Positioned for Growth

Transcription

1 Positioned for Growth September 2011

2 Production, Reserves & Acreage Asset Base Country Basin Block Working Interest (%) Area (Acres) Chile Magallanes Fell ,000 Chile Magallanes Tranquilo 29 1,643,000 Chile Magallanes Otway 25 1,480,000 Chile Magallanes Isla Norte (*) ,000 Chile Magallanes Campanario (*) ,000 Chile Magallanes Flamenco (*) ,000 Argentina Austral Del Mosquito ,000 Argentina Neuquén Cerro Doña Juana ,600 Argentina Neuquén Loma Cortaderal ,300 (*) Subject to Chile Government Approval 49.6 MMboe 35.5 MMboe 42.3 MMboe Probable Proved Reserves Probable Reserves Proved Reserves Probable Proved Probable Gas Production Oil Production 2011 (e) Long-Term Business Partners 2

3 People and Technology Capabilities EXPERIENCED AND SUCCESSFUL TEAM Kimiri Aike Dew Point Plant Technical and operations focused company Objective to differentiate from peers by building highly competent oil and gas finding and development capability Core G&G team from Chevron San Jorge (600 + million barrels oil discovered in region and 25 + years working together) and other major companies (BP; YPF; TOTAL; ENAP; Petrobras) Team with experience in regional geology and operations Built to create opportunities and support future growth Good demographics with seasoned and young professionals All employees are shareholders Southern Cross WO Rig 01 San Antonio Drilling Rig Pampa Larga Plant Petreven Drilling Rig TECHNOLOGY 2 drilling rigs in operation 2 workover rigs in operation Gas treatment facilities Dew point plant Kimiri Aike (35 MM SCFD) Gas treatment facilities at Pampa Larga, Dicky, Santiago Norte and Monte Aymond Maximum gas delivery capacity: 78 MM SCFD (Kimiri Aike and Monte Aymond) Gathering system consists of more than 135 km of gas pipelines Oil production facilities More than 10 separation and storage facilities 2 oil treatment plants (Pampa Larga, Kimiri Aike) 3

4 2011 Main Highlights MAJOR STRATEGIC EXPANSION IN CHILE Successful bid for 3 key blocks on Tierra del Fuego Blocks are more oil prone than Fell block Opportunity to expand on existing platform in the region STRONG FINANCIAL POSITION Proceeds from the Corporate Bond ($133MM) Sale of 10% of Chile business to LGI ($70MM) Agreed second sale of 10% of Chile business to LGI ($78MM) Estimated total cash on hand for acquisitions/capex of $220MM+ ON-GOING DRILLING SUCCESS ON FELL, ENCOURAGING SIGNS ON TRANQUILO New oil discovery in the Tobifera (Konawentru- x1) Fell block Renoval x1 in line with pre-drill prognosis (e.700bcf+) Tranquilo block Preliminary seismic evaluation identified multiple potential structures Otway block FY 2011 ON-TRACK TO MEET PRODUCTION GUIDANCE After a slow 1H 2011, strong recovery in 2H 2011 Current production is approximately 8,500 boe/d (35% oil) 4

5 Fell Block Development Steady Organic Growth Successful Discoveries Konawentru x-1: Oil (Tobifera) Copihue x-1: Oil & Gas Field Mte. Aymond 35: Gas Munición Oeste x-2 (main reservoir w/o completion) WO Bump Hill: Oil (Tobifera) Production mix change towards oil Appraisal & Development Guanaco Field Appraisal Alakaluf Enhanced Oil Recovery WELL RESULT OIL PRODUCER GAS PRODUCER NON-PRODUCTIVE Upcoming Wells 4 oil development; 3 exploratory oil and 1 exploratory gas New Discoveries not yet in production or under evaluation Williche x-1 (rigless acid job pending) Alakaluf Este x-1: Gas (Tobifera) Mte. Aymond 36: Oil (Springhill) Unsuccessful Efforts Nika Sur x-2: Gas + Water (inconclusive test) KEY PROVED OIL PROBABLE OIL POSSIBLE OIL PROVED GAS PROBABLE GAS POSSIBLE GAS PROSPECT LEAD 3D SEISMIC 5

