GeoPark’s Operational Upturn Signals Robust Growth Across Key Latin American Assets

In a striking demonstration of operational success and strategic expansion, GeoPark Limited, a distinguished independent oil and gas entity in Latin America, has recently reported remarkable progress in its operations for the first quarter of 2024. The company, listed under NYSE: GPRK, revealed an exceptional increase in production, particularly from its assets in the Llanos 34 and CPO-5 blocks in Colombia, which significantly contributes to the current production rate exceeding 38,000 barrels of oil equivalent per day (boepd).

Highlight on Production and Strategic Wells

During the first quarter of 2024, GeoPark produced an average of 35,473 boepd. This stable production is primarily sourced from the Llanos 34 block, a GeoPark operated area with a 45% working interest (WI). Despite facing challenges such as localized blockades in the CPO-5 block, where GeoPark holds a 30% non-operated WI, and maintenance activities in Brazil’s Manati gas field, the company adeptly managed these issues with minimal impact on overall productivity.

The Llanos 34 block notably reached a twelve-month high in early April 2024, with production peaking between 56,000 and 57,000 bopd gross, compared to the average production of 53,001 bopd gross in the first quarter. The introduction of horizontal drilling since early 2023 has proven successful, with seven wells currently contributing significantly to the increased output.

Meanwhile, production in the CPO-5 block achieved a new record, surging to approximately 30,000 bopd gross from a modest 18,923 bopd gross in the first quarter of 2024. This substantial increase is not only a testament to the block’s potential but also reflects GeoPark’s effective crisis mitigation during the 22 days of localized blockades earlier in the year.

Forthcoming Exploration Endeavours

Looking ahead, GeoPark is not resting on its laurels, with ambitious plans already in place for further exploration and appraisal activities. These include crucial projects in the Llanos 86 and Llanos 104 blocks, alongside the northeastern expansion in the CPO-5 block. Such initiatives underscore GeoPark’s commitment to enhancing its portfolio and sustaining growth through meticulous exploration and strategic asset management.

The seismic acquisition projects, particularly in Colombia, are among the largest onshore efforts in the nation, potentially adding significant prospects to GeoPark’s exploration inventory. With over 650 square kilometers of 3D seismic data already secured in the Llanos 86 and Llanos 104 blocks, and a new exploration well spudded in the CPO-5 block, the company is well-placed to uncover new reserves and optimize its production capabilities.

Corporate Resilience and Future Outlook

Despite geopolitical and operational challenges, GeoPark’s resilience and strategic planning have ensured continued growth and robust performance. The company has confidently maintained its 2024 full-year average production guidance of 35,500-39,000 boepd and plans to sustain its operational momentum by drilling 12-13 additional wells in the second quarter across its Latin American assets.

As GeoPark continues to build shareholder value and expand its operational footprint, stakeholders can anticipate continued excellence and strategic expansion from this agile and forward-thinking company. With a clear trajectory towards enhancing production and exploring new opportunities, GeoPark is well-positioned to play a pivotal role in shaping the energy landscape of Latin America.