Page 16 - LatAmOil Week 25 2022

LatAmOil NEWS IN BRIEF LatAmOil

Mons S Aase, CEO, DOF Subsea said: “I am very complete testing programme is underway, and producing gross approximately 2,800 bpd of
pleased for these awards securing utilisation for additional production history will be required oil. GeoPark and its partner are evaluating sub-
our personnel and our assets and adding impor- to determine stabilised flow rates of the well and sequent activities, including a potential devel-
tant back log to the Group. It further strengthens the extent of the reservoir. opment drilling plan for recent discoveries in
our leading position in Brazil within IMR and Currently spudding the Flamenco 1 explo- Jandaya, Tui and Yin fields.
confirms our long relationship with Petrobras.” ration well, located 4 km west of the Urraca 1 In the Espejo block (GeoPark operated, 50%
DOF Subsea is dedicated to deliver safe and well, looking for hydrocarbon potential in the WI): Completed the acquisition of 60 square km
efficient subsea solutions. Ubaque and Mirador formations, with Guada- of 3D seismic. Pre-drilling activities underway
DOF Subsea, June 21 2022 lupe as a secondary target. to spud the Pashuri 1 exploration well in Sep-
H2-2022 work programme was revised to tember 2022
GeoPark issues update include one additional development well to fur- Putumayo Basin: Spudding New Attractive
ther accelerate production growth in the Indico Short-Cycle Prospects. In the Platanillo block
on business activity in field, to be followed by three to five high-poten- (GeoPark operated, 100% WI): Pre-drilling
tial exploration wells (one or two wells next to activities underway to spud the Alea NW 1
April-May period Llanos 34 to test the extension of the Jacana field exploration well in late June 2022, to be followed
and two or three wells in the south-eastern part by the Platanillo Norte 1 exploration well in
GeoPark, a leading independent Latin American of the block). Q3-2022. Production and operations affected
oil and gas explorer, operator and consolidator In the Llanos 87 block (GeoPark operated, for 15 days in May 2022 due to local commu-
today provides an operations and business activ- 50% WI): Obtained environmental license, nity blockades with production fully restored to
ity update. allowing exploration and delineation drilling approximately 2,400 bpd of oil.
Production figures refer to the April-May plus related infrastructure. Pre-drilling activities Fast, Immediate and Aggressive Actions to
2022 period. All figures are expressed in US currently underway to spud the Tororoi explora- Minimise Emissions in Core Asset: Llanos 34
Dollars. tion prospect in Q3-2022, to be followed by one interconnection to Colombia’s national power
Accelerating Production Growth: Consol- or two exploration wells in Q4-2022. grid expected to be fully operational by July
idated oil and gas production of 38,726 boepd In the Llanos 34 block: Adding a third drilling 2022. Tua and Jacana fields interconnected in
(up 2% vs Q1-2021). Production in Colombia of rig, expected to start spudding wells in August May/June 2022. Tigana field to be intercon-
34,234 boepd. CPO-5 block (GeoPark non-op- 2022. nected in July 2022. The interconnection of
erated, 30% WI): gross production of 20,148 Oriente Basin: Third Drilling Success in 2022. Llanos 34 to Colombia’s national power grid
boepd (up 33% vs Q1-2022) due to the success- In the Perico block (GeoPark non-operated, 50% (approximately 70% hydroelectric) is a decisive
ful drilling and testing of the Indico 4 and Indico WI): On May 15, 2022, the operator spudded the catalyst to reduce carbon emissions and improve
5 development wells. Yin 1 exploration well, located to the southwest overall operational reliability.
Llanos Basin: Initiating Exploration Drilling of the Jandaya oil field that was discovered in 2022 Work Programme: Strong Cash Flow
in High Potential Prospects. In the CPO-5 block: January. The well was drilled and completed to Generation. Self-funded 2022 capital expendi-
The operator spudded the Urraca 1 exploration a total depth of 11,345 feet. Preliminary logging tures programme of $200-220mn targeting drill-
well on April 21, 2022, located 17 km north-east information indicated hydrocarbons in the Hol- ing of 50-55 gross wells, including 18-22 gross
of the Indico field and 8 km southwest of the lin formation. exploration/appraisal wells.
Llanos 34 block (GeoPark operated, 45% WI). Preliminary production tests in the Hollin Using a $95-100 per barrel Brent base case,
The well was drilled and completed to a total formation are currently showing a production GeoPark expects to generate a free cash flow of
depth of 10,956 feet (3,239 metres). Preliminary rate of 1,600 bpd of oil by natural flow of 27 $250-280mn (after mandatory debt service pay-
logging information indicated hydrocarbons degrees API with a 2% water cut. The complete ments), equivalent to a 28-31% free cash flow
in the Mirador formation with no reservoir in testing programme is underway and additional yield. Free cash flow funding incremental capi-
Guadalupe. production history will be required to determine tal projects, deleveraging, increased shareholder
Production tests in the Mirador formation stabilised flow rates of the well and the extent of returns and other corporate purposes.
currently show a production rate of 308 bpd of the reservoir. Reducing Debt and Strengthening the Bal-
oil of 16 degrees API with a 53% water cut. The Jandaya, Tui and Yin oil fields are currently ance Sheet: Redeemed $45mn principal of the
2024 Notes in May 2022, having reduced gross
debt by $188mn in the last 18 months, with addi-
tional deleveraging expected in H2-2022 at cur-
rent market conditions.
Cash in hand of $100.84mn as of May 31,
2022 (after paying $45mn principal to redeem
the 2024 Notes).
Returning More Value to Shareholders: Paid
$9.7mn in cash dividends since January 1, 2022.
Acquired 405,674 shares for $5.8mn since Janu-
ary 1, 2022 under GeoPark’s discretionary share
buyback programme. Obtained consent from
2027 bondholders to reset and rebuild restricted
payments baskets, adding significant flexibil-
ity to establish a long-term shareholder return
strategy.
GeoPark, June 21 2022

P16 www. NEWSBASE .com Week 25 23•June•2022