oilbarrel conference, london, february 2007
TRANSCRIPT
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1Q 06 2Q 06 3Q 06 4Q 06 Jan 07
PRO
DU
CTI
ON
(BO
EPD
)
OilBarrel Conference, London, February 2007
Where We Started
§ GEOPARK was founded to participate in theconsolidation and rationalization of the oil and gasindustry in Latin America. Its mission is to become aleading oil and gas finder, operator and acquirer inthe region by leveraging its technical expertise, costmanagement and commercial skills and its long termbalanced approach to value creation.
§ GEOPARK’s initial acquisition was in November2002 when it acquired the Latin American upstreamoil and gas assets from AES Corporation (a NYSEpower utility), consisting of three blocks in Argentinaand one block in Chile.
§ Since closing the acquisition, GEOPARK hasrestructured, renegotiated, built, added to andinvested in the assets -- thereby converting a stallednon-performing project into an expanding operationwith a supportive cash flow, strong management,proven reserves, capital to grow and a balancedportfolio of attractive opportunities.
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Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07
BOEP
D
2006: Tangible Achievements
DRILLINGRIG
ARRIVEDIN CHILE
AIM PUBLICLISTING
US$40 MMRAISED
IFC US$ 10 MMEQUITY
INVESTMENT
START-UP OFPRODUCTION
IN CHILE(MOLINA FIELD)
LONG TERMDRILLING RIG
CONTRACTSIGNED
ACQUISITION OFWORKOVER RIG
START-UP OF3D SEISMICPROGRAMIN CHILE
START-UP3D SEISMIC
PROGRAM INARGENTINA
COMPLETION OF 3DSEISMIC PROGRAM
(400 SQ KM) INARGENTINA
BEGINWORKOVERPROGRAMIN CHILE
WORKOVER INARGENTINA
LC PRODUCTIONSTART-UP
START-UP OFSANTIAGO
NORTE FIELDIN CHILE
INDEPENDENTRESERVEREPORT
(2P: 29 MM BOE)
ACQUIRED100% FELL
BLOCK
COMPLETION OFPIPELINE & PLANT
EXPANSIONPROJECT
START-UP OFOVEJEROAND NIKA
FIELDSIN CHILE
IFCUS$ 20 MM
LOAN FUNDSRECEIVED
COMPLETIONOF 3D SEISMIC
PROGRAM(473 SQ KM)
IN CHILE
Oil and Gas Production (BOEPD) Temporary Compensation from ENAP- PL2 (BOEPD)
HANOVERGAS PLANT
LOI
TEQ PLANTCOMPLETE
CONSTRUCTIONSTARTED
HANOVER PLANT
Ì
CAPITALBalance Sheet
Resources,Revenues and LongTerm Shareholders
POSITIONRegional Advantages
and PartnershipsProvide GrowthOpportunities
PLANFull Cycle Risk-Balanced WorkProgram with
Equipment in Place
PEOPLEManagement Team
with Depth andRecord of Success
In Region
PLATFORMAsset Base with
Production, ProvenReserves and Upside
Potential
ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKETStrengthening
ConditionsProvide Economic
Underpinning
Ì
CAPITALBalance Sheet
Resources,Revenues and LongTerm Shareholders
POSITIONRegional Advantages
and PartnershipsProvide GrowthOpportunities
PLANFull Cycle Risk-Balanced WorkProgram with
Equipment in Place
PEOPLE
PLATFORMAsset Base with
Production, ProvenReserves and Upside
Potential
ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKETStrengthening
ConditionsProvide Economic
Underpinning
People: Investing in Oil & Gas Finding Capabilities
YPF, San Jorge, Chevron25EngineerJuan Carlos Ferrero (45)
ENAP, Weatherford, Schlumberger, Halliburton25EngineerGuido Jimenez (57)
Techint, McKee, San Jorge, Chevron22EngineerMiguel Mallo (56)
YPF, San Jorge, Chevron19GeophysicistGuillermo Rossi PhD (46)
YPF, San Jorge, Chevron26GeologistCarlos Gulisano PhD (55)
ENAP, Halliburton28EngineerIvan Hidalgo (52)
Baker Huges, YPF, San Jorge, Chevron16GeologistPablo Berri (44)
Repsol YPF, San Jorge, Chevron16GeologistMario Outon (44)
YPF, Tecpetrol, San Jorge, Chevron28GeologistCarlos Murut (50)
YPF, ARCO, Lagoven, San Jorge, Chevron20GeophysicistMaria Ester Lara PhD (50)
Total, Pan American (BP), Wintershall19GeophysicistMario Vila PhD (47)
YPF, Pluspetrol29EngineerRicardo Saldano (55)
San Jorge, Chevron10EngineerAugusto Zubillaga (36)
Chevron8EngineerFederico Resio (30)
Engineer
Geologist
Profession
BJ Services, San Jorge, Chevron26Gustavo Henderson (50)
YPF, Schlumberger, San Jorge, Chevron25Gerardo Hinterwimmer (50)
Previous CompaniesYearsExperience
Name (Age)
§ Reconstitution of the core San Jorge team (discovered more than 600 MMbbl during the 1990’s and waseventually sold to Chevron for US$1.2 Billion in 1999).
