Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (September 2016)
28 slides from Geopark's investor presentation, Sep 6, 2016
Slide 1: Proven Performance, Assets and Opportunity September 2016
Proven Performance, Assets and Opportunity September 2016
Slide 2: Slide 2
Slide 3: Latin American Platform: Track-Record, Value and Upside
ARGENTINA BRAZIL PERU COLOMBIA MEXICO 3 Latin American Platform: Track - Record, Value and Upside Base production and cash flow: ≈22,000 boepd, 75% oil Discovered oil and gas with development opportunities: 3P Reserves of 215 million boe High potential upside: Exploration Resources of 0.8 - 1.5 bill
Slide 4: Proven Business Model: Capabilities Across Full E&P Value Chain
4 Proven Business Model: Capabilities Across Full E&P Value Chain • Leading oil and gas finding team in Latin America with 25+ year discovery track - record: 800+ MMboe discovered to date (185+ MMboe within GeoPark) • 0 to 125 MMboe 2P reserve growth – increased every year for 10+ years • Deep multi
Slide 5: Explorer: Successful Oil and Gas Finder
GEOPARK EXPLORATION METRICS > 185 2P Gross MMBOE Discovered (2006 - 2015) 180% 2P RRI 1 (2012 - 2015) 2P RLI 2 (2015) 16.9 Exploration Success Rate (2006 - 2015 ) 70% 100% Finding Cost (2006 - 2015 ) 1 RRI: Reserves Replacement Index GeoPark Llanos 34 GeoPark Consolidated GeoPark Llanos 34 GeoPark C
Slide 6: Operator: Outstanding Execution to Unlock Greater Value
GEOPARK OPERATING METRICS +40,000 Gross Operated Production (BOEPD) Drilling & Completion Cost per Well ($MM ) 2Q2014 2Q2016 $6.0 $3.4 OPEX/BOE 2Q2016 Development Cost 1 $6.0 $3.5 /boe /boe GeoPark Llanos 34 GeoPark Consolidated 1 Cash Costs/BOE 2Q2014 2Q2016 $31 $14 GeoPark Llanos 34 GeoPark Consol
Slide 7: Consolidator: Building the Right Portfolio in Latin America
GEOPARK BUSINESS DEVELOPMENT METRICS (2006 - 2015) 5 Country Platforms 10 Total Basins 2P Net Reserves Added (MMBOE ) +40 +5.0 Net Acres Added (MM) Exploration Resources Added (MMBOE) +450 - 700 STEADY AND PATIENT GROWTH IN TARGETED BASINS Consolidator: Building the Right Portfolio in Latin America
Slide 8: Financial Profile: Agility & Foundation
Financial Profile: Agility & Foundation 1 Adjusted EBITDA – CAPEX 2 vs 2Q2014 8 • Low cost operator • Cash flow positive @ $25 - 30 /bbl • Positive operating cash flow 1 since 1Q2015 x PROFITABLE OPERATIONS • CAPEX reduced by 80% in 2015 • Self - funded / agile • Lower risk, low cost, quick payout p
Slide 9: Financial Profile: Profitable Assets at Low Oil Prices
23 13 6 9 7 5 3 2 2 35 22 13 2Q2014 2Q2015 2Q2016 Colombia Chile Brazil Financial Profile: Profitable Assets at Low Oil Prices ONGOING SUCCESSFUL COST REDUCTION EFFORTS PRODUCTION AND OPERATING COSTS DOWN 63% ($MM) 18 12 22 18 4 15 5 6 1 2 3 2 23 2 15 47 31 30 41 Colombia Chile Brazil Consolidated O
Slide 10: Financial Profile: Strong Balance Sheet
Financial Profile: Strong Balance Sheet Multilateral Banking Institutions Commercial Bank Lending International Bond Market Strategic Partnerships Client Prepayment Facilities Equity Funding ABILITY TO RAISE CAPITAL FROM DIFFERENT SOURCES AND REGIONS Debt Maturity Profile ($MM): >80% Matures in 2020
Slide 11: Colombia: World Class Oil Story in Latin America
3,440 6,491 10,807 13,189 14,433 2012 2013 2014 2015 1H2016 Colombia: World Class Oil Story in Latin America 10 Blocks Acreage 2P Net Reserves 1 Net Exploration Resources 2 2Q2016 Net Production 2P R/P 3 2P NPV 4 Identified Drilling Locations 4 6 operated (94% of production) 1.0 MM acres 46.5 MMbbl
Slide 12: Colombia: Multiplying Llanos 34 Block Value by 20 Times
0 5,000 10,000 15,000 20,000 25,000 30,000 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 BOPD LLANOS 34 BLOCK 1Q2012 2015 Average net production 0 12,000 bopd 2P Net reserves 0 42 MMbbl Purchase price $ 30 MM 0 2P NPV 0 $600+ MM Colombia: Multiplying Llanos 34 Block Value by
Slide 13: Colombia: Source of Short / Mid Term Production Growth
Colombia: Source of Short / Mid Term Production Growth Tigana Field 1 Km Jacana Field Aruco Field Max Field Tarotaro Field Tua Field Tilo Field Chachalaca Field D&M ODT 2015 • 40 - 45 drilling locations in Tigana / Jacana Fields OPPORTUNITY FOR LOW RISK PRODUCTION GROWTH 13 Oil Fields Exploration Pr
Slide 14: Colombia: Tigana / Jacana Fields Quality Differentiators
