ma
Eos el
GEOPARK
Santiago, 23 de marzo de 2015
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 el día de hoy en el U.S.
Securities and Exchange Commission
(SEC).
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 un comunicado de prensa se informa los
resultados del cuarto trimestre 2014 y los resultados anuales correspondientes al
ejercicio finalizado el 31 de diciembre de 2014.
La información adjunta consiste en un comunicado de prensa
de veintidós páginas en idioma inglés.
Sin otro particular, saluda atentamente a Usted,
Pedro Aylwin Chiorrini
pp. GEOPARK LIMITED
Nuestra Señora de los Ángeles 179 – Las Condes, Santiago – Chile
Tel. (+56 2) 2429600 – infoWgeo-park.com – www.geo-park.com
al
GEOPARK
FOR IMMEDIATE DISTRIBUTION
GEOPARK REPORTS RESULTS FOR THE FOURTH QUARTER
AND FULL YEAR ENDED DECEMBER 31, 2014
Santiago, Chile – March 23, 2015 – GeoPark Limited (“GeoPark”) (NYSE: “GPRK”), the Latin American oil and
gas explorer, operator and consolidator with operations in Colombia, Chile, Brazil, Argentina, and Peru?
today reports its quarterly and audited annual results for 2014.
All figures are expressed in US dollars and growth comparisons refer to the same period of the prior year,
except when specified.
FULL YEAR 2014 HIGHLIGHTS
Operational (*):
e Oiland gas production up 20% to 20,557 boepd
e Certified oil and gas P1 reserves up 116% to 62.9 mmboe / 2P reserves up 74% to 122.3 mmboe (after
production of 7.5 mmboe in 2014)
e Certified 2P NPV10 up 32% to $1.7 billion
e 2Preserve replacement index increased to 795% and 2P reserve life index increased to 16.3 years
e 51 wells drilled with a success rate of over 75% as part of $238 million 2014 capital expenditure
program
e Tigana oil field discovery (certified 3P gross reserves of 69 mmbo) in Colombia Llanos 34 Block
Financial:
+ Net Revenues up 27% to $428.7 million
e Adjusted EBITDA up 32% to $220.1 million
e Cash position of $127.7 million at year-end 2014
+ Net profit of $15.9 million, impacted by pre-tax non-cash expenses including (i) impairment charges for
$9.4 million, (ii) write-offs of exploratory wells for $30.4 million and (iii) exchange differences for $23.1
million
e Long term debt maturity profile with over 80% of indebtedness due in 2020
e Total Gross Debt to Adjusted EBITDA is 1.7x, and represents 22% of consolidated 2P NPV10 (*)
Strategic / New Business:
e IPO on NYSE in February 2014, raising approximately $100 million
e Entry to Peru, GeoPark’s fifth country platform, through the acquisition of the Morona Block in
partnership with Petroperu (GeoPark will operate with a 75% WI), and which includes a discovered oil
field (2P and 3P certified gross reserves of 40 and 83 mmbo respectively) and high potential exploration
resources (350 mmboe – 540 mmboe)
“Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval
expected for 2H2015
(*) Refers to PRMS reserves certified by DSUM and including Peru
+ Expansion of Colombian asset portfolio with addition of the CPO-4 Block (GeoPark will operate with a
50% WI) in partnership with SK Group, and the VIM-3 Block (GeoPark will operate with a 100% WI)
+ Re-balancing of Argentinean asset portfolio with addition of the Sierra del Nevado and Puelen Blocks
(non-operated with an 18% WI) in partnership with Pluspetrol in the Neuquen basin, and relinquishament
of the non-productive Cerro Doña Juana and Loma Cortaderal Blocks
Commenting, James F. Park, CEO of GeoPark, said: “A year ago GeoPark joined the NYSE with our IPO and,
since that time, we have done what we said we would do – with record operational, financial and strategic
accomplishments in 2014. We salute the GeoPark team for extending our growth record for the ninth
consecutive year by increasing production, reserves, and cash flow, as well as, acquiring new high potential
assets. Importantly, and despite a more than 50% drop in oil prices, our net present value per share also
continued to increase.
This track record of results, coupled with our history of conservative risk management and our large
diversified asset portfolio, has successfully positioned GeoPark to manage through the current turbulence in
our industry. We began 2015 with a cash balance of $130 million, 20,000 boepd of oil and gas production, a
2P reserve base of over 120 million boe valued at $1.7 billion, an upside exploration resource potential of
600 million to 1.3 billion boe, a long term-maturing debt profile, and a large number of attractive and largely
discretional projects – both oil and gas – in multiple countries.
With the same discipline, agility and creativity that has built our Company, we have quickly responded to the
new pricing environment by cutting work programs, attacking costs, shutting-in underperforming fields,
reducing personnel, and deferring obligations to pivot and focus on the lower risk, higher netback, quicker
cash flow-producing projects within our portfolio. Our Company is prepared to confront and successfully
work through the new lower oil price environment, and to continue on our steady upward growth path.”
GeoPark Reserves and Production Evolution
2P RESERVES GROWTH (MMBOE) PRODUCTION GROWTH (MBOED)
; 17.1
1
1 13.5
‘ CN]
! 7]
49.6 49.5 , 6.9 7.6
1
; ñ 5 11.1 11.2
7] ! 50 !
16.2 16.9 ; EE 25
2010 2011 2012 2013* 2014 ‘ 2014 2010 2011 2012 2013 2013* 2014*
mGas “mOil (nc. Peru) mGas mOil
* Including year-end reserves and full year production corresponding to the Manati Field that closed in March 31, 2014.
FOURTH QUARTER 2014
The table below sets forth some key indicators of performance for 4Q2014 compared with 4Q2013. Figures
corresponding to 4Q2014 include the acquired interest in the Brazilian Manati Field completed on March 31,
2014. As of that date, GeoPark started consolidating line by line its results of operations for accounting
purposes within ¡ts Brazilian operations.
Key Indicators 4Q2014 4Q2013 % Chg.
