Geopark Ltd · NYSE:GPRK
Geopark — Investor Presentation (January 2016)
25 slides from Geopark's investor presentation, January 2016
Slide 1: Proven Performance, Assets and Opportunity
Proven Performance, Assets and Opportunity January 2016
Slide 2: Disclaimer
Disclaimer The material that follows comprises information about GeoPark Limited (“GeoPark”) and its subsidiaries, as of the The information included in this presentation regarding estimated exploration resources in Chile, Colombia, Brazil, date of the presentation. It has been prepared solely for i
Slide 3: Latin American Platform Track-Record, Value and Upside
Latin American Platform Track-Record, Value and Upside SYSTEMATIC LONG-TERM CONSERVATIVE APPROACH MEXICO • Zero to 20,000+ boe/d • Continuous track-record of growing production, reserves and cash flow • Effective multi-country, multi-project, risk-balanced portfolio approach with 35 blocks in 11 bas
Slide 4: Building a Business Proven Team, Plan and Culture
Building a Business Proven Team, Plan and Culture BUSINESS PLAN & ORGANIZATIONAL MODEL & INTEGRATED VALUE SYSTEM: CAPABILITIES EFFICIENCIES SPEED EXPLORER SAFETY OPERATOR PROSPERITY ENVIRONMENT CONSOLIDATOR EMPLOYEES VALUE MANAGEMENT VALUE-ADDING SYNERGIES CULTURE CAPITAL ALLOCATION COMMUNITY DEVELO
Slide 5: Bottom Line Value Creation Per Share
Bottom Line Value Creation Per Share OIL & GAS PRODUCTION PROVED & PROBABLE (2P) RESERVES 25 4.0 140 2.0 20 120 Production per share (boepd/M) 3.0 2P Reserves per share (boe) 2P Reserves (/MMboe) 1.5 Production (Mboepd) 100 15 80 2.0 1.0 10 60 1.0 40 0.5 5 20 0 0.0 0 0.0 2008 2009 2010 2011 2012 201
Slide 6: Adapting to and Growing in a Lower Oil Price Environment
Adapting to and Growing in a Lower Oil Price Environment STRONG BALANCE PROFITABLE DOING MORE CAPITAL QUALITY GROWTH SHEET OPERATIONS FOR LESS ALLOCATION OPPORTUNITIES DISCIPLINE • >$90 MM cash • High production base • OPEX down 56% • CAPEX reduced by • Big diversified / low cost producer
Slide 7: Asset Base Colombia
Asset Base Colombia • Grew Llanos 34 Block (GeoPark operated) from 0 to 34,000 boe/d gross in 4 years • Quickly built value by introducing new paradigms - both above PANAMA VIM-3 and below the ground - with new geological play-type and VENEZUELA community approach CERRITO • Discovered 8 new operated
Slide 8: Colombia Leading Colombian E&P Growth Story
Colombia Leading Colombian E&P Growth Story HANGING WALL BLOCK PLAY 97+ MMBBL DISCOVERED FROM NEW PLAY TYPE (6 OIL FIELDS) Caica Chachalaca Chiricoca Tilo Prospect Discovered 2015 Prospect Discovered Max 2015 Discovered Tigana Field 2012 Tigana Discovered 2013 Tua Discovered 2012 Tarotaro Discovered
Slide 9: Asset Base Chile
Asset Base Chile • First private oil and gas producer in Chile • Large fully-operated land base across the Magallanes basin, with existing reserves, production and cash flow • Attractive operating environment with existing infrastructure, ARGENTINA facilities and transportation • Long-term oil shale
Slide 10: Chile Low Risk Development and Exploration
Chile Low Risk Development and Exploration FELL BLOCK TIERRA DEL FUEGO BLOCKS Cerro Iturbe Aonikenk Discovered 2008 Discovered 2010 Alakaluf Discovered 2008 Pantano Oeste Discovered 2014 1 Ache gas field development Tenca Primavera Sur Discovered 2014 and facility construction Discovered 2014 Molino
Slide 11: Asset Base Brazil
Asset Base Brazil POTIGUAR BASIN • Largest producing gas field in Brazil: fully-developed, cash flow • POT-T 664 producing, low risk asset, unaffected by oil prices • POT-T 665 • POT-T 619 • Exploration blocks in proven mature basins • POT-T 620 • Opportunity to partner with Petrobras in potential o
Slide 12: Brazil Positioned to Grow and Capture Opportunities
Brazil Positioned to Grow and Capture Opportunities Potiguar MANATI FIELD: Seismic SHALLOW OFFSHORE PRODUCING FIELD (EUR: 1 TCF) SHALLOW ONSHORE EXPLORATION BLOCKS IN Reconcavo PROVEN MATURE BASINS Seismic RECONCAVO, POTIGUAR & SERGIPE-ALAGOAS CAMAMU-ALMADA PARNAIBA (Onshore Rift Basins) (Offshore R
Slide 13: Asset Base Peru
