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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 : 9777F
Geopark Holdings Limited
31 May 2013
1Q 2013 Earnings Release
Highlights
GEOPARK HOLDINGS LIMITED
-- 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 Km(2) in Chile and 25 Km(2) 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:
o Exploration drilling commenced in Tierra del Fuego with the Chercán Well in the Flamenco Block following the 3D seismic campaign.
o 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).
o Seven new onshore blocks awarded in the Brazilian Round 11 with an investment commitment of US$15 million during the first three years of the exploratory period. The new acreage added is approximately 54,850 acres.
For further information please contact:
GeoPark Holdings Limited Juan Pablo Spoerer Pablo Ducci (Chile) +56 2 2242 9600 Oriel Securities - Nominated Adviser and Joint Broker Michael Shaw (London) +44 (0)20 7710 7600 Tunga Chigovanyika (London) Macquarie Capital (Europe) Limited - Joint Broker Jeffrey Auld (London) +44 (0)20 3037 2000
INDEX
1. Financial and Operational Highlights 3
2. Summary of Financial Results 4
3. Analysis of Consolidated Results 6
4. Operational Update 7
5. Other Relevant Information 10
6. 2013 Outlook 12
7. Assets 13
8. Consolidated Financial Statements 14
9. Glossary 17
Hot Features
Premium
1. FINANCIAL AND OPERATIONAL HIGHLIGHTS
(US$ million) 1Q13 1Q12 % Chg. 2012
--------------------------------------- ------- ------- ------- -------
Revenues 89.8 51.3 75% 250.5
--------------------------------------- ------- ------- ------- -------
Oil 83.7 42.8 96% 221.6
Gas 6.1 8.6 -29% 28.9
Chile 45.5 46.0 -1% 149.9
Colombia 43.8 5.0 781% 99.5
Argentina 0.4 0.4 20% 1.1
--------------------------------------- ------- ------- ------- -------
Adjusted EBITDA 49.7 34.3 45% 121.4
Chile 29.2 32.5 -10% 93.9
Colombia 22.0 2.7 707% 34.5
Argentina, Corporate & Others -1.6 -0.9 66% 7.0
--------------------------------------- ------- ------- ------- -------
Adjusted EBITDA Margin (%) 55.3% 66.7% 48.5%
Net Income 9.4 24.3 -61% 18.4
Net Income Margin (%) 10.5% 47.3% 7.4%
Net Cash Flow from Operations 82.7 37.5 120% 131.8
Weighted Avg. Shares (million) 43.5 42.5 42.7
EPS Diluted ($) 0.15 0.46 0.27
Stock Price (GBP as of March) 660.0
Average Daily Traded Volume ($
'000) 61.5 71.7 89.9
Production (average boepd) 13,426 9,682 39% 11,276
Chile 8,436 9,099 -7% 7,802
Colombia 4,938 518(1) 853% 3,411
Argentina 52 64 -19% 63
--------------------------------------- ------- ------- ------- -------
% Oil / Revenues 93.2% 83.3% 88.5%
% Gas / Revenues 6.8% 16.7% 11.5%
(1) Calculated as total production since the acquisition date divided by 90.
-- Revenues up 75%: Total revenues increased to US$89.8 million in 1Q2013 from US$51.3 million in 1Q2012, mainly as a result of a significant increase in oil production and the incorporation of new production from Colombia. Oil revenues from Chilean operations increased by 5.3% to US$39.4 million and Colombian operations contributed additional oil revenues of US$43.8 million. Oil revenues represented 93% of total revenues.
-- Adjusted EBITDA up 45% reaching US$49.7 million compared to US$34.3 million in 1Q2012, again mainly due to the incorporation of Colombian operations and a higher oil composition in our production. As at 31 March 2013, Colombian operations accounted for 44% of Adjusted EBITDA.
-- Netbacks increased 6% to US$41 per boe compared to US$38.9 per boe in 1Q2012 reflecting the higher weighting of oil in the production mix, as well as the incorporation of Colombian operations into the portfolio.
2. SUMMARY OF FINANCIAL RESULTS
STATEMENT OF INCOME
(US$ million) 1Q13 1Q12 % Chg. 2012 ------------------------------ ---------------- ------------------ ------- ---------------- Revenues 89.8 51.3 74.9% 250.5 Production Costs (38.3) (19.4) 97.9% (129.2) Gross Profit 51.5 32.0 61.0% 121.2 Operating Profit 26.5 24.9 6.5% 40.7 Financial Income 0.3 0.3 -10.3% 0.9 Financial Expenses (12.9) (4.2) 206.2% (17.2) Gain on Acquisition - 8.4 8.4 Profit Before Income Tax 13.9 29.4 -52.8% 32.8 Income Tax (4.4) (5.1) -13.4% (14.4) Profit for the Period/Year 9.4 24.3 -61.1% 18.4 ------------------------------ ---------------- ------------------ ------- ---------------- Attributable to: Equity holders of the Parent Company 6.5 20.4 -68.3% 11.9 Non-controlling Interest 3.0 3.9 -25.1% 6.6 ------------------------------ ---------------- ------------------ ------- ----------------
BALANCE SHEET AS AT 31 MARCH
(US$ million) 2013 2012 2013 2012
--------------- -------------------- -------------------------- ------ ----------------------- --------- ---------
Non-Current
Assets 540 404 Non-Current Liabilities 342 167
PP&E 511 376 Borrowings 291 135
Other Non-Current
Other Non-Current 29 28 Liabilities 51 32
Current Assets 268 167 Current Liabilities 143 108
Cash and Cash
Equivalents 176 79 Borrowings 8 34
Prepayment and
Other Receivables 43 40 Trade and Other Payable 123 70
Trades Receivables 40 32 Other Current Liabilites 11 5
Inventories 4 13 TOTAL LIABILITIES 485 275
Other Current
Assets 6 4 Equity Owners Company 248 245
Non-controlling Interest 76 51
TOTAL EQUITY 323 296
TOTAL ASSETS 808 572 TOTAL EQUITY + LIABILITIES 808 572
FINANCIAL INDICATORS
As at 31 As at 31
Units Mar 13 Mar 12 Covenant Limit
--------------------------------- ----------- ----------- --------------------- ---------------
Gross Financial Debt $ million 299 168
Net Financial Debt $ million 123 89
Net Financial Debt / Equity times 0.4x 0.3x
Net Financial Debt / Adjusted
EBITDA(1) times 0.9x -(2)
Gross Debt / Adjusted EBITDA(1) times 2.2x -(2) <2.75x
Coverage Ratio(1) times 5.3x -(2) >3.50x
Liabilities / Equity times 1.5x 0.9x
Current Liabilities % 29% 39%
Non-Current Liabilities % 71% 61%
Cash and Cash Equivalents $ million 176 79
CAPEX $ million 75 48
(1) Based on trailling 12 month financial results
(2) Not available information for March 2011
3. ANALYSIS OF CONSOLIDATED RESULTS
Revenues amounted to US$89.8 million, a 75% increase compared to 1Q2012, driven mainly by the acquisition of our Colombian assets in 1Q2012 and the change in mix towards oil in the Chilean operations. In Chile, total oil production increased 21.6% to an average of 5,507 bopd. Revenues from the Colombian business amounted to US$43.8 million. Revenues for the Colombian subsidiaries were accounted since their acquisition dates (February and March 2012).
Gross profit for the period was US$51.5 million an increase of 61% and a gross margin of 57.7%. The gross margin slightly decreased from 62.4% in 1Q2012 due to consolidation of the Colombian acquisitions, (higher royalties and depreciations charges in Colombia).
Exploration costs increased from US$1.3 million to US$7.3 million, explained mainly by the write-offs of US$5.9 million related to unsuccessful exploration wells, (one in Chile and two in Colombia) compared to no unsuccessful wells in 1Q2012.
Administrative expenses reached US$9.6 million as a result of an increase in staff costs of US$3.1 million and higher costs associated with new business developments.
Selling expenses amounted to US$7.9 million, an increase of US$6.2 million; explain by the transportation costs in our Colombian operations.
Adjusted EBITDA increased to US$49.7 million compared to US$34.3 million in 1Q2012. The 1Q2012 Adjusted EBITDA figure includes the EBITDA generated from the two Colombian acquisitions made in 2012 since their acquisition dates. Chilean operations accounted for US$29.2 million and Colombia accounted for US$22.0 million, minus amounts relating to losses from the Argentine operations and corporate expenses.
Depreciation and amortization increased to US$15.8 million mainly due to the inclusion of charges for the Colombian operations. In Chile, in the Fell block the depreciation charge represents approximately US$10.5 per boe produced. In Colombia, the depreciation charge ranges from US$14 to US$19 per boe in the different operated fields.
Net income decreased 61% to US$9.4 million. The difference being principally due to two non-recurring items:
o Early redemption fees of US$ 8.6 million incurred on the 2010 RegS Bond in 1Q2013 following the issuance of the RegS/144A Bond in February 2013. Final maturity of the new bond will be February 2020, part of the proceeds were used to repay existing debt with short maturity periods.
o A gain on acquisition of approximately US$8.0 million recognized in 1Q2012 as a result of the acquisition of our Colombian assets.
Total Equity increased to US$323 million as at 31 March 2013 compared to US$296 million as at 31 March 2012.
Cash and cash equivalents amounted to US$176 million at 31 March 2013 and total financial debt of US$299.4 million.
4. OPERATIONAL OVERVIEW
Key achievements during 1Q2013 include:
a) Higher Production: New discoveries and incorporation of Colombia
operations
Oil and gas production increased by 39% to 13,426 boepd in 1Q2013 from 9,682 boepd in 1Q2012. Crude oil production increased by 103% to 10,480 bopd in 1Q2013 from 5,164 bopd in 1Q2012.
First Quarter
First Quarter 2013 2012
Total (boepd) Oil (Bopd) Gas (mcfpd) Total (boepd) % Chg.
---------------- ----------------------- ----------------- -------------------- ------------------------ -------
Chile 8,436 5,507 17,573 9,099 -7%
Colombia 4,938 4,932 34 518(1) 853%
Argentina 52 41 64 64 -19%
TOTAL 13,426 10,480 17,671 9,682 39%
---------------- ----------------------- ----------------- -------------------- ------------------------ -------
(1) Calculated as total production since the acquisition date divided by 90.
b) Drilling and Work Program
GeoPark's 2013 work program includes the drilling of 35-45 new wells (gross) with a capital expenditure of US$200-230 million. The drilling program in 1Q2013 was mainly focused on reserve appraisal and development in Chile and Colombia. Results are set out below:
Country Block WI Well Type of Geological Depth Principal Status at 31
Well Formation (Meters) Hydrocarbon March
------------ -------------- ----- ------------- ------------ -------------- ------------ ------------ ---------------
Wells Drilled in 1Q2013
Yagan
Chile Fell 100% Norte-5D Development Tobífera 3,044 Oil On Production
Chile Fell 100% Yagan-3D Development Tobífera 3,063 Oil On Production
Yagan
Chile Fell 100% Norte-6D Development Tobifera 3,144 Oil On Production
Deepining Waiting for
Chile Fell 100% Sauce -x1 (Explo) Tobífera 3,260 Oil facilities
Deepining
Chile Fell 100% Molino-5 (Explo) Tobífera 3,117 Oil On Production
Llanos
Colombia 34 45% Max-2 Appraisal Guadalupe 3,312 Oil On Production
Llanos Gachetá Drilling @
Colombia 34 45% Tua-4 Appraisal / Guadalupe 2187 meters
Llanos
Colombia 34 45% Tua-5 Appraisal Guadalupe 3,416 Oil Producing
Colombia Cuerva 100% Cuerva-3B Exploratory 1,268 Dry- Abandoned
Cuerva-CH Carbonera
Colombia Cuerva 100% NE 1 Exploratory C5 1,279 Oil Producing
Carbonera
Colombia Cuerva 100% Cuerva-B Exploratory C3 1,299 Oil Producing
Carbonera Drilling @
Colombia Yamú 75% Potrillo-1 Exploratory C7 2840 meters
Arrendajo(1) Carbonera
Colombia (2) 10% Yaguazo-1 Exploratory C5 2,134 Oil On Production
Llanos
Colombia 32(1) 10% Bandola-1 Exploratory Mirador 3,524 Oil On Production
Llanos
Colombia 32(1) 10% Llanita-1 Exploratory Mirador 3,383 Oil Dry
Country Block WI Well Type of Geological Depth Principal Status at 31
Well Formation (Meters) Hydrocarbon March
------------ -------------- ----- ------------- ------------ -------------- ------------ ------------ ---------------
Completions/Workovers Perfomed in 1Q2013
Chile Fell 100% Manekenk-2D Completion Tobifera 3046 Oil On Production
Waiting for
Chile Fell 100% Alakaluf-3 Workover Springhill 2,256 Oil Workover
Chile Fell 100% Manekenk-2D Workover Tobifera 3046 Oil On Production
Chile Fell 100% Maku-x1 Workover Tobífera 3,026 Gas On Production
Waiting for
Chile Fell 100% Ovejero-2 Workover Tobífera 3,180 Oil facilities
Yagan
Chile Fell 100% Norte-4 Workover Tobífera 3,032 Oil On Production
Chile Fell 100% Martin-2 Workover
Ma.
Chile Otway 25% Antonieta-x1 Completion Gas
Palos El Salto Waiting for
Chile Tranquilo 29% Quemados Completion Sup. 1,595 Gas facilities
(1) Non Operated
(2) Subject to submission and approval by ANH of certain assignments
Highlights:
Chile
-- Development well Yagan Norte 5D on the Fell Block (GeoPark operated with a 100% WI) was put into production from the Tobifera formation in March 2013 and is currently producing approximately 348 bopd.
-- Development well Yagan Norte 6D on the Fell Block (GeoPark operated with a 100% WI) was put into production from the Tobifera formation in April 2013 and is currently producing approximately 145 bopd.
-- Exploration gas well Palos Quemados on the Tranquilo Block (GeoPark operated with a 29% WI) was drilled and completed in February 2013. The well is currently producing approximately 2.8 mmcfpd at 100% WI.
-- Seismic Acquisition: GeoPark plans to acquire a total of 1,500 km2 of 3D seismic on the Tierra del Fuego Blocks during 2013. Approximately 70% of this program has been completed as of 31 March 2013. The remaining seismic will be completed in the upcoming summer of the southern hemisphere.
-- In addition, in April 2013 GeoPark started exploration drilling in Tierra del Fuego with the Chercán 1 well on the Flamenco Block (GeoPark operated with a 50% WI). The well is currently waiting for completion.
Colombia
-- Development well Max 2 on the Llanos 34 Block (GeoPark operated with a 45% WI) was put into production from the Guadalupe formation in March 2013 and is currently producing approximately 1,320 bopd gross.
-- Development well Tua 5 on the Llanos 34 Block (GeoPark operated with a 45% WI) was put into production from the Guadalupe formation in March 2013 and is currently producing approximately 1,150 bopd gross.
-- Exploratory well Cuerva CH-NE on La Cuerva Block (GeoPark operated with a 100% WI) was put into production from the Carbonera C5 formation in March 2013 and is currently producing approximately 220 bopd gross.
-- Exploratory well Cuerva B, on la Cuerva block (GeoPark operated with a 100% WI) was put into production from the Carbonera C5 formation in March 2013 and is currently producing approximately 80 bopd gross.
-- Seismic acquisition: GeoPark plans to acquire 250 km2 of 3D seismic on the Llanos 34 Block during 2013. Operations began on February 26th. As of 31 March 2013, approximately 10% of this program had been completed.
c) Outlook and Key Wells
The Company's 2013 drilling program is designed to increase oil and gas production and reserves, increase cash flow, improve project economics and performance and manage risk through a mix of exploration and development wells drilling program.
Block Country WI Operator Prospect Unrisked CoS(*) Well
Resources Status /
Comment
========== ========== ===== ========= ======= ===========
Name P90-P10(*)
MMbbl
========== ========== ===== ========= ============= =========== ======= ===========
Fell Chile 100% GeoPark Various
Tobifera
Wells
========== ========== ===== ========= ============= =========== ======= ===========
Drilled
and
waiting
for
Flamenco Chile 50% GeoPark Chercán 1.1 - 0.1 32% completion
========== ========== ===== ========= ============= =========== ======= ===========
Drilled
and
waiting
for
Flamenco Chile 50% GeoPark Yakamush 0.2 - 2.1 36% completion
========== ========== ===== ========= ============= =========== ======= ===========
Flamenco Chile 50% GeoPark Omeling 0.2 - 2.1 25% Drilling
========== ========== ===== ========= ============= =========== ======= ===========
Llanos 22.58 -
34 Colombia 45% GeoPark Taro Taro 1.63 43% Drilling
========== ========== ===== ========= ============= =========== ======= ===========
Will be
drilled on
fourth
Llanos 17.99 - quarter
34 Colombia 45% GeoPark Tigana 1.21 40% 2013
========== ========== ===== ========= ============= =========== ======= ===========
Llanos Colombia 45% GeoPark Max 3 Will be
34 drilled on
second
quarter
2013
========== ========== ===== ========= ============= =========== ======= ===========
Llanos Colombia 45% GeoPark Tua 6 Will be
34 drilled on
third
quarter
2013
========== ========== ===== ========= ============= =========== ======= ===========
La Cuerva Colombia 100% GeoPark 8C Drilling
========== ========== ===== ========= ============= =========== ======= ===========
0.67 -
La Cuerva Colombia 100% GeoPark 1C 0.20 40% Drilling
========== ========== ===== ========= ============= =========== ======= ===========
(*) Only for exploratory wells
5. OTHER RELEVANT INFORMATION
Portfolio Restructuring
In Chile in January 2013, GeoPark formally advised the Ministry of Energy of a decision taken by the Tranquilo Block JV partners to not proceed with the Second Exploratory Period of the Tranquilo Block CEOP. GeoPark and its partners will relinquish the Tranquilo Block, except for an area of 92,417 acres consisting of protected exploitation zones for the Cabo Negro, Marcou Sur, Maria Antonieta and Palos Quemados prospects.
Notes Issuance
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 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 and 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 will be used to finance the Company's expansion plans in South America and also were used to repay existing debt of approximately US$170 million, including the Reg S Notes due 2015. The transaction extended GeoPark's debt maturity significantly, allowing the Company to allocate more resources to its investment programs and inorganic growth in the coming years.
Acquisition in Brazil
On May 14, 2013, GeoPark announced 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, the largest oil and gas operator in Brazil and an internationally-respected offshore operator. Other partners in the block are 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 30 April 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 and the Brazilian antitrust authorities.
In 2012 Rio das Contas generated revenues of US$45.9 million, EBITDA of US$37.2 million and net income of US$23.2 million. Rio das Contas' interest in the Manati Field includes P1 reserves of 10 mmboe and 2P reserves of 10.7 mmboe as independently certified for Panoro by Gaffney Cline & Associates as of December 2012. Net production to Rio das Contas during FY2012 and 1Q2013 averaged 3,686 boepd and 4,140 boepd respectively.
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).
-- An increase in GeoPark's 2012 Adjusted EBITDA by approximately 30% by adding stable new cash-flow with US$37.2 million of EBITDA generated in 2012 (3.9x of purchase price).
-- 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 announced it had 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 Brazilian National Petroleum, National Gas and Biofuels Agency, 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 three years of the 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 commenced 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, currently waiting for completion,is the first of 21 exploratory wells on the Flamenco, Campanario and Isla Norte Blocks in Tierra del Fuego as part of an approximately US$100 million investment commitment during the First Exploration Period. As of the date of this interim consolidated financial report, approximately 1,200 Km(2) of 3D seismic have been carried out over the three blocks; out of a total 3D seismic program of approximately 1,500 Km(2) .
6. 2013 OUTLOOK
GeoPark has begun 2013 with strong fundamentals in place:
-- Continuous track record of execution and growth performance, -- Improved capabilities and organization,
-- Healthy financial position resulting from significant cash reserves and supporting operating cash flows, and
-- Increased portfolio of new project opportunities, including the recent Brazilian acquisition.
During 2013, the Company expects to realize important operational and financial performance gains following an aggressive investment plan, which will include:
-- Risk-balanced production, development and exploration work programs on 16 blocks in 2 countries (Chile and Colombia),
-- Capital expenditures of US$200-230 million,
-- Drilling of 35-45 new wells - with approximately 40% representing exploration for new reserves,
-- Adjusted EBITDA projection for 2013 in the range of US$160 million - $170 million, before the contribution from the Manati acquisition.
-- Average daily production for 2013 currently expected to be approximately 13,500 boepd (before the contribution from the Manati acquisition), an increase of 20% over 2012.