Oil production (bopd) 14,364 11,938 20%
Gas production (mcfpd) 33,718 15,662 115%
Average net production (boepd) 19,984 14,548 37%
Combined price ($ per boe) 44.3 65.3 -32%
7 Oil ($ per bbl) 55.2 80.3 -36%
7 Gas ($ per mcf) 5.4 5.8 -7%
Net Oil Revenues ($ million) 68.3 80.2 -15%
Net Gas Revenues ($ million) 12.5 7.6 64%
Net Revenues ($ million) 80.8 87.8 -8%
Production Costs* ($ million) -60.2 -49.8 21%
Adjusted EBITDA ($ million) 27.4 41.4 -34%
Adjusted EBITDA per boe ($) 15.0 30.7 -51%
Operating Netback per boe ($) 24.3 42.0 -42%
Profit (loss) for the period ($ million) -33.7 9.7 -446%
* Production costs include operating costs, depreciation and royalties
CONSOLIDATED OPERATING PERFORMANCE
Production: Consolidated production increased by 37% in 4Q2014 to 19,984 boepd. This growth is
explained by (i) a 20% increase in consolidated oil production, primarily from higher oil production in the
Colombian operations, and (ii) a 115% increase in gas production mainly due to the incorporation of the
Brazilian operations.
Net Revenues: Consolidated net revenues decreased by 8% to $80.8 million in 492014 compared to $87.8
million in 4Q2013, mainly driven by lower oil revenues, partially offset by increased gas revenues.
Consolidated Oil Revenues: Consolidated oil revenues decreased 15% to $68.3 million in 4902014 compared
to 4Q2013, representing 85% of total net revenues compared to 91% in 4Q2013. Decrease in net oil
revenues is explained by a 31% lower average reference oil price, partially offset by higher production and
deliveries.
Consolidated Gas Revenues: Consolidated gas revenues increased by 64% to $12.5 million in 402014
compared to $7.6 million in 402013, representing 15% of total net revenues in 4Q2014 compared to 9% in
4Q2013, and was mainly explained by the addition of the Brazilian operations, partially offset by lower
average gas prices in Chile.
Costs: Consolidated production costs increased by 21% to $60.2 million in 4Q2014, as follows:
+ Operating costs increased by 18% to $29.0 million in 4Q2014, compared to $24.6 million in 4Q2013,
due to higher production and deliveries in Colombia as well as the incorporation of the Brazilian
operations.
+ Depreciation charges included in consolidated production costs increased by 32% to $26.5 million in
4Q2014, compared to $20.3 million in 4Q2013, mainly as a result of the 37% increase in production,
partially offset by lower per barrel depreciation cost.
e Royalties amounted to $4.6 million in 4092014, compared to $4.3 million in 402013, representing 6% of
total net revenues and 5% in 4Q2013.
Consolidated exploration expenses increased to $25.7 million in 402014 from $0.2 million in 4Q2013.
Exploration costs in 4Q2014 include $21.8 million non-cash expenses related to the write-off of exploratory
wells related to the Chilean operations.
Consolidated selling expenses decreased to $2.8 million in 402014 from $4.7 million in 4Q2013, mainly as a
result of lower selling expenses in Chile and certain reclassifications recorded in the Brazilian operations,
partly offset by an increase in selling expenses in Colombia.
Consolidated administrative costs and other operating expenses remained stable and amounted to $15.1
million in 4Q2014 compared to $13.8 million in 402013.
Non-cash impairment of non-financial assets amounted to $9.4 million in 492014 (no impairment charges
recognized in 4Q2013) in GeoPark’s Colombian Cuerva Block, mainly resulting from the decrease in
international oil prices.
Adjusted EBITDA: Consolidated Adjusted EBITDA decreased by 34% to $27.4 million in 4902014 compared
to $41.4 million in 402013, mainly caused by the decrease in international oil prices (resulting in a 36%
decreased in the combined realized oil price) which was partially offset by a 20% increase in oil production.
Adjusted EBITDA per boe decreased by 51% to $15.0 per boe in 402014 compared to $30.7 per boe in
4Q2013, mainly as a result of the lower realized oil prices.
Operational Performance:
Total GeoPark consolidated 2P reserves (in Colombia, Chile and Brazil) increased by 31% in 2014 to 92
mmboe compared to 2013 and, including Peru, by 74% to 122 mmboe.
The increase in reserves mainly results from the discovery and development of the Tigana and Tua oil fields
in the Llanos 34 Block in Colombia, as well as the incorporation of the new Morona Block in Peru.
Total consolidated certified 2P and 3P NPV10 in Colombia, Chile, Brazil and Peru, increased by 31% and 33%
to $1.7 billion and $3.0 billion, respectively.
The 2P reserve life index in Colombia, Chile and Brazil equaled 12.3 years and, including Peru, equaled 16.3
years. For each boe produced in 2014 in Colombia, Chile and Brazil, 3.9 boe of 2P reserves was added with a
2P reserve replacement index of 387% and, including Peru, 7.9 boe of 2P reserves was added with a reserve
replacement index of 795%.
Further details were provided in the recent releases of January and February 2015.
ANALYSIS BY BUSINESS SEGMENT
Operations in Colombia
Key Indicators 4Q2014 4Q2013 % Chg.
Oil production (bopd) 11,550 7,717 50%
Gas production (mcfpd) 390 48 N/A
Average net production (boepd) 11,615 7,725 50%
Oil price ($ per bbl) 52.0 73.3 -29%
Net oil Revenues ($ million) 51.1 49.3 4%
Production Costs* ($ million) -35.8 -31.9 12%
Adjusted EBITDA ($ million) 20.7 21.8 -5%
Adjusted EBITDA per boe ($) 18.5 30.6 -40%
Operating Netback per boe ($) 21.6 36.0 -40%
* Production costs includes operating costs, depreciation and royalties
Production: Colombian oil production increased by 50% to 11,550 bopd in 4Q2014 compared to 4Q2013,
explained mainly by new production from the Tigana oil field in the Llanos 34 Block (GeoPark operated with
a 45% WI).
Net Revenues: Colombian revenues increased by 4% to $51.1 million in 4Q2014 mainly due to a 50%
increase in production and deliveries, which were partially offset by a 29% decrease in realized prices.
Colombian operations represented 63% of the total consolidated net revenues in 4Q2014 and 56% of total
consolidated net revenues in 4Q2013.
Costs: Total production costs increased by 12% to $35.8 million in 4Q2014 as a result of the significant
production increase. Production costs per barrel decreased by 29% to $32.0 per barrel as a result of fixed
cost absorption and cost efficiencies.
e Total operating costs increased by 9% to $19.0 million in 4Q2014 compared to $17.5 million in 402013,
mainly due to increased production and deliveries. Operating costs per boe decreased by 31% to $17.0
per boe, mainly due to improved fixed cost absorption and cost efficiencies.
+ Depreciation charges included in production costs increased by 19% to $14.2 million in 402014,
compared to $11.9 million in 402013, resulting from the 50% increase in production volumes, partially
offset by lower per barrel depreciation cost as a result of the increase in reserves.
e Royalties amounted to $2.7 million in 402014 and $2.4 million in 4Q2013, representing 5% of net
revenues in 4Q2014 and 4Q2013.
