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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Geopark | LSE:GPK | London | Ordinary Share | BMG383271050 | COM SHS USD0.001 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 400.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jul 2019 to Jul 2024
TIDMGPK
RNS Number : 9806F
Geopark Holdings Limited
31 May 2013
31 May 2013
GEOPARK HOLDINGS LIMITED
RESULTS FOR THE QUARTER ENDED 31 MARCH 2013
GeoPark Holdings Limited ("GeoPark" or the "Company"), the Latin American oil and gas explorer, operator and consolidator with operations and producing properties in Chile, Colombia and Argentina (AIM: GPK), is pleased to announce its quarterly results ended 31 March 2013.
1Q2013 Highlights
-- Production increased 39% averaging 13,426 boepd.
-- Colombia oil production increased 66% to 4,932 bopd (vs proforma 1Q2012).
-- Revenues increased 75% to US$89.8 million in 1Q2013, 93% from sales of oil.
-- Adjusted EBITDA increased 45% to US$49.7 million; Net income reached US$9.4 million.
-- Netbacks increased 6% to US$41 per boe produced.
-- CAPEX totaled US$75 million including 5 wells drilled in Chile and 10 in Colombia. Total 3D seismic performed 1,000 Km2 in Chile and 25 Km2 in Colombia.
-- US$300 million bond issued in February 2013 (144A/RegS): more than 6 times oversubscribed, initial yield of 7 5/8%. Funds to be used for new investments; US$170 million used for refinancing.
-- Momentum built into 2Q2013:
Exploration drilling commenced in Tierra del Fuego with the Chercán Well in the Flamenco Block following the 3D seismic campaign.
Strategic acquisition in Brazil of a 10% working interest in the Manati Field, the largest natural gas producing field in Brazil. Manati's EBITDA from 2012 represented approximately 30% of GeoPark's Adjusted EBITDA for the same period. This asset will increase GeoPark production in approximately 4,000 boepd. (Acquisition is subject to Brazilian regulatory approval).
Seven new onshore blocks awarded in the Brazilian Round 11 with an investment commitment of US$15 million during the first three years of the exploratory period. The new acreage added is approximately 54,850 acres.
In accordance with the AIM Rules, the information in this announcement has been reviewed by Salvador Minniti, a geologist with 32 years of oil and gas experience and Director of Exploration of GeoPark.
GeoPark can be visited online at www.geo-park.com
For further information please contact:
GeoPark Holdings Limited Juan Pablo Spoerer Pablo Ducci (Chile) +56 2 2242 9600 Oriel Securities - Nominated Adviser and Joint Broker Michael Shaw (London) +44 (0)20 7710 7600 Tunga Chigovanyika (London) Macquarie Capital (Europe) Limited - Joint Broker Jeffrey Auld (London) +44 (0)20 3037 2000
GEOPARK HOLDINGS LIMITED
FIRST QUARTER 2013 and 2012
INTERIM REPORT
INTERIM CONSOLIDATED FINANCIAL REPORT
FOR THE THREE MONTHS ENDED 31 MARCH 2012 and 2013
CONSOLIDATED STATEMENT OF INCOME
Hot Features
Premium
Three-months Three-months
period ended period ended Year ended
31 March 31 March 31 December
Amounts in US$ '000 Note 2013 2012 2012
NET REVENUE 2 89,774 51,321 250,478
Production costs (38,313) (19,362) (129,235)
GROSS PROFIT 51,461 31,959 121,243
Exploration costs (7,305) (1,281) (27,890)
Administrative costs (9,606) (3,231) (28,798)
Selling expenses (7,906) (1,744) (24,631)
Other operating (expense) /
income (154) (821) 823
OPERATING PROFIT 26,490 24,882 40,747
Financial income 4 306 341 892
Financial expenses 5 (12,918) (4,219) (17,200)
Bargain purchase gain on acquisition
of subsidiaries 11 - 8,401 8,401
PROFIT BEFORE TAX 13,878 29,405 32,840
Income tax (4,433) (5,117) (14,394)
PROFIT FOR THE PERIOD/YEAR 9,445 24,288 18,446
Attributable to:
Owners of the parent 6,480 20,427 11,879
Non-controlling interest 2,965 3,861 6,567
Earnings per share (in US$)
for profit attributable
to owners of the Company.
