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Expanded Production and Restarted Work for up to 10% of total outstanding shares. the Recôncavo and Tucano Basins, in different
Programme: Consolidated oil and gas pro- James F. Park, Chief Executive Officer of municipalities of the state of Bahia, jointly called
duction of 38,845 boepd in Q3-2020, up 5% GeoPark, said: “Thanks to and admiration for the Bahia Terra Cluster.
compared to Q2-2020; Resumed drilling with the GeoPark team for again performing through The teaser, which includes key information
three wells put on production in the Llanos 34 this monster storm. Because of its quick, deci- about the opportunity, as well as the eligibility
block (GeoPark-operated, 45% WI); Reopened sive and significant moves, GeoPark today is in criteria for selection of potential participants,
temporarily shut-in production and producing a position to re-engage our work programme, is available on the Petrobras website. The main
40,000 boepd by the end of Q3-2020; Currently grow production, build and set into motion an subsequent stages of the project will be reported
drilling the Indico 2 appraisal well in the CPO-5 attractive work program for 2021 and begin to the market in due course.
block (GeoPark non-operated, 30% WI). returning cash to its shareholders in the fourth The Bahia Terra Cluster comprises 28
Implemented Decisive Cost and Investment quarter. And beyond just surviving the collapse onshore production concessions located in dif-
Reduction Plan: Cost and investment reductions and accommodating to the new environment, ferent municipalities of the state of Bahia, and
totaled over $290mn across regional platform; our team transformed GeoPark – from a cost, includes access to processing, logistics, storage,
Further improving GeoPark’s cost efficiencies capability, and organisational perspective – into transportation and outflow infrastructure for oil
with ongoing cost-cutting initiatives at all levels; a better and stronger company ready to capture and natural gas.
Production and operating costs reduced by 32% the immense opportunity ahead.” It has about 1,700 wells in operation, 19
to $28.4mn; Operating costs per boe reduced by GeoPark, November 04 2020 collection stations, 12 collection points, two
22% to $6.3 per boe; G&A/G&G costs reduced oil treatment stations, six collection and com-
by 30% to $13.1mn. pressor stations, four water injection stations,
Generated Substantial Free Cash Flow: Reve- INVESTMENT approximately 980 km of gas and oil pipelines,
nue of $98.1mn; Adjusted EBITDA of $56.1mn besides the administrative bases of Taquipe, San-
(or $15.9 per boe), 2x Adjusted EBITDA in Petrobras starts binding tiago, Buracica, Araçás and Fazenda Balsamo.
Q2-2020; Operating Profit of $28.5mn / Net There are also two oil storage and handling
Loss of $4.3mn; Capital expenditures reduced phase of sale of E&P parks at the Bahia Terra Cluster with all the
by 56% to $9.8mn; Full-year 2020 work pro- infrastructure for receiving, storing and draining
gramme of $65-75mn targeting 40,000-42,000 assets in Ceará oil for the Landulfo Alves Refinery (RLAM). In
boepd annual average production and operat- addition, the Cluster includes the NGPU of Catu
ing netbacks of $245-270mn assuming Brent of Petrobras, following up on the release disclosed and 10 electrical substations.
$35-40 per barrel. on August 7, 2020, informs the beginning of the The average production of the Cluster from
Built Strong Financial Position and Risk binding phase regarding the sale of its entire January to August 2020 was around 14,000 bpd
Management: $163.7mn cash ($157.5mn in stake in the fields in shallow waters of Tuna, of oil and 642,000 cubic metres per day of gas.
Q2-2020 and after interest payments of $23.5mn Curima, Espada and Xareu (Ceara Cluster), Petrobras is the operator of these fields, with
in Q3-2020); $75mn oil pre-payment facil- located in the state of Ceara. 100% stake.
ity, with $50mn committed and no amounts Potential buyers qualified for this phase will It is important to note that the concessions
drawn; $132.9mn in uncommitted credit lines; receive a process letter with detailed instructions corresponding to the Miranga and/or Recôn-
Long-term financial debt maturity profile with on the divestment process, including guidelines cavo Clusters (referenced in the releases of
no principal payments until September 2024; for due diligence and the submission of binding 08/28/2017 and 06/03/2019, respectively) may
Continuously adding new hedges for the next proposals. be included in the sale process of the Bahia Terra
15 months. The Ceará Cluster has been in operation Cluster, which will be disclosed in due course.
Increased SPEED/ESG+ Response and since the ‘80s, and comprises the fields of Tuna, Petrobras, November 04 2020
Actions: Protocols, preventive measures and Curimã, Espada and Xaréu, located at a distance
crisis response plans in place across six-country of 30 km from the coast of the state of Ceará, in
regional platform; Field teams sharply reduced water depth between 30 and 50 metres. The aver-
to a minimum with back-up teams and con- age production in 2019 was 4,200 bpd of oil and
tingencies in place to keep people working 76,900 cubic metres per day of gas, through nine
safely and production flowing; GeoPark closely fixed platforms.
engaged with local communities implementing Petrobras is the operator of these fields, with
a significant range of measures to fight COVID- 100% stake on the exploration and production
19 with efforts coordinated at local, regional and rights of the concession contracts related to these
federal levels; Appointment of Sylvia Escovar fields.
and Somit Varma as new independent members Petrobras, November 04 2020
of GeoPark’s Board of Directors (filling vacan-
cies); Released GeoPark’s Environmental, Social Petrobras releases teaser
and Governance (ESG) report for 2019, available
on the Company’s website. for sale of onshore E&P
Returning Value to Shareholders by Cash
Dividends and Share Buyback Programme: assets in Bahia
2020 Extraordinary cash dividend of $0.0412
per share ($2.5mn) payable on December 9, Petrobras has started the opportunity disclo-
2020; 2020 Quarterly Dividend of $0.0206 per sure stage (teaser), referring to the sale of all of
share ($1.25mn) payable on December 9, 2020; its stakes in a set of 28 onshore production field
Resuming discretionary share buyback program concessions, with integrated facilities, located in

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