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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 : 9403M
Geopark Limited
02 September 2013
QUARTERLY OPERATIONS AND FINANCIAL RESULTS 2013
Operational Highlights
-- Oil Production Up 49% to 10,798* bopd in 2Q2013 vs 2Q2012 -- Total Oil and Gas Production Up 12% to 13,020* boepd in 2Q2013 vs 2Q2012 -- New Oil and Gas Discoveries: - Chercan gas field in Flamenco Block in Tierra del Fuego, Chile - Tarotaro oil field in Llanos 34 Block, Colombia - Potrillo oil field in Yamu Block, Colombia
Financial Highlights
-- Revenues Up 32% to US$160.8* million (as of 30 June) -- Adjusted EBITDA Up: 20% to US$84.0* million (as of 30 June) -- Cash Position of US$149.4 million
* Operational and Financial figures do not include results from new Brazilian production acquisition, completion of which is expected in 2H2013.
Strategic Highlights
-- Risk-balanced entry into Brazil with the acquisition of a 10% interest in the Manati Field and the award of seven exploration blocks in Potiguar and Reconcavo Basins
For further information please contact:
GeoPark Limited
Juan Pablo Spoerer (Chile) +56 2 2242 9600
Pablo Ducci (Chile)
Oriel Securities - Nominated Adviser and Joint Broker
Michael Shaw (London) +44 (0)20 7710 7600
Tunga Chigovanyika (London)
Macquarie Capital (Europe) Limited - Joint Broker
Steve Baldwin (London) +44 (0)20 3037 2000
OPERATIONAL HIGHLIGHTS
Key achievements during 2Q2013 include:
-- Higher Production: Discovery and Development of New Fields in Colombia
Oil and gas production increased by 12% to 13,020 boepd in 2Q2013 (2Q2012: 11,674 boepd). Crude oil production increased by 49% to 10,798 bopd in 2Q2013 (2Q2012: 7,247 bopd).
Hot Features
Premium
Second Quarter
Second Quarter 2013 2012
Total Oil Gas Total % Chg.
(boepd) (bopd) (mcfpd) (boepd)
----------------- --------- ---------- --------- ---------- -------
Chile 6,803 4,595 13,248 8,511 -20%
Colombia 6,157 6,157 - 3,097 99%
Argentina 60 47 81 66 -8%
Total 13,020 10,798 13,329 11,674 12%
Brazil(1) 3,884 64 22,918
----------------- --------- ---------- ---------
Total Pro-Forma 16,904 10,863 36,247
----------------- --------- ---------- ---------
(1) Brazil production included on a pro-forma basis. Production and results from the Manati asset will be accounted for after the closing of the transaction, which is expected in the second half of 2013.
-- 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 2Q2013 was mainly focused on reserve appraisal and development in Chile and Colombia. Results are set out below:
Chile
2Q2013 Block WI Well Type of Geological Depth Principal Status at
Well Formation (Meters) Hydrocarbon June 30
============ ======== ===== ============= ============ =========== ========== ============= ================
Wells Drilled/Completed
Molino Oeste Awaiting
Chile Fell 100% 1 Exploration Springhill 3,030 Gas Completion
Chercán
Chile Flamenco 50% 1 Exploration Tobifera 1,920 Gas On Production
Yakamush Under
Chile Flamenco 50% 1 Exploration Springhill 1,960 Oil Evaluation
Chile Flamenco 50% Omeling 1 Exploration Tobifera 2,040 Oil On Production
Yagán
Chile Fell 100% Norte 4 Workover Springhill 3,005 Gas On Production
Yagán
Chile Fell 100% 1 Workover Tobifera 3,080 Oil On Production
Chile Fell 100% Tetera 4 Workover Tobifera 3,023 Oil On Production
Chile Fell 100% Kiuaku 1 Workover Tobifera 3,075 Oil On Production
Highlights
-- Development well Yagan Norte 4 on the Fell Block (GeoPark operated with a 100% WI) tested gas in the Springhill formation at a rate of 3.3 mmcfpd of gas.
-- Exploration well Chercán 1 on the Flamenco Block (GeoPark operated with a 50% WI), which was GeoPark's first exploratory well in Tierra del Fuego, tested gas in the Tobifera formation at a gross rate of approximately 4.0 mmcfpd of gas and 35 bopd through a choke of 8 millimetres (mm), currently with a well head pressure of 1,800 pounds per square inch (psi). Facilities are currently under construction.
-- Exploration well Omeling 1 on the Flamenco Block (GeoPark operated with a 50% WI) tested oil in the Tobifera formation at a gross rate of approximately 270 bopd through a choke of 10 mm, with a well head pressure of 554 psi. Facilities have been constructed and current production is approximately 40 bopd.
-- Seismic acquisition: As of June 30, 2013, approximately 85% of the 1,500 km2 3D seismic commitment program on the Tierra del Fuego blocks has been completed. The remaining seismic program will be completed in early 2014.
Colombia
Colombia Block WI Well Type of Geological Depth Principal Status at
Operated Well Formation (Meters) Hydrocarbon June 30
========== ============= ============ =========== ============ ============ =========== ============ ==========================
Wells Drilled/Completed in 2Q2013
Cuerva
Colombia Cuerva 100% 8C Development C5 1,402 Oil On Production
Cuerva
Colombia Cuerva 100% 1C Exploration C5 1,362 Oil On Production
Llanos
Colombia 34 45% Tua 4 Appraisal Gacheta 3,432 Oil On Production
Llanos Tarotaro
Colombia 34 45% 1 Exploration Guadalupe 3,175 Oil On Production
Llanos Tarotaro
Colombia 34 45% 2 Appraisal Guadalupe 3,259 Oil On Production
Llanos Tarotaro
Colombia 34 45% 3 Appraisal Guadalupe 3,117 Oil Being Drilled
Potrillo
Colombia Yamu 75% 1 Exploration C7 3,560 Oil On Production
Colombia Block WI Well Type of Geological Depth Principal Status
Non-Operated Well Formation (Meters) Hydrocarbon at June
30
------------------------- ------------ ----------- ------------ ------------ ----------- ------------ ------------ ------------
Wells Drilled/Completed in 2Q2013
Llanos Celeus Awaiting
Colombia 17 37% Sur 1 Exploration Mirador 3,524 Oil Completion
Yaguazo
Colombia Arrendajo 10% 2 Appraisal C5 2,012 Oil Dry
Mirla
Blanca
Colombia Arrendajo 10% 1 Exploration C5 2,067 Oil Dry
Highlights
-- Exploration well Potrillo 1 on the Yamu Block (GeoPark operated with a 75% WI) tested oil and was put into production from the Carbonera C7 formation. Current production is approximately 300 bopd (gross) with a watercut of 76%. (The Potrillo field represents the third oil discovery by GeoPark in Colombia)
-- Exploration well Tarotaro 1 on the Llanos 34 Block (GeoPark operated with a 45% WI) tested oil and was put into production from the Guadalupe formation. Current production is approximately 2,000 bopd (gross) with a watercut below 1%. (The Tarotaro field represents the fourth oil discovery of GeoPark in Colombia)
-- Development well Cuerva 8C on La Cuerva Block (GeoPark operated with a 100% WI) tested oil and was put into production from the Carbonera C5 formation. Current production is approximately 80 bopd.
-- Exploration well Cuerva 1C on la Cuerva block (GeoPark operated with a 100% LWI) tested oil and was put into production from the Carbonera C5 formation. Current production is approximately 250 bopd .
-- Seismic acquisition: As of June 30, 2013, approximately 88% of the 250 km2 3D seismic program on the Llanos 34 Block scheduled for 2013 has been completed. As of today the full seismic program has been completed.
Key Upcoming Wells
The Company's 2013 drilling program is designed to increase oil and gas production, reserves and cash flow; improve project economics and performance; and manage risk through a mix of exploration and development drilling.
Block Country WI Operator Prospect Unrisked CoS Well Status
Resources in % / Comment
(*)
========== ========== ===== ========= ========= ============
Name P90-P10(*)
MMbbl
========== ========== ===== ========= ========== =========== ========= ============
Llanos
34 Colombia 45% GeoPark Tigana 1 8 - 18 43 Exploration
Llanos
34 Colombia 45% GeoPark Aruco 1 1.7 - 3.6 32 Exploration
Llanos Colombia 45% GeoPark Tua 6 n/a n/a Appraisal
34
Co Sutlej
Fell Chile 100% GeoPark N 1 0.2 - 1.0 45 Exploration
Molino N
Fell Chile 100% GeoPark 1 0.3 - 0.9 36 Exploration
Flamenco Chile 50% GeoPark Tagua 1 0.3 - 1.1 43 Exploration
(*) Only for exploratory wells. Unrisked resources are Company estimates.
FINANCIAL HIGHLIGHTS
Six--months period ended June 30, 2013 compared to six--months period ended June 30, 2012
Six months ended June 30
--------------------------------------------
Change, June 2013 vs.
(in thousands of US$, except for percentages) 2013 2012 June 2012
------------------------------------------------------------------------ --------- --------- ----------------------
(unaudited)
Revenues
Net oil
sales...............................................................
.......................... 149,817 104,893 43%
Net gas
sales...............................................................
....................... 10,989 17,098 (36)%
Total net
revenue...............................................................
................... 160,806 121,991 32%
Production
costs...............................................................
................... (81,147) (54,668) 48%
Gross
profit................................................................
............................ 79,659 67,323 18%
Exploration
costs.................................................................
................... (13,587) (10,199) 33%
Administrative
costs.................................................................
............... (20,730) (13,562) 53%
Selling
expenses..............................................................
....................... (7,658) (7,981) (4)%
Other operating
expense...............................................................
........ 4,205 (413) 1,118%
Operating
profit................................................................
..................... 41,889 35,168 19%
Financial results,
net...................................................................
............ (20,562) (7,344) 180%
Bargain purchase gain on acquisition of
subsidiaries............................. - 8,401 (100)%
Profit before income
tax...................................................................
.... 21,327 36,225 (41)%
Income tax
expense...............................................................
................ (7,092) (10,863) (35)%
Profit for the
period................................................................
.............. 14,235 25,362 (44)%
Non--controlling
interest..............................................................
............ 5,619 5,458 3%
Profit for the period attributable to owners of the
Company.............. 8,616 19,904 (57)%
Net production volumes
Oil
(mbbl)..............................................................
............................... 1,926 1,129 71%
Gas
(mcf)...............................................................
.............................. 2,803 4,889 (43)%
Total net production
(mboe)................................................................
. 2,393 1,944 23%
Average net production
(boepd)............................................................. 13,221 11,939 11%
Average realized sales price
Oil (US$ per
bbl)................................................................
.................. 80.5 94.6 (15)%
Gas (US$ per
mcf)................................................................
................ 4.5 4.1 10%
Average realized sales price per boe
(US$)............................................ 70.6 66.7 6%
Average unit costs per boe (US$)
Production
costs...............................................................
................... 33.9 28.1 21%
Exploration
costs...............................................................
.................. 5.7 5.2 10%
Administrative
costs...............................................................
............. 8.7 7.0 24%
Selling
expenses............................................................
..................... 3.2 4.1 (22)%
Average Adjusted EBITDA per boe (US$)....................... 35.1 36.1 (3)%
------------------------------------------------------------------------ --------- --------- ----------------------
Geographical Segment Reporting
The Company divides its business into four geographical segments-Chile, Colombia, Brazil and Argentina-that correspond to its principal jurisdictions of operation. Activities not falling into these four geographical segments are reported under a separate corporate segment that primarily includes certain corporate administrative costs not attributable to another segment. For the six month period ended June 30, 2013, the Chilean segment contributed US$82.9 million, or 51.5%, of GeoPark revenues, the Colombian segment contributed US$77.2 million, or 48.0%, of revenues and the Argentine segment contributed US$0.7 million, or 0.5%, of revenues.
In the description of results of operations that follows, the "Other" operations reflect non--Chilean and non--Colombian operations, primarily consisting of Argentine, Brazilian and corporate head office operations.
In 2012 the Company has accounted for the results of its operations in Colombia since the acquisition dates which occurred during the first quarter of 2012. Including the Colombian acquisitions on a proforma basis (i.e. for the whole of the first quarter), Revenues and Adjusted EBITDA would have been US$24 million and US$8 million higher during the first quarter of 2012, respectively.
The following table summarizes certain financial and operating data.
Unaudited Six months ended June 30,
---------------------------------------------------------------------------
2013 2012
=================================== ------------------------------------- ------------------------------------
(In thousands of US$) Chile Colombia Other Total Chile Colombia Other Total
----------------------------------- ------ ----------- ------ -------- ------- --------- ------ --------
Net
revenue..........................
....... 82,855 77,218 733 160,806 85,320 36,007 664 121,991
Gross
profit...........................
....... 49,167 30,473 19 79,659 52,135 14,888 300 67,323
Depreciation.....................
............ 15,437 17,027 141 32,605 15,859 7,005 531 23,395
Impairment and
write--offs............ 8,753 3,035 - 11,788 5,945 2,619 - 8,564
Adjusted EBITDA per boe 37.9 38.1 - 35.1 36.8 46.4 - 36.1
Net Revenue
For the six--month period ended June 30, 2013, 93.2% and 6.8% of total revenues were derived from crude oil sales and natural gas sales, respectively.
Six months ended June 30,
----------------------------
Consolidated
(in thousands of US$) 2013 2012
---------------------------------------------------------------------------------------- ------------- -------------
Sale of crude
oil...................................................................................
........... 149,817 104,893
Sale of
gas...................................................................................
.................. 10,989 17,098
Total.................................................................................
............................. 160,806 121,991
Change, June 2013 vs.
Six months ended June 30, June 2012
======================================================== ---------------------------------- ------------------------
Net Revenue By country
(in thousands of US$) 2013 2012 %
----------------------------------------------------------------------- --------- -------- --------------- -------
Chile................................................................
................. 82,855 85,320 (2,465) (3)
Colombia.............................................................
............. 77,218 36,007 41,211 114
Other................................................................
................ 733 664 69 10
Total................................................................
................. 160,806 121,991 38,815 32
Net revenue increased 31.8% to US$160.8 million (1H 2013: US$122.0 million)
The increase in net revenue is explained by:
-- An increase of US$60.6 million in oil deliveries -- An increase of US$1.9 million from the realized price for gas sold;
partially offset by:
-- A decrease of US$8.1 million in gas deliveries, and -- A decrease of US$15.6 million from the realized price for oil sold.
Net revenue attributable to the operations in Chile decreased by 2.9% to US$82.9 million, representing 51.5% of total consolidated revenues (1H2012: US$85.3 million; 69.9% of total consolidated revenues).
Sales of crude oil increased by 16.4% to 883 mbbl (1H2012: 758 mbbl), mainly due to new discoveries in Tobifera formation. This was partially offset by (i) a decrease in the average realized prices per barrel of crude oil of US$8.2 per barrel, or 9.1%, to US$81.4 per barrel (1H2012: US$89.6 per barrel), of which US$2.8 per barrel was attributable to oil quality discounts and the remaining to WTI variation, and (ii) a reduction in Chilean gas sales in an amount of US$6.1 million, or 35.7%, to US$11.0 million (1H 2012: US$17.1 million). The lower gas sales resulted from reduced drilling activity for gas prospects, as we focused on oil prospects and the temporary shutdown in the Methanex Plant, where GeoPark delivers its gas. During the shutdown, which started at the end of April 2013, the Company delivered to Methanex a reduced volume of gas of approximately of 11.5 mmcfpd. The Company has been informed by Methanex that the plant will reassume activities by the end of September 2013.
Net revenue attributable to the operations in Colombia was US$77.2 million, representing 48.0% of total consolidated revenues (1H2012: US$36.0 million; 29.5% of total consolidated revenues).
Sales of crude oil increased by 199% to 906 mbbl (1H2012: 303 mbbl), due to the development of the Max and Tua fields and the discoveries of the Tarotaro and Potrillo fields. This was partially offset by a decrease in the average realized prices per barrel of crude oil from US$107.9 per barrel to US$79.7 primarily as a result of a change in the Company's commercial strategy whereby the Company had been historically delivering all its Colombian production at Coveñas, while in 2013 the Company started selling part of its production at the wellhead. Consequently the selling price has been reduced and the transportation costs (Selling Expenses) have been reduced by a similar amount. In addition the Vasconia marker decreased 32% in 1H 2013 in respect of 1H2012.
Production Costs
The following table summarizes production costs for the six--month periods ended June 30, 2013 and 2012, on a consolidated basis, and by country.
Unaudited Six months ended June 30,
============================================================================ ----------------------------------------
Consolidated Change, June 2013 vs.
(in thousands of US$, except for percentages) 2013 2012 June 2012
---------------------------------------------------------------------------- ------- ------- ----------------------
Depreciation..............................................................
.......................... 31,898 22,950 39%
Royalties.................................................................
............................. 8,650 6,283 38%
Operating
Costs.....................................................................
............. 39,625 24,557 61%
Other
Costs.....................................................................
.................... 974 878 11%
Total.....................................................................
............................... 81,147 54,668 48%
Six months ended June 30,
--------------------------------------
Unaudited 2013 2012
============================================================================== ------------------ ------------------
By country
(in thousands of US$) Chile Colombia Chile Colombia
------------------------------------------------------------------------------ ------- --------- ------- ---------
Depreciation................................................................
.................... 14,936 16,949 15,562 6,957
Royalties...................................................................
...................... 3,912 4,674 4,097 2,093
Staff
costs.......................................................................
................ 3,019 4,676 3,588 1,738
Transportation
costs....................................................................... 3,113 1,741 2,836 296
Well and facilities
maintenance....................................................... 4,252 4,544 2,483 1,523
Consumables.................................................................
................. 925 5,639 1,381 2,580
Equipment
rental......................................................................
....... - 2,360 . 3,044
Other
costs.......................................................................
.............. 3,531 6,162 3,236 2,888
Total.......................................................................
........................ 33,688 46,745 33,185 21,119
Production costs increased 48% to US$81.1 million (1H2012: US$54.7 million), primarily as the result of the incorporation of full six months of the Colombian operations into the Company's results, which resulted in revenue mix to be 93.2% oil and 6.8% gas.
Operating costs per boe increased to US$10.5 per boe (1H2012: US$8.1 per boe). This increase was driven by an increase in well and facilities maintenance, primarily pulling costs increase of US$1.5 million recorded therein and the continuing change in revenue mix (particularly influenced by the Methanex shutdown) from gas to oil, which has higher production costs than gas. In the first six months of 2013, the revenue mix for Chile was 87% oil and 13% gas, whereas for the same period in 2012 it was 80% oil and 20% gas.
Operating costs in Colombia increased 106% primarily due to the increase in production. However, operating costs per boe in Colombia decreased to US$24.7 per boe (1H2012: US$36.6 per boe), with the increased production resulting in a dilution of fixed costs.
Exploration Costs
Unaudited Change, June 2013 vs.
Six months ended June 30, June 2012
============================================================== ---------------------------- ------------------------
(In thousands of US$, except for percentages) 2013 2012 %
-------------------------------------------------------------- ------------- ------------- -------------- --------
Chile......................................................
............................. 8,992 7,206 1,786 25
Colombia....................................................
........................ 3,050 2,718 332 12
Other.......................................................
........................... 1,545 275 1,270 462
Total.......................................................
............................ 13,587 10,199 3,388 33
Exploration costs increased 33%, to US$13.6 million (1H2012: US$10.2 million), primarily as the result of the recognition of write--offs of unsuccessful efforts in an amount of US$11.8 million (one well in the Fell Block for US$3.6 million, one well in the Tranquilo Block for US$1.1 million, seismic and others in Otway Block for US$ 4.1 million, and three wells in Colombia for US$3.0 million), as compared to US$8.5 million (two wells in the Fell Block for US$5.9 million and drilling costs associated to four wells in Colombia for US$ 2.6 million) in such write--offs in the same period in 2012.
Administrative Costs
Unaudited Change, June 2013 vs.
Six months ended June 30, June 2012
============================================================== ---------------------------- ------------------------
(In thousands of US$, except for percentages) 2013 2012 %
-------------------------------------------------------------- ------------- ------------- -------------- --------
Chile......................................................
............................. 8,110 4,014 4,096 102
Colombia....................................................
........................ 5,238 2,086 3,152 151
Other.......................................................
.......................... 7,382 7,462 (80) (1)
Total.......................................................
........................... 20,730 13,562 7,168 53
Administrative costs increased 53% to US$20.7 million (1H2012: US$13.6 million), as a result of the incorporation of full six months of the Colombian operations, the startup of the Tierra del Fuego operations and higher costs associated with new business developments.
Selling Expenses
Unaudited Change, June 2013 vs.
Six months ended June 30, June 2012
============================================================ ---------------------------- --------------------------
(In thousands of US$, except for percentages) 2013 2012 %
------------------------------------------------------------ --------------------- --------- ------------- -------
Chile....................................................
............................... 2,265 2,412 (147) (6)
Colombia..................................................
.......................... 5,145 5,422 (277) (5)
Other.....................................................
............................. 248 147 101 69
Total.....................................................
.............................. 7,658 7,981 (323) (4)
Selling expenses decreased 4% to US$7.7 million (1H2012: US$8.0 million), primarily due to oil sales in Colombia taking place at wellhead, which reduces transportation costs but also reduces selling prices for similar amounts. Lower prices offset higher volumes sold. In the Chilean operations, selling expenses were 6% lower compared to the same period of the prior year. In 2012 in Chile selling expenses included penalties associated with the 'deliver or pay' clauses in the gas sales agreement.
Net Financial Results
Financial loss increased 180% to US$20.6 million (1H2012: US$ 7.3 million), due to the accelerated amortization of debt issuance costs incurred in connection with the redemption of the Notes due 2015 in an amount of US$8.6 million following the issuance of the Notes due 2020 in the six--month period ended June 30, 2013, the incorporation of a full six months of Colombian operations in the first six months of 2013 and higher interest expenses generated by the issuance of the Notes due 2020 in an amount of US$ 3.8 million.
Profit Before Income Tax
Unaudited Change, June 2013 vs.
Six months ended June 30, June 2012
============================================================== ---------------------------- ------------------------
(In thousands of US$, except for percentages) 2013 2012 %
-------------------------------------------------------------- -------------- ------------ --------------- -------
Chile......................................................
.................... 23,107 30,162 (7,055) (23)
byColombia..................................................
.............. 14,369 12,525 1,844 15
Other.......................................................
.................. (16,149) (6,462) (9,687) 150
Total.......................................................
................... 21,327 36,225 (14,898) (41)
Profit before income tax decreased by 41% to US$21.3 million (1H2012: US$36.2 million), primarily influenced by the occurrence of two non--recurring items: (1) accelerated amortization of debt issuance costs described above for US$8.6 million; and (2) a bargain purchase gain on acquisition of subsidiaries of US$8.4 million as a result of the acquisitions of Winchester and Luna registered in the six--month period ended June 30, 2012.
Income Tax
Change, June 2013 vs.
Six months ended June 30, June 2012
============================================================== ---------------------------- ------------------------
(In thousands of US$, except for percentages) 2013 2012 %
-------------------------------------------------------------- -------------- ------------ ------------- ---------
Chile......................................................
............................ 3,278 7,947 (4,669) (59)
Colombia....................................................
....................... 5,812 2,916 2,896 99
Other.......................................................
.......................... (1,998) - (1,998) (100)
Total.......................................................
.......................... 7,092 10,863 (3,771) (35)
Income tax decreased 35% to US$7.1 million (1H2012: US$10.9 million). The effective tax rate was 33% (1H2012: 30%). The effective tax rate was influenced by the incorporation of full six months of the Colombian operations in GeoPark's results, which are subject to a higher tax rate than the other operations, and the non--recurring tax exempted bargain purchase gain on acquisition of subsidiaries.
FINANCIAL RATIOS
Amounts in US$million Ratios (1)
------------------------------------------ ----------------------------------------------
Year / Period Financial Cash position
debt Gross debt / Adjusted Interest coverage
EBITDA
============== ========== ============== ======================== ====================
2009 60.4 23.8 3.4x 4.7x
2010 169.4 99.4 4.1x 9.3x
2011 165.3 193.7 2.6x 4.6x
2012 193.0 48.3 1.6x 7.1x
1Q 2013 299.4 176.0 2.2x 5.3x
2Q 2013 301.8 149.4 2.2x 4.4x
Our financial covenants require the Company to comply with the following criteria;
Leverage Ratio below 2.75x for the years 2013 and 2014 and 2.5x afterward
Interest Coverage Ratio above 3.5x
(1) Based on trailing 12 month financial results
Three-month period from April 1 to June 30, 2013 compared to three--month period from April 1 to June 30, 2012
The following table summarizes certain financial and operating data for the second quarter of 2013 and 2012.
Second quarter 2013 vs Second quarter
2012
================================== ====================================================================
Change, 2Q
(in thousands of US$, except 2013 vs. 2Q
for percentages) 2Q 2013 2Q 2012 2012
Average net production (boepd) 13,020 11,674 12%
Average realized sales price
per boe (US$) 68 70 -2%
Net revenue 71,032 70,670 362 1%
Production costs (42,834) (35,306) (7,528) 21%
Adjusted EBITDA 34,362 36,021 (1,659) -5%
Profit for the period 4,790 1,074 3,716 346%
Capital expenditures 68,984 36,979 32,005 87%
Production
Average net production increased 12% to 13,020 (boepd) for 2Q 2013. In Colombia, total oil production increased 99.5% to 6,157 bopd and in Chile, total oil production increased 11.8% to 4,595 bopd. The gas production in Chile decreased 50% to 13,248 mcfpd. The lower gas production resulted from reduced drilling activity for gas prospects, as the drilling activities were focused on oil prospects and the temporary shutdown in the Methanex Plant.
Net Revenue
Second quarter 2013 vs Second quarter
2012
=============================== ================================================
Change, 2Q
(in thousands of US$, except 2013 vs. 2Q
for percentages) 2Q 2013 2Q 2012 2012
Chile 37,337 39,344 (2,007) -5%
Colombia 33,408 31,035 2,373 8%
Other 287 291 (4) -1%
Total 71,032 70,670 (362) 1%
The increase in net revenue is explained by:
-- An increase of US$ 16 million in oil deliveries; -- An increase of US$ 1.1 million from the realized sales prices for gas sold;
Partially offset by:
-- A decrease of US$4.8 million in gas deliveries, and
-- A decrease of US$12.0 million from the realized sales prices for oil sold primarily as a result of the change in the commercial strategy whereby the Company had been historically delivering all its Colombian production at Coveñas, while in 2013 the Company started selling part of its production at the wellhead. Consequently the selling price has been reduced and the transportation costs (Selling Expenses) have been reduced by a similar amount.
Production Costs
For the three--month period from April 1 to June 30, 2013
Second quarter 2013 vs Second quarter
2012
=============================== ================================================
Change, 2Q
(in thousands of US$, except 2013 vs. 2Q
for percentages) 2Q 2013 2Q 2012 2012
Chile 15,551 16,589 (1,038) -6%
Colombia 26,143 18,471 (7,672) 42%
Other 1,140 246 894 363%
Total 42,834 35,306 7.528 21%
Production costs were 21% higher in 2Q 2013 compared to 2Q 2012. The main driver for this increase was the increase in oil production of 49%.
In Chile, operating costs (production costs less depreciation and royalties) per boe increased 35% to US$ 10.7 per boe (2Q2012: US$ 7.9 per boe). This increase was driven by an increase in well and facilities maintenance, primarily pulling costs and the continuing change in revenue mix from gas to oil, which has higher production costs than gas.
In Colombia, operating expenditures per boe decreased 31% to US$ 25.1 per boe (2Q2012: US$ 36.3 per boe), due to an increase in production which resulted in a dilution of fixed costs.
Adjusted EBITDA
Second quarter 2013 vs Second quarter
2012
=============================== ================================================
Change, 2Q
(in thousands of US$, except 2013 vs. 2Q
for percentages) 2Q 2013 2Q 2012 2012
Chile 23,092 26,564 (3,472) -13%
Colombia 16,259 12,579 3,680 29%
Other (4,989) (3,122) -1,867 60%
Total 34,362 36,021 (1,659) -5%
Adjusted EBITDA decreased 5% or US$ 1.7 million as consequence of a reduction of US$ 3.4 million in the Chilean Adjusted EBITDA influenced by lower gas sales and the startup of the Tierra del Fuego operations and an increase of US$ 1.9 million related to corporate expenses (mainly higher costs associated with new business developments) and the start-up of Brazilian operations. Both effects were partially offset by an increase of US$ 3.7 million in the Colombian Adjusted EBITDA.
Profit For The Period
Profit for the period increased 346% to US$ 4.8 million:
EBITDA 2Q 2013 34 ======================= ===== Depreciation (16) Impairment and write off (6) Financial results (8) Income tax (3) Other 4 Profit For The Period 5
Capital expenditures increased 87% to US$ 69 million, primarily as a result of Chilean operations where capital expenditures amounted to US$ 45.4 million for 2Q 2013 (including US$ 27.4 million in Tierra del Fuego, mainly for the seismic program) compared to US$ 15.7 million for 2Q 2012. In Colombia, capital expenditures amounted to US$ 27 million for 2Q 2013 compared to US$ 20 million for 2Q 2012.
STRATEGIC HIGHLIGHTS
Risk-Balanced Entry into Brazil
1) Acquisition of Interest in Manati Producing Gas Field
On May 15, 2013, GeoPark announced it had agreed to acquire Rio das Contas, which holds a 10% working interest in the shallow--depth offshore Manati Field in the Camamu--Almada Basin, from Panoro Energy for a total cash consideration of US$140.0 million, subject to certain purchase price and easement adjustments. The Manati Field, which is operated by Petrobras, the Brazilian national company, is the largest non--associated gas field in Brazil and produces approximately 9% of the gas produced in Brazil. During the year ended December 31, 2012 and the second quarter of 2013, net production to Rio das Contas was approximately 3,677 boepd and 3,884 boepd, respectively, from the Manati Field. In the year ended December 31, 2012, Rio das Contas generated net income of approximately US$23.2 million and revenues of approximately US$51.1 million.
The Rio das Contas acquisition will provide GeoPark with a long--term off--take contract with Petrobras that covers approximately 75% of net proved gas reserves in the Manati Field, a valuable relationship with Petrobras and an established geoscience and administrative team to manage the assets and to seek new growth opportunities.
The closing of the acquisition is subject to certain conditions, including approval by the Brazilian National Petroleum, Natural Gas and Biofuels Agency ("ANP") and the Brazilian antitrust authorities. This is expected to occur during the second half of 2013.
2) Award of Seven Exploration Licenses
On May 15, 2013, following an invitation for bids from the ANP, GeoPark announced it had been awarded, in an international bidding round, seven new concessions in Brazil, in the following basins:
-- Recôncavo Basin in the State of Bahia: REC--T 94 and REC--T 85 Concessions; and
-- Potiguar Basin in the State of Rio Grande do Norte: POT--T 664, POT--T 665, POT--T 619, POT--T 620 and POT--T 663Concessions.
GeoPark's winning bids are subject to confirmation of approval requirements and entry into concession agreements with the ANP, which is expected to occur in 3Q2013. GeoPark has committed to invest a minimum of US$ 15.3 million (including bonuses and work program) during the first three years of the exploratory period. The new concessions cover an area of approximately 54,850 gross acres.
CONSOLIDATED INCOME STATEMENT
Six-months Six-months
period ended period ended Year ended
30 June 2013 30 June 2012 31 December
Amounts in US$ '000 (Unaudited) (1) (Unaudited) 2012
NET REVENUE 160,806 121,991 250,478
Production costs (81,147) (54,668) (129,235)
GROSS PROFIT 79,659 67,323 121,243
Exploration costs (13,587) (10,199) (27,890)
Administrative costs (20,730) (13,562) (28,798)
Selling expenses (7,658) (7,981) (24,631)
Other operating income / (expense) 4,205 (413) 823
OPERATING PROFIT 41,889 35,168 40,747
Financial income 604 318 892
Financial expenses (21,166) (7,662) (17,200)
Bargain purchase gain on acquisition
of subsidiaries - 8,401 8,401
PROFIT BEFORE TAX 21,327 36,225 32,840
Income tax (7,092) (10,863) (14,394)
PROFIT FOR THE PERIOD/YEAR 14,235 25,362 18,446
Attributable to:
Owners of the parent 8,616 19,904 11,879
Non-controlling interest 5,619 5,458 6,567
Earnings per share (in US$)
for profit attributable
to owners of the Company. Basic 0.20 0.47 0.28
Earnings per share (in US$)
for profit attributable
to owners of the Company. Diluted 0.19 0.44 0.27
CONSOLIDATED BALANCE SHEET
At 30 June Year ended
At 30 June 2012 (1) 31 December
Amounts in US$ '000 2013 (Unaudited) (Unaudited) 2012
ASSETS
NON CURRENT ASSETS
Property, plant and equipment 544,151 388,423 457,837
Prepaid taxes 14,505 5,504 10,707
Other financial assets 2,145 6,738 7,791
Deferred income tax 16,075 10,434 13,591
Prepayments and other receivables 1,857 610 510
TOTAL NON CURRENT ASSETS 578,733 411,709 490,436
CURRENT ASSETS
Inventories 5,667 8,934 3,955
Trade receivables 31,288 22,569 32,271
Prepayments and other receivables 40,809 47,705 49,620
Prepaid taxes 2,376 5,903 3,443
Cash at bank and in hand 149,437 66,346 48,292
TOTAL CURRENT ASSETS 229,577 151,457 137,581
TOTAL ASSETS 808,310 563,166 628,017
EQUITY
Equity attributable to
owners of the Company
Share capital 43 43 43
Share premium 116,877 118,821 116,817
Reserves 128,058 123,006 128,421
Retained earnings (losses) 6,242 3,770 (5,860)
Attributable to owners
of the Company 251,220 245,640 239,421
Non-controlling interest 83,459 54,355 72,665
TOTAL EQUITY 334,679 299,995 312,086
LIABILITIES
NON CURRENT LIABILITIES
Borrowings 290,624 127,404 165,046
Provisions for other long-term
liabilities 26,015 21,839 25,991
Deferred income tax 25,372 18,827 17,502
TOTAL NON CURRENT LIABILITIES 342,011 168,070 208,539
CURRENT LIABILITIES
Borrowings 11,172 27,488 27,986
Current income tax 2,716 1,615 7,315
Trade and other payables 117,732 65,998 72,091
TOTAL CURRENT LIABILITIES 131,620 95,101 107,392
TOTAL LIABILITIES 473,631 263,171 315,931
TOTAL EQUITY AND LIABILITIES 808,310 563,166 628,017
CONSOLIDATED STATEMENT OF CASH FLOW
Six-months Six-months
period ended period ended Year ended
30 June 2013 30 June 2012 31 December,
Amounts in US$ '000 (Unaudited) (1) (Unaudited) 2012
Cash flows from operating activities
Profit for the period/year 14,235 25,362 18,446
Adjustments for:
Income tax for the period/year 7,092 10,863 14,394
Depreciation of the period/year 32,605 23,395 53,317
Loss on disposal of property, plant
and equipment 568 125 546
Write-off of unsuccessful efforts 11,788 8,564 25,552
Amortisation of other long-term liabilities (1,359) (290) (2,143)
Accrual of borrowing's interests 11,881 5,796 12,478
Unwinding of long-term liabilities 505 298 1,262
Accrual of share-based payment 3,486 2,415 5,396
Deferred income - 2,850 5,550
Income tax paid (4,040) (408) (408)
Exchange difference generated by
borrowings (9) 20 35
Bargain purchase gain on acquisition
of subsidiaries - (8,401) (8,401)
Changes in working capital 20,177 580 5,778