Basic 0.1490 0.4809 0.2784
Earnings per share (in US$)
for profit attributable
to owners of the Company.
Diluted 0.1427 0.4552 0.2693
STATEMENT OF COMPREHENSIVE INCOME
Three-months Three-months
period period Year ended
ended 31 ended 31 31 December
Amounts in US$ '000 March 2013 March 2012 2012
Profit for the period / year 9,445 24,288 18,446
Other comprehensive income - - -
Total comprehensive Income
for the period / year 9,445 24,288 18,446
Attributable to:
Owners of the parent 6,480 20,427 11,879
Non-controlling interest 2,965 3,861 6,567
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Year ended
At 31 March At 31 March 31 December
Amounts in US$ '000 Note 2013 2012 2012
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 6 510,942 376,081 457,837
Prepaid taxes 12,690 8,650 10,707
Other financial assets 2,657 6,531 7,791
Deferred income tax 13,103 12,228 13,591
Prepayments and other receivables 452 887 510
TOTAL NON CURRENT ASSETS 539,844 404,377 490,436
CURRENT ASSETS
Inventories 3,506 12,681 3,955
Trade receivables 39,939 31,952 32,271
Prepayments and other receivables 42,690 39,612 49,620
Prepaid taxes 6,026 4,035 3,443
Cash and cash equivalents 176,005 78,869 48,292
TOTAL CURRENT ASSETS 268,166 167,149 137,581
TOTAL ASSETS 808,010 571,526 628,017
EQUITY
Equity attributable to
owners of the Company
Share capital 7 43 43 43
Share premium 116,817 113,478 116,817
Reserves 128,421 129,596 128,421
Retained earnings (losses) 2,427 1,878 (5,860)
Attributable to owners
of the Company 247,708 244,995 239,421
Non-controlling interest 75,630 51,062 72,665
TOTAL EQUITY 323,338 296,057 312,086
LIABILITIES
NON CURRENT LIABILITIES
Borrowings 8 290,913 134,639 165,046
Provisions for other long-term
liabilities 9 28,209 19,137 25,991
Deferred income tax 22,885 13,262 17,502
TOTAL NON CURRENT LIABILITIES 342,007 167,038 208,539
CURRENT LIABILITIES
Borrowings 8 8,472 33,706 27,986
Current income tax 10,807 4,975 7,315
Trade and other payables 10 123,386 69,750 72,091
TOTAL CURRENT LIABILITIES 142,665 108,431 107,392
TOTAL LIABILITIES 484,672 275,469 315,931
TOTAL EQUITY AND LIABILITIES 808,010 571,526 628,017
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the Company
Retained Non -
Share Share Other Translation (Losses) controlling
Amount in US$ '000 Capital Premium Reserve Reserve Earnings Interest Total
Equity at 1 January 2012 43 112,231 114,270 894 (18,549) 41,763 250,652
Profit for the three month
period - - - - 20,427 3,861 24,288
Total comprehensive income
for the period ended 31
March 2012 - - - - 20,427 3,861 24,288
Proceeds from transaction
with Non-controlling interest - - 14,432 - - 5,438 19,870
Shared-based payment - 1,247 - - - - 1,247
- 1,247 14,432 - - 5,438 21,117
Balance at 31 March 2012 43 113,478 128,702 894 1,878 51,062 296,057
Balance at 31 December
2012 43 116,817 127,527 894 (5,860) 72,665 312,086
Profit for the three month
period - - - - 6,480 2,965 9,445
Total comprehensive income
for the period ended 31
March 2013 - - - - 6,480 2,965 9,445
Share-based payment - - - - 1,807 - 1,807
- - - - 1,807 - 1,807
Balance at 31 March 2013 43 116,817 127,527 894 2,427 75,630 323,338
CONSOLIDATED STATEMENT OF CASH FLOW
Three-months Three-months
period ended period ended Year ended
31 March 31 March 31 December,
Amounts in US$ '000 2013 2012 2012
Cash flows from operating activities
Profit for the period/year 9,445 24,288 18,446
Adjustments for:
Income tax for the period/year 4,433 5,117 14,394
Depreciation of the period/year 15,769 8,431 53,317
Loss on disposal of property, plant
and equipment - - 546
Write-off of unsuccessful efforts 5,917 259 25,552
Amortisation of other long-term liabilities (153) (407) (2,143)
Accrual of borrowing's interests 5,354 2,990 12,478
Unwinding of long-term liabilities 216 237 1,262
Accrual of share-based payment 1,807 1,247 5,396
