ma
Eos el
GEOPARK
Santiago, 09 de junio 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 en el U.S. Securities and
Exchange Commission (SEC) el día
19/05/15.
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 19 de mayo de 2015, en el
U.S. Securities and Exchange Commission (“SEC”), en donde mediante un
comunicado de prensa se informa los resultados del primer trimestre 2015.
La información adjunta consiste en un comunicado de
prensa de catorce páginas en idioma inglés.
Sin otro particular, saluda atentamente a Usted,
// Pedro Aylwin Chiorfini
“2 pp. GEOPARK LIMITED
Nuestra Señora de los Ángeles 179 – Las Condes, Santiago – Chile
Tel. (+56 2) 2429600 – infoWgeo-park.com – www.geo-park.com
E
GEOPARK
FOR IMMEDIATE DISTRIBUTION
GEOPARK REPORTS RESULTS FOR THE FIRST QUARTER
ENDED MARCH 31, 2015
Santiago, Chile – May 19, 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!
reports its quarterly results for the first quarter 2015.
All figures are expressed in US dollars and growth comparisons refer to the same period of the prior year,
except when specified.
FIRST QUARTER 2015 HIGHLIGHTS
Operational:
e Oiland gas production was up 18% to 19,586 boepd
e Exploratory well Tilo 1 in Llanos 34 Block (GeoPark operated with 45% WI), was successfully tested in
the Guadalupe formation and is currently producing approximately 850 bopd. Further technical
evaluations are being undertaken to determine if Tilo Field is a northeast extension of Tigana Field
e Appraisal wells Tua 7 and Tua 9 in the Llanos 34 Block successfully tested in the Guadalupe formation
and are currently producing 1,400 bopd and 950 bopd, respectively
e Gross production in Llanos 34 Block, operated by GeoPark, achieved record production of 26,000 bopd
by the end of 1Q2015
e Drilling campaign expected to re-start during 2Q2015 with the drilling of an exploratory well in the CPO-
4 Block in Colombia (GeoPark operated with a 50% WTI), followed by a development and exploration
drilling campaign in the Llanos 34 Block scheduled for 242015
e Pi reserves up 116% to 62.9 mmboe, 2P reserves up 74% to 122.3 mmboe, with the corresponding 1P
NPV10 up 49% to $0.8 billion and 2P NPV10 up 32% to $1.7 billion, according to reserves report certified
by DEM (including Peru)
e Construction of a compression plant continued in the Manati Field (non-operated with 10% WI) in Brazil
with an expected start-up scheduled for 2H2015
Financial:
e Adjusted EBITDA reached $16.8 million and operating netback of $16.4 per boe despite low oil price
environment
+ Cash position of $91.4 million at the end of 1Q2015
e Capital expenditures reduced by 83% to $10.3 million in 192015 compared to $62.2 million in 1Q2014
+ Net loss of $36.0 million in 1Q2015 mainly explained by lower revenues from decreased oil prices,
foreign exchange losses from depreciation of Brazilian currency, and one-time charges from cost
reduction efforts
Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval,
expected in 2015.
e Cash costs reduced by 33% to $24 per boe in 1Q2015 as compared to 1Q2014 resulting from ongoing
cost reduction efforts and efficiencies, combined with depreciation of local currencies. (Cash costs
includes Production and Operating, G8G, G8A and Selling expenses)
e Long-term financial debt maturity with over 80% due in 2020
e Total Gross Debt to Adjusted EBITDA (last twelve months) of 1.9x in 1Q2015
Strategic / New Business:
+ Agreements executed with Itau to extend financial debt principal payments of $15 million that were
originally due in 2015
+ Merger of Brazilian subsidiaries Rio das Contas and GeoPark Brazil was completed, resulting in cost
efficiencies and improved tax shield of the merged entities
James F. Park, Chief Executive Officer of GeoPark, said: “We salute our team for their quick and effective
response to the oil price decline – with significant work program adjustments and internal and external cost
reductions. Our strong performance through 2014 positioned us favorably to navigate through the resulting
industry turbulence – and our decisive actions during the first quarter are already creating opportunities
which are enabling us to revisit and possibly expand our program. Concurrently, our team continued to find
more oil and gas – with the new Tilo oil field discovery and two new appraisal well successes in the Tua oil
field in Colombia – which are already on stream and contributing to our production growth in Colombia”.
FIRST QUARTER 2015
The table below sets forth some key indicators of performance for 1Q2015 compared with 1Q2014. (Figures
corresponding to 1Q2015 include the acquired interest in the Brazilian Manati Field completed on March 31,
2014. As of that date, GeoPark started consolidating line by line its results of operations for accounting
purposes within its Brazilian operations).
Key Indicators 102015 102014 % Chg.
Oil production (bopd) 14,101 13,765 2%
Gas production (mcfpd) 32,905 16,908 95%
Average net production (boepd) 19,586 16,583 18%
Combined price ($ per boe) 33.4 77.9 -57%
7 Oil ($ per bbl) 34.4 85.6 -60%
7 Gas ($ per mcf) 5.1 6.5 -21%
Net Oil Revenues ($ million) 40.8 75.2 -46%
Net Gas Revenues ($ million) 13.6 9.5 44%
Net Revenues ($ million) 54.4 84.7 -36%
Production 8, Operating Costs* ($ million) -23.9 -20.1 19%
Adjusted EBITDA ($ million) 16.8 48.4 -65%
Adjusted EBITDA per boe ($) 9.8 42.5 -77%
Operating Netback per boe ($) 16.4 51.7 -68%
Profit (loss) for the period ($ million) -36.0 10.3 -450%
* Production and Operating Costs include operating costs and royalties paid in cash.
CONSOLIDATED OPERATING PERFORMANCE
Production: Consolidated production increased by 18% in 1Q2015 to 19,586 boepd. This growth is
explained by (i) a 2% increase in consolidated oil production, primarily from higher oil production in the
Colombian operations, and (ii) a 95% increase in gas production mainly due to the incorporation of the
Brazilian operations; partially offset by lower production in Chile.
e Colombia: oil production increased by 25% to 11,586 bopd in 1Q2015 compared to 1Q2014, explained
mainly by new production from the Tigana oil field in the Llanos 34 Block.
e Chile: oil and gas production decreased by 38% to 4,486 boepd in 1Q2015 compared to 7,247 boepd in
102014, mainly due to 45% lower oil production together with 30% lower gas production, resulting
mainly from the natural decline in base production. No new wells were drilled during 1Q2015.
e Brazil: oil and gas production averaged 3,494 boepd in 1Q2015, composed of approximately 98% gas
and 2% condensate.
Net Revenues: Consolidated net revenues decreased by 36% to $54.4 million in 1Q2015 compared to
$84.7 million in 1Q2014, mainly driven by lower oil revenues and were partially offset by increased gas
revenues.
Consolidated Oil Revenues: Consolidated oil revenues decreased 46% to $40.8 million in 1Q2015 compared
to 1Q2014, representing 75% of total net revenues compared to 89% in 1Q2014. Decrease in net oil
revenues is explained by a 50% lower average oil price and by lower deliveries in Chile, which were partially
offset by higher deliveries in Colombia.
e Colombia: oil revenues decreased 17% to $30.7 million in 1Q2015 mainly due to lower prices, partially
offset by higher deliveries. Oil prices decreased 60% to $32.4 per barrel in 1Q2015. Oil deliveries
increased by 106% to 1.0 mmbbls in 1Q2105. (Oil deliveries were significantly higher since in 1Q2014
deliveries had been impacted by temporary delays at the Port of Coveñas).
Earn-out payments (deducted from Colombian revenues) decreased 24% to $2.8 million in 1Q2015,
compared to $3.7 million in 1Q2014 mainly resulting from the decline in oil prices.
e Chile: oil revenues decreased 75% to $9.4 million in 1Q2015 due to lower production and lower prices.
Oil prices decreased 53% to $42.1 per barrel in 1Q2015. Deliveries decreased by 46% to 0.2 mmbbls in
102015 due to lower production resulting from the natural decline of fields.
Consolidated Gas Revenues: Consolidated gas revenues increased by 44% to $13.7 million in 1Q2015
compared to $9.5 million in 1Q2014. This was mainly a result of the addition of the Brazilian operations,
which amounted to $9.2 million and were partially offset by lower gas revenues in Chile of $5.0 million.
e Brazil: gas revenues amounted to $9.2 million in 1Q2015. The average gas price, net of taxes,
amounted to $5.4 per mcf ($32.5 per boe), impacted by the depreciation of the local currency.
e Chile: gas revenues decreased 52% to $4.5 million in 1Q2015 mainly due to decreased production and
lower prices. Production decreased by 30% to 12.4 mmcfpd in 1Q2015 due to natural decline of the
fields, partially offset by workovers and other well intervention activities to enhance production. Gas
prices decreased by 28% to $4.7 per mcf in 1Q2015, resulting from lower international methanol prices
affecting the price of Fell Block gas, which was partially offset by higher gas production and higher prices
in the Tierra del Fuego blocks.
Costs: Consolidated production and operating costs increased by 19% to $23.9 million in 1Q2015, as
follows:
Consolidated operating costs increased by 44% to $22.2 million in 1Q2015, compared to $15.2 million in
102014, due to higher production and deliveries in Colombia as well as the incorporation of the Brazilian
operations.
e Colombia: operating costs increased by 46% to $11.0 million in 1Q2015, mainly due to increased
production and deliveries. Operating costs per boe decreased by 31% to $10.9 per boe, mainly due to
improved fixed cost absorption, cost reduction initiatives and the impact of the depreciation of the local
currency against the dollar.
e Chile: operating costs increased by 12% to $9.5 million in 1Q2015 from $8.2 million in 1Q2014 while
operating costs per boe increased to $25.0 due to the impact on fixed costs from lower oil production
and the startup of the Tierra del Fuego Blocks.
e Brazil: operating costs amounted to $1.2 million, or $4.2 per boe.
Consolidated royalties (included in production and operating costs) amounted to $1.7 million in 1Q2015,
compared to $4.4 million in 1Q2014, representing 3% of total net revenues in 1Q2015 compared to 5% in
102014. The decrease was due to a change in the mix of royalties paid in kind as opposed to royalties paid
in cash in our Colombian operations.
Consolidated geological and geophysical (G8G) expenses remained stable and amounted to $2.7 million in
102015 and 1Q2014.
Consolidated selling expenses decreased to $2.3 million in 1Q2015 compared to $6.3 million in 1Q2014,
mainly as a result of lower selling expenses in Colombia, due to a change in the commercialization strategy
with more sales at well-head as opposed to sales through pipeline and due to the temporary shut-in during
1Q2015 of the oil fields in La Cuerva Block, located in a more remote area with higher transportation costs.
e Colombia: selling expenses decreased 65% to $1.9 million in 1Q2015 resulting from lower transportation
costs per boe due to efficiencies related to a change in delivery point of certain production from the Tua
Field, and due to the temporary shut-in during 1Q2015 of the oil fields in La Cuerva Block.
Consolidated administrative costs decreased 8% to $9.8 million in 192015 compared to $10.6 million in
102014.
Adjusted EBITDA: Consolidated Adjusted EBITDA decreased by 65% to $16.8 million in 1Q2015 compared
to $48.4 million in 1Q2014, mainly caused by the decrease in oil prices, which was partially offset by a
106% increase in oil deliveries in Colombia and the incorporation of the Brazilian operations.
Adjusted EBITDA per boe decreased by 77% to $9.8 per boe in 1Q2015 compared to $42.5 per boe in
102014, mainly as a result of a 50% decrease in oil prices, partially offset by lower production and
operating costs, administrative and selling expenses per boe. Cost reductions resulted from initiatives
undertaken by the Company, in conjunction with the depreciation of the local currencies in the countries
where the Company operates.
e Colombia: Adjusted EBITDA decreased 21% to $16.3 million in 1Q2015 compared to $20.7 million in
102014, mainly due to the decline in oil prices, partially offset by higher oil deliveries, and lower selling
costs. Adjusted EBITDA per boe decreased 62% to $15.7 per boe in 1Q2015, mainly due to lower oil
prices, partially offset by lower operating costs and selling expenses per boe resulting from increased
efficiency and the depreciation of the Colombian peso.
e Chile: Adjusted EBITDA in Chile was nil in 1Q2015, compared to $30.7 million in 1Q2014, mainly due to
lower production and lower oil and gas prices.
e Brazil: Adjusted EBITDA in Brazil reached $7.0 million in 1Q2015. Adjusted EBITDA per boe was $24.1 in
102015.
+ Corporate and Other: Adjusted EBITDA amounted to $6.3 million costs in 1902015 compared to $2.3
million costs in 1Q2014 including expenses associated with Peruvian start-up activities.