Exploration expenses in Colombia remained stable compared to 4Q2013, and amounted to $0.5 million in
4Q2014.
Selling expenses in Colombia in 4Q2014 increased to $5.1 million compared to $3.7 million in 4Q2013,
principally driven by the increase in production and deliveries.
Administrative costs and other operating expenses in Colombia in 402014 remained stable and amounted to
$4.4 million in 402014 compared to $4.8 million in 402013.
Non-cash impairment of non-financial assets amounted to $9.4 million in 492014 (no impairment charges
recognized in 4Q2013) in the Cuerva Block, mainly resulting from the decrease in international oil prices.
Adjusted EBITDA: Adjusted EBITDA in Colombia decreased by 5% to $20.7 million in 402014 compared to
$21.8 million in 402013, mainly due to the decline in oil reference prices, partially offset by higher oil
production and deliveries.
Adjusted EBITDA per boe decreased by 40% to $18.5 per boe in 4Q2014, mainly due to lower reference
prices and higher earn-out expenses, partially offset by lower operating costs per boe resulting from
increased efficiency.
Operational Performance:
GeoPark’s net 2P reserves in Colombia increased by 134% in 2014 to 38.6 mmboe compared to 2013.
This increase is mainly the result of net additions of 19.0 mmboe (100% oil) in proved reserves and 7.0
mmboe (100% oil) of probable reserves mainly related to field delineation and appraisal of the Tigana and
Tua oil fields in the Llanos 34 Block. The D8M Reserves Report confirmed and was in line with GeoPark’s
view of the Tigana Field as announced in October 2014.
The Llanos 34 Block represented 84% of GeoPark’s Colombian 2P reserves as of December 31, 2014.
Certified 2P NPV10 in Colombia increased by 81% to $640 million, and certified 3P NPV10 increased by 69%
to $842 million, as a result of the new discoveries and despite the significant decline in oil prices.
For each barrel of oil equivalent extracted in 2014 in Colombia, 6.7 barrels of 2P reserves were added,
resulting in a 2P reserve replacement of 667%. The 2P reserve life index in Colombia increased to 9.9 years
in 2014 from 7.0 years in 2013. The 1P reserve life index increased to 6.3 years in 2014.
Further details were provided in the recent releases of January and February 2015.
Operations in Chile
Key Indicators 4Q2014 4Q2013 % Chg.
Oil production (bopd) 2,709 4,160 -35%
Gas production (mcfpd) 12,492 15,526 -20%
Average net production (boepd) 4,791 6,748 -29%
Combined price ($ per boe) 52.9 67.6 -22%
7 Oil ($ per bbl) 72.0 86.3 -17%
7 Gas ($ per mcf) 4.0 5.8 -31%
Net Oil Revenues ($ million) 17.7 30.5 -42%
Net Gas Revenues ($ million) 3.9 7.6 -48%
Net Revenues ($ million) 21.6 38.1 -43%
Production Costs* ($ million) -18.4 -17.8 4%
Adjusted EBITDA ($ million) 3.0 22.8 -86%
Adjusted EBITDA per boe ($) 7.4 40.4 -75%
Operating Netback per boe ($) 28.8 49.3 -43%
* Production costs includes operating costs, depreciation and royalties
Production: Production in Chile decreased by 29% to 4,791 boepd in 4Q2014 compared to 6,748 boepd in
4Q2013, mainly due to 35% lower oil production together with 20% lower gas production, resulting mainly
from the natural decline in base production.
Fell Block represented 96% of GeoPark’s Chilean production (56% oil) with the remaining production coming
from GeoPark’s Tierra del Fuego blocks.
Net Revenues: Net revenues in Chile decreased by 43% to $21.6 million for 402014, representing 27% of
consolidated net revenues, compared to $38.1 million, or 44% of consolidated net revenues in 4Q2013.
Oil revenues decreased by 42% to $17.7 million in 402014 due to lower production and realized prices.
The average realized oil price decreased 17% to $72.0 per barrel in 4Q2014. The Company’s new oil
treatment facilities allowed for quality improvements and lower price discounts, which partially offset the
30% reduction in the reference price as compared to 4Q2013.
Oil revenues represented 82% of total net revenues in Chile in 4Q2014 compared to 81% in 4Q2013.
Gas revenues decreased by 48% to $3.9 million in 402014. The decrease was mainly due to the 20% lower
gas production and also due to the 31% decrease in the average realized gas price resulting from lower
international methanol prices affecting the price of Fell block gas, partially offset by higher gas prices the
Tierra del Fuego blocks production. Gas revenues represented 18% of total net revenues in Chile in 4Q2014
compared to 19% in 4Q2013.
Chilean gas revenues represented 5% of consolidated revenues in 4Q2014.
Costs: Production costs in Chile in 4Q2014 increased by 4% to $18.4 million, resulting in a 52% increase in
production costs to $45.1 per boe. This was mostly due to higher depreciation charges per boe and the
impact on fixed costs from lower oil production and the startup of the Tierra del Fuego Blocks.
+ Operating costs increased by 10% to $8.5 million in 4Q2014 from $7.7 million in 402013 while
operating costs per boe increased by 43% to $20.9 due to the impact on fixed costs from lower oil
production.
+ Depreciation charges included in production costs increased by 14% to $9.4 million in 402014 compared
to $8.3 million in 402013, resulting from higher per barrel depreciation cost, partially offset by lower
production.
+ Royalties amounted to $1.0 million in 402014 and $1.7 million in 402013, representing 5% of net
revenues in 4Q2014 and 4Q2013.
Exploration expenses in Chile amounted to $23.9 million in 492014 compared to $0.1 million in 402013.
The increase in exploration expenses is mainly related to non-cash expenses of $21.8 million, related to the
write-off of seven exploratory wells (four on the Tierra del Fuego blocks, one on the Fell block and two on
the Tranquilo/Otway blocks) and certain seismic studies.
Selling expenses in Chile decreased to $0.4 million in 402014 from $0.9 million in 4Q2013.
Administrative costs and other operating expenses in Chile increased to $5.7 million in 4Q2014 compared to
$4.3 million in 402013, mainly due to higher staff costs.
Adjusted EBITDA: Adjusted EBITDA in Chile decreased by 86% to $3.0 million in 402014, compared to
$22.8 million in 402013, mainly due to lower production, lower oil and gas realized prices and higher
operating costs.