Deferred income - - 5,550
Income tax paid - - (408)
Exchange difference generated by
borrowings 4 30 35
Bargain purchase gain on acquisition
of subsidiaries (Note 11) - (8,401) (8,401)
Changes in working capital 39,940 3,752 5,778
Cash flows from operating activities
- net 82,732 37,543 131,802
Cash flows from investing activities
Purchase of property, plant and equipment (74,791) (47,513) (198,204)
Acquisitions of subsidiaries, net
of cash acquired (Note 11) - (105,303) (105,303)
Cash flows used in investing activities
- net (74,791) (152,816) (303,507)
Cash flows from financing activities
Proceeds from borrowings 290,713 4,577 37,200
Proceeds from transaction with Non-controlling
interest 18,777 1,791 12,452
Principal paid (175,036) (5,897) (12,382)
Interest paid (4,728) (174) (10,895)
Cash flows from financing activities
- net 129,726 297 26,375
Net (decrease) increase in cash and
cash equivalents 137,667 (114,976) (145,330)
Cash and cash equivalents at 1 January 38,292 183,622 183,622
Cash and cash equivalents at the
end of the period/year 175,959 68,646 38,292
Ending Cash and cash equivalents
are specified as follows:
Cash in banks 175,987 78,855 48,268
Cash in hand 18 14 24
Bank overdrafts (46) (10,223) (10,000)
Cash and cash equivalents 175,959 68,646 38,292
SELECTED EXPLANATORY NOTES
Note 1
General information
GeoPark Holdings Limited (the Company) is a company incorporated under the law of Bermuda. The Registered Office address is Cumberland House, 9th Floor, 1 Victoria Street, Hamilton HM11, Bermuda. The Company is quoted on the AIM market of London Stock Exchange plc.
This consolidated interim financial report was authorised for issue by the Board of Directors on 28 May 2013.
The consolidated interim financial report of GeoPark Holdings Limited is presented in accordance with IAS 34 "Interim Financial Reporting". It does not include all of the information required for full annual financial statements, and should be read in conjunction with the annual financial statements as at and for the years ended 31 December 2011 and 2012, which have been prepared in accordance with IFRSs.
The consolidated interim financial report has been prepared in accordance with the accounting policies applied in the most recent annual financial statements. For further information please refer to GeoPark Holdings Limited's consolidated financial statements for the year ended 31 December 2012.
Subsidiary undertakings
Details of the subsidiaries and jointly controlled assets of the Company are set out below:
Name and registered office Ownership interest
Subsidiaries GeoPark Argentina Ltd. - Bermuda 100%
GeoPark Argentina Ltd. - Argentine
Branch 100% (a)
GeoPark Latin America 100%
GeoPark Latin America - Agencia
en Chile 100% (a)
GeoPark S.A. (Chile) 100% (a) (b)
GeoPark Brasil Exploracao y
Producao de Petróleo e
Gas Ltda. (Brazil) 100%
GeoPark Chile S.A. (Chile) 80% (a) (c)
GeoPark Fell S.p.A. (Chile) 80% (a) (c)
GeoPark Magallanes Limitada
(Chile) 80% (a) (c)
GeoPark TdF S.A. (Chile) 69% (a) (d)
GeoPark Colombia S.A. (Chile) 80% (a) (c)
100% (a) (e)
GeoPark Luna SAS (Colombia) (f)
100% (a) (e)
GeoPark Colombia SAS (Colombia) (f)
100% (a) (e)
GeoPark Llanos SAS (Colombia) (f)
100% (a) (e)
La Luna Oil Co. Ltd. (Panama) (f)
100% (a) (e)
GeoPark Colombia PN S.A. (Panama) (f)
100% (a) (e)
GeoPark Cuerva LLC (United States) (f)
Sucursal La Luna Oil Co. Ltd. 100% (a) (e)
(Colombia) (f)
Sucursal GeoPark Colombia PN 100% (a) (e)
S.A. (Colombia) (f)
Sucursal GeoPark Cuerva LLC 100% (a) (e)
(Colombia) (f)
GeoPark Brazil S.p.A. (Chile) 100% (a) (b)
Raven Pipeline Company LLC (United
States) 23.5% (b)
Jointly controlled
assets Tranquilo Block (Chile) 29%
Otway Block (Chile) 25%
Flamenco Block (Chile) 50% (g)
Isla Norte Block (Chile) 60% (g)
Campanario Block (Chile) 50% (g)
(a) Indirectly owned.