Consolidated other operating costs increased to $7.2 million in 1Q2015 compared to $0.6 million gain in
102014, mainly due to the impact of one-time termination costs and contract renegotiations. This reduction
streamlined certain internal functions and departments to meet current needs and create a more efficient
workforce within the current economic environment.
Consolidated depreciation charges increased by 41% to $25.5 million in 1Q2015, compared to $18.1 million
in 1Q2014, mainly as a result of the increase in consolidated production and deliveries, partially offset by
lower per barrel depreciation cost. The decrease in depreciation costs per boe is the result of drilling success
and increased reserves as compared to the prior period.
CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD
Net Financial Costs: Net financial costs increased to $9.0 million in 1Q2015 from $6.3 million in 1Q2014,
mainly from higher interest costs resulting from higher average indebtedness (mainly derived from the
credit facility of $70 million with Itau obtained on March 31, 2014 to acquire the interest in the Brazilian
Manati Field), and to a lesser extent by higher bank charges and other financial costs.
Foreign Exchange Loss: Net foreign exchange losses increased to $19.7 million in 1Q2015 from
$1.3 million in 102014, mainly related to the impact of the depreciation of the Brazilian Reais in 1Q2015
over dollar-denominated net debt incurred at the local subsidiary level, where the functional currency is the
Brazilian Reais. (This effect may be reversed in the following quarters due to fluctuations in the local
currency. For instance, as of the date of the issuance of this press release, the Brazilian local currency
appreciated by approximately 5%, thus partially offsetting foreign exchange losses recorded in 1Q2015).
Income Tax: Income tax amounted to a gain of $9.7 million in 1Q2015 compared to a loss of $5.5 million
in 1Q2014, in line with losses before income taxes recorded in 1Q2015.
Profit: Losses for the period amounted to $36.0 million in 1Q2015 compared to a profit of $10.3 million in
102014, mainly due to (i) lower revenues for $30.7 million impacted by decreased oil prices, (ii) higher
foreign exchange losses of $18.5 million related to the impact of depreciation of the Brazilian currency in
financial liabilities, and (iii) $7.8 million expenses in other operating expenses including termination costs
related to cost reduction efforts; partially offset by $15.2 million gain in related income taxes.
BALANCE SHEET
Cash and cash equivalents as of March 31, 2015, totaled $91.4 million, while at year-end 2014 cash and
cash equivalents amounted to $127.7 million. The decrease is primarily due to cash used in operations
during 2015, amounting to $9.4 million, along with $11.6 million of funds used in financing activities that are
mainly explained by interest payments. In addition, net cash used for investment activities totaled $12.3
million in 1Q2015 and included the Company’s capital expenditures.
Total assets as of March 31, 2015, reached $970.4 million. Additionally, total investments for the period
ended March 31, 2015, mainly included (i) $6.0 million invested in Colombia, (ii) $2.4 million invested in
Brazil, and (iii) $1.8 million in Chile.
At the end of 1Q2015, GeoPark’s total financial debt (net of debt issuance costs) amounted to $363 million,
including the $300 million 2020 Bond issued in February 2013 and the credit facility in Brazil for the
acquisition of an interest in the Brazilian Manati Field amounting to $70 million.
Equity reached $439.0 million and included minority interests of $100.2 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 March 31, 2015 decreased by $40.5
million as compared to December 31, 2014, mainly due to losses from the period ended March 31, 2015 for
$36.0 million and to a lesser extent due to currency translation differences amounting to $4.4 million.
FINANCIAL RATIOS (*)
Amounts in $ million
Gross debt /
Year / Period Financial debt Cash position LTM 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
102015 363.4 91.4 1.9x 6.3x
(*) 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:
+ Leverage Ratio, defined as Gross Debt to Adjusted EBITDA, 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. The covenants
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).
The Company does not anticipate achieving the ratios above in the following quarters of 2015 due to the
impact of the current low oil prices environment, which may limit the Company’s capacity to incur additional
indebtedness, other than permitted debt, as specified in the indenture governing the Notes 2020.
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 in 2014, and
successfully tested in 1Q2015 with an electrical submersible pump in the Guadalupe formation, at 10,707
feet. In March, Tilo 1 well initiated a long-term test, and is currently in production at a rate of approximately
850 bopd. 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, an
agreement was reached to: (i) extend the principal payments that were due in 2015 (amounting to
approximately US$15 million), which will be divided pro-rata during the remaining principal installments,
starting in March 2016 and (ii) to increase the variable interest rate equal to the six-month LIBOR + 4.0%.
Resumption of Share Repurchase Program
In April 2015, GeoPark announced that it resumed its program to repurchase up to $10 million of common
shares, par value $0.001 per share of the Company, which had expired on March 20, 2015. The Repurchase
Program will expire at the close of business on May 20, 2015 and can be resumed by decision of the Board
of Directors. As of the date of this release, approximately $1.5 million in shares have been purchased under
the Repurchase Program.
Annual General Meeting
GeoPark’s 2015 Annual General Meeting of Shareholders will be held on June 30, 2015 in Washington D.C.,
United States. Information regarding the notice and other related information including the Company’s
Annual Report on Form 20-F for 2014 can be found in the Investor Support section of the Company’s
website at www.geo-park.com.
CONFERENCE CALL INFORMATION
GeoPark will host its First Quarter 2015 Financial Results conference call and webcast on Wednesday, May
20, 2015, at 10:00 a.m. Eastern Time.
Chief Executive Officer, James F. Park, Chief Operating Officer, Augusto Zubillaga, and Chief Financial
Officer, Andrés Ocampo, will discuss GeoPark’s financial results for the First Quarter 2015, with a question
and answer session immediately following.
Interested parties may access the conference call by dialing from outside the United States, +1 201-689-
8035 and from within the United States, 877-407-8035 (Passcode: GeoPark) or to listen to the webcast by
visiting the Investor Support section of the Company’s website (www.geo-park.com).
For further information please contact:
Pablo Ducci – Director Capital Markets pducciOgeo-park.com
T: 562-2242-9600
GeoPark can be visited online at www.geo-park.com
ANALYSIS INFORMATION BY BUSINESS SEGMENT
Colombia 102015 102014 % Chg.
Oil production (bopd) 11,586 9,232 25%
Gas production (mcfpd) – 196 N/A
Average net production (boepd) 11,586 9,265 25%
Oil price ($ per bbl) 32.4 81.5 -60%
Net oil Revenues ($ million) 30.7 37.2 -17%
Production and Operating Costs* ($ million) -11.5 -10.0 15%
Adjusted EBITDA ($ million) 16.3 20.7 -21%
Adjusted EBITDA per boe ($) 15.7 41.2 -62%
Operating Netback per boe ($) 16.6 43.7 -62%
Chile 102015 102014 % Chg.
Oil production (bopd) 2,444 4,475 -45%
Gas production (mcfpd) 12,246 17,588 -30%
Average net production (boepd) 4,486 7,247 -38%
Combined price ($ per boe) 36.2 74.5 -51%
7 Oil ($ per bbl) 42.1 90.7 -53%
7 Gas ($ per mcf) 4.7 6.5 -28%
Net Oil Revenues ($ million) 9.4 37.7 -75%
Net Gas Revenues ($ million) 4.5 9.5 -52%
Net Revenues ($ million) 13.9 47.2 -71%
Production and Operating Costs* ($ million) -10.0 -10.3 0%
Adjusted EBITDA ($ million) – 30.7 N/A
Adjusted EBITDA per boe ($) – 48.5 N/A
Operating Netback per boe ($) 8.8 58.0 -84%
Brazil 102015 1Q02014*+* % Chg.
Oil production (bopd) 51 – N/A
Gas production (mcfpd) 20,659 – N/A
Average net production (boepd) 3,494 – N/A
Gas Price ($ per mcf) 5.4 – N/A
Net Revenues ($ million) 9.4 – N/A
Production and Operating Costs** ($ million) -1.9 – N/A
Adjusted EBITDA ($ million) 7.0 -0.7 N/A
Adjusted EBITDA per boe ($) 24.1 – N/A
Operating Netback per boe ($) 26.1 – N/A
* Production and Operating costs include operating costs and royalties paid in cash.