Asset Base Peru • Large acreage position in one of most prolific Latin American basins COLOMBIA (produced over 1 billion barrels of oil) • Discovered oil field with opportunity for near-term cash flow ECUADOR • Similar play-type 3D exploration (Situche Complex) and other significant exploration pote
Slide 14: Peru Discovered Oil Field and Large Resource Potential
Peru Discovered Oil Field and Large Resource Potential SITUCHE COMPLEX: 3D SEISMIC AREA 3P Area 2P Area SITUCHE CENTRAL FIELD Discovery Wells: Situche Central 2X and 3X (Short term tests of 2,400 bbl/d and 5,200 bbl/d of 35-36° API oil) 3D SEISMIC Morona Block Sargento Puño base camp (Situche Centra
Slide 15: Asset Base Argentina
Asset Base Argentina • Good acreage position in the prolific Pacific Ocean SIERRA DEL MENDOZA Neuquen basin NEVADO • Pluspetrol and Wintershall partnerships PUELEN • Exposure to low risk, low cost, high CN-V* potential exploration plays with 130- 250 MMbbl gross (30-60 MMbbl net) ARGENTINA of explor
Slide 16: Mexico Big Proven Frontier
Mexico Big Proven Frontier MEXICO – ZONES OF INTEREST OPPORTUNITY • One of largest hydrocarbon reserve and resource potentials in Latin America • Opened to private E&P companies (11 billion boe of proved reserves) PRINCIPAL TARGETS PEMEX • Partnerships, JVs, farm-outs • Redevelopment opportunities o
Slide 17: High-Value Long-Life Diversified Reserve and Resource Inventory
High-Value Long-Life Diversified Reserve and Resource Inventory DRIVERS OF ORGANIC GROWTH • 35 blocks in 11 basins in 5 countries / 6.0 MM acres 11 BLOCKS 13 BLOCKS • 3P reserve development opportunities: 221 MMboe 1.1 MM ACRES COLOMBIA 0.2 MM ACRES • Exploration resource opportunities: 0.8 to 1.5 B
Slide 18: Consolidation Opportunity Rich Environment
Consolidation Opportunity Rich Environment PROACTIVE LONG TERM APPROACH • Proven Hydrocarbon Basins • Infrastructure / Market Accessibility • Regulatory Stability STRATEGIC ALLIANCES • LG, IFC, ALFA, Trafigura • Successful Partnerships / Reputation RISK-BALANCED APPROACH • Production, Development &
Slide 19: 2012-2015 M&A / New Project Track-Record
2012-2015 M&A / New Project Track-Record COLOMBIA: + 3 New Countries • 2012: Entry to Colombia through the acquisition of 3 companies (10 blocks including LLanos 34) • 2014: Awarded VIM-3 in ANH Round • 2014: Farm-In 50% WI in CPO-4 + 10 New Basins BRAZIL: • 2013: Acquisition of Manatí field WI • 20
Slide 20: Operational Performance Leads to Financial Performance
Operational Performance Leads to Financial Performance RESERVES GROWTH INCREASING SALES 2P RESERVES (MMBOE): 25% / YEAR REVENUES ($MM): 52+% / YEAR (CAGR ’10 – ’14) (CAGR ’10 – ’14) 122.3 429 92.1 35.8 338 70.2 35.8 56.9 49.6 49.5 250 245 36.2 29.1 86.5 33.4 32.6 56.3 112 27.8 34.1 16.2 16.9 80 2010
Slide 21: Profitable Assets at Low Oil Prices
Profitable Assets at Low Oil Prices OPERATING NETBACK: 3Q2015 ($ / BOE) 2016 ESTIMATED OPERATING NETBACK @ $40 / BBL OIL: $46 / BBL, GAS: $4-5 / MCF OIL: $40 / BBL, GAS: $4-5 / MCF 46 42 40 40 32 35 17 6 13 2 26 18 3 12 3 3 2 24 2 6 18 8 2 3 2 6 14 6 8 9 20 18 18 14 15 13 13 12 Colombia Chile Brazil
Slide 22: Strong Balance Sheet
Strong Balance Sheet ASSETS • Cash: $90 million • Trafigura undrawn committed prepayment facility: $100 million $100 MM TRAFIGURA PREPAYMENT FACILITY – MAIN TERMS • Other credit lines: $50 million • Immediately accessible liquidity for up to $100 MM • 2P reserve base: 122 million boe • Low cost of f
Slide 23: Investing in the Best Shareholder Value-Adding Projects
Investing in the Best Shareholder Value-Adding Projects CAPITAL ALLOCATION CRITERIA, EFFICIENCY, AND DISCIPLINE EXECUTION Colombia Brazil CAPITAL ALLOCATION LOOK- BACK 2016 CAPEX 2016 CAPEX $30-35 MM $4-5 MM PORTFOLIO OF OPPORTUNITIES CAPITAL ALLOCATION: Centrally-managed funds allocated to projects
Slide 24: Uniquely-Positioned Oil and Gas Investment Vehicle
Uniquely-Positioned Oil and Gas Investment Vehicle • Oil-Finding and Operating Know-how • Solid Asset Base with Cash Flow and Upside • Operational and Financial Track-Record • Strong Balance Sheet and Access to Capital • New Project Inventory and Alliances • Capital Allocation and Project Efficienci
Slide 25: wha
F. wha fe aol GEOPARK