6-K 1 dp50165_6k.htm FORM 6-K
 
 


 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 6-K
 
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the month of October, 2014
 

 
Commission File Number: 001-36298
 
 
GeoPark Limited
(Exact name of registrant as specified in its charter)
 
Nuestra Señora de los Ángeles 179
Las Condes, Santiago, Chile
(Address of principal executive office)


Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
 
 
Form 20-F
X
Form 40-F
   
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
 
 
Yes
 
No
X
 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
 
 
Yes
 
No
X
 
 


 
 
 

 
 
 
 
GEOPARK LIMITED
TABLE OF CONTENTS
 
ITEM
 
1.
Presentation dated October 2014 entitled “Delivering on Plan and Driving Growth”
 
 
 
 

 
 
 





Delivering on Plan and Driving Growth

October 2014


 
 
 

 
 
 



Legal Disclaimer

The material that follows comprises information about GeoPark Limited
("GeoPark") and its subsidiaries, In light of our Rio das Contas acquisition,
we have included unaudited Pro forma condensed combined as of the date of the
presentation. It has been prepared solely for informational purposes and should
not financial data to illustrate the combined results of operations for GeoPark
for the year ended December be treated as giving legal, tax, investment or
other advice to potential investors. The information 31, 2013 to give Pro forma
effect to the acquisition of Rio das Contas as if such acquisition had occurred
presented or contained herein is in summary form and does not purport to be
complete. as of January 1, 2013.

No representations or warranties, express or implied, are made as to, and no
reliance should be placed The information included in this presentation
regarding estimated quantities of proved reserves, the on, the accuracy,
fairness, or completeness of this information. Neither GeoPark nor any of its
affiliates, future net revenues from those reserves and their present value in
Chile, Colombia, Brazil, Peru and advisers or representatives accepts any
responsibility whatsoever for any loss or damage arising from Argentina as of
December 31, 2013; and estimated quantities of proved reserves, the future net
any information presented or contained in this presentation. The information
presented or contained in revenues from those reserves and their present value
for certain new discoveries made since December this presentation is current as
of the date hereof and is subject to change without notice, and its accuracy
31, 2013, are derived, in part, from the reports prepared by DeGolyer and
MacNaughton, or DandM, is not guaranteed. Neither GeoPark nor any of its
affiliates, advisers or representatives makes any independent reserves
engineers. Certain reserves data, such as those based on the DandM report, were
undertaking to update any such information subsequent to the date hereof.
prepared under SEC standards, and certain other data were prepared under
Petroleum Resources Management System (PRMS) standards.
This presentation contains forward -looking statements, which are based upon
GeoPark and/or its management's current expectations and projections about
future events. When used in this Certain data in this presentation was obtained
from various external sources, and neither GeoPark nor its presentation, the
words "believe," "anticipate," "intend," "estimate," "expect," "should," "may"
and similar affiliates, advisers or representatives has verified such data with
independent sources. Accordingly, expressions, or the negative of such words
and expressions, are intended to identify forward -looking neither GeoPark nor
any of its affiliates, advisers or representatives makes any representations as
to the statements, although not all forward -looking statements contain such
words or expressions. Additionally, accuracy or completeness of that data, and
such data involves risks and uncertainties and is subject to all information,
other than historical facts included in this presentation, regarding strategy,
future change based on various factors. operations, drilling plans, estimated
reserves, estimated resources, future production, estimated capital
expenditures, projected costs, the potential of drilling prospects and other
plans and objectives of This presentation contains a discussion of Adjusted
EBITDA, which is not an IFRS measure. We define management is forward -looking
information. Such statements and information are subject to a number Adjusted
EBITDA as profit for the period before net finance cost, income tax,
depreciation, amortization of risks, uncertainties and assumptions. Forward
-looking statements are not guarantees of future and certain non-cash items
such as impairments and write-offs of unsuccessful exploration and performance
and actual results may differ materially from those anticipated due to many
factors, evaluation assets, accrual of stock options and stock awards and
bargain purchase gain on acquisition of including oil and natural gas prices,
industry conditions, drilling results, uncertainties in estimating
subsidiaries. Adjusted EBITDA is included in this presentation because it is a
measure of our operating reserves and resources, availability and cost of
drilling rigs, production equipment, supplies, personnel performance and our
management believes that Adjusted EBITDA is useful to investors because it is
and oil field services, availability of capital resources and other factors. As
for forward -looking statements frequently used by securities analysts,
investors and other interested parties in their evaluation of the that relate
to future financial results and other projections, actual results may be
different due to the operating performance of companies in industries similar
to ours. Adjusted EBITDA should not be inherent uncertainty of estimates,
forecasts and projections. Because of these uncertainties, potential considered
a substitute for financial information presented or prepared in accordance with
IFRS. investors should not rely on these forward -looking statements. Neither
GeoPark nor any of its affiliates, Adjusted EBITDA, as determined and measured
by us, should also not be compared to similarly titled directors, officers,
agents or employees, nor any of the shareholders or under shall be liable, in
any measures reported by other companies. event, before any third party
(including investors) for any investment or business decision made or action
taken in reliance on the information and statements contained in this
presentation or for any Rounding amounts and percentages: Certain amounts and
percentages included in this document have consequential, special or similar
damages. been rounded for ease of presentation. Percentage figures included in
this document have not in all cases been calculated on the basis of such
rounded figures but on the basis of such amounts prior to Statements related to
resources are deemed forward -looking statements as they involve the implied
rounding. For this reason, certain percentage amounts in this document may vary
from those obtained by assessment, based on certain estimates and assumptions,
that the resources will be discovered and can performing the same calculations
using the figures in the financial statements. In addition, certain other be
profitably produced in the future. Specifically, forward -looking information
contained herein regarding amounts that appear in this document may not sum due
to rounding.
"resources" may include: estimated volumes and value of the Company's oil and
gas resources and the ability to finance future development; and, the
conversion of a portion of resources into reserves.