** 102014 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.
CONSOLIDATED STATEMENT OF INCOME
(Quarterly information unaudited)
(In millions of $, except for %) 102015 102014
NET REVENUES
Sale of crude oil 40.8 75.2
Sale of gas 13.6 9.5
TOTAL NET REVENUES 54.4 84.7
Production and operating costs -23.9 -20.1
Geological and Geophysical costs -2.7 -2.7
Administrative expenses -9.8 -10.6
Selling expenses -2.3 -6.3
Depreciation -25.5 -18.1
Write-off of unsuccessful efforts – -4.1
Other operating -7.2 0.6
OPERATING PROFIT -16.9 23.4
Financial costs, net -9.0 -6.3
Foreign Exchange Losses -19.7 -1.3
PROFIT BEFORE INCOME TAX -45.7 15.8
Income tax 9.7 -5.5
PROFIT (LOSS) FOR THE PERIOD -36.0 10.3
Non-controlling interest -3.3 3.6
ATTRIBUTABLE TO OWNERS OF GEOPARK -32.7 6.7
RECONCILIATION OF ADJUSTED EBITDA TO PROFIT BEFORE INCOME TAX
AND ADJUSTED EBITDA PER BOE
(Quarterly information unaudited)
1Q2015 1Q2014
Adjusted EBITDA 16.8 48.4
Depreciation -25.5 -18.1
Share Based Payments -1.2 -2.9
Impairment and write-off – -4.1
Others -7.1 0.2
OPERATING PROFIT -16.9 23.4
Financial costs, net -9.0 -6.3
Foreign Exchange Losses, net -19.7 -1.3
PROFIT BEFORE INCOME TAX -45.7 15.8
Adjusted EBITDA 16.8 48.4
Total deliveries (in millions of boe) 1.7 1.1
Adjusted EBITDA per boe 9.8 42.5
RECONCILIATION OF OPERATING NETBACK TO OPERATING NETBACK PER BOE
(Quarterly information unaudited)
Operating Netback
Total deliveries (in millions of boe)
Operating Netback per boe
1Q2015
28.1
1.7
16.4
CONSOLIDATED SUMMARIZED BALANCE SHEET
(Quarterly information unaudited)
Non Current Assets
Property, Plant and Equipment
Other Non Current Assets
Total Non Current Assets
Current Assets
Inventories
Trade Receivables
Other Current Assets
Cash at bank and in hand
Total Current Assets
Total Assets
Equity
Equity attributable to owners of GeoPark
Non-controlling interest
Total Equity
Non Current Liabilities
Borrowings
Other Non Current Liabilities
Total Non Current Liabilities
Current Liabilities
Borrowings
Other Current Liabilities
Total Current Liabilities
Total Liabilities and Equity
Mar ‘i5
760.4
54.9
815.3
5.3
31.7
26.7
91.4
155.1
970.4
338.8
100.2
439.0
348.0
94.8
442.8
15.5
73.1
88.6
970.4
102014
59.3
1.1
51.7
Dec ’14
790.8
47.8
838.5
8.5
36.9
27.5
127.7
200.6
1,039.1
375.6
103.6
479.1
342.4
93.6
436.0
27.2
96.8
124.0
1,039.1
10
SELECTED HISTORICAL OPERATIONAL AND FINANCIAL DATA
Year ended December 31,
2014 2013 2012 2011 2010
Oil Reserves (2P PRMS) – mmboe 56.3 33.9 27.8 16.9 16.2
Gas Reserves (2P PRMS) – mmboe 35.8 27.7 29.1 32.6 33.4
Combined Reserves (2P PRMS) – mmboe 92.1 61.6 56.9 49.5 49.6
Peru* 30.2 – – – –
Total including Peru 122.3 – – – –
Oil Production (thousand boepd) 14.5 11.1 7.5 2.5 1.9
Gas Production (thousand boepd) 5.1 2.4 3.8 5.1 5.0
Production (thousand boepd) 19.6 13.5 11.3 7.6 6.9
Oil Revenues ($ million ) 367 315 222 74 48
Gas Revenues ($ million) 62 23 29 38 31
Total Revenues ($ million) 429 338 250 112 80
Adjusted EBITDA ($ million) 220 167 121 63 41
* Transaction executed with Petroperu on October 1, 2014 with final closing subject to Peru Government approval,
expected in 2015.
11
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
Adjusted EBITDA is defined as 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 share-based payment and other non-recurring
events.
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, Geological and Geophysical 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
12
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,
“potential,” among others.
SS
intend,” “will,” “estimate” and
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 2015 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 stock awards, bargain purchase gain
on acquisition of subsidiaries and other non-recurring events. 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
13
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
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.
14
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