GeoPark Announces 2P Reserve Replacement of 110%
Net Present Value (After Tax) of
2P Value Per Share (Net Debt-Adjusted) of
All reserves included in this release refer to
The Company’s 2023 year-end reserves, related net present values and other information included in this press release exclude
2023 Year-End D&M Certified Oil and Gas Reserves and Highlights
During 2023,
These new exploration discoveries have an associated 2P NPV10 After Tax of approximately
The new discoveries were added in the second half of 2023 and targeted exploration prospects that include combined structural/stratigraphic traps in
As of
D&M estimated future development capital required to develop 1P reserves at
Consolidated Reserves Summary
- 1P reserves of 68.8 mmboe, with a Reserve Life Index (RLI) of 5.4 years
- 2P reserves of 115.1 mmboe, with a RLI of 9.1 years
- 3P reserves of 167.0 mmboe, with a RLI of 13.1 years
-
Future development capital to develop 1P, 2P and 3P reserves of
$1.8 per barrel,$2.7 per barrel and$2.8 per barrel, respectively
Net Present Value and Value Per Share
-
1P NPV10 After Tax of
$1.1 billion -
Net debt-adjusted 1P NPV10 After Tax of
$14.1 per share -
2P NPV10 After Tax of
$1.8 billion -
Net debt-adjusted 2P NPV10 After Tax of
$26.0 per share
2024 Work Program: Growing Production, Delineating New Plays and Returning Value
-
To reflect the divestment of assets in
Chile , the 2024 consolidated production guidance was adjusted to 35,500-39,000 boepd from the previous 37,000-40,000 boepd announced onNovember 8, 2023 - This guidance represents 2-12% production growth versus full-year 2023 adjusted production of 34,8433 boepd
-
Self-funded 2024 capital expenditures program of
$150-200 million to drill 35-45 gross wells (including 5-10 gross exploration wells and 30-35 gross appraisal and development wells) -
At
$80-90 per bbl Brent,GeoPark expects to generate an Adjusted EBITDA of$420-550 million and a free cash flow of$90-160 million , unchanged by the divestment ofChile - Financial framework enables cash optionality to fund accretive growth opportunities while targeting to return approximately 40-50% of free cash flow after taxes to shareholders
2022 Year-End to 2023 Year-End Reserves Evolution
Total (mmboe) |
PD |
1P |
2P |
3P |
2022 Year-End Reserves |
56.0 |
76.1 |
128.4 |
196.3 |
Chile Divestment |
-3.4 |
-4.1 |
-14.6 |
-27.0 |
Pro forma (excluding |
52.6 |
72.0 |
113.8 |
169.3 |
2023 Production |
-12.7 |
-12.7 |
-12.7 |
-12.7 |
Discoveries and Extensions |
7.7 |
7.9 |
16.0 |
27.0 |
Technical Revisions |
3.1 |
2.6 |
-0.2 |
-14.3 |
Economic Factors & Other |
-1.0 |
-1.0 |
-1.8 |
-2.4 |
2023 Year-End Reserves |
49.7 |
68.8 |
115.1 |
167.0 |
2023 Reserve Life (years) |
3.9 |
5.4 |
9.1 |
13.1 |
For more information on
https://ir.geo-park.com/files/doc_downloads/reserves_info_docs/2024/annex-certified-reserves-evaluation-year-end-2023.pdf
__________________________________ |
1 The Company is unable to present a quantitative reconciliation of the 2024 Adjusted EBITDA which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc. Since free cash flow is calculated based on Adjusted EBITDA, for similar reasons, the Company does not provide a quantitative reconciliation of the 2024 free cash flow forecast. |
2 Free cash flow is used here as Adjusted EBITDA less capital expenditures, mandatory interest payments and cash taxes. |
3 Calculated as full-year 2023 average consolidated production of 36,563 boepd, less 1,720 boepd of full-year 2023 production in |
OTHER NEWS
Reporting Date for 4Q2023 Results Release, Conference Call and Webcast
In conjunction with the 4Q2023 results press release,
To listen to the call, participants can access the webcast located in the Invest with Us section of the Company’s website at www.geo-park.com, or by clicking below:
https://events.q4inc.com/attendee/179784519
Interested parties may participate in the conference call by dialing the numbers provided below:
United States Participants: 404-975-4839
Global Dial-In Numbers: Click here
Passcode: 998063
Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast.
An archive of the webcast replay will be made available in the Invest with Us section of the Company’s website at www.geo-park.com after the conclusion of the live call.
GLOSSARY
1P |
Proven Reserves |
2P |
Proven plus Probable Reserves |
3P |
Proven plus Probable plus Possible Reserves |
Adjusted EBITDA |
Adjusted EBITDA is defined as profit for the period before net finance costs, income tax, depreciation, amortization, the effect of IFRS 16, certain non-cash items such as impairments and write-offs of unsuccessful efforts, accrual of share-based payments, unrealized results on commodity risk management contracts and other non-recurring events |
boe |
Barrels of oil equivalent (6,000 cf marketable gas per bbl of oil equivalent). Marketable gas is defined as the total gas produced from the reservoir after reduction for shrinkage resulting from field separation; processing, including removal of nonhydrocarbon gas to meet pipeline specifications; and flare and other losses but not from fuel usage |
boepd |
Barrels of oil equivalent per day |
bopd |
Barrels of oil per day |
Certified Reserves |
Refers to |
mboed |
Thousands of barrels of oil equivalent per day |
mmboe |
Millions of barrels of oil equivalent |
NPV10 After Tax |
Net Present Value after tax discounted at 10% rate |
PD |
Proven Developed Reserves |
PRMS |
Petroleum Resources Management System |
RLI |
Reserve Life Index |
RRR |
Reserve Replacement Ratio |
WI |
Working Interest |
NOTICE
Additional information about
The reserve estimates provided in this release are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than, or less than, the estimates provided herein. Statements relating to reserves are by their nature forward-looking statements.
Gas quantities estimated herein are reserves to be produced from the reservoirs, available to be delivered to the gas pipeline after field separation prior to compression. Gas reserves estimated herein include fuel gas.
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.
Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses.
All evaluations of future net revenue contained in the D&M Reports are after the deduction of cash royalties, development costs, operating expenses, production and profit taxes, fees, earn out payments, well abandonment costs, and country income taxes from the future gross revenue. It should not be assumed that the estimates of future net revenues presented in the tables represent the fair market value of the reserves. The actual production, revenues, taxes and development, and operating expenditures with respect to the reserves associated with the Company's properties may vary from the information presented herein, and such variations could be material. In addition, there is no assurance that the forecast price and cost assumptions contained in the D&M Report will be attained, and variances could be material.
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 NPV10 After Tax, our reserves, the estimated future revenues, capital expenditures, Adjusted EBITDA, free cash flows, expected production guidance and shareholder returns. 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 the Company’s filings with the
This press release contains a number of oil and gas metrics, including NPV after tax per share, reserve life index, net debt-adjusted NPV per share, etc., which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.
Information about oil and gas reserves: The
View source version on businesswire.com: https://www.businesswire.com/news/home/20240219121435/en/
For further information, please contact:
INVESTORS:
Shareholder Value Director
T: +562 2242 9600
Market Access Director
T: +562 2242 9600
Capital Markets Director
T: +55 21 99636 9658
MEDIA:
Source: