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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 |
TIDMGPK
RNS Number : 9401M
Geopark Limited
02 September 2013
GEOPARK LIMITED
RESULTS FOR THE FIRST HALF ENDED 30 JUNE 2013
GeoPark Limited ("GeoPark"), the Latin American oil and gas explorer, operator and consolidator with operations and production in Chile, Colombia, Brazil and Argentina (AIM: GPK), is pleased to announce its first half financial results ended 30 June 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$149.4 million
Strategic Highlights
-- Risk-balanced entry into Brazil with acquisition of 10% interest in Manati Field and award of seven exploration blocks in Potiguar and Reconcavo Basins
* Operational and Financial figures do not include results from new Brazilian production acquisition, completion of which is expected in 2H2013.
In accordance with the AIM Rules, the information in this announcement has been reviewed by Salvador Minniti, a geologist with 32 years of oil and gas experience and Director of Exploration of GeoPark.
GeoPark can be visited online at www.geo-park.com
For further information please contact:
GeoPark Limited
Juan Pablo Spoerer (Chile)
Pablo Ducci (Chile) +56 2 2242 9600
Oriel Securities - Nominated Adviser and Joint Broker
Michael Shaw (London) +44 (0)20 7710 7600
Tunga Chigovanyika (London)
Macquarie Capital (Europe) Limited - Joint Broker
Steve Baldwin (London) +44 (0)20 3037 2000
GEOPARK LIMITED
Interim condensed consolidated
financial statements
For the six months ended 30 June 2012 and 2013
CONSOLIDATED STATEMENT OF INCOME
Six-months Six-months period period ended 30 ended 30 Year ended June 2013 June 2012 31 December Amounts in US$ '000 Note (Unaudited) (1) (Unaudited) 2012 NET REVENUE 2 160,806 121,991 250,478 Production costs 4 (81,147) (54,668) (129,235) GROSS PROFIT 79,659 67,323 121,243 Exploration costs 5 (13,587) (10,199) (27,890) Administrative costs 6 (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 7 604 318 892 Financial expenses 8 (21,166) (7,662) (17,200) Bargain purchase gain on acquisition of subsidiaries 14 - 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
STATEMENT OF COMPREHENSIVE INCOME
Six-months Six-months period period ended ended 30 Year ended 30 June June 2012 31 December Amounts in US$ '000 2013 (Unaudited) (1) (Unaudited) 2012 Profit for the period / year 14,235 25,362 18,446 Other comprehensive income - - - Currency translation (363) - - differences Total comprehensive Income for the period / year 13,872 25,362 18,446 Attributable to: Owners of the parent 8,253 19,904 11,879 Non-controlling interest 5,619 5,458 6,567
(1) 30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see Note 1).
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June Year ended At 30 June 2012 (1) 31 December Amounts in US$ '000 Note 2013 (Unaudited) (Unaudited) 2012 ASSETS NON CURRENT ASSETS Property, plant and equipment 9 544,151 388,423 457,837 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 10 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 11 290,624 127,404 165,046 Provisions for other long-term liabilities 12 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 11,172 27,488 27,986 Current income tax 2,716 1,615 7,315 Trade and other payables 13 117,732 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
(1) 30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see Note 1).
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Attributable to owners of the Company Retained Non - Amount in US$ Share Share Other Translation (Losses) controlling '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 first half of the year - - - - 19,904 5,458 25,362 Total comprehensive income for the period ended 30 June 2012 - - - - 19,904 5,458 25,362 Proceeds from transaction with Non-controlling interest - 5,696 8,736 - - 7,134 21,566 Shared-based payment - - - - 2,415 - 2,415 - 5,696 8,736 - 2,415 7,134 23,981 Balance at 30 June 2012 (1) (Unaudited) 43 117,927 123,006 894 3,770 54,355 299,995 Balance at 31 December 2012 43 116,817 127,527 894 (5,860) 72,665 312,086 Profit for the first half of the year - - - - 8,616 5,619 14,235 Currency translation differences - - - (363) - - (363) Total comprehensive income for the period ended 30 June 2013 - - - (363) 8,616 5,619 13,872 Proceeds from transaction with Non-controlling interest - - - - - 5,175 5,175 Shared-based payment - 60 - - 3,486 - 3,546 - 60 - - 3,486 5,175 8,721 Balance at 30 June 2013 (Unaudited) 43 116,877 127,527 531 6,242 83,459 334,679
(1) 30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see Note 1).
(1)
CONSOLIDATED STATEMENT OF CASH FLOW
Six-months Six-months period period ended ended 30 June Year ended 30 June 2012 (1) 31 December, Amounts in US$ '000 2013 (Unaudited) (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 (Note 14) - (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 (Note 14) - (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 8,344 - - related 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
(1) 30 June 2012 comparative information has been restated reflecting the finalization of the purchase price allocation (see Note 1).
(2) Proceeds from transaction with Non-controlling interest for the period ended 30 June 2013 includes: US$ 5,175,000 from capital contributions received in the period; and US$ 31,138,000 as result of collection of receivables included in Prepayment and other receivables as of 31 December 2012, relating to equity transactions made in 2012 and 2011.
SELECTED EXPLANATORY NOTES
Note 1
General information
GeoPark 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.
The principal activity of the Company and its subsidiaries ("the Group") are exploration, development and production for oil and gas reserves in Chile, Colombia and Argentina. The Group has working interests and/or economic interests in 19 hydrocarbon blocks.
On 30 July 2013 the shareholders approved the change of the Company's name from GeoPark Holdings Limited to GeoPark Limited.
This consolidated interim financial report was authorised for issue by the Board of Directors on 29 August, 2013.
Basis of Preparation
The consolidated interim financial report of GeoPark 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 Limited's consolidated financial statements for the year ended 31 December 2012.
The comparative information for the period ended 30 June 2012 has been restated from the original condensed financial statements at that date to include the final estimation of the purchase price allocation for the business combination related to the acquisition in Colombia shown in Note 14.
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.
The activities of the Company are not subject to significant seasonal changes.
Leases in which substantially all of the risks and rewards of ownership are transferred to the lessee are classified as finance leases. Under a finance lease, the Company as lessor has to recognize an amount receivable equal to the aggregate of the minimum lease payments plus any unguaranteed residual value accruing to the lessor, discounted at the interest rate implicit in the lease (see Note 9).
New and amended standards adopted by the Group
As from 1 January, 2013, the Company applied IFRS 10, 'Consolidated financial statements", IFRS 11, 'Joint arrangements', IFRS 12, 'Disclosures of interests in other entities'. Those standards did not materially affect the Company's financial condition or results of the operations.
Also, as from 1 January 2013 the Company applied IFRS 13 "Fair value measurement" . This standard has not have a significant impact on the balances recorded in the financial statements but would require the company to apply different valuation techniques to certain items (e.g. debt acquired as part of a business combination) recognised at fair value as and when they arise in the future.
Estimates
The preparation of interim financial information requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. Actual results may differ from these estimates
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2012.
Financial risk management
The Company's activities expose it to a variety of financial risks: currency risk, price risk, credit risk- concentration, funding and liquidity risk, interest risk and capital risk. The interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Company's annual financial statements as at 31 December 2012.
There have been no changes in the risk management since year end or in any risk management policies.
Subsidiary undertakings
The following chart illustrates the Group structure (*) as of 30 June 2013:
(*) LG International is not a subsidiary, instead of it is Non-controlling interest.
During 2013, with the purpose of conducting its multilocation activities and for allowing future business structures, the Company has incorporated certain wholly owned subsidiaries, that are dormant companies at the date of the issuance of these interim financial statements.
Details of the subsidiaries and jointly controlled assets of the Company are set out below:
Ownership Name and registered office interest GeoPark Argentina Ltd. Subsidiaries - Bermuda 100% GeoPark Argentina Ltd. - Argentine Branch 100% (a) GeoPark Latin America 100% GeoPark Latin America - Agencia en Chile 100% (a) 100% (a) GeoPark S.A. (Chile) (b) GeoPark Brazil 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) GeoPark Luna SAS (Colombia) (e) (f) GeoPark Colombia SAS 100% (a) (Colombia) (e) (f) 100% (a) GeoPark Llanos SAS (Colombia) (e) (f) La Luna Oil Co. Ltd. 100% (a) (Panama) (e) (f) GeoPark Colombia PN S.A. 100% (a) (Panama) (e) (f) GeoPark Cuerva LLC (United 100% (a) States) (e) (f) Sucursal La Luna Oil 100% (a) Co. Ltd. (Colombia) (e) (f) Sucursal GeoPark Colombia 100% (a) PN S.A. (Colombia) (e) (f) Sucursal GeoPark Cuerva 100% (a) LLC (Colombia) (e) (f) GeoPark Brazil S.p.A. 100% (a) (Chile) (b) Raven Pipeline Company LLC (United States) 23.5% (b) GeoPark Colombia Cooperatie U.A. (The Netherlands) 100% (b) GeoPark Brazil Cooperatie U.A. (The Netherlands) 100% (b) Jointly controlled assets Tranquilo Block (Chile) 29% Otway Block (Chile) 100% (g) Flamenco Block (Chile) 50% (h) Isla Norte Block (Chile) 60% (h) Campanario Block (Chile) 50% (h) (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 14).
(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) In April 2013, the Group voluntarily relinquished to the Chilean Government all of our acreage in the Otway Block, except for 49,421 acres. In May 2013, our partners under the joint operating agreement governing the Otway Block decided to withdraw from such joint operating agreement and to apply to withdraw from the Otway Block CEOP, such that, subject to the Chilean Ministry of Energy's approval, the Group will be the sole participant, and have a working interest of 100%, in our two remaining areas in the Otway Block.
(h) 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 16).
Note 2
Net revenue
Six-months Six-months period period Year ended Amounts in US$ ended 30 ended 30 31 December '000 June 2013 June 2012 2012 Sale of crude oil 149,817 104,893 221,564 Sale of gas 10,989 17,098 28,914 160,806 121,991 250,478
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.
Six-months period ended 30 June 2013
Amounts in US$ '000 Total Argentina Chile Brazil Colombia Corporate NET REVENUE 160,806 733 82,855 - 77,218 - GROSS PROFIT 79,659 19 49,167 - 30,473 - OPERATING PROFIT / (LOSS) 41,889 (1,822) 33,239 (1,365) 17,801 (5,964) Adjusted EBITDA 84,014 (1,284) 52,267 (1,341) 38,296 (3,924)
Six-months period ended 30 June 2012
Amounts in US$ '000 Total Argentina Chile Brazil Colombia Corporate NET REVENUE 121,991 664 85,320 - 36,007 - GROSS PROFIT 67,323 146 52,135 - 14,888 154 OPERATING PROFIT / (LOSS) 35,168 (2,714) 36,572 - 4,625 (3,315) Adjusted EBITDA 70,274 (808) 59,028 - 15,310 (3,256) Total Assets Total Argentina Chile Brazil Colombia Corporate 30 June 2013 808,310 7,207 424,743 31,200 259,640 85,520 31 December 2012 628,017 6,108 405,674 - 213,202 3,033 30 June 2012 563,166 6,108 377,165 - 177,552 2,341
A reconciliation of total Adjusted EBITDA to total profit before income tax is provided as follows:
Six-months Six-months period ended period ended 30 June 2013 30 June 2012 Adjusted EBITDA for reportable segments 84,014 70,274 Depreciation (32,605) (23,395) Accrual of stock awards (3,486) (2,415) Write-off of unsuccessful efforts (11,788) (8,564) Others 5,754 (732) Operating profit 41,889 35,168 Financial results (20,562) (7,344) Bargain purchase gain on acquisition of subsidiaries - 8,401 Profit before tax 21,327 36,225
Note 4
Production costs