Cash flows from operating activities
- net 96,929 71,169 131,802
Cash flows from investing activities
Purchase of property, plant and equipment (143,775) (84,492) (198,204)
Acquisitions of subsidiaries, net
of cash acquired - (105,303) (105,303)
Collections related to financial 6,489 - -
leases
Cash flows used in investing activities
- net (137,286) (189,795) (303,507)
Cash flows from financing activities
Proceeds from borrowings 292,363 3,923 37,200
Proceeds from transaction with Non-controlling
interest (2) 36,313 8,869 12,452
Proceeds from loans from related 8,344 - -
parties
Principal paid (179,343) (16,297) (12,382)
Interest paid (6,175) (5,259) (10,895)
Cash flows from (used in) financing
activities - net 151,502 (8,764) 26,375
Net increase (decrease) in cash and
cash equivalents 111,145 (127,390) (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 149,437 56,232 38,292
Ending Cash and cash equivalents
are specified as follows:
Cash in banks 149,413 66,324 48,268
Cash in hand 24 22 24
Bank overdrafts - (10,114) (10,000)
Cash and cash equivalents 149,437 56,232 38,292
Annex
Below is a summary table of GeoPark's oil and gas interests:
Country Block Operator WI(1) Basin Gross Net 2P Net Production % Concession
Area Reserves (boepd)(3) oil Expiration
(thousand (mmboe)(2) Date
acres)
----------- ------------ ----------- -------- ------------- ---------- -------------------- --------------------- --------- -----------
Del
Argentina Mosquito GeoPark 100% Austral 17.3(4) - 56 78 2016
C.
Doña
Argentina Juana GeoPark 100% Neuquén 28 - - - 2017
Loma
Argentina Cortaderal GeoPark 100% Neuquén 20 - - - 2017
----------- ------------ ----------- -------- ------------- ---------- -------------------- --------------------- --------- -----------
56
------------------------------------ -------- ------------- ---------- -------------------- --------------------- --------- -----------
Chile Fell GeoPark 100% Magallanes 368 45.5 7,615 66 2032
Chile Tranquilo GeoPark 29% Magallanes 92 - - - 2013/2043
Chile Otway GeoPark 25% Magallanes 49.4 - - - 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 7,615
------------------------------------ -------- ------------- ---------- -------------------- --------------------- --------- -----------
Colombia La Cuerva GeoPark 100% Llanos 47 3.8 1,955 100 2014/2038
Llanos
Colombia 34 GeoPark 45% Llanos 82 6.5 2,557 100 2015/2039
Llanos
Colombia 62 GeoPark 100% Llanos 44 - - - 2017/2041
Colombia Yamú GeoPark 54.5/75 Llanos 11 0.8 565 100 2013/2036
Llanos
Colombia 17 Ramshorn 36.80% Llanos 109 - - - 2015/2039
Llanos
Colombia 32 P1 Energy 10% Llanos 100 0.3 218 100 2015/2039
Colombia Jagueyes Columbus 5% Llanos 61 - - - 2014/2038
11.4 5,294
------------------------------------ -------- ------------- ---------- -------------------- --------------------- --------- -----------
Brazil(4) BCAM-40 Petrobras 10% Cam./Almada 22.8 10.7* 4,015 0
Brazil
(5) REC-T94 GeoPark 100% Reconcavo 7.7 - - -
Brazil(5) REC-T85 GeoPark 100% Reconcavo 7.7 - - -
Brazil(5) POT-T 664 GeoPark 100% Potiguar 7.9 - - -
Brazil(5) POT-T 665 GeoPark 100% Potiguar 7.9 - - -
Brazil(5) POT-T 619 GeoPark 100% Potiguar 7.9 - - -
Brazil(5) POT-T 620 GeoPark 100% Potiguar 7.9 - - -
Brazil(5) POT-T 663 GeoPark 100% Potiguar 7.9 - - -
10.7 4,015
------------------------------------ -------- ------------- ---------- -------------------- --------------------- --------- -----------
1 Working Interest
2 Million barrels of Oil Equivalent. Reserves for Chile , Colombia and Argentina has been certified by Degoyler & MacNaughton as of December 31, 2012. Reserves for Brazil has been certified by Gaffney & Cline for Panoro energy do Brasil as of December 31,2012.
3 Corresponds to production for the first half of 2013.
4 Manati acquisition announced in May 2013. First and second quarter 2013 production not attributable to Geopark. 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.
5 subject to confirmation of approval requirements and entry into concession agreements with the ANP
Glossary
Adjusted EBITDA Profit for the period before, net finance cost, income tax, depreciation, amortization certain non-cash items such as impairments and write offs of unsuccessful efforts, accrual of stock options and stock awards and bargain purchase gain on acquisitions of subsidiaries
ANP Agência Nacional do Petróleo, Brazil's National Agency of Petroleum
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)
mbbl Thousands of barrels of oil mmboe Million barrels of oil equivalent mcfpd Thousands of cubic feet per day mmcfpd Million of cubic feet per day Mm(3) /day Thousands of cubic meters 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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