2


 
 
 

 
 
 



Latin American Asset Base Performance and Opportunity

LARGE RISK-BALANCED PROJECT INVENTORY

Production Assets: 20,425 boe/d (1H14) Development Assets: 3P Reserves of
180-200 MMboe Exploration Assets: Resources of 500 MM to 1 billion boe
Unconventional Resource Assets: 150-200 MMboe New Project Opportunities

DIVERSIFIED CASH GENERATION

ADJUSTED EBITDA (LTM): $231 MM(1)

11.9%

            Chile 40.9% Colombia

                        Brazil 47.0%

1H14 Production*

(1) Adjusted EBITDA calculated as pro forma LTM
(*) Including pro forma production from Manati in the 1Q2014, as the
acquisition closed on March 31, 2014

9,814 BOE/D
COLOMBIA

PERU

3,619 BOE/D

BRAZIL

CHILE

ARGENTINA

  74 BOE/D

6,918 BOE/D

PRODUCTION GROWTH TRACK -RECORD

CAGR '06-- '13: 58%

20,425

 20,000

 15,000  10,000 Average Daily Production (Boe/d)

 5,000

 -

2006 2007 2008 2009 2010 2011 2012 2013 1H14(*)

3


 
 
 

 
 
 



Proven Plan, Team and Approach

BUSINESS MODEL and CAPABILITIES

ORGANIZATIONAL
STRUCTURE and EFFICIENCIES

INTEGRATED VALUE SYSTEM: S.P.E.E.D.


 
 
 

 
 
 



Colombia Leading EandP Story in Colombia Today

[] Acquired three companies in 2012 -- and in 2 years, drilled 57 wells,
discovered 11 new oil fields (6 operated) and increased production by 4+ times

[] Quickly built value by introducing new paradigms - both above and below the
ground - with new play-type  and community approach
[] Increased netbacks by 30% from $34/bbl to $45/bbl
[] Added new block and exploration acreage in 2014 to continue expanding


10 Blocks             5 Operated (94% of production)
Acreage                                   0.8 MM acres
2P Reserves (1)                             16.5 MMbbl
Exploration Resources                    60-120 MMbbl
1H14 Production                             9,814 boe/d
2P R/P (2)                                     7.0 years


2014 Work Program: $70-80    MM
[] 18-23  new wells  + facilities

PRMS DandM -- Dec. 2013 (Not including 2014 discoveries) Considering 2013
production

PRODUCTION HISTORY (IN MBOE/D)


5

*VIM 3 Block (awarded in July 2014) is subject to final signature of contracts
with ANH (scheduled for 2H14)


 
 
 

 
 
 



Colombia Discoveries from Introducing New Geological Play-Type

LLANOS 34 BLOCK (GEOPARK OPERATED)

Discovered fields: 5 []Max []Tua
[] Tarotaro []Aruco
[] Tigana

Identified new prospects: 5
[] Jacana
[] Mochuelo
[] Chenchena
[] Tilo
[] Chiricoca

3D Seismic Area (249 km2) -- 2012/13

Oil Fields Exploration Prospects 3D Seismic Program

    Max Discovered 2012

     TIGANA FIELD DEVELOPMENT: PRODUCTION GROWTH OPPORTUNITY
AND RISK PROFILE CHANGE

LLANOS 34 BLOCK
TUA AND
W TAROTARO E CORCEL FIELD TIGANA FIELD ARUCO FIELD MAX FIELD
New 3D Seismic Area FIELDS
(Pacific Rubiales)

6


 
 
 

 
 
 



Chile Low Risk Development and Exploration in Proven Area

[] First private oil and gas producer in Chile
[] Large fully-operated  land base across the Magallanes basin, with existing
reserves, production and cash flow
[] New expanded acreage in TdF to replicate proven exploration model in Fell
[] Re-balanced   to oil production and increased netbacks by 425% from $11  boe
to $47  boe
[] Large shale (oil) long-term  opportunity


6 Blocks                  All operated
Acreage                 1.0 MM acres
2P Reserves(1)           45.1 MMboe
Exploration Resources 70-130 MMboe
Shale Oil Upside(2)   150-200 MMbbl
1H14 Production           6,918 boe/d
2P R/P(3)                  17.7 years


2014 Work Program: $140-155   MM
[] 32-37  wells  + seismic + facilities

(1) PRMS DandM -- Dec. 2013 (Not including 2014 discoveries) (2) Considering 1%
recovery factor (3) Considering 2013 production

PRODUCTION HISTORY (IN MBOE/D)

7

2006 2007 2008 2009 2010 2011 2012 2013 1H14

Gas (boe/d) Oil (bbl/d)


 
 
 

 
 
 



Chile Large Inventory of New Opportunities

8

MAGALLANES BASIN: IDENTIFIED PETROLEUM SYSTEMS

Oil and Gas Fields Exploration Prospects

Current Producing Reservoirs Potential Reservoirs


 
 
 

 
 
 



Brazil Positioned to Grow and Capture Opportunities

[] Largest producing gas field in Brazil: fully-developed,  cash flow
producing, low-risk  asset
[] Partnership with Petrobras
[] 9 exploration blocks in proven basins
[] Tecpetrol partnership to acquire new projects


10 Blocks                9 operated
Acreage               0.1 MM acres
2P Reserves (1)          8.5 MMboe
Exploration Resources 40-80 MMboe
1H14 Production         3,619 boe/d
2P R/P (2)                 6.5 years


2014 Work Program: $10-15   MM
[] 2D and 3D seismic + facilities

(1) PRMS DandM -- Dec. 2013 (2) Considering 2013 production

PRODUCTION HISTORY (IN MBOE/D)

9

*PN-T-597 block, subject to ANP approval


 
 
 

 
 
 



Brazil Secure Cash Flow and Exploration Opportunities

EXPLORATION BLOCKS

PRODUCTION ASSET

RECONCAVO, POTIGUAR and SERGIPE -ALAGOAS CAMAMU -ALMADA
(Onshore Rift Basins) (Offshore Rift Basin)
PARNAIBA
A[]U FM POJUCA and SERGI FMS (Intracratonic Paleozoic Basin)
MANATI GAS FIELD

SERRARIA FM

10


 
 
 

 
 
 



Peru New Country Entry / Transformational Acquisition

[] Large acreage position in one of most prolific basins in Latin America
(produced over 1 billion bbls)
[] Discovered oil field with opportunity to bring near term cash flow
[] Similar play-type   exploration prospects mapped under 3D seismic (Situche
Complex) and other significant exploration potential
[] Strategic partnership with Petroperu


1 Block*                                    Operated
Acreage                                1.9 MM acres
2P Reserves (Ryder Scott Certified)       41 MMboe
2P Reserves (GeoPark Estimate)      22.5-30 MMboe
Exploration Resources               200-500 MMboe
(all at 75% WI)

2015-2016  Work Program: $140-160   MM
[] Put Situche Central field in production
[] Workovers + transportation + facilities

*Transaction executed with Petroperu on October 1, 2014 with final closing
subject to Peru government approval.