§ Geological, geophysical and engineering depth.§ Group has a history of working together and is well respected in the region.§ Scalable for future projects.§ Vested in success of Company.
People: Management / Corporate Structure
GEOPARK ARGENTINA GEOPARK CHILE
DEL MOSQUITO BLOCK
CDJ / LC BLOCKS
FELL BLOCK
Technical Support & AuditDeGolyer & MacNaughton
Financial Support & AuditGrant Thornton / Pricewaterhouse
GeosciencesG. Hinterwimmer
OperationsG. Henderson
SupportM. Pérez de Solay
GrowthJ. Park
GEOPARK HOLDINGS
Planning LeaderCarlos Gulisano
Senior AdvisorSalvador Harambour
SHAREHOLDERS
Board of DirectorsGerald O’Shaughnessy (Chairman)
James Park (CEO)Sir Michael Jenkins
Christian WeyerPeter Ryalls
Ì
CAPITALBalance Sheet
Resources,Revenues and LongTerm Shareholders
POSITIONRegional Advantages
and PartnershipsProvide GrowthOpportunities
PLANFull Cycle Risk-Balanced WorkProgram with
Equipment in Place
PEOPLEManagement Team
with Depth andRecord of Success
In Region
PLATFORM ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKETStrengthening
ConditionsProvide Economic
Underpinning
139,710100Loma CortaderalNeuquenArgentina
135,954100Cerro Dona JuanaNeuquenArgentina
2190,000100Del MosquitoAustralArgentina
20440,000100FellAustralChile
Fields(No.)
Area(Acres)
WorkingInterest (%)
BlockBasinCountry
§ 4 blocks (3 Argentina, 1 Chile)
§ 705,664 acres under licence
§ 100% working interests
§ Operatorship of all 4 blocks
§ Low cost operating areas
§ Attractive fiscal terms
§ Formerly state-owned oil company operatedblocks with bypassed hydrocarbons
§ Risk-balanced opportunities (production,development, exploration projects)
Platform: Block Summary
SOUTH AMERICA
ARGENTINA
PRODUCTIVE BASINS
GEOPARK BLOCKS
NEUQUEN
DEL MOSQUITO
COMODORO
SANTIAGOMENDOZA
SALTA
BUENOS AIRES
CHILE
FELL BLOCK
LOMA CORTADERAL
CERRO D. JUANA
BLOCK (Arg)
BLOCK (Arg)
RIVADAVIA
REFERENCES
1
12
20
1
12
Te-3
Te-2
Te-1
T-8
T-5 T-4
T-3
Sa-1
SN-3
SN-2
SN -1S-2
S-1
PS-1
11PL-10BPL-10A
PL-10
PL-9
PL-8
PL-7PL-6
PL-5
P L-4
PL-3
PL-2
PL- 1A
O-1
OK-1
NS-1
NO-2
N O-1 N-4
N-3
N-2
N-1
Mur-1
MunO-1 Mun-3
Mun-2
Mun-1
E MAO-1
MA- 31
30
29
2827
26
MA-25
23MA-22
MA-21
MA-19
18
MA-17
MA -16
MA-15
MA-14MA-13
MA-12MA-11
MA-10
MA-9
MA -8MA -7
MA -6
MA -5MA-4
MA-3
MA -2MA-1
Mol-7
Mol-6Mol-5Mol-4 Mol-3
Mol-2Mol-1
Mog-1
MN-2MN-1
KAN -5
KAN -4
K AN-3
KA N-2
K AN-1
KA-3
K A-2AKA-2
K A-1
Gu-2
Gu-1
E-3E-2
E-1
DorN-1
Dor -3
D O-2
D-14
D -13
D-11
D -10
D-9
D -8D-7
D-6
D-5
D-3
D-2D-1
C OZ-1AC OZ-1
CH-1
PDO-2
PDO-1
PD N-3PDN -2A
PD N-2
PDN-1
PD -11
PD-10
PD-8
PD-7
PD-6
PD -5
P D-4
PD -3PD-2P D-1
Me-2Me-1
F-1
D ir-1
CN -3
C N-2
C N-1
F-2
M-1
Fell-2
DO-3
DO-1B N-2
BN-1A
D-4
Fell-1
B N-3
Mol-7 Bis
D- A
D-B
MA-5BIS
MA-11BIS
P L-4B IS
PL-9B IS
PL-1
T-8
T-7
T-2
T-1
CG-1
T- 6AT-6
24
O-1001
MA-1001MA-1002
P DN-1001
SN-1001
10 km10 km C.VIRGENES
4 2714
32
LV.x-1
DL-4
DMN.a-2
DMN.x-1
33
8
LD M.x-2
ZP.x-1
SG-1
LDMS.x-1
D L-3
D L-1
9
7
5
31
30
DM.x-3
2925
24
2322
21
20
19
18 171615
13
12
11
10
D M.x-1
3 2
CN o.x-1
CF.x-1
DMN.a-3
EE
BLOCK (Arg)
10 km
ACh.x- 12
3
CDJ.x-1
CLP.x-1
ABM.x- 1
LoC.x-1
PMy.x-1
(Chile)
500 km
A T L A N T I CO C E A N
P A C I F I CO C E A N
NORTHWEST BASIN
AUSTRAL BASIN
NEUQUEN BASIN
CUYO BASIN
GOLFO SAN JORGEBASIN
10 km
10 km
10 km
Platform: Austral Basin (Chile and Argentina)
C H I L E
A R G E N T I N A
A T L A N T I C O C E A N
57.1
29.3
12.0
6.1
4.3
1.4
21.7
13.1
10.6
BOE(MMboe)
20.3
10.2
3.8
5.0
3.7
1.1
4.1
2.5
2.7
Oil andCondensates
(MMbbl)
295.8220.6Proven plus Probable plus Possible
164.4114.7Proven plus Probable
63.049.0ProvenTotal
-0.2Possible
-2.2Probable
-1.7ProvenArgentina
-105.6Possible
-63.6Probable
-47.4ProvenChile
Present Worth at 10%(US$ Million)
at US$50 per bbl
Gas(BCF)
ClassificationCountry
RESERVES: 80% in Chile / 20% in Argentina 35% Oil / 65% Gas
RESOURCES:
39.2115.120.048.3275.22.4Total
12.8-12.8---Argentina
26.4115.17.248.3275.22.4Chile
Total (MMboe)Gas (BCF)Oil (MMbbl)Total (MMboe)Gas (BCF)Oil (MMbbl)
Prospective Resources(Best Estimate)
Contingent Resources(Best Estimate)
Hydrocarbon
Reserves Summary (DeGolyer & MacNaughton)
CPR Date: 10 May 2006
* Source: DeGolyer and McNaughton (definitions as per CPR).
