Geopark Ltd · NYSE:GPRK
Geopark — Investor Day (November 2018)
47 slides from Geopark's investor day presentation, Nov 19, 2018
Slide 1: GeoPark Investor Day New York, November 19, 2018
GeoPark Investor Day New York, November 19, 2018
Slide 2: Disclaimer
2 • 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 poten
Slide 3: Agenda
3 Agenda VENUE New York Stock Exchange, Hamilton Room PROGRAM 1 :00 pm Welcome 1:05 pm Value Proposition 1:30 pm Asset Platform 1:40 pm - Colombia 2:30 pm - Peru 3:05 pm - Argentina, Brazil and Chile NEW YORK STOCK EXCHANGE, NOVEMBER 19, 2018 3:10 pm Coffee Break 3:20 pm Growing Assests 3:30 pm Fina
Slide 4: Value Proposition
_( Gti ieee -VALUE"PROPOSITION
Slide 5: True Latin American Independent
5 VALUE PROPOSITION True Latin American Independent 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Historical Production Production Potential - Existing Assets Production Potential - Future
Slide 6: Proven 16 Year Performance
6 COUNTRIES HYDROCARBON BASINS BLOCKS EXPLORATION RESOURCES ACRES VALUE PROPOSITION Proven 16 Year Performance 1 Estimated by dividing total capital expenditures by 2P Reserves added (based on D&M 2017) | 2 Reserve Replacement Index | 3 9M2018 250 wells Llanos 34 70+% 90+% Consolidated Llanos 34 /bo
Slide 7: Partner of Choice
7 VALUE PROPOSITION Partner of Choice 1 2015 - 2018 SAFETY ZERO VEHICLE ACCIDENTS IN 6 MM KM 130% STOCK PRICE INCREASE IN 2017 PROSPERITY 100% EMPLOYEES ARE SHAREHOLDERS EMPLOYEES ZERO SANCTIONS ENVIRONMENT ZERO ROAD BLOCKS 1 AND STRIKES 1 COMMUNITY DEVELOPMENT
Slide 8: Asset Platform
8 ASSET PLATFORM
Slide 9: Why Latin America?
9 ASSET PLATFORM Why Latin America? Proven Reserves and Production by Country x UNDEREXPLORED x ONLY A HANDFUL OF INDEPENDENTS x UNDERDEVELOPED x ONLY HALF THE RIGS OF THE PERMIAN BASIN 2017 Reserves (M b bl ) Current Production ( bopd ) 12,800,000 2,600,000 7,200,000 2,220,000 8,300,000 550,000 2,2
Slide 10: Deep Risk Balanced Portfolio
10 ASSET PLATFORM Deep Risk Balanced Portfolio • Leading oil story in Latin America - grew Llanos 34 block from 0 to 65,000+ bopd gross since 2012 • World - class oil fields Tigana / Jacana • Introduced new play concept to Llanos b asin • Third largest oil and gas operator in Colombia COLOMBIA • One
Slide 11: Colombia
11 COLOMBIA ASSET PLATFORM
Slide 12: Asset Platform – Colombia
12 ASSET PLATFORM – COLOMBIA 100 Years of Oil & Gas Data as of 2017 / Source: IMF, World Bank, DANE, ANALDEX • Population: 49 million • GDP: $309 billion • 2018 projected real GDP growth: 2.8% • Oil & Gas infrastructure in place • Pending reforms: Corporate Tax Barrancabermeja ODL Llanos - 34 Basic
Slide 13: Leading Oil Story in Latin America
13 ASSET PLATFORM – COLOMBIA Leading Oil Story in Latin America 11.5 16.5 38.6 46.50 67.4 88.2 2012 2013 2014 2015 2016 2017 3,440 6,491 10,807 13,189 15,590 21,788 2012 2013 2014 2015 2016 2017 • Key asset: Llanos 34 • 4 blocks - 2 operated • 0.3 mm acres • D&M 2P and 3P net reserves: 88.2 MM bbl a
Slide 14: Llanos Orientales Basin: Location and Geology
14 ASSET PLATFORM – COLOMBIA Llanos Orientales Basin: Location and Geology LLANOS ORIENTALES STRATIGRAPHIC COLUMN LLANOS 34 MORONA BLOCK LIGHT OIL w/ CONDENSATE LIGHT TO MEDIUM OIL HEAVY OIL 14
Slide 15: Llanos 34: It Just Keeps Growing
15 ASSET PLATFORM – COLOMBIA Llanos 34: It Just Keeps Growing NORMAL FAULT (Hanging - Wall Block Oil Accumulation) Tua field: first discovery in the HW block of an extensional fault (GPRK Change a Paradigm) Type trap: Combined (Structural + Stratigraphic) 2012: Zero barrels 2018: 800 MMbbl – 1 billi
Slide 16: 2019 Drilling Campaign
16 ASSET PLATFORM – COLOMBIA 2019 Drilling Campaign * Information included in the map above is subject to change on new information available and wells to be drilled may also be ch anged or subject to partner or regulatory approval LLANOS 34 BLOCK: GEOPARK OPERATED, 45% WI Jacana Field Tilo Field Ch