11


 
 
 

 
 
 



Peru Discovered Oil and Big Upside

SITUCHE CENTRAL FIELD MORONA BLOCK

Discovery Wells
Situche Central 2X and 3X
(Short term tests of 2,400 bopd and 5,200 bopd of 34-37[] API oil)

SC 3X SC 2X MARA[]ON BASIN

12


 
 
 

 
 
 



Large Diversified Inventory of Reserves and Resources

DRIVERS OF ORGANIC GROWTH

[] 30 blocks in 12 basins in 5 countries / 5.5  MM acres
[] 3P reserve development opportunities: 180-200  MMboe
[] Exploration resource opportunities: 500 to 1.0  billion boe / 100+ leads and
prospects

MULTI -PROJECT RISK-BALANCED PORTFOLIO*

Total Net Resources 1,000 MMBOE
500 --

Total Net 3P Reserves 180-200 MMBOE


     Exploration Resources
RISK
      3P Reserves


SIZE (MMBOE)

*Graph represents an approximation to illustrate inventory of reserves and
resources. Management's estimate for resources are by nature forward -looking
statements, as they involve the implied assessment based on certain estimates
and assumptions that the resources can be profitably produced in the future.

10 BLOCKS
0.8 MM ACRES

1 BLOCK
1.9 MM ACRES

6 BLOCKS
1.0 MM ACRES

3 BLOCKS
1.7 MM ACRES

10 BLOCKS
0.1 MM ACRES

Number indicates # of Leads and Prospects


 
 
 

 
 
 



Drilling and Investing to Grow: 50-60 Wells / $220-250 MM in 2014

2014 CAPEX $70-80 MM

2014 CAPEX $140-155 MM

(1)Including pro forma production from Manati in the 1Q14, as the acquisition
was completed on March 31, 2014

2014 CAPEX $10-15 MM

HISTORY OF EXECUTION AND DELIVERY

CAPEX AND ACQUISITIONS ($MM)



14


 
 
 

 
 
 



Operational Track-Record Leads to Financial Track-Record


INCREASING CASH GENERATION

ADJUSTED EBITDA ($MM): 60+% / YEAR
(CAGR '10-- '13)


BALANCED AND STRONG CASH POSITION

[] Multi-country   cash generation (99% investment grade)

[] 26% production growth translated into 60+% growth in revenues and Adjusted
EBITDA

[] 27% annual growth in operating netbacks with 30% improvement in 1H14

[] Self-funded  2014 work program

[] Strong cash flows and liquidity with $125  MM in cash as of June 2014

[] Well-managed  leverage: $369  MM total debt with long-term  maturity profile
5.6  years average life and 81% maturing in 2020

15


 
 
 

 
 
 



Innovative Funding Strategy and Well-Funded Balance Sheet

OVER $1 BILLION RAISED FROM DIVERSIFIED SOURCES NYSE LISTING 2014: WIDER
INVESTOR BASE AND LIQUIDITY

International Bond Market Commercial Bank Lending Multilateral Banking
Institutions Client Prepayment Facilities Strategic Partnerships

Equity Funding

EFFECTIVE USE OF LEVERAGE TO GROW COMPANY

LEVERAGE (1): GROSS DEBT / ADJUSTED EBITDA

Covenant: <2.75x


        2009 2010                                2011 2012                2013                                     1H14(2) 3
(1) Ratio calculated as current plus non current borrowings / Adj. EBITDA
(2) Based on trailing 12 month financial results
(3) Does not consider Adjusted EBITDA generated by the acquired interest in the Manati Field in Brazil in the 1Q14


*Strong long term alignment of management with shareholders

PROJECT AND JOINT VENTURE PARTNERS

16


 
 
 

 
 
 



17

Selecting and Investing in Best Shareholder Value-Adding Projects

CAPITAL ALLOCATION TRACK -RECORD AND DISCIPLINE VALUE PER SHARE AND BOTTOM
-LINE PERFORMANCE FOCUS

Economic Metrics:
[] Efficient use of capital: IRR
[] Critical mass: NPV
[] Return on equity: ROCE
[] Value added per share: VIPS
[] Cash flow profile: Payout
[] Capital requirement and availability consideration
[] Individual project impact on consolidated portfolio

