Increasing Activity in the Second Half of 2023
Accelerating Shareholder Returns
GeoPark Limited (“GeoPark” or the “Company”) (NYSE:GPRK), 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, 2023 (“2Q2023”).
All figures are expressed in US Dollars. Growth comparisons refer to the same period of the prior year, except when otherwise specified.
Oil and Gas Production
- Consolidated average oil and gas production of 36,581 boepd, below its production potential of approximately 39,500-40,500 boepd, as previously announced on March 8, April 11 and May 3, 2023, mainly due to temporarily shut-in production in the CPO-5 block (GeoPark non-operated, 30% WI) in Colombia and to a lesser extent, in the Fell block (GeoPark operated, 100% WI) in Chile
- 9 rigs in operation in June 2023 (5 drilling rigs and 4 workover rigs), with 3 more rigs to be added in 3Q2023 (two drilling rigs and one workover rig)
Colombia – Llanos Basin
Llanos 34 block (GeoPark operated, 45% WI):
- Average gross production of 55,307 bopd (up 1% vs 1Q2023)
- Three drilling and four workover rigs currently in operation
- Spudded a second horizontal development well in the Tigana Field
- The well was drilled to a total depth of 14,030 feet and a horizontal lateral length of 1,680 feet
- Total depth reached in July 2023, expecting to complete the well and initiate testing in late July 2023
- Second horizontal well was drilled within budget and ahead of time. Also, was drilled 16% faster, 10% lower drilling costs, and with 32% longer lateral length as compared to the first horizontal well
- The Company is evaluating drilling 3-4 additional horizontal wells in 2H2023
CPO-5 block:
- Average gross production of 17,807 bopd (up 6% vs 1Q2023), below its production potential of approximately 25,000-26,000 bopd gross, due to shut-in production of the Indico 6 and Indico 7 wells
- The operator is currently executing civil works and expects to resume production of the Indico 6 and Indico 7 wells in August 2023
- These two wells were drilled in late 2022 and together tested over 11,000 bopd gross (or 3,300 bopd net to GeoPark). The wells are expected to stabilize production at approximately 8,000 bopd gross
- The two wells remained shut in for most of 1H20231 after the regulator (ANH) asked the operator to suspend production pending completion of required surface facilities
- Resuming drilling activities in 3Q2023 with one drilling rig, targeting to drill two wells in 2H2023
- Pre-drilling activities underway for the Halcon 1 well, targeting an exploration prospect in the northern part of the block, close to the Llanos 34 block, expected to be spudded in September/October 2023
Llanos 87 block (GeoPark operated, 50% WI):
- Additional drilling activities planned for 2H2023 updip of the Zorzal 1 well discovery, where there is incremental potential identified in the Barco formation (subject to joint venture partner approval)
Llanos 123 block (GeoPark operated, 50% WI):
- One drilling rig currently in operation
- Saltador 1 exploration well was spudded in late May 2023 and reached total depth in early July 2023
- Preliminary logging information indicated hydrocarbons in the Barco and Mirador formations
- Testing activities are expected to start in July/August 2023
- Pre-drilling activities underway, targeting to spud the Toritos 1 exploration well in August 2023
Llanos 124 block (GeoPark operated, 50% WI)
- One drilling rig currently in operation
- The Cucarachero 1 exploration well was spudded in July 2023 and is expected to reach total depth in August 2023
Llanos 86 and Llanos 104 blocks (GeoPark operated, 50% WI)
- Preliminary activities currently underway targeting to acquire over 650 square kilometers of 3D seismic, expected to start in early 2024
- Once executed, this project would be one of the three biggest onshore seismic acquisition projects in Colombia
- 3D seismic acquisition is expected to add additional exploration prospects to GeoPark’s deep organic exploration inventory in the Llanos basin. The Llanos 86 and Llanos 104 blocks are adjacent to the CPO-5 block