20
5
5.2 MMbbls oil / 111.0 BCF gas
4.1 MMbbls oil / 105.6 BCF gas
2.4 MMbbs / 275.2 BCF gas(Best Estimate)
Oil and Gas Fields Identified:
Fields in Production:
Proven + Probable Reserves*:
Possible Reserves*:
Contingent Resources*:
Seismic Coverage:
Wells Drilled:
Productive Reservoirs:
Target Depth Ranges:
Area:
Operator:
GEOPARK Working Interest:
Infrastructure:
2D- 4000km (2200 km reprocessed)3D- 733km² (6 surveys)
147
Cretaceous (Springhill) Jurassic(Tobifera)
6000-11000ft
440,000 Acres
GEOPARK
100%
Good roads, oil and gas pipelines
Producing Oil and Gas Fields: Key Statistics:
Fell Block (Chile): Production and Reserves
AU-CHI-60
10 km
A R G E N T I N A
E S T R E C H O
D E
M A G A L L A N E S
SANTIAGONORTE
MOLINO
NIKA
OVEJERO
PAMPA LARGA
Fell Block (Chile): New Production Processing Plants
DPP: Compression, Dehydrationand Dew Point Plant
§ Allows increased gas production capacity (up to 35mmcfd) and access to main 18” pipeline§Construction start-up: First Quarter 2007§ Estimated construction cost: US$ 6 MM (with associated
tank batteries and flowlines)§ Forecasted start-up: Third Quarter 2007
Santiago Norte TEG Plant-Completed December 2006
Pampa Larga Plant-Completed June 2006
Fell Block (Chile): 3D Seismic Programme
3D Acquisition:§Total Area: 473 km²§Start-up: Nov 13/06§Completed: Dec 27/06
Processing:§Start-up: Jan 2007§Completed: Estim Jun 2007
439000 449000 459000
4186
000
4196
000
4206
000
Gu-1
Gu-2
KA-1
KA-2KA-2A
KA-3
KAN-1
KAN-2
KAN-3
KAN-4
KAN-5
Mol-3
MunO-1
Ni-1
N-1001
Ni-2
Ni-3
Ni-4NiO-1
NiO-2
NiS-1
Ov-1
0-1001A
0-1001B
PL-10
PL-10APL-10BPL-11
PL-2
PL-3
PL-4
PL-5
PL-6
PL-7
PL-8
PL-9
San-2
SanN-1
SanN-1001
SanN-1002
SanN-2
SanN-3
Sau-1
loc 5
loc 6
loc 7loc 8
loc 11
loc 12
mov tierr a
Interpretation:§Underway (based on quick field processing)
440.000420.000
4.220.0004.200.000
4.180.0004.18
0.00
0
480.000460.000440.000420.000
AUTOR:DIBUJO: L.A.Lorenzetti
AU-CHI-7603 - 01 - 07
420 6 8 10 km
PARQUENACIONALPALI AIKE
SISMICA 3D REGISTRADA 2006
FECHA:
M. Vila
Bahía Posesión
Bahía Muni ción
Punta Tand y
Bahía Dirección
Bahía Santiago
Punta Barrosa
Faro Sateli te
4.22
0.00
04.
200.
000
A R G E N T I N A
E S T R E C H O
D E
M A G A L L A N E S
Punta Ane gada
Caleta Mun icìones
Faro Ce rro Di recciòn
Faro Punta Anegad a
Pto. Muni ciòn
SISTEMA GEODESICO : UTM INTERNATIONAL
ARCHI VOESCALA
CUENCA AUSTRAL - CHILEAREA FELL
CEOP - MAGALLANES
REGISTRACION DE SISMICA 3D
PARQUE NACIONAL
FECHA MODIF:
R E F E R E N C I A S
Asen tamie ntoBdo. O`higgins
460.000
SISMICA 3D A REGISTRAR EN1er SEMESTRE 2007
DICKY
SANTIAGO
MONTE AYMOND
3D DICKY68 km2
3D MONTE AYMOND80 km2
3D SANTIAGO325 km2
Villa PuntaDelgada
440.000420.000
4.220.0004.200.000
4.180.0004.18
0.00
0
480.000460.000440.000420.000
AUTOR:DIBUJO: L.A.Lorenzetti
AU-CHI-7603 - 01 - 07
420 6 8 10 km
PARQUENACIONALPALI AIKE
SISMICA 3D REGISTRADA 2006
FECHA:
M. Vila
Bahía Posesión
Bahía Muni ción
Punta Tand y
Bahía Dirección
Bahía Santiago
Punta Barrosa
Faro Sateli te
4.22
0.00
04.
200.
000
A R G E N T I N A
E S T R E C H O
D E
M A G A L L A N E S
Punta Ane gada
Caleta Mun icìones
Faro Ce rro Di recciòn
Faro Punta Anegad a
Pto. Muni ciòn
SISTEMA GEODESICO : UTM INTERNATIONAL
ARCHI VOESCALA
CUENCA AUSTRAL - CHILEAREA FELL
CEOP - MAGALLANES
REGISTRACION DE SISMICA 3D
PARQUE NACIONAL
FECHA MODIF:
R E F E R E N C I A S
Asen tamie ntoBdo. O`higgins
460.000
SISMICA 3D A REGISTRAR EN1er SEMESTRE 2007
DICKY
SANTIAGO
MONTE AYMOND
3D DICKY68 km2
3D MONTE AYMOND80 km2
3D SANTIAGO325 km2
Villa PuntaDelgada
Fell Block (Chile): Opportunity Inventory
A R
G E
N T
I N
A
O C
E A
N O
A T
L A
N T
I C
O
O C
E A
N O
P
A C
I F
I C O
BLOQUE FELL
AUSTRALCUENCA
C H
I L
E
MAPA DE UBICACION
MARTIN
BRAZONORTE
TETERA
DICKY
DICKY O.
