GeoPark Q4 Production Jumps 10% on Exploration Successes

TL;DR

**GeoPark's Q4 production is up 10% thanks to new wells and restarts, looking good!**

AI Summary

GeoPark Limited announced a strong operational update for Q4 2023, with average oil and gas production increasing 10% to 38,315 boepd compared to Q3 2023. This surge was driven by successful exploration wells and the restart of production in the CPO-5 Block. The company also reported a 75% success rate on 48 gross wells drilled in 2023, adding over 5,500 bopd gross from exploration. This matters to investors because increased production and exploration success can lead to higher revenues and profitability, potentially boosting the stock price.

Why It Matters

Increased production and a high exploration success rate directly translate to more oil and gas to sell, which can significantly improve GeoPark's financial performance and shareholder value.

Risk Assessment

Risk Level: low — The filing indicates strong operational performance and exploration success, which generally reduces immediate operational risk.

Analyst Insight

A smart investor would view this as a positive operational update, suggesting GeoPark is effectively executing its exploration and production strategy. This could warrant further investigation into the company's financial results and future guidance to confirm the sustainability of this growth.

Key Numbers

• 38,315 boepd — Q4 2023 average production (Represents a 10% increase from Q3 2023, indicating strong operational growth.)
• 10% — Quarterly production increase (Shows significant quarter-over-quarter growth in oil and gas output.)
• 75% — 2023 drilling success rate (Highlights efficient and effective exploration and development activities.)
• 5,500+ bopd gross — Added from 2023 exploration (Demonstrates successful reserve replacement and production growth from new discoveries.)
• 48 — Gross wells drilled in 2023 (Indicates a high level of drilling activity throughout the year.)

Key Players & Entities

• GeoPark Limited (company) — registrant and independent Latin American oil and gas explorer
• 38,315 boepd (dollar_amount) — quarterly average oil and gas production for Q4 2023
• 10% (dollar_amount) — increase in quarterly average oil and gas production vs 3Q2023
• CPO-5 Block (company) — GeoPark non-operated block with 30% WI where production resumed
• 75% (dollar_amount) — success rate for 48 gross wells drilled in 2023
• 5,500+ bopd gross (dollar_amount) — added from 2023 exploration drilling
• Llanos 123 and Llanos 87 blocks (company) — GeoPark operated blocks (50% WI) with four successful exploration wells
• 2,880 bopd gross (dollar_amount) — added from four successful exploration wells in Llanos 123 and Llanos 87 blocks
• Toritos (company) — a new stratigraphic discovery well

Forward-Looking Statements

• GeoPark's production will continue to grow in Q1 2024 due to the momentum from Q4 2023 exploration successes and resumed production. (GeoPark Limited) — medium confidence, target: 2024-03-31
• The high drilling success rate of 75% in 2023 suggests GeoPark will maintain efficient capital deployment in future drilling programs. (GeoPark Limited) — high confidence, target: 2024-12-31

FAQ

Key Financial Figures

• $61.2 million — trong Balance Sheet · Returned $61.2 million to shareholders in full-year 2023 throu
• $30.0 million — · Shareholder returns included $30.0 million in dividends, a 6% dividend yield 5 , a
• $31.2 million — dividends, a 6% dividend yield 5 , and $31.2 million in buybacks (retiring 3.1 million share
• $133 million — · Cash and cash equivalents of $133 million 6 as of December 31, 2023 (up from $106
• $106 million — lion 6 as of December 31, 2023 (up from $106 million as of September 30, 2023) Portfolio M
• $150 — ded 2024 capital expenditure program of $150-200 million to drill 35-45 gross wells
• $420 — pects to generate Adjusted EBITDA 10 of $420-550 million and free cash flow of $90-1
• $90 — $420-550 million and free cash flow of $90-160 million at $80-90 Brent ·
• $80 — nd free cash flow of $90-160 million at $80-90 Brent · Targeting to return
• $70 — nsidering an Oriente crude oil price of $70-100 per barrel. 11 Average production
• $4 million — and low-netback operations in Chile for $4 million (subject to certain working capital adj
• $3.6 million — r the first nine months of 2023 totaled $3.6 million. GeoPark’s 2024 consolidated ave

Filing Documents

• dp205337_6k.htm (6-K) — 86KB
• image_016.jpg (GRAPHIC) — 74KB
• logo.jpg (GRAPHIC) — 11KB
• 0000950103-24-000741.txt ( ) — 205KB

Forward-looking statements that appear in a number

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, drilling campaign, production guidance, shareholder returns, Adjusted EBITDA, capital expenditures and free cash flow. 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

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 (SEC). Oil and gas production figures included in this release are stated before the effect of royalties paid in kind, consumption and losses. Annual production per day is obtained by dividing total production by 365 days. 7 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/ Jaime Caballero Uribe Name: Jaime Caballero Uribe Title: Chief Financial Officer Date: January 17, 2024

View Full Filing

View this 6-K filing on SEC EDGAR