GeoPark Buys Vaca Muerta Interest

TL;DR

GeoPark just bought into Vaca Muerta blocks - more production, reserves, and cash flow incoming.

AI Summary

GeoPark Limited announced on May 13, 2024, its acquisition of a working interest in four adjacent blocks within the Vaca Muerta formation. This strategic move is expected to enhance existing production, reserves, and cash flow, with low-risk development already underway and significant upside potential.

Why It Matters

This acquisition expands GeoPark's footprint in a globally significant shale play, potentially boosting its production and reserves in the Vaca Muerta formation.

Risk Assessment

Risk Level: medium — Acquisitions carry inherent risks related to integration, valuation, and operational execution, especially in complex geological formations like Vaca Muerta.

Key Players & Entities

• GeoPark Limited (company) — Filer and acquirer
• Vaca Muerta (location) — Acquisition target area

FAQ

Key Financial Figures

• $90 — cted to generate net Adjusted EBITDA of $90-100 million 6 in full year 2024 with a
• $80 — 4 with a 68% Adjusted EBITDA margin (at $80-90/bbl Brent oil price) · At e
• $290 — , the assets are expected to contribute $290-295 million of EBITDA to GeoPark (at $7
• $70 — 90-295 million of EBITDA to GeoPark (at $70/bbl Brent oil price) · Net NPV
• $364 million — · Net NPV10 of 1P Reserves is $364 million and net NPV10 of 2P reserves is $823 mi
• $823 million — million and net NPV10 of 2P reserves is $823 million 7 Significant, Low-Risk Exploration U
• $174 billion — gy and commodity groups, with more than $174 billion of gross revenue and $6.7 billion of eq
• $6.7 billion — than $174 billion of gross revenue and $6.7 billion of equity in 2022 · PGR has gr
• $15.9 million — Completion (D&C) costs have fallen from $15.9 million per well in 2022 to $14.3 million per w
• $14.3 million — from $15.9 million per well in 2022 to $14.3 million per well in 2023, a highly competitive
• $8.10 — · Lifting costs decreased from $8.10 per boe in 2022 to $5.80 per boe in 202
• $5.80 — decreased from $8.10 per boe in 2022 to $5.80 per boe in 2023, and are expected to fa
• $5.10 — 23, and are expected to fall further to $5.10 per boe in 2024e (without transportatio
• $190 million — ry of Terms · GeoPark will pay $190 million for a total of 122,315 gross acres (58,
• $113 million — d 100% of exploratory commitments up to $113 million gross ($57 million of net carry), to be

Filing Documents

• dp211131_6k.htm (6-K) — 80KB
• image_001.jpg (GRAPHIC) — 12KB
• image_002.jpg (GRAPHIC) — 68KB
• 0000950103-24-006612.txt ( ) — 190KB

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 production growth, development programs, Reserve Life Index, Adjusted EBITDA, net EBITDA, lifting costs and pro forma net debt to Adjusted EBITDA. 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

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 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 SEC permits oil and gas companies, in their filings with the SEC, to disclose only proven, probable and possible reserves that meet SEC definitions for such terms. GeoPark uses certain terms in this press release, such as "PRMS Reserves" that SEC 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 after tax 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. 7 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the

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