GeoPark, a leading independent Latin American oil and gas explorer, operator and consolidator today announces its operational update for the three-month period ended June 30, 2022.

All figures are expressed in US Dollars. Growth comparisons refer to the same period of the prior year, except when otherwise specified.
 
Accelerating Production Growth

• Consolidated oil and gas production up 14% to 38,940 boepd (up 2% vs 1Q2022)[1]
• Production in Colombia up 16% to 34,253 boepd (up 2% vs 1Q2022)
• CPO-5 block (GeoPark non-operated, 30% WI) gross production up 77% to 20,300 boepd (up 34% vs 1Q2022) 
• Tigana and Jacana fields in the Llanos 34 block (GeoPark operated, 45% WI) and Indico field in the CPO-5 block, rank among the top 10 highest oil-producing fields in Colombia[2] 
• Ten rigs in operation in July 2022, increasing to 12-13 (including 8-9 drilling rigs) in 2H2022
• On track to reach 2022 full-year guidance of 38,500-40,500 boepd

Llanos Basin: Exploration Drilling Underway in High-Potential Prospects 

In the Llanos 34 block:

• Adding a third drilling rig, expected to start spudding wells in early August 2022

In the CPO-5 block:

• Drilling the Cante Flamenco 1 exploration well, located 4 km west of the Urraca 1 well, looking for hydrocarbon potential in the Ubaque and Mirador formations, with Guadalupe as a secondary target
• 2H2022 work program targets drilling of 1-2 development wells to further accelerate production growth in the Indico field, to be followed by 3-5 high-potential exploration wells (1-2 wells next to Llanos 34 to test the extension of the Jacana field and 2-3 wells in the southeastern part of the block) 

In the Llanos 87 block (GeoPark operated, 50% WI): 

• Obtained environmental license, allowing exploration and delineation drilling plus related infrastructure
• Civil works and other pre-drilling activities underway to spud the Tororoi exploration prospect in 3Q2022, to be followed by 1-2 exploration wells in 4Q2022

Oriente Basin: Three Drilling Successes in 1H2022

In the Perico block (GeoPark non-operated, 50% WI): 

• Drilled and put on production the Yin 1 exploration well, currently producing approximately 2,000 bopd gross with a 1% water cut
• Jandaya, Tui and Yin oil fields are currently producing 3,000 bopd gross

In the Espejo block (GeoPark operated, 50% WI): 

• Completed the acquisition of 60 sq km of 3D seismic
• Obtained environmental license, allowing exploration and delineation drilling plus related infrastructure 
• Civil works currently underway targeting to spud the Pashuri 1 exploration well in September 2022

Putumayo Basin: Drilling Attractive Short-Cycle Prospects 

In the Platanillo block (GeoPark operated, 100% WI):

• Initiated drilling of the Alea NW 1 exploration well, to be followed by the Platanillo Norte 1 exploration well in 3Q2022
• Production and operations affected for 15 days in May 2022 due to local community blockades against the Government

Fast, Immediate and Aggressive Actions to Minimize Emissions 

• Main fields in Llanos 34 block interconnected to Colombia’s national power grid fully operational 
• Tua and Jacana fields interconnected in May/June 2022
• Tigana field interconnected in July 2022
• Tua, Jacana and Tigana fields represent approximately 80% of the Llanos 34 block’s production
• The interconnection of Llanos 34 to Colombia’s national power grid (~70% hydroelectric[3]) is a decisive catalyst to reduce carbon emissions and improve overall operational reliability
• Solar photovoltaic plant in the Llanos 34 block to be fully operational by early August-2022

2022 Work Program: Strong Cash Flow Generation 

• Self-funded 2022 capital expenditures program of $200-220 million targets the drilling of 50-55 gross wells, including 18-22 gross exploration/appraisal wells 
• Using a $95-100 per bbl Brent base case, GeoPark expects to generate a free cash flow of $250-280[4] million, equivalent to a 35-40% free cash flow yield[5]
• Free cash flow funding incremental capital projects, debt reduction, increased shareholder returns and other corporate purposes

[1] Percentajes are calculated adjusting for divestments in Argentina in 2Q2021 and 1Q2022, respectively.
[2] Based on latest available information on Colombia’s oil production per field during May 2022, as published by the ANH.
[3] Colombian Ministry of Energy and Mines, Report to Congress, p. 14.
[4] Free cash flow is used here as Adjusted EBITDA less income tax, capital expenditures and mandatory interest payments.
[5] Calculated using GeoPark’s average market capitalization from July 1 to July 19, 2022.

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