SANTIAGONORTE
ESCORIAL
TANDY
MTE. AY ORIENTAL
MTE. AY. NUEVO
GUANACO
MUNICION O.
MATA NEGRA
MOGOTE
MURTILLAD. NORTE
FARO
PUNTADELGADA
MOLINO
AU-CHI-60
NIKA
OVEJERO
K.AIKE
10 km
A R G E N T I N A
E S T R E C H O
D E
M A G A L L A N E S
M.A. ESTRATIGRAFICOP. LARGA
SAUCE
TUMBEROESTE
K.AIKESUR
DORADOSUR (Sp)
DORADOSUR (Tc)
LIMITE 3D EXISTENTE
BLOQUE FELL
PARQUE NACIONAL
LIMITE 3D PROPUESTA
PETROLEO PROBABLE
PETROLEO PROBADO
GAS PROBADO
GAS POSIBLE
GAS PROBABLE
PROSPECTO / LEAD
LEAD EN ALTO PELADO
PETROLEO POSIBLE
RESERVAS CERTIFICADAS
RESERVAS CERTIFICADAS
DE PETROLEO
DE GAS
REFERENCIAS
Del Mosquito Block (Argentina): Production and Reserves
* Source: DeGolyer and McNaughton (definitions as per CPR).
Producing oil and gas fields:
Wells in Production:
Proven + Probable Reserves*:
Possible Reserves*:
Seismic Coverage:
Wells Drilled:
Oil and Gas Objectives:
Target Depth Ranges:
Area:
Operator:
GEOPARK Working Interest:
Infrastructure:
2
7
4.7 MMbbls oil / 3.7 BCF gas
4.9 MMbbls oil / 0.4 BCF gas
2D- 620 km (530 km reprocessed)3D- 562 km² (3 surveys)
42
Tertiary (Magallanes)Cretaceous (Spring Hill)Jurassic (Tobifera)
2000-6000ft
190,000 Acres
GEOPARK
100%
Roads, processing and storagefacilities, Camp and maintenance facility
Producing Oil and Gas Fields: Key Statistics:
DEL MOSQUITO NORTEFIELD
DEL MOSQUITOFIELD
10 km
DEL MOSQUITO
BLOCK
C H I L E
N
Del Mosquito Block (Argentina): Production Facilities
Del Mosquito Block (Argentina): 3D Seismic Programme
5 km
111
222333
444
555
666
101010
999
888
7
Condor 3D Seismic Survey(401 sq km)
Del Mosquito Block (Argentina): Opportunity Inventory
C H I L E
ARGENTINA
PROVEN OIL
PROBABLE OIL
PROVEN GAS
PROBABLE GAS
PROSPECTS
LEADS
ATLA
NTI
C O
CEAN
PAC
IFIC
OC
EAN
LOCATION MAP
10 km
LAGUNA DELMOSQUITO
LEAD
SOUTHERNFLANKLEAD
CAÑADON FRAILE SURLEADS
CAÑADON FRAILELEAD
EASTERN FLANKPROSPECTS
4
3
2
1
6
7
8
9
10
CAÑADON LUCKLEAD
CAMPO LEANDROPROSPECT
DOS LAGUNASLEAD
M A R
A R G E N T I N O
ZANJA DINEROPROSPECT
Río Grande
C H
I L
EAMB.x-1
CDJ.x-1
CLP.x-1
2
3ACh.x-1
LoC.x-1
PMy.x-1
RUTA 40
Río Grande
C H
I L
EAMB.x-1
CDJ.x-1
CLP.x-1
2
3ACh.x-1
LoC.x-1
PMy.x-1
RUTA 40
* Source: DeGolyer and McNaughton (definitions as per CPR).