Adjusted EBITDA per boe decreased by 75% to $7.4 per boe in 402014 compared to $30.5 per boe in
4Q2013.
Operational Performance:
GeoPark’s 2P reserves in Chile increased by 2% in 2014 to 46.2 mmboe compared to 2013.
Net additions of 3.4 mmboe are related to the discovery of the Ache gas field in the Fell Block (GeoPark
operated with a 100% WI) and discoveries made in the Tierra del Fuego Blocks (GeoPark operated with 50-
60% WI).
The Fell Block represented 96% of GeoPark’s Chilean 2P reserves and consisted of 38% oil and 62% gas.
Certified 2P NPV10 in Chile decreased by 26% to $579 million, and certified 3P NPV10 decreased by 27% to
$1.2 billion, mainly as a result of the significant drop in oil prices.
For each barrel of oil equivalent extracted in 2014 in Chile, 1.5 boe of 2P reserves were added, resulting in a
2P reserves replacement ratio of 148%.
The 2P reserves life index in Chile increased to 20.1 years in 2014 from 17.7 years in 2013. The 1P reserves
life index increased to 5.3 years in 2014.
Further details were provided in the recent releases in January and February of 2015.
Operations in Brazil
Key Indicators 4Q2014 4Q2013* % Chg.
Oil production (bopd) 52 – N/A
Gas production (mcfpd) 20,754 – N/A
Average net production (boepd) 3,511 – N/A
Gas Price ($ per mcf) 5.8 – N/A
Net Revenues ($ million) 8.0 – N/A
Production Costs** ($ million) -6.0 – N/A
Adjusted EBITDA ($ million) 7.3 -0.8 N/A
Adjusted EBITDA per boe ($) 23.5 – N/A
Operating Netback per boe ($) 27.4 – N/A
* 4Q2013 shows only Adjusted EBITDA corresponding to expenses from the start-up of GeoPark’s Brazilian
operations, including personnel, legal and administrative costs. The Company completed the acquisition of its
interest in the Brazilian Manati Field on March 31, 2014. As of that date, GeoPark started consolidating line by
line its results of operations for accounting purposes within its Brazilian operations.
*x* Production costs includes operating costs, depreciation and royalties
Production: Production for the Brazilian operations averaged 3,511 boepd in 4Q2014, composed of
approximately 98% gas and 2% condensate.
Net Revenues: The Brazilian operations represented 10% of the total consolidated net revenues in 4Q2014,
and amounted to $8.0 million. The average gas price, net of taxes and before the effect of certain minor
reclassifications, amounted to $5.8 per mcf ($34.7 per boe) in 4Q2014.
Costs: Production costs in Brazil were $6.0 million in 402014, reflecting production costs per boe of $19.0.
Operating costs amounted to $1.5 million, or $4.6 per boe. Depreciation and Royalties included in production
costs amounted to $3.6 million and $0.8 million in 402014.
Adjusted EBITDA: Adjusted EBITDA in Brazil reached $7.3 million in 4Q2014, representing 12% of
consolidated Adjusted EBITDA. Adjusted EBITDA per boe was $27.4 in 4Q2014.
Operational Performance:
GeoPark’s 2P reserves in Brazil decreased by 15% in 2014 to 7.3 mmboe compared to 2013 as a result of
production from the Manati Field (GeoPark non-operated with a 10% WI), which represented 100% of
GeoPark’s Brazilian reserves and consisted of 98% gas.
Certified 2P NPV10 in Brazil decreased by 19% to $118 million, and certified 3P NPV10 decreased by 20% to
$120 million, mainly as a result of production from the Manati field.
The 1P and 2P reserves life index in Brazil decreased to approximately 5.5 years in 2014 from 6.5 years in
2013.
Further details were provided in the recent releases in January and February of 2015.
Operations in Argentina
Operations in Argentina represented approximately 1% of consolidated net revenues and Adjusted EBITDA,
respectively in both 4Q2014 and 4Q2013.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Net Financial Expenses: Net financial expenses increased to $19.0 million in 402014 from $6.7 million in
4Q2013, mainly resulting from $10.0 million non-cash foreign exchange rate losses resulting from the
impact of the depreciation of the Brazilian Reais in 402014 over dollar-denominated net debt taken at the
local subsidiary level, where the functional currency is the Brazilian Reais. Additionally, consolidated net
financial expenses were impacted by higher average indebtedness as a result of the credit facility of $70.5
million obtained on March 31, 2014 to acquire the interest in the Brazilian Manati Field.
Income Tax: Income tax amounted to a gain of $17.8 million in 4Q2014 compared to a loss of $2.9 million
in 4Q2013, in line with losses before income taxes recorded in 4Q2014.
Profit: Losses for the period amounted to $33.7 million in 4Q2014 compared to profit of $9.7 million in
4Q2013, mainly due to lower gross profit and the impact of pre-tax non-cash expenses including (i)
impairment charges for $ 9.4 million, (ii) write-offs of exploratory wells for $21.8 million and (iii) exchange
differences for $10.0 million, partially offset by lower income taxes.
BALANCE SHEET
Cash and cash equivalents as of December 31, 2014, totaled $127.7 million, while at year-end 2013 cash
and cash equivalents amounted to $121.1 million. The increase is primarily due to cash generation from
operations during the year 2014, amounting to $230.7 million, along with $124.7 million of funds generated
from financing activities, which are mainly explained by (i) the credit facility taken in Brazil, and (ii) $90.9
million net proceeds resulting from the NYSE IPO, minus (iii) $50.0 million related to principal and interest
payments. During the year, net cash used for investment activities totaled $344.0 million and included the
Company’s capital expenditures program as well as the acquisition of an interest in the Brazilian Manati
Field.
Total assets as of December 31, 2014, reached $1,039.1 million. Additionally, total investments for the year
ended December 31, 2014, mainly included (i) $161.0 million invested in Chile, (ii) $66.7 million invested in
Colombia, and (iii) $11.4 million in Brazil. In addition, investing activities included $115.0 million related to
the acquisition of an interest in the Brazilian Manati Field (net of cash acquired) completed on March 31,
2014.
At year-end 2014, GeoPark’s total financial debt amounted to $370 million, including the $300 million 2020
Bond issued in February 2013 and the 5-year credit facility in Brazil for the acquisition of an interest in the
Brazilian Manati Field amounting to $70 million.
