Page 16 - LatAmOil Week 08 2021

LatAmOil NEWS IN BRIEF LatAmOil

2P Reserves: Proven and probable (2P) reserves GeoPark’s net debt-adjusted 2P NPV10 after tax and long-term.”
in Colombia increased 9% to 141.0mn boe, with of $31.3 per share ($25.5 per share correspond- GeoPark, February 19 2021
a 2P RLI of 11.6 years. NPV10 after tax of 2P ing to Colombia).
reserves increased by 3% to $2.1bn. 3P Reserves: Enhanced Exploration Inventory with Over
Proven, probable and possible (3P) reserves in 750mn Barrel Recoverable Resource Potential INVESTMENT
Colombia increased 28% to 216.4mn boe, with in Colombia: CPO-5 block: 400-900mn bar-
a 3P RLI of 17.8 years. NPV10 after tax of 3P rels gross recoverable exploration resources, or Petrobras on sale of
reserves increased by 17% to $3.1bn. 120-270mn barrels net to GeoPark. Other Lla-
CPO-5 Block Reserves: Gross 2P and 3P nos basin block: 110-210mn barrels recoverable onshore fields in Bahia
reserves in the CPO-5 block (GeoPark non-op- exploration resources, net to GeoPark. Putu-
erated, 30% WI) of 70.5mn barrels and 167.0mn mayo basin blocks: 150-300mn barrels recov- Petrobras, following up on the release disclosed
barrels, respectively, reflecting the significant erable exploration resources, net to GeoPark. on March 4, 2018, informs that it signed today
potential of the existing Indico and Mariposa Oriente basin (Ecuador) blocks: 14-29mn bar- with SPE Miranga, a wholly owned subsidiary
light oil fields in the CPO-5 block - with net 2P rels recoverable exploration resources, net to of PetroRecôncavo, a contract for the sale of its
and 3P reserves of 21.1mn barrels and 50.1mn GeoPark. total stake in nine onshore exploration and pro-
barrels, respectively. James F. Park, Chief Executive Officer of duction fields, called Miranga Cluster, located in
Reserve Additions and Replacement Ratios: GeoPark, said: “Thanks and congratulations the state of Bahia.
After record production of 12.2mn barrels, the to our team for these strong 2020 results in a The total sale amount is $220.1mn, of which
Company added 17.8mn boe of PD reserves remarkably challenging year with so much of our (a) $11mn paid on the present date; (b) $44mn
and 24.2mn boe of 2P reserves, achieving 146% focus on keeping our people and communities at the closing of the transaction; (c) $80.1mn
and 199% reserve replacement of PD and 2P safe and healthy and with significantly reduced deferred in three installments over three years
reserves, respectively. work programmes. We previously reported on from the closing of the transaction and (d) up to
Consolidated Reserves: PD Reserves: PD our success in growing production in 2020 for $85mn in contingent payments related to future
reserves increased 12% to 58.5mn boe, with a the 18th straight year. So, after a record produc- oil prices. The amounts do not consider adjust-
PD RLI of 4.0 years. 1P Reserves: 1P reserves tion year (and after adjusting for the divestment ments due until the closing of the transaction,
decreased 2% to 109.3mn boe, with 1P RLI of our non-producing Morona block), we were which is subject to compliance with precedent
of 7.4 years. NPV10 after tax of 1P reserves able to replace all of our produced oil and gas conditions, such as approval by the National
decreased by 10% to $1.6bn. 2P Reserves: 2P and continue growing our total PD, 2P and 3P Petroleum, Natural Gas and Biofuels Agency
reserves increased 6% to 174.7mn boe, with a 2P reserves. This again highlights the quality of our (ANP).
RLI of 11.9 years. NPV10 after tax of 2P reserves assets, the benefits of our self-funded flexible This disclosure complies with the Petrobras’
remained steady at $2.5bn. 3P Reserves: 3P work programme, and our ability to effectively internal rules and with the provisions of the
reserves increased 19% to 270.9mn boe, with allocate capital even in the toughest environ- special procedure for assignment of rights to
a 2P RLI of 18.4 years. NPV10 after tax of 2P ments. Our large, certified reserve base gives exploration, development and production of oil,
reserves increased by 12% to $3.7bn. us a powerful inventory of low-risk, low-cost natural gas and other fluid hydrocarbons, pro-
Reserve Additions and Replacement Ratios: development drilling opportunities to continue vided for in Decree 9,355/2018.
After record production of 14.7mn boe, the to generate and grow cash flow over the short This transaction is aligned with the strategy
Company added 20.8mn boe of PD reserves and and medium-term. of portfolio optimisation and the improvement
24.0mn boe of 2P reserves, achieving, respec- “Additional good news is the big exploration of the allocation of the company’s capital, con-
tively, 141% and 163% replacement of PD and resource certification on our expanded acreage centrating increasingly its resources on world-
2P reserves. in Colombia that demonstrates the attractive- class assets in deep and ultra-deep waters, where
Net Present Value and Value Per Share: ness of our land position—as well as the exten- Petrobras has shown great competitive edge over
GeoPark’s 2P NPV10 after tax of $2.5bn. sive running room we have in the short, medium the years.
The Cluster comprises the onshore fields
of Miranga, Fazenda Onça, Riacho São Pedro,
Jacuípe, Rio Pipiri, Biriba, Miranga Norte,
Apraiús, and Sussuarana, located in the state of
Bahia. Petrobras is the operator with 100% stake
in these concessions. The average production of
the Miranga Cluster in 2020 was approximately
899 barrels per day (bpd) of oil and 376,800
cubic metres per day of natural gas.
Petrorecôncavo is a Brazilian oil and gas
company acting in revitalising and increasing
the recovery factor of mature onshore fields,
and is currently one of the largest independent
producers in the industry. In 2019, the com-
pany acquired Petrobras’ stake in the Riacho
da Forquilha Cluster. In 2020, it acquired a new
exploratory block in the Potiguar Basin, and
signed a purchase and sale agreement for Petro-
bras’ stake in the Remanso Cluster.
Petrobras, February 24 2021

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