Otway Block decided to
withdraw from such joint operating agreement, and applied for an assignment of rights permit on August 5, 2013. On August 26,
2013, the Ministry of Energy granted this permit, such that, upon execution of a deed of assignment of rights containing the
as-approved terms, GeoPark will be the sole participant, and have a 100% working interest, in the two remaining areas under the
Otway Block CEOP.
Although the Company is the sole title holder of the working interest in the Yamú Block, other parties have been granted economic
interests in fields in this block. Taking those other parties” interests into account, GeoPark has a 54.5% interest in the Carupana Field
and a 75% interest in the Yamú Field, both located in the Yamú Block.
The Company currently has a 40% working interest in the Llanos 17 Block, although it has assigned a 3.2% economic interest to a
third party. The Company expects to apply to formalize this assignment with the ANH so that it will be recognized as a working
interest.
The Company currently has a 10% economic interest in the Llanos 32 Block, although it expects to apply to the ANH to recognize this
as a working interest in the block.
The Company does not have a working interest in those blocks, though it has a 10% economic interest in the net revenues of each of
these blocks pursuant to various partnership interests agreements.
25
GLOSSARY
Adjusted EBITDA
ANP
boe
boepd
bopd
CEOP
mbbl
mmboe
mcfpd
mmcfpd
Mm?*/day
EPS
wI
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
Agéncia Nacional do Petróleo, Brazil’s National Agency of Petroleum
Barrels of oil equivalent
Barrels of oil equivalent per day
Barrels of oil per day
Contrato Especial de Operacion Petrolera (Special Petroleum
Operations Contract)
Thousands of barrels of oil
Million barrels of oil equivalent
Thousands of cubic feet per day
Millions of cubic feet per day
Thousands of cubic meters per day
Earnings per share
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.
26
HHAR
NOTICE
Additional information about GeoPark can be found in the “Investor Support” section on the Web site at www.geo-
park.com/ir
Rounding amounts and percentages: Certain amounts and percentages included in this press release have been rounded
for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the
basis of such rounded figures but on the basis of such amounts prior to rounding. For this reason, certain percentage
amounts in this press release may vary from those obtained by performing the same calculations using the figures in the
financial statements. In addition, certain other amounts that appear in this press release may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking statements. Many of the forward looking
statements contained in this prospectus can be identified by the use of forward-looking words such as “anticipate,”
“believe,” “could,” “expect,” “should,” “plan,” “intend,” “will,” “estimate” and “potential,” among others.
Forward-looking statements appear in a number of places in this press release and include, but are not limited to,
statements regarding the intent, belief or current expectations. Forward-looking statements are based on management’s
beliefs and assumptions and on information currently available to the management. Such statements are subject to risks
and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking
statements due to various factors.
Forward-looking statements speak only as of the date they are made, and the Company does not undertake any
obligation to update them in light of new information or future developments or to release publicly any revisions to these
statements in order to reflect later events or circumstances or to reflect the occurrence of unanticipated events.
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