Equity reached $479.1 million and included minority interests of $103.6 million related to LG International’s
participation in the Chilean and Colombian operations (LG International Corp., the Korean conglomerate
holds a 20% equity interest in GeoPark’s Colombian operations, a 20% equity interest in the Fell Block and a
31% equity interest in the Tierra del Fuego blocks in Chile). Equity as of December 31, 2014 increased by
$113.1 million as compared to December 31, 2013, mainly due to net proceeds from the NYSE IPO in
addition to profits from the year 2014.
FINANCIAL RATIOS (*)
Amounts in $ million
Gross debt /
Year / Period Financial debt Cash position Adjusted coverage
EBITDA
2013 317.1 121.1 1.9x 4.3x
102014(**) 364.7 131.9 2.2X 4.9x
2Q2014 (***) 368.6 125.3 1.8x 6.0x
3Q2014 (***) 362.9 128.8 1.6x 6.7x
2014 (***) 370.0 127.7 1.7x 7.5X
(*) Based on trailing 12 months financial results.
(**) Does not consider Adjusted EBITDA generated by the acquired interest in the Brazilian Manati Field.
(2%) Considers Adjusted EBITDA generated by the acquired interest in the Brazilian Manati Field only since 2Q2014.
GeoPark’s consolidated financial covenants included in the 2020 Bond Indenture are incurrence as opposed
to maintenance covenants (that is, financial ratios must be tested by the Company before incurring
additional debt or performing other specific corporate actions including but not limited to dividend payments,
certain mergers, restricted payments, others):
e Leverage Ratio, defined as Gross Debt to Adjusted EBITDA, lower than 2.75x for the year 2014 and
lower than 2.5x from 2015 onwards; and
e Interest Coverage Ratio, defined as Adjusted EBITDA divided by Interest Expenses, above 3.5x.
Failure to comply with the above incurrence test ratios would not trigger an event of default.
OTHER NEWS / RECENT EVENTS
New Oil Field Discovery on Llanos 34 Block in Colombia
In February 2015, GeoPark announced a new oil field discovery following the drilling of exploration well Tilo
1, located on the Llanos 34 Block in Colombia. The Tilo prospect was defined as a structural trap with three-
way dip closure on the down-thrown side of a normal fault-targeting the two principal productive reservoirs
of the Llanos 34 Block: Guadalupe (main target) and Mirador (secondary target) sandstones.
GeoPark drilled and completed the Tilo 1 exploratory well to a total depth of 11,293 feet. A test conducted
with an electrical submersible pump in the Guadalupe formation, at approximately 10,707 feet, resulted in a
production rate of approximately 1,000 barrels of oil per day of 14.2 degree API, with approximately 10%
water cut. Further production history is required to determine stabilized flow rates of the well and the extent
of the field. Further technical evaluation will also be undertaken to determine if the Tilo field is potentially a
northeast extension of the larger Tigana field. (The 2014 D8UM 2014 Reserve Report does not include any
reserve volumes related to this discovery.)
Itau Credit Facility Extension
In March 2014, GeoPark entered into a loan agreement with Itau for $70 million to finance the acquisition of
a working interest in the Manati field with principal maturing between 2015 and 2019. In March 2015, the
Company reached preliminary agreement with Itau to extend the principal payments that were due in 2015
for approximately $15 million, which will be divided pro-rata during the remaining principal installments,
starting in March 2016. The final agreement is expected to be signed by the end of March 2015.
Board Changes
The Company reports the appointment of Mr. Robert Bedingfield to the GeoPark Board of Directors, replacing
Mr. Steven Quamme who resigned effective March 19, 2015. Mr. Quamme had served on the Board since
10
June 2011, and acted as Chairman of the Audit Committee and member of the Compensation Committee.
Mr. Quamme has been a strong supporter of GeoPark and made an important contribution to the Company,
the Board and the committees on which he served.
Mr. Bedingfield is a qualified SEC financial expert and has assumed the role of Chairman of GeoPark’s Audit
Committee. Until his retirement in June 2013, Mr. Bedingfield was one of Ernst 8 Young’s most senior Global
Lead Partners with more than 40 years of experience, including 32 years as a partner in Ernst 8 Young’s
accounting and auditing practices, as well as serving on Ernst 8 Young’s Senior Governing Board. He has
extensive experience serving Fortune 500 companies; including acting as Lead Audit Partner or Senior
Advisory Partner for Lockheed Martin, AES, Gannett, General Dynamics, Booz Allen Hamilton, Marriott and
the US Postal Service.
Since 2000, Mr. Bedingfield has been a Trustee, an Executive Committee Member, and the Audit Committee
Chair of the University of Maryland at College Park Board of Trustees. Mr. Bedingfield served on the National
Executive Board (1995 to 2003) and National Advisory Council (since 2003) of the Boy Scouts of America.
He also served on the Board of Governors of the Congressional Country Club in Bethesda, Maryland. Since
2013, Mr. Bedingfield has also served as Board Member and Chairman of the Audit Committee of NYSE-listed
Science Applications International Corp (SAIC).
11
2014 YEAR END RESERVES SUMMARY
GeoPark engaged D8M to prepare an independent appraisal report of GeoPark’s reserves as of December 31,
2014 covering 100% of GeoPark’s assets, including Peru.
As of December 31, 2014, D8M certified 2P reserves of 122.3 mmboe (composed of 71% oil and 29%
natural gas); distributed 38% in Chile, 31% in Colombia, 25% in Peru and 6% in Brazil.
Oil forward price estimates used to calculate reserves volumes and NPV10 are as follows (WTI $/bbl):
2015: $50.0;
2016: $60.0;
2017: $67.0;
2018: $75.0;
2019: $85.0;
2020: $95.0, and thereafter: $100.0.
Brent-WTI spread assumed to be 5-7 $/bbl.
Reserves December 2014 NPV10
Country Category (mmboe) % Oil ($ MM)
Colombia 1P 24.7 100% 408.4
2P 38.6 100% 640.1
3P 51.2 100% 842.3
Chile 1P 12.3 52% 120.5
2P 46.2 38% 578.8
3P 101.9 28% 1,164.5
Brazil 1P 7.2 2% 114.8
2P 7.3 2% 117.6
3P 7.7 2% 120.1
Total 1P 44.2 71% 643.7
(DEM Certified) 2P 92.1 62% 1,336.5
3P 160.8 51% 2,126.9
Peru 1P 18.8 100% 148.7
2P 30.2 100% 353.5
3P 60.2 100% 876.5
Total (Including Peru) 1P 62.9 79% 792.3
(D8M Certified) 2P 122.3 71% 1,689.9
3P 221.1 64% 3,003.5
12
FULL YEAR 2014
The table below sets forth some key indicators of performance for 2014, as compared with 2013. Figures
corresponding to 2014 include information relating to the acquired interest in the Brazilian Manati Field
completed on March 31, 2014. As from that date, GeoPark started consolidating line by line its results of
operations for accounting purposes within its Brazilian operations.
