GeoPark Announces New Strategic Block Acquisitions in Colombia

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, Chile and Ecuador today announced the expansion of its portfolio in Colombia following a new successful Agencia Nacional de Hidrocarburos ("ANH”) bid round and an agreement with Parex Resources ("Parex”).

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Llanos Map (Photo: Business Wire)

As part of the second cycle of ANH's Permanent Process for the Assignment of Areas ("PPAA”) in Colombia, GeoPark was awarded the Llanos 123 and Llanos 124 blocks in partnership with Hocol (a 100% subsidiary of Ecopetrol). Final contracts are expected to be signed in December 2019 or early 2020.

In addition, GeoPark and Parex executed an agreement in which GeoPark will assume, subject to ANH approval, a 50% WI in the Llanos 94 block in exchange for funding its 50% pro-rata share of existing commitments, with no carry.

On November 15, 2019, GeoPark announced that it will acquire the entire issued and to be issued share capital of Amerisur Resources Plc. ("Amerisur”) in an all cash transaction with closing of the transaction expected in January 2020, following approval of Amerisur shareholders and subject to customary regulatory approvals. As part of the PPAA, Amerisur was awarded the PUT-36 block.

Llanos Basin

The acquired blocks represent attractive, low-risk, high potential exploration acreage in the Llanos basin near GeoPark's successful Llanos 34 block (GeoPark operated, 45% WI), and surrounded by multiple producing oil and gas fields and existing infrastructure .

The Llanos 123 and Llanos 124 blocks are located adjacent to GeoPark's Llanos 34 block. GeoPark will be the operator with a 50% WI and Hocol (a 100% subsidiary of Ecopetrol) will have a 50% WI.

The Llanos 94 block is located on trend with GeoPark's Llanos 34 block and adjacent to the CPO-5 block (ONGC Videsh operated, 70% WI, Amerisur 30% WI).

GeoPark and its partners have preliminarily identified multiple oil prospects and leads in these blocks, resulting from existing 3D seismic as well as other relevant data. Geoscience evaluation is ongoing and field operations are expected to start in 2020.

With the addition of new blocks during 2019 and following the closing of the recently announced acquisition of Amerisur, GeoPark will significantly expand its acreage position around its core Llanos 34 block by adding approximately 1.4 million gross acres – 17 times the size of the Llanos 34 block.

The table below summarizes relevant information related to the new blocks acquired in the Llanos basin:

1. Commitment includes reprocessing existing 3D seismic and drilling two gross exploration wells during the first exploration phase over the next three years
2. Commitment includes reprocessing existing 3D seismic and drilling three gross exploration wells during the first exploration phase over the next three years
3. Commitment includes acquiring 50 sq km and reprocessing existing 3D seismic plus drilling three exploration wells during the first exploration phase over the next three years

Putumayo Basin

The PUT-36 block represents attractive exploration acreage in the Putumayo basin adjacent to Amerisur's Mecaya block (Amerisur operated, 50% WI and Oxy 50% WI) and PUT-9 block (Amerisur operated, 50% WI and Oxy 50% WI) and near the producing Platanillo block (Amerisur operated, 100% WI), as well as other exploration acreage held by Amerisur.

With the addition of this new block and following the closing of the recently announced acquisition of Amerisur, GeoPark will further expand its position of more than two million gross acres in the Putumayo basin, with existing production, a nearby dedicated cost-effective transportation solution with spare capacity and significant exploration potential.

1. Commitment includes reprocessing existing 3D seismic and drilling two gross exploration wells during the first exploration phase over the next three years.

James F. Park, CEO of GeoPark, said: "Congratulations and thanks to our partners, Hocol (a 100% subsidiary of Ecopetrol) and Parex, and to our Colombian team for successfully acquiring these highly attractive, low-cost blocks - which further strengthen GeoPark’s leading acreage position in the Llanos basin – specifically surrounding our prolific Llanos 34 block. Subject to the closing of the Amerisur acquisition, the new Putumayo block helps leapfrog GeoPark into one of the leading land holdings in the high potential underexplored and underdeveloped Putumayo basin. We also express our appreciation to the Colombian government for its commitment to and follow-through in opening up more attractive hydrocarbon areas for investment – and we look forward to getting to work.”

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