Six-months Six-months Year period period ended ended ended 31 December 30 June 30 June 2012 Amounts in US$ '000 2013 2012 Depreciation 31,898 22,950 52,307 Royalties 8,650 6,283 11,424 Staff costs 7,518 4,310 14,171 Transportation costs 4,946 3,213 7,211 Well and facilities maintenance 9,003 4,127 9,385 Consumables 6,610 3,996 9,884 Equipment rental 2,360 3,044 5,936 Other costs 10,162 6,745 18,917 81,147 54,668 129,235
Note 5
Exploration costs
Amounts in US$ '000 Six-months Six-months Year ended period period 31 December ended 30 ended 2012 June 2013 30 June 2012 Staff costs 4,084 1,587 4,418 Allocation to capitalised project (1,145) (736) (1,849) Write-off of unsuccessful efforts 11,788 8,564 25,552 Amortisation of other long-term liabilities related to unsuccessful efforts (600) - (1,500) Recovery of abandonments costs (759) - - Other services 219 784 1,269 13,587 10,199 27,890
Note 6
Administrative costs
Six-months Six-months period period ended Year ended ended 30 30 June 31 December Amounts in US$ '000 June 2013 2012 2012 Staff costs 9,976 6,136 9,575 Consultant fees 3,082 2,551 5,122 New projects 661 533 2,927 Office expenses 781 956 3,293 Director fees and allowance 992 1,067 1,516 Travel expenses 1,190 534 1,563 Depreciation 707 445 1,010 Other administrative expenses 3,341 1,340 3,792 20,730 13,562 28,798
Note 7
Financial income
Six-months Six-months Year ended period period 31 December Amounts in US$ ended 30 ended 30 2012 '000 June 2013 June 2012 Exchange difference 2 70 348 Interest received 602 248 544 604 318 892
Note 8
Financial expenses
Six-months Six-months period period ended ended Year ended 30 June 30 June 31 December Amounts in US$ '000 2013 2012 2012 Bank charges and other financial costs 1,568 838 1,764 Bond GeoPark Fell SpA 8,603 - - cancellation costs (Note 11) Exchange difference 1,483 1,045 2,429 Unwinding of long-term liabilities 505 298 1,262 Interest and amortisation of debt issue costs 9,931 6,132 13,114 Less: amounts capitalised on qualifying assets (924) (651) (1,369) 21,166 7,662 17,200
Note 9
Property, plant and equipment
Exploration Oil & Furniture, Production Buildings and Amounts in gas equipment facilities and Construction evaluation US$'000 properties and vehicles and machinery improve-ments in progress assets TOTAL Cost at 1 January 2012 171,956 2,175 47,102 2,437 32,896 42,140 298,706 Additions 1,083 548 351 - 28,332 54,585 84,899 Disposals (48) (60) (17) - - - (125) Write-off and impairment (1) - - - - - (8,564) (8,564) Transfers 51,679 - 5,835 466 (36,148) (21,832) - Acquisitions of subsidiaries 62,384 481 10,865 - 9,359 27,884 110,973 Cost at 30 June 2012 287,054 3,144 64,136 2,903 34,439 94,213 485,889 Cost at 1 January 2013 344,371 3,576 86,949 3,198 54,025 93,106 585,225 Additions 2,502 1,128 10 47 59,479 83,979 147,145 Disposals (2) (546) (22) (15,870) - - - (16,438) Write-off and impairment (1) - - - - - (11,788) (11,788) Transfers 77,166 - 14,963 927 (61,433) (31,623) - Cost at 30 June 2013 423,493 4,682 86,052 4,172 52,071 133,674 704,144 Depreciation and write-down at 1 January 2012 (53,604) (1,123) (18,628) (716) - - (74,071) Depreciation (19,126) (322) (3,810) (137) - - (23,395) Depreciation and write-down at 30 June 2012 (72,730) (1,445) (22,438) (853) - - (97,466) Depreciation and write-down at 1 January 2013 (98,156) (1,836) (26,336) (1,060) - - (127,388) Depreciation (27,418) (427) (4,480) (280) - - (32,605) Depreciation and write-down at 30 June 2013 (125,574) (2,263) (30,816) (1,340) - - (159,993) Carrying amount at 30 June 2012 214,324 1,699 41,698 2,050 34,439 94,213 388,423 Carrying amount at 30 June 2013 297,919 2,419 55,236 2,832 52,071 133,674 544,151
(1) Corresponds to write-off of Exploration and evaluation assets in Colombia US$ 3,035,000 (US$ 2,619,000 in 2012) and Chile US$ 8,753,000 (US$ 5,945,000 in 2012).