(b) Dormant companies.
(c) LG International has 20% interest.
(d) LG International has 20% interest through GeoPark Chile S.A. and a 14% direct interest.
(e) During the first quarter of 2012, the Company entered into a business combination acquiring 100% interest in each entity (see Note 11).
(f) During 2013, the Company has started a merger process by which a sole company will continue the operations related to the referred companies. The Company estimates that the process will be completed by year end.
(g) GeoPark is the operator in all blocks with a share of 60% for Isla Norte Block and 50% for the other 2 blocks (See Note 12).
Note 2
Net revenue
Three-months Three-months
period ended period ended Year ended
31 March 31 March 31 December
Amounts in US$ '000 2013 2012 2012
Sale of crude oil 83,710 42,754 221,564
Sale of gas 6,064 8,567 28,914
89,774 51,321 250,478
Note 3
Segment Information
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the strategic steering committee. This committee is integrated by the CEO, Managing Director, CFO and managers in charge of the Geoscience, Drilling, Operations and SPEED departments. This committee reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.
The committee considers the business from a geographic perspective.
The strategic steering committee assesses the performance of the operating segments based on a measure of adjusted earnings before interest, tax, depreciation, amortisation and certain non cash items such as write offs and share based payments (Adjusted EBITDA). This measurement basis excludes the effects of non-recurring expenditure from the operating segments, such as impairments when it is result of an isolated, non-recurring event. Interest income and expenditure are not included in the result for each operating segment that is reviewed by the strategic steering committee. Other information provided, except as noted below, to the strategic steering committee is measured in a manner consistent with that in the financial statements.
Three-months period ended 31 March 2013
Amounts in US$ '000 Total Argentina Chile Colombia Corporate NET REVENUE 89,774 446 45,518 43,810 - GROSS PROFIT 51,461 872 27,381 23,208 - OPERATING PROFIT / (LOSS) 26,490 (892) 16,343 13,191 (2,152) Adjusted EBITDA 49,652 (334) 29,175 22,037 (1,226)
Three-months period ended 31 March 2012
Amounts in US$ '000 Total Argentina Chile Colombia Corporate NET REVENUE 51,321 373 45,976 4,972 - GROSS PROFIT 31,959 101 29,534 2,324 - OPERATING PROFIT / (LOSS) 24,882 (995) 25,025 1,923 (1,071) Adjusted EBITDA 34,253 (154) 32,464 2,731 (788) Total Assets Total Argentina Chile Colombia Corporate 31 March 2013 808,010 6,431 422,469 248,656 130,454 31 December 2012 628,017 6,108 405,674 213,202 3,033 31 March 2012 571,526 11,368 390,648 167,315 2,195
A reconciliation of total Adjusted EBITDA to total profit before income tax is provided as follows:
Three-months Three-months
period ended period ended
31 March 2013 31 March 2012
Adjusted EBITDA for reportable
segments 49,652 34,253
Depreciation (15,769) (8,431)
Accrual of stock awards (1,807) (1,247)
Write-off of unsuccessful efforts (5,917) (259)
Others 331 566
Operating profit 26,490 24,882
Financial results (12,612) (3,878)
Gain on acquisition of subsidiaries - 8,401
Profit before tax 13,878 29,405
Note 4
Financial income
Amounts in US$ '000
Three-months Three-months Year ended
period ended period ended 31 December
31 March 31 March 2012
2013 2012
Exchange difference 38 155 348
Interest received 268 186 544
306 341 892
Note 5
Financial expenses
Three-months Three-months
period ended period ended Year ended
31 March 31 March 31 December
Amounts in US$ '000 2013 2012 2012
Bank charges and other financial
costs 265 388 1,764
