Page 15 - LatAmOil Week 10 2022

LatAmOil NEWS IN BRIEF LatAmOil

Our independent reserves evaluator estimates boepd (or 35,466 boepd pro forma, excluding WI): 7 new gross development wells drilled in
that the Royston structure has a low estimate production from Argentina blocks, divested the Tigana, Jacana and Tigui oilfields.
of 128.3mn barrels, a best estimate of 165.7mn January 31, 2021). Full-year consolidated gross 2022 Production and Cash Generation: Tar-
barrels and a high estimate of 211.7mn barrels operated production of 62,270 boepd. CPO-5 geted 2022 production increase of 5-10% to
of total petroleum initially-in-place from the block (GeoPark non-operated, 30% WI) annual 35,500-37,500 boepd. (Does not include produc-
overthrust and intermediate sheets of the Her- gross production up 55% vs 2020 to 12,407 bpd. tion from Argentina and Brazil and any poten-
rera Formation, with no estimate provided in the 32 gross wells drilled in 2021 (29 operated with a tial production from 15-20 exploration wells
subthrust sheet. success rate of 96%). 350+ square km of 3D seis- being drilled.) At $80-85/bbl Brent, the work
Paul Baay, President and CEO, commented: mic acquisition during 2021 in the Llanos and programme generates $210-240mn free cash
“Our 2021 independent reserves evaluation con- Putumayo basins in Colombia. flow, a 25-30% yield. At $95-100/bbl Brent, the
firms the significant opportunities at our Ortoire Improved Capital and Cost Efficiency: Cap- work programme generates $260-280mn free
property and the profitability of all of our assets ital expenditures of $43.9mn/Full-year capi- cash flow, a 31-33% yield. Free cash flow will be
in Trinidad. The estimated additions of both tal expenditures of $129.3mn. 2021 Adjusted used to: (i) fund additional capital opportunities
future net revenues and reserves at the newly EBITDA to capital expenditures ratio of 2.3x within the portfolio, (ii) partially or fully repay
discovered Royston light oil pool are reflective of (3.2x excluding cash hedge losses). Full-year the 2024 Notes ($170mn principal remaining),
our successful drilling activities in 2021 and the G&G and G&A costs reduced by 16% to as well as (iii) increasing shareholder returns
considerable size of the prospect in the Herrera $54.7mn (31% lower vs 2019). (through dividends and buybacks) and other
Formation. The initial Royston reserves evalua- Growing Cash Generation and Profits: Reve- corporate purposes.
tion was conservative, given only one well was nue up 90% to $202.4mn/Full-year Revenue up GeoPark, March 9 2022
drilled to date and no reserves were assigned to 75% to $688.5mn. Adjusted EBITDA up 56% to
the subthrust sheet. We have two exciting oppor- $87.1mn/Full-year Adjusted EBITDA up 38% to
tunities to substantially increase reserves in the $300.8mn. Net Profit of $36.9mn/Full-year Net POLICY
area with the Royston Deep well intended to Profit of $61.1mn.
evaluate the subthrust sheet of the Herrera For- Less Debt and Stronger Balance Sheet: Cash Directors highlight
mation and the Kraken well targeting the deeper in hand of $100.6mn. $105mn in debt paid down
Cretaceous Formation. in 2021. Net leverage of 1.9x (2.7x in December Petrobras’ commitment
“We are proceeding with the final step to 2020).
bring the Coho gas field online with anticipated Bigger Shareholder Returns: Direct returns to to energy transition at
first natural gas production in May 2022, which shareholders during Q4-2021 totaled $8.9mn2
will represent a milestone for Touchstone and (up 36% vs Q3-2021). Discretionary share CERAWeek
Trinidad. We also remain on track with our buyback programme in place for up to 10% of
operations at Cascadura, as we have submitted shares outstanding until November 2022. Dou- Petrobras’ stance as a company committed to
the required regulatory applications and pro- bling quarterly cash dividend to $5.0mn ($0.082 transition to a low-carbon global economy,
cured the long lead items for the surface facility, per share) payable on March 31, 2022. $6.4mn with doubly resilient, low-cost projects with
providing visibility to estimated completion in in share buybacks plus $2.5mn in quarterly lower emissions, was highlighted this Tuesday,
September 2022. dividends. March 8, during the participation of the compa-
“Our focus is to convert our extensive Trin- 40-48 Well Drilling Programme Underway ny’s directors in CERAWeek. The event, held in
idad resource base to cash flows while contin- and Delivering Results: Self-funded 2022 capital Houston, is considered one of the global energy
uing to target further exploration opportunities expenditures programme of $160-180mn to drill industry’s main meetings and aims to promote
across our licence areas. It is an exciting time for 40-48 gross wells. In Ecuador in the Perico block new ideas and dialogues about the sector.
Touchstone, as it is rare to have a combination of (GeoPark non-operated, 50% WI): First discov- The Chief Financial and Investor Relations
solid low decline base production, a near-term ery with the Jandaya 1 well now producing gross Officer of Petrobras, Rodrigo Araujo, partici-
step change in production, a multi-year develop- 870 boepd (770 light oil and 0.6 mcf per day of pated in the panel “Balancing Act: the future of
ment drilling programme and extensive explo- gas) with a 1.7% water cut. In Colombia in the oil and gas in Latin America?” and emphasised
ration opportunities. I would encourage anyone CPO-5 block: Indico 4 development well drilled that the company’s projects, with the high tech-
requiring additional information to view the and now producing gross 4,200 bpd of light oil nology implemented and the large scale of pro-
updated corporate presentation available on our with less than 0.2% water cut. Currently drilling duction, will allow for lower carbon emissions.
website.” the Indico 5 development well to be followed In addition, the projects are resilient to low oil
Touchstone Exploration, March 7 2022 by high-impact exploration drilling campaign barrel prices, highlighting the importance of
beginning by the end of Q1-2022. In Colombia capital discipline. “We know that the oil indus-
GeoPark reports Q4-2021 in the Llanos 34 block (GeoPark operated, 45% try is cyclical. We need to be prepared to perform
in any scenario. Two years ago, for example, the
and full-year 2021 results barrel price was at $20,” said Araujo.
During his explanation, Araujo explained
GeoPark, a leading independent Latin American that today Petrobras is prepared for a challeng-
oil and gas explorer, operator and consolidator, ing scenario, due to its solid portfolio, which
reports its consolidated financial results for the also accounts for the start-up of production in
three-month period and for the year ended 15 new platforms by 2026. According to the cur-
December 31, 2021. rent portfolio, the production ratio is 85% oil and
Highlights, Consistent Operational Deliv- 15% gas. “This is a dynamic of our Pre-Salt pro-
ery: Quarterly oil and gas production of 37,928 jects and, at least in the medium term, it should
boepd/Full-year oil and gas production of 37,602 continue along these lines,” said Araujo.

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