ma
Eos el
GEOPARK
Santiago, 21 de octubre de 2014
Geopark Limited
Inscrito en el Registro de Valores Extranjeros bajo N* 045
Señor
Carlos Pavez Tolosa
Superintendente de Valores y Seguros
Av. Libertador Bernardo O’Higgins N* 1449, piso 1
PRESENTE
REF.: Adjunta información relevante que se
publicó en el U.S. Securities and
Exchange Commission (SEC) el día de
hoy.
Señor Superintendente:
En virtud de lo establecido en la Norma de Carácter General
N*352, por medio de la presente adjunto información considerada como relevante para
la empresa, que ha sido entregada el día de hoy en el U.S. Securities and Exchange
Commission (“SEC”), en donde, mediante comunicado de prensa distribuido en Estados
Unidos, se informan los resultados operacionales correspondientes al tercer trimestre de
2014.
La información adjunta consiste en un comunicado de prensa
de siete páginas en idioma inglés.
Sin otro particular, saluda atentamente a Usted,
Y)
-J Pedro Aylwin Chiorfíni.
pp. GEOPARK LIMITED
N
Nuestra Señora de los Ángeles 179 – Las Condes, Santiago – Chile
Tel. (+56 2) 2429600 – infoWgeo-park.com – www.geo-park.com
GEOPARK
FOR IMMEDIATE RELEASE
GEOPARK ANNOUNCES THIRD QUARTER 2014 OPERATIONAL UPDATE
Production Increases 66% to 21,548 BOEPD
Santiago, Chile –October 21, 2014 — GeoPark Limited (“GeoPark”) (NYSE: GPRK), the Latin
American oil and gas explorer, operator and consolidator with operations and producing
properties in Chile, Colombia, Brazil, Argentina and Peru!, announces today its 3Q2014
operational update.
Oil and gas production increased 66% to a record 21,548 boepd, compared to 3Q2013 – led by
strong and continuing growth from GeoPark’s Llanos 34 Block in Colombia together with the
initial contribution from the start-up of production in the Company’s Tierra del Fuego Blocks in
Chile. The Company continues on-track to reach full year production targets.
13 new wells were drilled in 3Q2014, consisting of six new wells in Colombia and seven wells in
Chile, of which two were exploration wells and eleven were development and appraisal wells.
In addition, the Company continued with the delineation and appraisal of the Tigana Field on
the Llanos 34 Block in Colombia.
Strategic developments during 3Q2014 include the award in Colombia of a new exploratory
block (VIM-3), which covers an area of 225,000 acres in the Lower Magdalena basin. In
addition, in October 2014, GeoPark entered into Peru (its fifth country platform in Latin
America) through the acquisition of the high-impact Morona Block in a joint-venture with
Petroperu. The Morona Block covers an area of 1.9 million acres in the prolific Marañon Basin
and includes 55 million barrels of 2P reserves, certified by Ryder Scott, and 200 to 600 million
barrels of exploration resources.
l Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru government approval.
25.0 Production Growth Evolution
mM Gas Production
m Oil Production
Avg. Daily Production
(thousand boepd)
Oil and Gas Production Update
Consolidated:
The total average oil and gas production increased 66% in 3Q2014 to 21,548 boepd, compared
to 12,992 boepd reported for 3Q2013. On a proforma basis (includes operations from the
recently closed Manati field acquisition in Brazil in both periods), average production increased
by 29%.
Consolidated oil production accounted for 73% of total reported production and increased by
40% to 15,739 bopd in 3Q2014, compared to 11,226 bopd in 3Q2013.
Colombia:
Average production in Colombia increased by 68% in 3Q2014 to 11,934 boepd compared to
3Q2013. This increase is mainly the result of new discoveries in the Tigana and Aruco fields in
the Llanos 34 Block (GeoPark operated with a 45% working interest (WI)) and to a lesser
extent due to the development and appraisal of the Max, Tua and Tarotaro fields.
The Llanos 34 Block (GeoPark operated with a 45% WI) represented 77% of GeoPark’s
Colombian production in 3Q2014, compared to 55% in 3Q2013.
Chile:
Average oil and gas production in Chile increased by 3% in 3Q2014 to 5,994 boepd, compared
to 3Q2013. This growth is mainly a result of 26% higher gas production together with 8%
lower oil production, and was impacted by the natural decline in base production but also
partly offset by production from new wells along with the implementation of electrical
submersible pumps (ESP) to enhance production in six existing wells.
The Fell Block (GeoPark operated with a 100% WI) represented 96% of GeoPark’s Chilean
production and consisted of 62% oil.