SHAREHOLDER VALUE CREATION EXAMPLES

Colombia Acquisition Result*:
[] $150  - 350+ MM NPV10
[] 30 - 50+% IRR
[] Payout time: 3 to 4 years

2014 Work Program Target:
[] $100  - 130+ MM NPV10
[] 30 - 55+% IRR
[] Payout time: 2.5  to 5 years

2014 Peru Acquisition Target:
[] $300  MM - $2.0+   Billion NPV10
[] 20 - 50+% IRR
[] Payout time: 4 to 5 years

* Preliminary to-date

EXECUTION

[] Explore
[] Operate
[] Consolidate

CAPITAL ALLOCATION

Select and invest in highest quality projects based on thorough evaluation
process:
[] Economic measures
[] Technical results
[] Strategic considerations
[] Funding / acquisition cost (per share)

PORTFOLIO OF OPPORTUNITIES

[] Production, Development, Exploration and Unconventional Resource Projects
[] 30 Blocks / 5.7MM Acres / 10 Basins / 5 Countries
[] New Project Acquisitions: 25+ ongoing projects in Latin America

LOOK-BACK


 
 
 

 
 
 



Outlook: Secure Consistent Growth with Big Upside Opportunity

BUSINESS MODEL COMPETITIVE ADVANTAGE

[] Larger-scale  risk-balanced   portfolio approach

[] Multiple attractive projects in multiple hydrocarbon / geographical regions

[] Local talented decentralized management -- unified by operational and
financial synergies

[] Strong low risk foundation to provide downside protection

[] Large upside with potential for accelerated growth from multiple project
opportunities

[] More effective capital allocation to select highest quality projects across
entire portfolio

[] Hands-on  opportunity to manage, improve and bring new ideas to individual
regional businesses

ON TRACK FOR 2014 TARGET

2007 2008 2009 2010 2011 2012 2013

Track-Record: 53% Yearly Growth (`06-`13)

Example: 20% Yearly Growth

Example: 10% Yearly Growth

18


 
 
 

 
 
 




Finding, Closing and Building Value on New Projects

TODAY[]S HIGHEST POTENTIAL
HYDROCARBON REGION

Successful Acquisitions and Execution

[] Rapid execution and investment on acquired assets
[] Track-record  converting assets and building value

Active Long-term   Pipeline of Projects

[] Technical approach to identify opportunities in most prolific basins
[] Near-term  production and 2P reserves development
[] Attractive and achievable exploration potential
[] GeoPark operated (preferred)
[] Target Countries: Chile, Colombia, Brazil, Peru and Mexico

Strategic Alliances
[] LGI: side-by-side    acquisitions across Latin America
[] Tecpetrol (Techint Group): strategic alliance in Brazil
[] World Bank IFC: key shareholder and partner for capital and growth

19


 
 
 

 
 
 




20

Uniquely -Positioned Oil and Gas Investment Vehicle

[] Oil-Finding  and Operating Know-How

[] Solid Asset Base with Cash Flow and Upside

[] Operational and Financial Track  Record

[] Access to Capital

[] New Project Inventory and Alliances

[] Capital Allocation and Project  Efficiencies

PORTFOLIO PROVIDES SECURE GROWTH WITH OPPORTUNITY FOR ACCELERATED UPSIDE







 
 
 

 
 
 




Company Directory


 
 
 

 
 
 




22


 
 
 

 
 
 





Contacts

Andr[]s Ocampo
Chief Financial Officer

Pablo Ducci
Capital Markets

Sof[]a Chellew
Investor Relations

Santiago, Chile
Nuestra Se[]ora de los []ngeles 179, Las Condes, Santiago, Chile Phone: +(56 2)
2242 9600 Email: ir@geo -park.com

www.geo-park.com


 
 
 

 
 
 




 
 
 
 

 
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
   
GeoPark Limited
     
     
     
By:
/s/ Andrés Ocampo
       
Name:
Andrés Ocampo
       
Title:
Chief FinancialOfficer
 
Date: October 14, 2014