7. ASSETS
A summary table of GeoPark interests in oil and gas blocks follows:
Country Block Operator WI(1) Basin Gross Net 2P Net Production % oil Concession
Area Reserves (boepd)(3) Expiration
(thousand (mmboe)(2) Date
acres)
----------- ------------ ----------- --------- ------------- ---------- -------------------- ---------------------- --------- -----------
Chile Fell GeoPark 100% Magallanes 368 45.4 8,436 65% 2032
Chile Tranquilo GeoPark 29% Magallanes 92.4 - - - 2013/2043
Chile Otway GeoPark 25% Magallanes 1,474 - - - 2017/2044
Chile Isla Norte GeoPark 60% Magallanes 130 - - - 2019/2044
Chile Campanario GeoPark 50% Magallanes 192 - - - 2020/2045
Chile Flamenco GeoPark 50% Magallanes 141 - - - 2019/2044
45.4 8,436
------------------------------------ --------- ------------- ---------- -------------------- ---------------------- --------- -----------
Colombia La Cuerva GeoPark 100% Llanos 47 3.8 1,837 100% 2014/2038
Llanos
Colombia 34 GeoPark 45% Llanos 82 6.5 2,219 100% 2015/2039
Llanos
Colombia 62 GeoPark 100% Llanos 44 - - - 2017/2041
Colombia Yamú GeoPark 54.5/75% Llanos 11 0.8 496 100% 2013/2036
Llanos
Colombia 17 Ramshorn 36.80% Llanos 109 - - - 2015/2039
Llanos
Colombia 32 P1 Energy 10% Llanos 100 0.3 136 100% 2015/2039
Colombia Jagueyes Columbus 5% Llanos 61 - - - 2014/2038
Colombia Arrendajo Pacific 10% Llanos 78 - 140 100% 2017/2041
Colombia Abanico Pacific 10% Magdalena 32 - 103 100% 2022(4)
Colombia Cerrito Pacific 10% Catatumbo 10 - 6 0% 2028(4)
11.4 4,938
------------------------------------ --------- ------------- ---------- -------------------- ---------------------- --------- -----------
Brazil(5) BCAM-40 Petrobras 10% Cam./Almada 5.4 10.7 4,140 0%
Brazil
(6) REC-T94 GeoPark 100% Reconcavo 7.6 - - -
Brazil(6) REC-T85 GeoPark 100% Reconcavo 7.6 - - -
POT-T
Brazil(6) 664 GeoPark 100% Potiguar 7.9 - - -
POT-T
Brazil(6) 665 GeoPark 100% Potiguar 7.9 - - -
POT-T
Brazil(6) 619 GeoPark 100% Potiguar 7.9 - - -
POT-T
Brazil(6) 620 GeoPark 100% Potiguar 7.9 - - -
POT-T
Brazil(6) 663 GeoPark 100% Potiguar 7.9 - - -
10.7 4,140
------------------------------------ --------- ------------- ---------- -------------------- ---------------------- --------- -----------
Del
Argentina Mosquito GeoPark 100% Austral 17.3(5) - 52 79% 2016
C.
Doña
Argentina Juana GeoPark 100% Neuquén 28 - - - 2017
Loma
Argentina Cortaderal GeoPark 100% Neuquén 20 - - - 2017
52
------------------------------------ --------- ------------- ---------- -------------------- ---------------------- --------- -----------
1 Working Interest
2 Million barrels of
Oil Equivalent
3 Barrels of oil equivalent
per day, 1Q 2013 avg.
4 Exploration phase has ended.
Currently in production phase
5 Manati acquisition announced in May 2013. First quarter production
not attributable to GPK and acquisition subject to regulatory approval
6 Blocks awarded in the Round 11
8. CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF INCOME
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
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 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
9. GLOSSARY
Adjusted EBITDA Adjusted earnings before interest, tax, depreciation, amortization and certain non-cash
items such as write offs and share based payments
boe Barrels of oil equivalent boepd Barrels of oil equivalent per day bopd Barrels of oil per day
CEOP Contrato Especial de Operacion Petrolera (Special Petroleum Operations Contract)
mmboe Million barrels of oil equivalent mcfpd Thousands of cubic feet per day mmcfpd Million of cubic feet per day mm3/day Thousands of cubic metres per day EPS Earnings per share WI Working interest
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.
Reserve estimates have been compiled in accordance with the 2011 Petroleum Resources Management System produced by the Society of Petroleum Engineers.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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