(2) During 2013, the Company entered into a finance lease for which it has transferred a substantial portion of the risk and rewards of some assets which had a book value of US$ 14.1 million. As of 30 June 2013 trade receivables include receivables under finance leases for amount of US$ 7.8 million, which US$ 6.3 million are maturity no later than one year and US$ 1.5 million between one and five years. Total unearned interest income amounts to US$ 1.5 million .
Note 10
Share capital
Six-months Six-months period period Year ended ended 30 ended 30 31 December Issued share capital June 2013 June 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 11
Borrowings
The outstanding amounts are as follows:
At At Year ended Amounts in US$ 30 June 30 June 31 December '000 2013 2012 2012 Bond GeoPark Latin 299,577 - - America Agencia en Chile (a) Bond GeoPark Fell SpA (b) - 128,838 129,452 Methanex Corporation (c) - 8,041 8,036 Banco de Crédito e Inversiones (d) 2,219 7,899 7,859 Overdrafts (e) - 10,114 10,000 Banco Itaú (f) - - 37,685 301,796 154,892 193,032
Classified as follows:
Current 11,172 27,488 27,986 Non-Current 290,624 127,404 165,046
(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 Limited 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, was structured as a gas pre-sale agreement with a six year pay-back period and an interest rate of LIBOR flat. The loan has been fully repaid during 2013.
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. This financing did not bear interest. The loan was fully repaid during 2012.
(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 30 June 2013 is US$ 273,000.
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 February 2014 and the applicable interest rate ranging from 4.45% to 5.45%. The outstanding amount at 30 June 2013 is US$ 1,946,000.
(e) At 30 June 2013, the Group has credit lines availables with several banks for approximately US$ 52,000,000.
(f) GeoPark 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. This loan was fully repaid in February 2013.
Note 12
Provision for other long-term liabilities
The outstanding amounts are as follows:
At At Year ended Amounts in US$ 30 June 30 June 31 December '000 2013 2012 2012 Assets retirement obligation and other environmental liabilities 19,140 13,013 16,213 Deferred income 6,119 6,521 7,369 Other 756 2,305 2,409 26,015 21,839 25,991
Note 13
Trade and other payables
The outstanding amounts are as follows:
At At Year ended Amounts in US$ 30 June 30 June 31 December '000 2013 2012 2012 Trade payables 89,396 47,499 54,890 Payables to related 8,465 - - parties (1) Staff costs to be paid 5,085 3,274 5,867 Royalties to be paid 4,151 4,189 3,909 Taxes and other debts to be paid 5,718 7,194 5,418 To be paid to co-venturers 4,917 3,842 2,007 117,732 65,998 72,091
(1) In December 2012, LGI entered into GeoPark's operations in Colombia through the acquisition of a 20% of interest in GeoPark Colombia S.A. As part of the transaction, LGI committed to fund the operations in Colombia through loans (See Note 35 to the audited Consolidated Financial Statements as of 31 December 2012).
Note 14
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:
Amounts in US$ Winchester '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 Bargain purchase 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 15
Entry in Brazil
Proposed acquisition in Brazil
GeoPark entered into Brazil with the proposed 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 Brazil 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 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. This is expected to occur during the second half of 2013.
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 final approval of ANP, which is expected to occur during the third quarter of 2013.
For its winning bids on the seven blocks, GeoPark has committed to invest a minimum of US$15.3 million (including bonus and work program commitment) during the first 3 years of the exploratory period. The new blocks cover an area of approximately 54,850 acres.
On 25 June 2013, the Company contributed US$ 31 million to the Brazilian subsidiary as a capital contribution.
Note 16
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, more than 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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