Bond GeoPark Fell SpA cancellation 8,603 - -
costs (Note 8)
Exchange difference 552 804 2,429
Unwinding of long-term liabilities 216 237 1,262
Interest and amortisation
of debt issue costs 3,704 3,056 13,114
Less: amounts capitalised
on qualifying assets (422) (266) (1,369)
12,918 4,219 17,200
Note 6
Property, plant and equipment
Exploration
Furniture, Production Buildings and
Amounts in Oil & gas equipment facilities and Construction evaluation
US$'000 properties and vehicles and machinery improve-ments in progress assets TOTAL
Cost at 1
January
2012 171,956 2,175 47,102 2,437 32,896 42,140 298,706
Additions - 223 18,923 - 15,695 14,322 49,163
Write-off and
impairment
(1) - - - - - (259) (259)
Transfers 21,440 - 2,544 2 (12,654) (11,332) -
Acquisitions
of
subsidiaries 62,449 482 10,865 - 9,359 27,818 110,973
Cost at 31
March
2012 255,845 2,880 79,434 2,439 45,296 72,689 458,583
Cost at 1
January
2013 344,371 3,576 86,949 3,198 54,025 93,106 585,225
Additions 3,327 453 10 - 38,394 32,607 74,791
Write-off and
impairment
(1) - - - - - (5,917) (5,917)
Transfers 27,000 - 1,202 189 (23,929) (4,462) -
Cost at 31
March
2013 374,698 4,029 88,161 3,387 68,490 115,334 654,099
Depreciation
and
write-down
at 1 January
2012 (53,604) (1,123) (18,628) (716) - - (74,071)
Depreciation (6,764) (136) (1,467) (64) - - (8,431)
Depreciation
and
write-down
at 31
March 2012 (60,368) (1,259) (20,095) (780) - - (82,502)
Depreciation
and
write-down
at 1 January
2013 (98,156) (1,836) (26,336) (1,060) - - (127,388)
Depreciation (13,437) (166) (2,040) (126) - - (15,769)
Depreciation
and
write-down
at 31
March 2013 (111,593) (2,002) (28,376) (1,186) - - (143,157)
Carrying
amount at
31 March
2012 195,477 1,621 59,339 1,659 45,296 72,689 376,081
Carrying
amount at
31 March
2013 263,105 2,027 59,785 2,201 68,490 115,334 510,942
(1) Corresponds to write-off of Exploration and evaluation assets in Colombia US$ 1,353,000 and Chile US$ 4,564,000 (US$ 259,000 in 2012).
Note 7
Share capital
Three-months Three-months
period ended period ended Year ended
31 March 31 March 31 December
Issued share capital 2013 2012 2012
Common stock (US$ '000) 43 43 43
The share capital is distributed
as follows:
Common shares, of nominal US$
0.001 43,495,585 42,474,274 43,495,585
Total common shares in issue 43,495,585 42,474,274 43,495,585
Authorised share capital
US$ per share 0.001 0.001 0.001
Number of common shares (US$
0.001 each) 5,171,969,000 5,171,969,000 5,171,969,000
Amount in US$ 5,171,969 5,171,969 5,171,969
Note 8
Borrowings
The outstanding amounts are as follows:
At At Year ended
31 March 31 March 31 December
Amounts in US$ '000 2013 2012 2012
Bond GeoPark Latin America 293,859 - -
Agencia en Chile (a)
Bond GeoPark Fell SpA
(b) - 131,152 129,452
Methanex Corporation
(c) 1,183 13,547 8,036
Banco de Crédito
e Inversiones (d) 4,297 13,423 7,859
Overdrafts (e) 46 10,223 10,000
Banco Itaú (f) - - 37,685
299,385 168,345 193,032
Classified as follows:
Current 8,472 33,706 27,986 Non-Current 290,913 134,639 165,046
(a) During February 2013, the Company successfully placed US$ 300 million notes which were offered under Rule 144A and Regulation S exemptions of the United States Securities laws.
The Notes, issued by the Company's wholly-owned subsidiary GeoPark Latin America Limited Agencia en Chile ("the Issuer"), were priced at 99.332% and will carry a coupon of 7.50% per annum to yield 7.625% per annum. Final maturity of the notes will be 11 February 2020. The Notes are guaranteed by GeoPark Holdings and GeoPark Latin America Chilean Branch and are secured with a pledge of all of the equity interests of the Issuer in GeoPark Chile S.A. and GeoPark Colombia S.A. and a pledge of certain intercompany loans. Notes were rated single B by both Standard & Poor's and Fitch Ratings.