Key Indicators 2014 2013 % Chg.
Oil production (bopd) 14,541 11,113 31%
Gas production (mcfpd) 30,677 14,419 112%
Average net production (boepd) 19,653 13,517 45%
Combined realized sales price 64.4 68.6 -6%
– Oil ($ per bbl) 77.5 81.9 -5%
– Gas ($ per mcf) 6.4 5.0 28%
Net Oil Revenues ($ million) 367.1 315.4 16%
Net Gas Revenues ($ million) 61.6 22.9 169%
Net Revenues ($ million) 428.7 338.4 27%
Production Costs* ($ million) -229.6 -179.6 28%
Adjusted EBITDA ($ million) 220.1 167.3 32%
Adjusted EBITDA per boe ($) 33.0 33.9 -2%
Operating Netback per boe ($) 41.2 43.5 -5%
Profit for the year ($ million) 15.9 34.9 -54%
* Production costs includes operating costs, depreciation and royalties
CONSOLIDATED OPERATING PERFORMANCE
Production: Consolidated production increased by 45% to 19,533 boepd in 2014 and is mainly explained by
increased production in the Colombian operations together with the addition of the Brazilian operations
(since 2Q2014), which were partially offset by lower production in the Chilean operations. On a proforma
basis, consolidated average production reached 20,557 boepd in 2014 and grew 20% compared to 17,098
boepd in 2013.
Net Revenues: Consolidated net revenues increased by 27% to $428.7 million in 2014 compared to $338.4
million in 2013, primarily driven by increased oil production in Colombia, and the addition of Brazilian
operations, partially offset by lower realized prices.
Consolidated Oil Revenues: Consolidated oil revenues represented 86% of total revenues in 2014 compared
to 93% in 2013, increasing by 16% to $367.1 million in 2014, mainly due to increased production, partially
offset by a decrease in the average realized price of oil per barrel. The average realized oil sales price
decreased 5% to $77.5 per barrel in 2014.
Consolidated Gas Revenues: Consolidated gas revenues represented 14% of total revenues in 2014
compared to 7% in 2013, representing an increase of 169% to $61.6 million in 2014 mainly related to the
addition of the Brazilian operations in the amount of $34.1 million and to a lesser extent, to higher average
gas prices in the Chilean operations, partially offset by lower gas production in Chile. The consolidated
average realized gas sales price increased 28% to $6.4 per mcf in 2014.
Costs: Consolidated production costs increased by 28% to $229.6 million in 2014, mainly driven by the
increase in production, including the addition of the Brazilian operations, as follows:
13
+ Operating costs increased by 18% to $107.6 million in 2014, at a lower rate than production growth,
due to higher production in Colombia as well as the addition of the Brazilian operations, partially offset
by improved fixed cost absorption from increased production.
+ Depreciation charges included in production costs increased by 45% to $99.4 million in 2014, resulting
from higher oil and gas production.
e Royalties amounted to $22.2 million in 2014 and $17.2 million in 2013, representing 5% of net revenues
in 2014 and 2013.
Exploration expenses amounted to $43.4 million in 2014 and $16.3 million in 2013, which includes non-cash
expenses related to the write-off of unsuccessful exploratory wells and seismic costs in 2014 for $30.4
million and for $11.0 million in 2013.
Selling expenses increased by 42% to $24.4 million in 2014, primarily due higher production and deliveries
in Colombia.
Administrative costs remained stable and increased by 3% to $48.2 million in 2014. Non-cash depreciation
charges included in administrative costs amounted to $2.3 million in 402014 and $1.6 million in 4Q2013.
Non-cash impairment of non-financial assets amounted to $9.4 million in 2014 (no impairment charges
recognized in 2013) in GeoPark’s Colombian Cuerva Block, mainly derived from the decrease in international
oil prices.
Adjusted EBITDA: Adjusted EBITDA increased by 32% to $220.1 million in 2014, primarily impacted by
higher Adjusted EBITDA in Colombian operations due to increased production and, to a lesser extent, due to
the addition of the Brazilian operations.
Adjusted EBITDA per boe decreased by 2% to $33.0 per boe in 2014 compared to $33.9 per boe in 2013,
explained by lower average oil prices, which were partially offset by lower operating costs per boe due to
improved fixed cost absorption and cost efficiencies and by a change in the revenue mix with higher
incidence of gas resulting from the Brazilian Manati acquisition.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT
Net Financial Expenses: Net Financial expenses increased by 50% to $50.7 in 2014, mainly due to
exchange rate differences resulting from the depreciation of the Brazilian currency and increased interest
expenses, resulting from higher average indebtedness.
Income Tax: Income tax expenses decreased by 66% to $5.2 million in 2014, in line with lower profits
before income taxes. Current tax included in income tax expenses increased by 93% to $23.6 million in
2014. Deferred income tax amounted to a gain of $18.4 million in 2014, as compared to a loss of $1.8
million in 2013.
Profit: Profit in 2014 decreased by 54% to $15.9 million as a result of lower operating profits and higher
financial expenses, which were partially offset by lower income tax expenses.
Operating profit in 2014 included non-cash expenses including pre-tax impairment charges for $9.4 million
and pre-tax write-off of unsuccessful exploratory wells for $30.4 million.
Earnings per share decreased by 72% to $0.13 per share in 2014, mainly driven by lower profits in 2014
and the effect of the issuance of new shares resulting from the NYSE IPO in February 2014.
14
2015 STRATEGY AND OUTLOOK
GeoPark’s strategic approach to 2015 is guided by the following principles:
e Preserve Cash: Reduce work and investment program to maintain flexibility and maintain balance sheet
strength.
e Capital Allocation Discipline: Prioritize lower-risk, higher netback, and quicker cash flow generating
projects.
+ Do More For Less: Aggressively implement operating, G8A and capital cost reduction measures.
e Stay Agile: Continuous monitoring of work programs and adjustment – up or down – as necessary.
e Build for Long Term: Protect critical assets, tools and capabilities necessary for long term, and stay in
hunt for potential value dislocation opportunities.