Slide 17: When Everything Works
17 ASSET PLATFORM – COLOMBIA When Everything Works 1 Net of wells drilled during 9M2018 PRODUCTION HISTORY LLANOS 34 BLOCK Multiplying Value 40x in 5 Years 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000
Slide 18: Low Cost Champion
18 ASSET PLATFORM – COLOMBIA Low Cost Champion $4 /bbl Operating Cost in the Llanos 34 Block Fastest, Safest & Lowest Cost Driller in Colombia: 2012 Avg . Drilling Cost: $6.6 MM 2018 YTD Avg . Drilling Cost: $2.5 MM $ 13.8 $ 8.3 $ 5.8 $ 4.4 $ 4.3 $ 4.3 2013 2014 2015 2016 2017 2018 (YTD) - 70% $5,40
Slide 19: Transportation Cost Savings
19 ASSET PLATFORM – COLOMBIA Transportation Cost Savings Discount Evolution ($/bbl) 20 19 16 15 15 12.5 - 13.5 2014 2015 2016 2017 2018 2019 E E
Slide 20: Peru
20 PERU ASSET PLATFORM
Slide 21: Back to the Oil Business
21 ASSET PLATFORM – PERU Back to the Oil Business Data for 2017 / Source: IMF, World Bank, DANE, ANALDEX and SNMPE Basic Facts • Population: 32 million • GDP: $211 billion • 2018 projected real GDP growth: 4.1% • Improving Oil & Gas infrastructure • Pending reforms: Hydrocarbons Law PERU LIMA ECUADO
Slide 22: Discovered Light Oil Field with Upside
22 ASSET PLATFORM – PERU Discovered Light Oil Field with 200+ MMbbl Upside • World class asset: Morona block ( Marañon basin) • Partnered with NOC Petroperu for its return to E&P business • 1.9 MM acres • Two wells tested combined production rate of 7,500 bopd of light oil • Exploration resources: 3
Slide 23: Three Country Petroleum System
23 ASSET PLATFORM – PERU Three Country Petroleum System: Marañon, Oriente & Putumayo Basins x ONE BIG, ATTRACTIVE, UNDERDEVELOPED, UNDEREXPLOITED SYSTEM x 150 FIELDS x THREE BILLION BARRELS OF OIL ALREADY PRODUCED x MAXIMUM ESTIMATED REMAINING RESOURCES / RESERVES: 6 BILLION BARRELS M O P ECUADOR CO
Slide 24: Morona Block: Exploration Potential & Reserves Summary
24 ASSET PLATFORM – PERU Morona Block: Exploration Potential & Reserves Summary Prospects Leads EXPLORATORY POTENTIAL 300 – 500 MMbbl , Net exploration resources (4 Prospects + 6 Leads) Sit . 2X Sit . 3X 2P 3P Total Horst Area 211 MMbbl P1
Slide 25: Risk-Balanced Approach
25 ASSET PLATFORM – PERU Risk - Balanced Approach NET RESERVES MMBBL NPV10 1P* 18.7 $230 MM 2P* 31.5 $395 MM 3P* 62.2 $773 MM 2020 EIA EXPLORATION BASE CAMP - CRUDE LOADING TEMPORARY ACCESS / FLEXIPIPE INSTALLATION WELL LOCATION & EARLY PRODUCTION FACILITIES INTERVENTION SC - 3X EXTENDED PROGRAM EXP
Slide 26: Partnering with Communities
26 ASSET PLATFORM – PERU Partnering with Communities Support to Education Health Support Sustainable Development Support Land Titling and Registration Support Local Empowerment Cultural Value Communication and Consultation Local Employment Local Purchases Local Hiring and Contracts Compensation and
Slide 27: Argentina, Brazil and Chile
27 ARGENTINA, BRAZIL AND CHILE
Slide 28: Diversified Existing Opportunities
28 ARGENTINA, BRAZIL AND CHILE Diversified Existing Opportunities ARGENTINA BRAZIL • L ow - cost acquisition in 1Q2018 • 7 blocks - 3 operated • 2.2 MM acres in Neuquen basin • 2P net reserves (estimated): 12 - 15 MM boe CHILE • Key asset: Fell block • 5 operated blocks • 0.8 MM acres • D&M 2P net r
Slide 29: Attractive New Opportunities
29 GROWING ASSETS Attractive New Opportunities BIG UNDERDEVELOPED HYDROCARBON POTENTIAL PETROBRAS ECOPETROL M&A Bolt - Ons Bolt - Ons Bolt - Ons PEMEX Bolt - Ons PETROPERU P ETROAMAZONAS Bolt - Ons ENAP National Oil Companies NOCs Bolt - Ons Corporate M&A M&A YPF Bolt - Ons $2+ Billion New Project I
Slide 30: Financial Performance
é i i\ \ oh NCIAL PERFORMANCE \ ‘ 30
Slide 31: Growing Within Cashflow