The net proceeds of the notes were partially used to repay debt of approximately US$ 170 million, including the existing Reg S Notes due 2015 and the Itaú loan. The remaining proceeds will be used to finance the Company's expansion plans in the region. The transaction extends GeoPark's debt maturity significantly, allowing the Company to allocate more resources to its investment and inorganic growth programs in the coming years.
(b) Private placement of US$ 133,000,000 of Reg S Notes on 2 December 2010. The Notes carried a coupon of 7.75% per annum and mature on 15 December 2015. These Notes were fully repaid in March 2013.
(c) The financing obtained in 2007, for development and investing activities on the Fell Block, is structured as a gas pre-sale agreement with a six year pay-back period and an interest rate of LIBOR flat. In each year, the Group will repay principal up to an amount equal to the loan amount multiplied by a specified percentage. Subject to that annual maximum principal repayment amount, the Group will repay principal and interest in an amount equal to the amount of gas specified in the contract at the effective selling price.
In addition on 30 October 2009 another financing agreement was signed with Methanex Corporation under which Methanex have funded GeoPark's portions of cash calls for the Otway Joint Venture for US$ 3,100,000. The loan has been fully repaid during 2012. The purpose was to finance the exploration of natural gas from the Otway Block. This financing did not bear interest.
(d) Facility to establish the operational base in the Fell Block. This facility was acquired through a mortgage loan granted by the Banco de Crédito e Inversiones (BCI), a Chilean private bank. The loan was granted in Chilean pesos and is repayable over a period of 8 years. The interest rate applicable to this loan is 6.6%. The outstanding amount at 31 March 2013 is US$ 320,000.
During the last quarter of 2011, GeoPark TdF obtained short-term financing from BCI. This financing is structured as letter of credit with a pledge of the seismic equipment acquired to start the operations in the new blocks. The maturity is May 2013 and the applicable interest rate ranging from 4.45% to 5.45%. The outstanding amount at 31 March 2013 is US$ 3,977,000.
(e) At 31 March 2013, the Group has been granted with credit lines for approximately US$ 49,000,000.
(f) GeoPark Holdings Limited executed a loan agreement with Banco Itaú BBA S.A., Nassau Branch for US$ 37,500,000. GeoPark used the proceeds to finance the acquisition and development of the La Cuerva and Llanos 62 blocks. These blocks represent two of the ten production, development and exploration blocks, which GeoPark currently owns in Colombia. This loan was fully repaid in February 2013.
Note 9
Provision for other long-term liabilities
The outstanding amounts are as follows:
At At Year ended
31 March 31 March 31 December
Amounts in US$ '000 2013 2012 2012
Assets retirement obligation
and other environmental
liabilities 19,525 12,589 16,213
Deferred income 7,215 5,611 7,369
Other 1,469 937 2,409
28,209 19,137 25,991
Note 10
Trade and other payables
The outstanding amounts are as follows:
At At Year ended
31 March 31 March 31 December
Amounts in US$ '000 2013 2012 2012
Trade payables 103,860 55,452 54,890
Staff costs to be paid 5,137 3,424 5,867
Royalties to be paid 6,650 2,302 3,909
Taxes and other debts
to be paid 6,100 7,167 5,418
To be paid to co-venturers 1,639 1,405 2,007
123,386 69,750 72,091
Note 11
Acquisitions in Colombia
In February 2012, GeoPark acquired two privately-held exploration and production companies operating in Colombia, Winchester Oil and Gas S.A. and La Luna Oil Company Limited S.A. ("Winchester Luna").
In March 2012, a second acquisition occurred with the purchase of Hupecol Cuerva LLC ("Hupecol"), a privately-held company with two exploration and production blocks in Colombia.
The following table summarises the combined consideration paid for Winchester Luna and Hupecol, the fair value of assets acquired and liabilities assumed for these transactions:
Winchester
Amounts in US$ '000 Hupecol Luna Total
Cash (including working
capital adjustments) 79,630 32,243 111,873
Total consideration 79,630 32,243 111,873
Cash and cash equivalents 976 5,594 6,570
Property, plant and
equipment (including
mineral interest) 73,791 37,182 110,973
Trade receivables 4,402 4,098 8,500
Prepayments and other
receivables 5,640 2,983 8,623
Deferred income tax
assets 10,344 5,262 15,606
Inventories 10,596 1,612 12,208
Trade payables and other
debt (20,487) (11,981) (32,468)
Borrowings - (1,368) (1,368)
Provision for other
long-term liabilities (5,632) (2,738) (8,370)
Total identifiable net
assets 79,630 40,644 120,274
Gain on acquisition
of subsidiaries - 8,401 8,401
In 2012, the results of the operations corresponding to Winchester Luna and Hupecol were consolidated since the acquisition date, February and April, respectively.