GeoPark’s business units in Colombia, Chile, Brazil, Peru and Argentina generated over 85 attractive projects
to be considered for the 2015 work program and budget. These projects were evaluated and ranked on a
Company-wide basis in accordance with economic, technical and strategic considerations. At an $80/bbl oil
price, the Company considered carrying out approximately 40-50 projects. With the continuing fall in oil
prices, GeoPark was able to pivot and adjust its selection of projects to those appropriate to the lower oil
price level. At a $65/bbl oil price, it considered approximately 20-25 projects and at a $45-$50 per bbl price,
it considered approximately 5-10 projects.
Since the end of last year, the Company has undertaken a decisive cost cutting program to ensure its ability
to both maximize the work program and preserve its liquidity. Examples of this ongoing program include:
+ Renegotiation and reduction of oil and gas service contracts, including drilling and civil work contractors,
as well as transportation trucking and pipeline costs.
+ Deferment of capital projects by regulatory authority and partner agreement.
+ Operating cost improved efficiencies and temporary suspension of certain marginal producing oil and gas
fields.
e Reduction of G8A costs through organizational restructuring and reduction of legal, accounting and
administrative fees, including an immediate voluntary salary reduction by GeoPark’s senior management
team and Board of Directors.
Further cost reductions are expected to result from a general depreciation of Latin American currencies
(Colombian peso, Brazilian real, Chilean peso, Argentine peso and Peruvian sol), which will positively impact
GeoPark’s operating, G8A and capital costs and from reduced state royalties.
At the base budget oil price assumption of $45-$50 per bbl, GeoPark is targeting a fully-funded $60-$70
million work and investment program with flat to 5% production growth over 2014 production levels. The
bulk of this 2015 work program is targeted to further develop and produce GeoPark’s Tigana and Tua oil
fields in the Llanos 34 Block in Colombia, which currently provide the lowest risk production and reserve
growth opportunities with attractive operating netbacks ($15-$20 per bbl at $45-$50 oil prices). The work
program break-down is approximately as follow:
e Colombia with $35-$40 million in new drilling and facility construction;
e Chile with $5-$8 million in well workovers and facility construction;
e Brazil with $6-$7 million in the Manati compression plant installation and seismic processing;
e Peru with $8-$9 million mainly in environmental studies; and
+ Argentina with $3-$4 million in seismic studies
If oil prices average higher than the base budget price, GeoPark has the ability to allocate additional capital
to more projects and increase its work and investment program and thereby further increase oil and gas
production. Different work program scenarios considered include:
e $65/bbl oil price: $100-$120 million fully-funded work and investment program with 10%-15% production
growth
+ $80/bbl oil price: $200-$220 million fully-funded work and investment program with 20%-25% production
growth
15
CONFERENCE CALL INFORMATION
GeoPark will host its Fourth Quarter and Full Year 2014 Financial Results conference call and webcast on
Monday, March 23, 2015, at 10:00 a.m. Eastern Standard Time.
Chief Executive Officer, James F. Park, Chief Operating Officer, Augusto Zubillaga, and Chief Financial
Officer, Andrés Ocampo, will discuss GeoPark’s financial results for the Fourth Quarter and Full Year 2014,
with a question and answer session immediately following.
Interested parties may access the conference call by dialing from outside the United States, +1 201-612-
7415 and from within the United States, 1 877-660-6853 (Conference ID: 13603347) or to listen to the
webcast by visiting the Investor Support section of the Company’s website (www.geo-park.com).
For further information please contact:
Pablo Ducci – Director Capital Markets pducciOgeo-park.com
T: 562-2242-9600
GeoPark can be visited online at www.geo-park.com
16
CONSOLIDATED STATEMENT OF INCOME
(Quarterly information unaudited)
NET REVENUES
Sale of crude oil
Sale of gas
TOTAL NET REVENUES
Production costs
GROSS PROFIT
Exploration costs
Administrative costs
Selling expenses
Impairment of non-financial assets
Other operating income
OPERATING PROFIT
Financial results, net
PROFIT BEFORE INCOME TAX
Income tax
PROFIT FOR THE PERIOD
Non-controlling interest
ATTRIBUTABLE TO OWNERS OF GEOPARK
In millions of $, except for Y%
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX
AND ADJUSTED EBITDA PER BOE
(Quarterly information unaudited)
Adjusted EBITDA
Depreciation
Share Based Payments
Impairment and write-off
Others
OPERATING PROFIT
Financial results, net
PROFIT BEFORE INCOME TAX
Adjusted EBITDA
Total deliveries (in millions of boe)
Adjusted EBITDA per boe
4Q2014 -4Q2013 % 2014 2013 %
68.3 80.2 -15% 367.1 315.4 16%
12.5 7.6 64% 61.6 22.9 169%
80.8 87.8 -8% 428.7 338.4 27%
-60.2 -49.8 21% -229.6 -179.6 28%
20.6 38.0 -46% 199,1 158.7 25%
-25.7 -0.2 N/A -434 -16.3 167%
-11.5 -14.5 -21% -48.2 -46.6 3%
-2.8 -4.7 -41% -244 -17,3 42%
-9.4 – N/A -9.4 – N/A
-3.6 0.8 -557% -1.8 5.3 -135%
-32.5 19.3 -268% 71.8 83.9 -14%
-19.0 -6.7 185% -50.7 -33.9 50%
-51.5 12.6 -508% 21.1 50.1 -58%
17.8 -2.9 -716% -5.2 -15.2 -66%
-33.7 9.7 -446% 15.9 34.9 -54%
-4.2 3.5 -222% 8.4 12.9 -35%
-29.4 6.2 -571% 7.5 22.0 -66%
In millions of $, except for %
4Q2014 4Q2013 % 2014 2013 %
27.4 41.4 -34% 220.1 167.3 32%
-27.7 -20.4 36% -100.5 -70.0 44%
0.4 -3.2 -88% -8.4 -9.2 -9%
-31.2 1.0 -3237% -39.8 -11.0 263%
0.6 0.6 0% 0.5 6.8 -93%
-32.5 19.3 –268% 71.8 84.0 -14%
-19.0 -6.7 185% -50.7 -33.9 50%
-51.5 12.6 –508% 21.1 50.1 -58%
27.4 41.4 -34% 220.1 167.3 32%
1.8 1.3 36% 6.7 4.9 35%
15.0 30.7 -51% 33.0 33.9 -3%
17
RECONCILIATION OF GROSS PROFIT TO OPERATING NETBACK
AND OPERATING NETBACK PER BOE
(Quarterly information unaudited)
In millions of $, except for %
4Q2014
Gross Profit 20.6
Plus: Depreciation and share based payments 26.6
Less: Selling Expenses -2.8
Operating Netback 44.4
Total deliveries (in millions of boe) 1.8
Operating Netback per boe 24.3
CONSOLIDATED SUMMARIZED BALANCE SHEET
402013
38.0
23.1
-4.7
56.4
1.3
42.0
%
-46%
15%
-41%
-21%
36%
-42%
In millions of $, except for %
Dec ’14
Non Current Assets