1
2
296 Mbbl oil
1103 Mbbl oil
Oil and Gas Fields Identified:
Wells in Production:
Proven + Probable Reserves*:
Possible Reserves*:
Seismic Coverage:
Wells Drilled:
Productive Reservoirs:
Target Depth Ranges:
Area:
Operator:
GEOPARK Working Interest:
Infrastructure:
2D – 341 km
8
La Manga (J), Vaca Muerta (K), Agrio(K), Grupo Neuquén (K).
3937-12139 ft
75,663 Acres
GEOPARK
100%
Roads and facilities
Producing Oil and Gas Fields: Key Statistics:
Cerro Doña Juana & Loma Cortaderal (Argentina)
Ì
CAPITALBalance Sheet
Resources,Revenues and LongTerm Shareholders
POSITIONRegional Advantages
and PartnershipsProvide GrowthOpportunities
PLAN
PEOPLEManagement Team
with Depth andRecord of Success
In Region
PLATFORMAsset Base with
Production, ProvenReserves and Upside
Potential
ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKETStrengthening
ConditionsProvide Economic
Underpinning
Plan: 2007 Work Programme
Fell Block - Chile
Del Mosquito Block - Argentina
Chile 2007CAPEX Budget:US$ 30.7 MM
Argentina 2007CAPEX Budget:US$ 4.2 MM
Risk-Balanced Approach: Production, Development and Exploration Works
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Workovers 1 well / .2 MM u$s
3D Seismic
Development Drilling 2 wells / 2 MM u$s
Exploration Drilling 2 wells / 2 MM u$s
Facilities Construction DMN Battery
400 km2 / 3.6 MM u$s
Time / Activities 2006 2007
2007 work programme focus is to drill (12 wells) to increase production and reserves.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Apr May Jun Jul Aug Sep Oct Nov Dec
Workovers
3D Seismic
Development Drilling
Exploration Drilling
Facilities Construction
2006 2007Time / Activities
10 WO / 4.0 MM u$s
Mar
600 Km2 / 8 MM u$s
Pipelines - PL Plant TEG, DPP & Piping / 9 MM u$S
8 wells / 18 MM u$s
Work Programme: Rigs
Workover Rig:§ Creating service company and acquired 50% interest in
workover rig providing continuous rig availability§ Rig began operations in Chile in Q4 2006
The 2007 Fell Block work programme requires one workover rig (for well rehabilitation) and onedrilling rig (for development and exploration drilling).
Drilling Rig:§ Contractor: Quintana WellPro§ Rig: 1000 HP SJ§ Depth Capacity: 10,000 feet§ Arrival Date: 15 February 2007 (Punta Arenas)§ Expected Spud Date: 31 March 2007 (Santiago Norte 1001)§ Contract Duration: 3 years (to 2010) – with 2 year extension option
ÌCAPITAL
POSITIONRegional Advantages
and PartnershipsProvide GrowthOpportunities
PLANFull Cycle Risk-Balanced WorkProgram with
Equipment in Place
PEOPLEManagement Team
with Depth andRecord of Success
In Region
PLATFORMAsset Base with
Production, ProvenReserves and Upside
Potential
ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKETStrengthening
ConditionsProvide Economic
Underpinning
Capital: Necessary ResourcesASSETS
Amounts in US$’000Six months
period endedJune 2006
Six monthsperiod endedJune 2005
Yearended
December 2005
Intangible fixed assets 4,887 942 1,728
Property, Plant and Equipment 4,786 1,479 3,000
Non current receivables 1,360 237 643
NON CURRENT ASSETS 11,033 2,658 5,371
Cash and cash equivalent 32,813 241 2,403
Other (including receivables and inventory) 1,897 593 853
CURRENT ASSETS 34,619 834 3,448
ASSETS 45,652 3,492 8,819
EQUITY AND LIABILITIES
Share capital and share premium 52,626 20 20
Reserves 2,949 3,264 3,312
Retained earnings (5,180) (2,406) (2,406)
Loss for the period / year (6,841) (586) (3,211)
EQUITY 43,554 292 (2,285)
Convertible debt and preferred shares - 2,649 8,016
Provision for decommissioning 70 42 71
Long-term liabilities 70 2,691 8,087
Current liabilities 2,028 509 3,017
LIABILITIES 2,098 3,200 11,104
EQUITY AND LIABILITIES 45,652 3,492 8,819
§Cash in the bank at the end of 2006: US$39 MM
§Balance Sheet was strengthened through equityissuance and debt repayment:- IFC Equity Investment: US$10 MM (Feb 06)- AIM Listing: US$40 MM (May 06)
§Additional US$20 MM raised from IFC in Dec 06by a 6 year loan (1 year grace period).