Colombia : Tigana / Jacana Fields Quality Differentiators PRODUCTION PROFILES IN LLANOS 34 BLOCK • Large fields ( Tigana / Jacana / Tua ) represent 80% of Llanos 34 Block production • Conventional oil wells in large fields have moderate water - cut increase • Big inventory of wells to increase produ
Slide 15: Chile: Continuous Cash Flow with Low Investments
Chile: Continuous Cash Flow with Low Investments • First private oil and gas producer in Chile • Large fully - operated land base across the Magallanes Basin , with existing reserves, production, steady cash flow and minor capital requirements • Attractive operating environment with existing infrast
Slide 16: Chile: Fell Block - Gas Strategy with Stable Pricing
ACHE X - 1 WELL Chile: Fell Block - Gas Strategy with Stable Pricing • Discovered in 2014 • 4 - 5 identified drilling locations with 2P and 3P reserves of 20 bcf and 30 bcf, respectively ( D&M 2015 ) • Well put on stream in 3Q2015 producing at a stable rate of 6.8 mmcf/d • IRR of 100 +% and payback
Slide 17: Brazil: Low Risk Cash Flow - Positioned to Grow
HIGHLIGHTS Brazil: Low Risk Cash Flow - Positioned to Grow • Entered through toehold acquisition of Manati Gas F ield , one of the largest gas producing fields in Brazil • Stable production base with minimum capital requirements and 100% proved developed producing reserves • Free cash flow generatin
Slide 18: Brazil: Manati Field - Stable Production at Profitable Prices
Brazil: Manati Field - Stable Production at Profitable Prices 18 HIGHLIGHTS • S trategic asset in Brazil providing gas to the northern B razilian industrial sector and power plants • Long term gas sales contract with Petrobras at fixed price in Brazilian Reais covering 100% of booked reserves • Attr
Slide 19: Argentina: Low Risk Exploration Opportunities in Neuquen Basin
HIGHLIGHTS Argentina: Low Risk Exploration Opportunities in Neuquen Basin Atlantic Ocean Pacific Ocean ARGENTINA NEUQUEN BASIN MENDOZA La Pampa Neuquen CN - V PUELEN SIERRA DEL NEVADO URUGUAY CHILE BRAZIL PARAGUAY • C ore technical team experienced in Argentine basins , participating in many large o
Slide 20: Peru: Transformational Opportunity in Discovered Oil Field
Peru: Transformational Opportunity in Discovered Oil Field MARAÑON BASIN Pacific Ocean BRAZIL COLOMBIA ECUADOR PERU BOLIVIA Sargento Puño base camp • Situche Central light oil field discovery with gross 83 MMbbl of 3P reserves following fields tests of 2 wells at combined rate of > 7,500 bbl/d • 2,7
Slide 21: High-Value Long-Life Diversified Reserve and Resource Inventory
High - Value Long - Life Diversified Reserve and Resource Inventory *Graph represents an approximation to illustrate inventory of reserves and resources. Management’s estimate for resources are by nature forward - looking statements, as they involve the implied assessment based on certain estimates
Slide 22: Investing in the Best Value - Adding Projects for Shareholders
Investing in the Best Value - Adding Projects for Shareholders Colombia Brazil Chile Peru Argentina CAPITAL ALLOCATION : Large opportunity base provides increased flexibility to adapt to changes in oil prices 2016 CAPEX $30 - 35 MM 2016 CAPEX $4 - 5 MM 2016 CAPEX $0.5 - 1 MM 2016 CAPEX $1 - 2 MM 201
Slide 23: Uniquely-Positioned Oil and Gas Investment Portfolio
Uniquely - Positioned Oil and Gas Investment Portfolio • Skilled explorer • Low cost and effective operator • Successful, patient consolidator • Disciplined use of capital • Strong culture with big entrepreneurial spirit PORTFOLIO PROVIDES SECURE FOUNDATION IN VOLATILE OIL PRICE ENVIRONMENT, STEADY
Slide 24: Disclaimer
Disclaimer The material that follows comprises information about GeoPark Limited (“GeoPark” or the “Company”) and its subsidiaries, as of the date of the presentation. It has been prepared solely for informational purposes and should not be treated as giving legal, tax, investment or other advice to
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Slide 26: Contacts
CONTACTS Santiago, Chile Nuestra Señora de los Ángeles 179, Las Condes, Santiago, Chile Phone: +(56 2) 2242 9600 Email: ir@geo - park.com James F. Park Chief Executive Officer Andres Ocampo Chief Financial Officer Pablo Ducci Capital Markets Dolores Santamarina Investor Manager Company Directory 26
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Slide 28: Signature
SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GeoPark Limited By: /s/ Andrés Ocampo Name: Andrés Ocampo Title: Chief FinancialOfficer Date: September