Property, Plant and Equipment 790.8
Other Non Current Assets 47.8
Total Non Current Assets 838.5
Current Assets
Inventories 8.5
Trade Receivables 36.9
Other Current Assets 27.5
Cash at bank and in hand 127.7
Total Current Assets 200.6
Total Assets 1,039.1
Equity
Equity attributable to owners of GeoPark 375.6
Non-controlling interest 103.6
Total Equity 479.1
Non Current Liabilities
Borrowings 342.4
Other Non Current Liabilities 93.6
Total Non Current Liabilities 436.0
Current Liabilities
Borrowings 27.2
Other Current Liabilities 96.8
Total Current Liabilities 124.0
Total Liabilities and Equity 1,039.1
Dec ’13
595.4
36.3
631.8
8.1
42.6
42.7
121.1
214.6
846.4
270.8
95.1
366.0
290.5
64.5
355.0
26.6
98.9
125.5
846.4
o
33%
31%
33%
5%
-13%
-36%
5%
-7%
23%
39%
9%
31%
18%
45%
23%
2%
-2%
-1%
23%
2014
199.1
99.9
-24.4
274.5
6.7
41.2
2013
158.7
73.2
-17.3
214.7
4.9
43.5
%
25%
36%
42%
28%
35%
-5%
18
SELECTED HISTORICAL OPERATIONAL AND FINANCIAL DATA
2014
Oil Reserves (2P PRMS) – mmboe 56.3
Gas Reserves (2P PRMS) – mmboe 35.8
Combined Reserves (2P PRMS) – mmboe 92.1
Oil Production (thousand boepd) 14.5
Gas Production (thousand boepd) 5.1
Production (thousand boepd) 19.6
Oil Revenues ($ million ) 367
Gas Revenues ($ million) 62
Total Revenues ($ million) 429
Adjusted EBITDA ($ million) 220
Year ended December 31,
2013
33.9
27.7
61.6
11.1
2.4
13.5
315
23
338
167
2012
27.8
29.1
2011
16.9
32.6
49.5
74
112
63
19
GLOSSARY
Adjusted EBITDA
Adjusted EBITDA per boe
Operating Netback per boe
ANP
ANH
boe
boepd
bopd
CEOP
DEM
EPS
IPO
mbbl
mmbo
mmboe
mcfpd
mmcfpd
Mm?*/day
PRMS
SPE
wI
NPVi0
Sqkm
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
Adjusted EBITDA divided by total boe deliveries
Net revenues, less production costs (net of depreciation charges and
accrual of stock options and stock awards) and selling expenses,
divided by total boe deliveries. Operating Netback is equivalent to
Adjusted EBITDA net of cash expenses included in Administrative,
Exploratory and Other operating costs.
Agéncia Nacional do Petróleo, Brazil’s National Agency of Petroleum
Agencia Nacional de Hidrocarburos de Colombia
Barrels of oil equivalent
Barrels of oil equivalent per day
Barrels of oil per day
Contrato Especial de Operacion Petrolera (Special Petroleum
Operations Contract)
DeGolyer and MacNaughton
Earnings per share
Initial Public Offering
Thousand barrels of oil
Million barrels of oil
Million barrels of oil equivalent
Thousand cubic feet per day
Million cubic feet per day
Thousand cubic meters per day
Petroleum Resources Management System
Society of Petroleum Engineers
Working interest
Present value of estimated future oil and gas revenues, net of
estimated direct expenses, discounted at an annual rate of 10%
Square kilometers
20
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.
Oil and gas production figures included in this release are stated before the effect of royalties paid in kind,
consumption and losses.
Information about oil and gas reserves: The SEC permits oil and gas companies, in their filings with
the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such
terms. GeoPark uses certain terms in this press release, such as “PRMS Reserves” that the SEC’s guidelines
do not permit GeoPark from including in filings with the SEC. As a result, the information in the Company’s
SEC filings with respect to reserves will differ significantly from the information in this press release.
NPV10 for PRMS 1P, 2P and 3P reserves is not a substitute for the standardized measure of discounted
future net cash flows for SEC proved reserves.
Adjusted EBITDA: The Company defines Adjusted EBITDA as profit for the period before net finance cost,
income tax, depreciation, amortization and certain non-cash items such as impairments and write-offs of
unsuccessful exploration and evaluation assets, accrual of stock options and stock awards and bargain
purchase gain on acquisition of subsidiaries. Adjusted EBITDA is not a measure of profit or cash flows as
determined by IFRS. The Company believes Adjusted EBITDA is useful because it allows us to more
effectively evaluate our operating performance and compare the results of our operations from period to
period without regard to our financing methods or capital structure. The Company excludes the items listed
above from profit for the period in arriving at Adjusted EBITDA because these amounts can vary
substantially from company to company within our industry depending upon accounting methods and book
values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA
should not be considered as an alternative to, or more meaningful than, profit for the period or cash flows
from operating activities as determined in accordance with IFRS or as an indicator of our operating
performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in
understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax
structure and significant and/or recurring write-offs, as well as the historic costs of depreciable assets, none
21
of which are components of Adjusted EBITDA. The Company’s computation of Adjusted EBITDA may not be
comparable to other similarly titled measures of other companies. For a reconciliation of Adjusted EBITDA to
the IFRS financial measure of profit for the year or corresponding period, see the accompanying financial
tables.
Operating netback per boe should not be considered as an alternative to, or more meaningful than, profit for
the period or cash flows from operating activities as determined in accordance with IFRS or as an indicator
of our operating performance or liquidity. Certain items excluded from Operating netback per boe are
significant components in understanding and assessing a company’s financial performance, such as a
company’s cost of capital and tax structure and significant and/or recurring write-offs, as well as the historic
costs of depreciable assets, none of which are components of Operating Netback per boe. The Company’s
computation of Operating Netback per boe may not be comparable to other similarly titled measures of
other companies. For a reconciliation of Operating Netback per boe to the IFRS financial measure of profit
for the year or corresponding period, see the accompanying financial tables.
22
Link al archivo en CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=c8e67b61c78cccd736b501b61353e5f2VFdwQmVFNVVRWHBOUkVGNlRrUlJNazlCUFQwPQ==&secuencia=-1&t=1682366909
