GeoPark's Q4 2024 Performance: Highlights and Future Prospects

GeoPark Reports Operational Performance for Q4 2024

GeoPark Limited, recognized for its robust presence in the Latin American energy sector, has released its operational performance update for the fourth quarter of 2024 (Q4 2024). With a rich history spanning over two decades, the company has consistently delivered sustainable results despite facing operational challenges. The operational insights for this quarter reveal valuable information for investors and stakeholders alike.

Production Overview and Operational Challenges

In Q4 2024, GeoPark reported a consolidated average oil and gas production of approximately 31,489 barrels of oil equivalent per day (boepd), reflecting a 5% decrease from the previous quarter. This decline is attributed to operational disruptions in the Llanos 34 and CPO-5 blocks in Colombia, primarily due to localized blockades affecting production capabilities.

Enhanced Recovery Efforts in Llanos 34 Block

The Llanos 34 block experienced an average production of 19,342 boepd net in Q4 2024, down 5% compared to Q3 2024. Despite a decrease, the recovery efforts through ongoing waterflooding projects contributed significantly, yielding strong output results. Notably, three new injector wells commenced operation, enhancing the production capacity from this prolific block.

Focus on Drilling and Workover Campaigns

GeoPark's commitment to its drilling and workover campaigns played a vital role in offsetting the impacts of operational setbacks. The company's strategy included drilling 43 new wells throughout 2024, with technology upgrades and significant work overs addressing previously performing declines. A key highlight from this block was the promising output from the Curucucu 4 well, currently producing about 800 boepd gross.

CPO-5 Block: Navigating Through Blockades

GeoPark faced challenges in the CPO-5 block, where average production fell to 6,402 boepd net in Q4 2024, a significant 17% decrease from the prior quarter. The production slowdown can be largely attributed to local blockades impacting operations. Nevertheless, the Cante Flamenco 2 appraisal well reached total depth and demonstrated potential with net pay discoveries, keeping the block's prospects alive.

Emerging Opportunities through 3D Seismic Evaluations

The company continues to explore new opportunities within the CPO-5 block, leveraging technology to gain insights. A recent 3D seismic initiative covering 232 square kilometers has identified new prospective locations anticipated to become active drilling sites in the forthcoming months.

Vaca Muerta: Growth in Production and Reserves

GeoPark's operations in Vaca Muerta have shown impressive performance, achieving an average production of 15,052 boepd gross in Q4 2024, marking a 19% increase over the prior quarter. This success is due to consistent development efforts in the Mata Mora Norte block and the initial production from the Confluencia Norte block, which peaked impressively at 4,700 boepd gross.

Interim Reserves Report Highlights

The company's strategic focus resulted in solid interim reserve estimates. As of June 30, 2024, net 1P reserves were 39.1 million barrels of oil, while net 2P and 3P reserves achieved 75.2 million and 142.8 million barrels of oil equivalent, respectively. This growth in reserves is expected to bolster GeoPark's stability despite anticipated declines in Colombia's reserves.

Llanos Exploration and Future Prospects

Exciting developments are underway in the Llanos region, where drilling activities have led to a 13% production increase this quarter. A standout achievement includes the Toritos Sur-2 appraisal well, which is now awaiting testing. Moreover, environmental licenses enabling exploratory activities in the Llanos 86 and Llanos 104 blocks solidify the company’s focus on future growth.

Upcoming Drilling Campaigns in 2025

GeoPark is setting its sights on a robust drilling strategy for the first quarter of 2025. Plans include drilling three to six gross wells in Colombia and four in Argentina. Key projects will target both conventional and unconventional resources, showcasing the company's determination to enhance its production and operational efficiency.

Q4 2024 Production Breakdown by Country

The company has laid out its production figures, comparing the results with Q4 2023. During Q4 2024, Colombia led with a production of 29,740 boepd, while Ecuador maintained a steady output of 1,749 boepd. This analysis highlights the varied contributions from each region to GeoPark's overall production performance.

Conclusion and Reporting Timeline

GeoPark plans to unveil its comprehensive Q4 2024 and full-year results on March 5, 2025, followed by a conference call on March 6 to engage with stakeholders about its recent financial outcomes and operational strategies. This reporting will be a critical moment for the company to discuss its paths forward amidst new challenges and opportunities.

Frequently Asked Questions

What was the average production of GeoPark in Q4 2024?

The average production was approximately 31,489 boepd, reflecting a 5% decrease from the previous quarter.

Which blocks experienced production challenges?

The Llanos 34 and CPO-5 blocks faced operational disruptions due to local blockades.

How did Vaca Muerta contribute to production in Q4 2024?

Vaca Muerta's production reached an average of 15,052 boepd gross, indicating a strong 19% increase from Q3 2024.

What are the future drilling plans for GeoPark?

For 2025, GeoPark intends to drill 3-6 wells in Colombia and 4 in Argentina, focusing on both exploration and development.

When will the upcoming financial results be announced?

GeoPark is set to announce its financial results for Q4 2024 on March 5, 2025, with a subsequent conference call on March 6.

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