See Note 35 to the audited Consolidated Financial Statements as of 31 December 2012.
Note 12
Subsequent events
Acquisition in Brazil
GeoPark entered into Brazil with the acquisition of a ten percent working interest in the offshore Manati gas field ("Manati Field"), the largest natural gas producing field in Brazil. On May 14, 2013, GeoPark executed a stock purchase agreement ("SPA") with Panoro Energy do Brasil Ltda., the subsidiary of Panoro Energy ASA, ("Panoro"), a Norwegian listed company with assets in Brazil and Africa, to acquire all of the issued and outstanding shares of its wholly-owned Brazilian subsidiary, Rio das Contas Produtora de Petróleo Ltda ("Rio das Contas"), the direct owner of 10% of the BCAM-40 block (the "Block"), which includes the shallow-depth offshore Manati Field in the Camamu-Almada basin.
The Manati Field is a strategically important, profitable upstream asset in Brazil and currently provides approximately 50% of the gas supplied to the northeastern region of Brazil and more than 75% of the gas supplied to Salvador, the largest city and capital of the northeastern state of Bahia. The field is largely developed with existing producing wells and an extensive pipeline, treatment and delivery infrastructure and is not expected to require significant future capital expenditures to meet current production estimates. Additional reserve development may be possible.
The Manati Field is operated by Petrobras (35% working interest), the Brazilian national company, largest oil and gas operator in Brazil and internationally-respected offshore operator. Other partners in the block include Queiroz Galvao Exploracao e Producao (45% working interest) and Brasoil Manati Exploracao Petrolifera S.A. (10% working interest).
GeoPark has agreed to pay a cash consideration of US$140 million at closing, which will be adjusted for working capital with an effective date of April 30, 2013. The consideration will be funded from existing cash resources. The agreement also provides for possible future contingent payments by GeoPark over the next five years, depending on the economic performance and cash generation of the Block. The closing of the acquisition is subject to certain conditions, including approval by the Brazilian National Petroleum, Natural Gas and Biofuels Agency ("ANP") and the Brazilian antitrust authorities.
The Manati Field acquisition provides GeoPark with:
- A solid foundational platform in Brazil to support future growth and expansion in Brazil - one of the world's most attractive hydrocarbon regions.
- Participation in an economically-attractive and strategic asset representing the largest non-associated gas producing field in Brazil, with a gross production of over 211 million cubic feet per day of gas and a secure attractively-priced long term off take contract that covers 75% of proven reserves (100% of proven developed reserves).
- A low-risk and fully-developed producing gas field with no significant drilling or capital expenditure investments expected.
- A valuable partnership with Petrobras, the largest operator in Brazil. - An established geoscience and administrative team to manage the assets - and seek new growth opportunities.
New operations in Brazil
On 14 May 2013, the Company has been awarded seven new licenses in the Brazilian Round 11 of which two are in the Reconcavo Basin in the State of Bahia and five are in the Potiguar Basin in the State of Rio Grande do Norte.
The licensing round was organized by the ANP and all proceedings and bids have been made public. The winning bids are subject to confirmation of qualification requirements.
For its winning bids on the seven blocks, GeoPark has committed to invest a minimum of US$15.3 million (including bonus and work program commitment) during the first 3 years of exploratory period. The new blocks cover an area of approximately 54,850 acres.
Drilling operations start-up in Tierra del Fuego
In April 2013, the Company has started the exploration drilling in Tierra del Fuego in Chile in its partnership with Empresa Nacional de Petroleo de Chile ("ENAP") with the spudding of the Chercán 1 well on the Flamenco Block. Chercán 1 is the first of 21 exploratory wells on the Flamenco, Campanario and Isla Norte Blocks in Tierra del Fuego as part of an estimated US$ 100 million investment commitment during the First Exploration Period. As of the date of this interim consolidated financial report, approximately 1,200 sq km of 3D seismic have been carried out over the three blocks; out of a total 3D seismic program of approximately 1,500 sq km.
This information is provided by RNS
The company news service from the London Stock Exchange
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