GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading
independent Latin American oil and gas explorer, operator and
consolidator with operations and growth platforms in Colombia, Peru,
Argentina, Brazil and Chile, today announced its entry into Ecuador
through the acquisition of the Espejo and Perico blocks.
The Espejo and Perico blocks are attractive, low-risk exploration blocks
located in Sucumbíos Province in the north-eastern part of Ecuador, in
the Oriente basin. The Espejo block covers an area of 15,650 acres (63
sq km) and the Perico block covers an area of 17,700 acres (72 sq km).
Both blocks are covered with 3D seismic and are adjacent to multiple
discoveries, producing fields and existing infrastructure.
From existing 3D seismic and other relevant data, more than five
multilayer, ready-to-drill light oil prospects and leads have been
identified. Ongoing geoscience evaluation and field operations are
expected to start in late 2019 or early 2020.
The Oriente basin is one of the most prolific petroleum systems in Latin
America, currently producing more than 500,000 bopd. It has access to
infrastructure, with spare capacity, and a well-developed service
industry.
The blocks were awarded to the GeoPark and Frontera consortium (50%
GeoPark, 50% Frontera) in the form of production sharing contracts in
the Intracampos Bid Round carried out on March 12, 2019 in Quito,
Ecuador.
The winning bid consisted of committing a minimum investment program of
carrying out 55 sq km of 3D seismic in the Espejo block and drilling
four exploration wells in each block, with a total estimated investment
commitment of $60 million ($30 million net to GeoPark) over the next
four years. GeoPark and Frontera will have a 70-78% contractor share at
approximately $60-70 Brent. The final award is contingent upon
regulatory approvals and the execution of the contracts, expected for
2Q2019.
James F. Park, CEO of GeoPark, said: “Congratulations to the GeoPark
team for again patiently, selectively, and successfully expanding our
unique Latin America asset base with the acquisition of these new
low-cost, low-risk, high potential blocks attractively positioned in the
neighborhood of some prolific oil fields. Our entry into Ecuador gives
GeoPark an exciting new platform in the country with the third largest
reserves in Latin America and further advances one of our key long-term
growth strategies tying together the common petroleum system of southern
Colombia, Ecuador and northern Peru.”
NOTICE
Additional information about GeoPark can be found in the “Investor
Support” section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and percentages
included in this press release have been rounded for ease of
presentation. Percentage figures included in this press release have not
in all cases been calculated on the basis of such rounded figures, but
on the basis of such amounts prior to rounding. For this reason, certain
percentage amounts in this press release may vary from those obtained by
performing the same calculations using the figures in the financial
statements. In addition, certain other amounts that appear in this press
release may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION
This press release contains statements that constitute forward-looking
statements. Many of the forward-looking statements contained in this
press release can be identified by the use of forward-looking words such
as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’
‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among
others.
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 the timing of, and entry into, the contracts relating to the
winning bid, expected growth for GeoPark and Latin America’s
under-developed hydrocarbon potential. 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 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.
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