6 Financial Results Performance FINANCIAL HIGHLIGHTS SIGNIFICANTLY HIGHER PRODUCTION IN H In $' jun jun-11 10,000 Revenues 39,627 41,765 9,500 9,000 Production Costs -19,337-21,428 Gross Profit 20,290 20,337 CAPEX 34,285 33,728 Equity 95, ,484 boe/d 8,500 8,000 7,500 7,000 6,500 6,000 Debt 56, ,160 Cash 8, ,961 5,500 5,000 Jan Feb Mar Apr May Jun Jul Agu CASH FLOW EVOLUTION (IN MILLION OF $) CONSOLIDATED NETBACKS PER BOE (33.4) (8.7) $/boe Revenues $/boe Revenues $/boe Initial cash Cash flow from operations CAPEX Net borrowings LGI contribution Ending cash 1-5 1H H 2011 Roy., Sell, & Others G&A G&G OPEX EBITDA 6

7 DIANA_2 DIANA_1 TN_ A 3 TRANQ UILO _1 8 9 KERBER_1 / 2 E SPERANZA_3 CHILENITA_1 CHILENITA_2 4 RENOVAL x-1 E SPERANZA_1 SAN_JOSE_1 EL_SALTO_1 ARACELIS_3 ESPERANZA_2 S AN_ANTO NIO_1 ARACELIS_1 GRIMAL_1 PONSOMBY_1 PRAT 1 CANELOS 1 EL GANSO 1 COREY_4 ZURDO _1 MANZANO _2 MINA_RICA_4 MINA_RICA_3 PARRILLAR_1 OTWAY_1 MINA_RICA_1 COREY_2 COREY_1 COREY_3 KON_AIKE_2 5 KON_AIKE_1 MINA RICA-2/2A LAS HOJAS-1 PATOS-1 MANZANO 6 P-4 P-5 P-3 PECKET 1 P-2 PECKET P-6 TRES BRAZOS-1 4 3A 9 VULCANO_1 TRES PUENTES-1 8A MARCO U_1 LEÑADURA-1 Tranquilo & Otway Blocks High Impact Exploration 2D DIANA: 62 km DIANA KERBER KERBER RENOVAL x-1 WELL ESPERANZA ESPERANZA GALES ESPERANZA ( Morro Chico ) Total UMR: 700+ BCF CoS: 28% ESPERANZA ( Loreto + El Salto ) Total UMR: 120+ BCF Av. CoS: 28% 3D ESPERANZA: 93 km2 MORRO CHICO Total UMR: 400+ BCF Av. CoS: 18% ARGENTINA CHILE Total Area: 12,613 Km2 2D Seismic: Otway: Km / Tranquilo: 1,428.3 Km Total Wells: Otway: 31 / Tranquilo: 23 (drilled before concession started for both) Type of Contract: CEOP (Contrato Especial de Operacion Petrolera) Consortium: Otway: GeoPark 25%, Pluspetrol 25%, Wintershall 25%, IFC 12.5% and Methanex 12.5% Tranquilo: GeoPark 29%, Pluspetrol 29%, Wintershall 25% and Methanex 17% Operator: GeoPark in both blocks Total UMR: 86 BCF Av. CoS: 18% TRANQUILO BLOCK GALES 2D ESPERANZA-KERBER-GALES: 316 km 2011 UPDATE Tranquilo Otway 2D seismic 82 % 60 % Total UMR: 197 BCF Av. CoS: 24% CHILENITA Total UMR: 95 BCF Av. CoS: 18% 3D Esperanza 100% 2D ISLA RIESCO: 175 km 3D MARCOU: 70 km2 3D Marcou 100% ARACELIS-Pta. EUGENIA RIESCO MARCOU MAR COU 3D Cabo Negro 100 % Total UMR: 1,570 BCF Av. CoS: 17% OTWAY BLOCK 3D CABO NEGRO: 270 km2 CABO NEGRO RIO PESCADO Total UMR: 162 BCF Av. CoS: 17% RENOVAL X-1 WELL (ESPERANZA STRUCTURE) Well drilled. Awaiting for completion Q Depth 2,950m Target Morro Chico Sands (Lower Tertiary); Gas Resources 700BCF + (UMR.); CoS: 28% 2012 PROGRAM Otway Tranquilo Acquired 2D Seismic up to Sep 2011 Planned 2D Seismic to be acquired in summer 2011/ km 1 well 1,700 m 2012 Q2 1 well 1,600 m 2012 Q4 1 well 700 m 2012 Q4 1 well 2,200 m 2012 Q2 1 well 3,000 m 2012 Q2 7