Brazil:
Average gas production in Brazil amounted to 20,882 mcfpd, or 3,480 boepd, in 3Q2014. On a
proforma basis, including production for both quarters, gas production decreased 5%
compared to 3Q2013, mainly due to a slight decline in demand as a result of plant
maintenance for one of Manati’s principal customers.
The Manati Field (Non-operated with a 10% WI) represented 100% of GeoPark’s Brazilian
production.
Operational Update
Colombia:
In Colombia, six wells were drilled during 3Q2014, for an aggregate of 18 new wells drilled
during the first nine months of 2014.
e 3Q2014 drilling and operation highlights on GeoPark’s Llanos 34 Block (GeoPark operated
with a 45% WI) include:
o Exploration well Tigana Sur Oeste 1, which was drilled in 2Q2014 to a depth of 12,605
feet, tested oil in the Guadalupe formation during 3Q2014. The test resulted in a
production rate of approximately 320 bopd gross of oil of 15% API. Further production
history is required to determine stabilized flow rates.
o Appraisal well Tigana Sur 2 was drilled in 3Q2014 to a depth of 11,242 feet and tested
oil in the Guadalupe formation. The test resulted in a production rate of approximately
872 bopd gross of oil of 15% API. Further production history is required to determine
stabilized flow rates.
o Appraisal well Tigana Sur 3 was drilled in 3Q2014 to a depth of 11,971 feet. Electric
log evaluation indicated the presence of hydrocarbons in the Guadalupe formation;
however, the well tested water and the Company will continue performing further
evaluations.
o Results from the aforementioned wells, together with previous discoveries within the
Tigana Field, have contributed to help better define the size of the overall structure of
the field. Ongoing geological and reservoir analyses indicate that Tigana is a single
larger combined (structural and stratigraphic) trap. Development well Tua 7 was drilled
in 3Q2014 to a depth of 10,597 feet. The well is currently waiting on completion and
will be tested during 4Q2014 in the Guadalupe formation.
o During 3Q2014, GeoPark began construction of permanent facilities in the Tua field
that is expected to be completed during 4Q2014. These facilities are expected to
increase total fluid processing capacity for the Llanos 34 Block up to 94,000 barrels per
day and storage capacity to 41,000 barrels, in addition to reducing operating costs.
3Q2014 drilling and operation highlights on the Llanos 32 Block in Colombia (Non-
operated with a 10% WI) include:
o Appraisal well Kananaskis 3 was drilled in 3Q2014 to a depth of 10,880 feet and tested
oil in the Mirador formation. The well is currently producing an average of 500 bopd
gross.
o Current gross oil production from Kananaskis 1, Kananaskis 3 and Carmentea 1 wells
in Llanos 32 Block is approximately 7,800 bopd.
Chile:
In Chile, seven wells were drilled during 3Q2014, for an aggregate of 23 new wells drilled
during the first nine months of 2014.
3Q2014 drilling and operation highlights on the Fell Block (GeoPark operated with a 100%
WI) include:
o Development well Konawentru 18 was drilled in 3Q2014 to a depth of 10,043 feet. The
well is currently waiting on completion and will be tested during 4Q2014 in the
Tobifera formation.
3Q2014 drilling and operation highlights on GeoPark’s Tierra del Fuego Blocks include:
o Exploration well Pantano Oeste 1 on the Isla Norte Block (GeoPark operated with a
60% WI) was drilled in 2Q2014 to a total depth of 7,268 feet and was tested during
3Q2014 in the Tobifera formation. Current oil production rates are approximately 692
gross bopd of 45% API, with a 20% water cut. Further production history will be
required to determine stabilized flow rates and the extent of the reservoir.
o Exploratory well Keternen 1 on the Campanario Block (GeoPark operated with a 50%
WI) was drilled in 3Q2014 to a depth of 7,311 feet. The well is currently waiting on
completion and will be tested during 4Q2014 in the Tobifera formation.
o Exploratory well Tanu 1 on the Campanario Block (GeoPark operated with a 50% WI)
was drilled in 3Q2014 to a depth of 8,144 feet. The well is currently waiting on
completion and will be tested during 4Q2014 in the Tobifera formation.
o Weather conditions contributed to delays in the completion and drilling activities in the
Tierra del Fuego Blocks during 3Q2014. Exploratory wells Bella Vista Sur 1 and Aneky
1 on the Campanario Block, originally programmed for 3Q2014, will be drilled in
4Q2014.
o Following the successful drilling program on the Tierra del Fuego blocks, GeoPark and
its partner ENAP have declared commerciality on seven new fields, allowing the
development phase to begin.