31 17 16 24 32 4 2 4 3 2015 2016 2017 2018E Operating Netback ($/boe) F&D ($/boe) GROWING ASSETS Growing Within Cashflow 2018E considering Brent at $70/bbl. 9M2018 recycle ratio calculated assuming last 3 - year average F&D. Recycle Ratio = Operating Netback / F&D 118 122 228 380 - 400 49 39 106 140
Slide 32: Proven Balance Sheet Management
32 FINANCIAL PERFORMANCE Proven Balance Sheet Management • Cash of $153 million • 1P NPV of $1.5 billion • 2P NPV of $2.3 billion ASSETS LIABILITIES • Recent $425 million 144 - A/ Reg - S bond • 2024 bullet maturity • 6.5% coupon • $1.8 billion oversubscribed Strong Balance Sheet Net Leverage Below
Slide 33: 2019 Work Program
en =62019 WORK PROGRAM 33
Slide 34: 2019 Work Program Principles
34 2019 WORK PROGRAM Principles TECHNICAL • Maximum efficient development of Llanos 34 • Initiate Morona block p roject , with production in 1Q2020 • Increase production by 15% • Delineate new plays, leads and prospects ECONOMIC • Operate and grow within cashflow • Grow operating netback, EBITDA and
Slide 35: Building Production
35 2019 WORK PROGRAM Building Production 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2018 2019 Production (Boepd) 2019 Estimated Average Production ( Boepd ) Production Metrics 2018 Average: 35,500 - 36,500 boepd 2019 Average: 40,500 - 41,500 boepd 2,542 Colombia Chile Brazil Argentina 85% Oil 15% Gas 32,500 - 33,500 2
Slide 36: Growing Cashflow and Creating Efficiencies
36 2019 WORK PROGRAM Growing Cashflow and Creating Efficiencies 10 7 7 8 7 - 8 7 6 6 5 5 - 6 2015 2016 2017 2018 2019 OPEX per boe ($/boe) Cashflow Reducing Costs $17/boe $13/boe $13/boe $14/boe $13 - 14/boe Added Neuquen Assets $ 28 - 34 per boe 2019E OP. NETBACK ($65 - 75/Brent) G&G, G&A ($/ boe )
Slide 37: Flexible Growth in Any Oil Price Scenario
37 2019 WORK PROGRAM Flexible Growth in Any Oil Price Scenario OIL PRICE VOLATILITY ($/bbl) + - FLEXIBLE WORK PROGRAM + - GROWTH PROGRAM • 23 - 27 wells in Colombia (2 rigs ½ operating full year) • Early production facilities in Situche Central light oil field in Peru • Exploration and development a
Slide 38: Shareholder Value Creation
38 SHAREHOLDER VALUE CREATION
Slide 39: Building Partnerships
39 SHAREHOLDER VALUE CREATION Building Partnerships LTM Nov 2018 Conferences 24 Non - deal Roadshows 12 Management Presentations /Field Trip/Other 5 Investor Meetings 450+ Cities 34 Increased Marketing Efforts 0.0 0.0 0.0 0.0 1.1 0.4 0.1 0.1 0.1 0.4 1.1 0.5 0.9 0.4 1.1 0.9 2.4 1.3 1.3 0.9 0.8 0.8 1.
Slide 40: Firing On All Cylinders
40 SHAREHOLDER VALUE CREATION Firing On All Cylinders * As of November 16, 2018 Colombia Chile, Brazil, Peru & Argentina 2P NPV Non - Controlling Interest (LGI) Net Debt Adjusted 2P NPV GPRK Market Cap * Net Debt SUM OF THE PARTS VALUATION EXERCISE $MM ( Based on D&M 2017) 1,393 897 2,290 (228) (291
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Slide 42: GeoPark Speakers Biographies
42 GEOPARK SPEAKERS Biographies JAMES F. PARK AUGUSTO ZUBILLAGA Chief Executive Officer Chief Operating Officer Mr . Park has served as our Chief Executive Officer and as a member of our Board of Directors since co - founding the Company in 2002 . Jim has over 40 years of experience in all phases of
Slide 43: GeoPark Speakers Biographies
43 GEOPARK SPEAKERS Biographies BARBARA BRUCE Director for Peru Barbara has been our Director for Peru since June 2017 . Ms . Bruce holds a degree in Geology from the Universidad Nacional de Ingeniería , Lima, Peru, a Master’s degree in Reservoirs from Colorado School of Mines, USA and an MBA from U
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Slide 45: GPRK Listed NYSE
GPRK 3 _ LISTED NYSE_ Liab
Slide 46: 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 ANDRÉS OCAMPO Chief Financial Officer STACY STEIMEL Shareholder Value Director
Slide 47: 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 Financial Officer Date: November