8 Creating Opportunities Widening our Footprint GEOPARK IS BUILT FOR GROWTH Strategically positioned as a consolidator in Latam Successful bid for 3 key blocks on Tierra del Fuego Opportunity to expand on existing platform in the region Blocks are more oil prone Experienced technical team to extract maximum value from assets Leverage on proven and successful business model Strong cash position for future Capex / acquisitions ATTRACTIVE PROJECT ACQUISITION PORTFOLIO Multiple Latam projects identified, screened and prioritized Formed a team with management and technical staff devoted to growth initiatives Teamed-up with a strong financial partner like LGI Looking for the right combination of value risk and reward Proved and probable reserves, production revenues, development opportunities and exploration potential Company acquisitions, project buy-outs, farm-ins, earned interests LG INTERNATIONAL STRATEGIC GROWTH PARTNERSHIP LGI Partnership to build a diversified risk-balanced portfolio of upstream projects across Latam Side by side acquisitions (initially $ MM size) GeoPark is General Manager of Partnership and Operator of acquired projects LGI contributes technical and financial strength LGI and GeoPark are already partners in Chile and Tierra del Fuego 8

9 Tierra del Fuego Acquisition Replicating Fell Model TIERRA DEL FUEGO ENAP PARTICIPATION AGREEMENTS Private bidding process conducted by ENAP over the past year GeoPark has been awarded participation and operatorship of 3 blocks; Campanario (50%), Flamenco (50%) and Isla Norte (60%) GeoPark will carry ENAP during the 1 st 3-year exploration period GeoPark will share incremental production on these blocks above agreed baseline production (which is negligible) GeoPark believes these blocks are significantly more oil prone than the Fell block Isla Norte A summary of the bids presented by GeoPark is shown in the table below Block Size (km2) Commitments Campanario Isla Norte 527 $16.3MM Campanario 578 $41.5MM Flamenco 572 $43.6MM Total 1,677 $101.4MM (*) (*) US$ MM performance bond requested by the Chilean Government Flamenco San Sebastian Marazzi CURRENT STATUS GeoPark and ENAP executed on September 12 th three Participation Agreements, one for each block, and have jointly applied for the three CEOPs to be executed with the Government of Chile as soon as possible GeoPark expects to execute the CEOPs and start operations in the blocks during the first quarter of 2012 Largo Mercedes REFERENCES Blocks Awarded to GeoPark Block Awarded to Third Parties 9

10 LGI + GeoPark Strengthening the Strategic Alliance TRANSACTION DESCRIPTION GeoPark sold participation in Chile business to LGI: 10% interest in May 2011 for $70MM; 10% interest in September 2011 for $78MM (subject to Board approval) Technical Services Agreement entered into by GeoPark in respect of the Sholkara well in Kazakhstan GeoPark will earn a 1% Net Profits Interest in Sholkara in the event of a successful development GeoPark no longer required to partially fund the Sholkhara well LGI to have approximately a 30% share in GeoPark s Tierra del Fuego subsidiary MAIN ACHIEVEMENTS OF TRANSACTION Cements the LGI Alliance and sets the foundation for a promising long term acquisition partnership Increases GeoPark s cash resources available for future capex/acquisitions Sets a valuation benchmark for GeoPark s Chile business of $780MM Allows GeoPark to share the risk on the new Tierra del Fuego blocks 10

11 Balanced Growth Opportunities Investment Case GEOPARK A PROVEN BUSINESS MODEL Asset Base Large operated acreage position approx. 4.2MM acres including the new Tierra del Fuego blocks 49.6 MMboe 2P reserves (35% oil) and 157 MMboe of 3P reserves Current production of approximately 8,500 boe/d (35% oil) Capabilities Strong technical team successful track record $200MM raised during the past 9 months without dilution (and another $78MM expected) Fully funded work program 2 drilling rigs (25-30 new wells) Growth Stable organic growth coupled with high impact exploration opportunities and new project acquisitions LGI growth alliance Leverage on strategic and balanced partnerships Culture Partner of choice in region with record of excellence with environment and communities Committed long term shareholders Risk management Performance-driven/all employees are shareholders 11