Brazil:
In Brazil, 3Q2014 operation and exploration highlights for GeoPark include:
e Construction of a compression plant for the Manati gas field (Non-operated with a 10% WI)
continued with expected start-up scheduled for 2H2015. The Manati gas field is operated
by Petrobras.
e GeoPark initiated 3D seismic registration in the Reconcavo basin, and topographic surveys
in the Potiguar basin, both part of the Round 11 blocks obtained in 2013 (GeoPark operated
with 100% WI). The Company expects seismic program to be completed by 4Q2014 with
drilling expected to begin in 2H2015.
Annex
Drilling and Work-Over Schedule
Country Prospect/Well Block Type Schedule/Status
Chile Konawentru 18 Fell Development Drilled and waiting on completion
Chile Molino 10 Fell Development 4Q2014
Chile Ache 3 Fell Development 4Q2014
Chile Konawentru 5 Fell Development 4Q2014
Chile Konawentru 17 Fell Development 4Q2014
Chile Keternen 1 Campanario Exploration Drilled and waiting on completion
Chile Tanu 1 Campanario Exploration Drilled and waiting on completion
Chile Aneky 1 Campanario Exploration 4Q2014
Chile Bella Vista Sur 1 Campanario Exploration 4Q2014
Chile Primavera Sur 2 Campanario Development 40Q2014
Chile Chercan 3 Flamenco Development 4Q2014
Colombia Tigana Sur 3 Llanos 34 Appraisal Drilled and under evaluation
Colombia Tua 7 Llanos 34 Development Drilled and waiting on completion
Colombia Tua 8 Llanos 34 Appraisal 4Q2014
Colombia Tua 9 Llanos 34 Appraisal 4Q2014
Colombia Tilo 1 Llanos 34 Exploration 4Q2014
Breakdown of Quarterly Production by Country
The following table shows production figures for 3Q2014, as compared with 3Q2013:
3Q2014 3Q2013
Total Oil Gas Total % Chg.
(boepd) (bopd) (mcfpd) (boepd)
Chile 5,994 3,721 13,637 5,829 3%
Colombia 11,934 11,892 251 7,096 68%
Brazil 3,536 56 20,882 * N/A
Argentina 84 70 84 67 25%
Total 21,548 15,739 34,854 12,992 66%
(*) 3Q2013 shows no production in Brazil, as the acquired interest in the Manati Field (Brazil) was completed on March 31, 2014.
As a reference and only for comparison purposes, the corresponding net production for 3Q2013 amounted to 3,733 boepd.
Production Growth Evolution
The following table shows production figures for the last five consecutive quarters:
(boepd) 3Q2013 _4Q2013 1Q2014 2Q2014 3Q2014
Chile 5,829 6,748 7,407 6,435 5,994
Colombia 7,096 7,725 9,265 10,357 11,934
Brazil* – – – 3,572 3,536
Argentina 67 75 71 77 8l
Total 12,992 14,548 16,743 20,441 21,548
Oil 11,226 12,002 13,821 14,325 15,739
Gas 1,766 2,546 2,922 6,116 5,809
(*) The acquired interest in the Manati Field (Brazil) was completed on March 31, 2014. As a reference and only for comparison
purposes, the corresponding, net production for GeoPark’s WI in the Manati Field in the preceding periods was as follows: 3Q2013:
3,733 boepd, 4Q2013: 3,664 boepd, 1Q2014: 3,667 boepd.
For further information, please contact:
Pablo Ducci – Director Capital Markets pduccigeo-park.com
Sofia Chellew – Investor Relations schellewOgeo-park.com
Santiago, Chile
T: +562 2242 9600
GLOSSARY
boe Barrels of oil equivalent
boepd Barrels of oil equivalent per day
bopd Barrels of oil per day
mcfpd Thousands of standard cubic feet per day
mmcfpd Millions of standard cubic feet per day
sqkm Square kilometers
WI Working Interest
El Economic Interest
NOTICE
Additional information about GeoPark can be found in the “Investor Support” section on the
website at www.geo-park.com
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 press release 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 that appear in a number of places in this press release include,
but are not limited to, statements regarding the intent, belief or current expectations,
regarding various matters, including expected 2014 production growth and capital
expenditures plan. 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. For a discussion
of the risks facing the Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange Commission.
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=7bf7881ff3643399e1ac1beb242a0a5eVFdwQmVFNUVSWGROUkVWNFQxUm5OVTVuUFQwPQ==&secuencia=-1&t=1682366909