§Fully funded CAPEX work programme for 2007of US$35 MM
§Over US$90 MM raised to date for the project
Ì
CAPITALBalance Sheet
Resources,Revenues and LongTerm Shareholders
POSITIONRegional Advantages
and PartnershipsProvide GrowthOpportunities
PLANFull Cycle Risk-Balanced WorkProgram with
Equipment in Place
PEOPLEManagement Team
with Depth andRecord of Success
In Region
PLATFORMAsset Base with
Production, ProvenReserves and Upside
Potential
ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKET
Market: Opportunity
Long Term:
• General uplifting from expected rationalization of regionalprices – e.g. Santiago US$7/mmbtu, Bolivia border:US$5.50/mmbtu, Austral: US$ 1.00-2.00/mmbtu
• Relaxing of price controls in Argentina
Short / Intermediate Term
• The largest consumer of gas in the region (Methanex), at350 million cubic feet per day, is located in Chile 80 kmfrom GeoPark’s Fell Block. Methanex produces 12% ofthe world’s methanol from its US$1.2 Billion Punta Arenasplant.
• 70% of the Methanex gas supply comes from Argentinaand 30% is supplied from Chile – with all of the gasdelivered through pipelines that cross the Fell Block.
• Argentina Government has imposed restrictions on gasexports to Chile and introduced an export tax(US$2.25/mmbtu) which, if paid by producer, rendersArgentine gas uneconomic to produce. Methanex hasindicated it will absorb a portion of this tax to securecontinued supply.
• ENAP (the State Company of Chile) is alsounderperforming in its gas deliveries to Methanex.
BAHIA BLANCA
BUENOS AIRES
BRAZIL
SANTIAGO
BOLIVIA
ARGENTINA
CHILE
PERU
PUNTA ARENAS
CONCEPCION
TOCOPILLA
MEJILLONES
SANTA CRUZCUIABA
SAO PAULO
URUGUAYANA
URUGUAY
PARAGUAY
ASUNCION
MONTEVIDEO
Brazilan Gas PricesDomestic Supply:US$2.60/mcf @ well headUS$4.50/mcf @ City GateBolivian imports:US$4.90/mcf @ City Gate
Argentine Gas PricesDomestic SupplyUS$2.30/mcf @ City GateBolivian imports:>US$5.45/mcf @ City Gate
Bolivian Gas PricesUS$1.45/mcf @ well headUS$5.20/mcf @ Argentine borderUS$3.30/mcf @ Brazilian border**
AustralUS$1.00/mcf @ well head*
Chilean Gas PricesDomestic SupplyUS$1.65/mcf @ well headArgentine contract imports:US$0.90 – 2.00/mcf @ City Gate
LNG PricesApprox. US$6 - 7/mcf+
NeuquenUS$1.30/mcf @ well head*
BAHIA BLANCA
BUENOS AIRES
BRAZIL
SANTIAGO
BOLIVIA
ARGENTINA
CHILE
PERU
PUNTA ARENAS
CONCEPCION
TOCOPILLA
MEJILLONES
SANTA CRUZCUIABA
SAO PAULO
URUGUAYANA
URUGUAY
PARAGUAY
ASUNCION
MONTEVIDEO
Brazilan Gas PricesDomestic Supply:US$2.60/mcf @ well headUS$4.50/mcf @ City GateBolivian imports:US$4.90/mcf @ City Gate
Argentine Gas PricesDomestic SupplyUS$2.30/mcf @ City GateBolivian imports:>US$5.45/mcf @ City Gate
Bolivian Gas PricesUS$1.45/mcf @ well headUS$5.20/mcf @ Argentine borderUS$3.30/mcf @ Brazilian border**
AustralUS$1.00/mcf @ well head*
Chilean Gas PricesDomestic SupplyUS$1.65/mcf @ well headArgentine contract imports:US$0.90 – 2.00/mcf @ City Gate
LNG PricesApprox. US$6 - 7/mcf+
NeuquenUS$1.30/mcf @ well head*
Market: Strategic Position
A R G E N T I N AA R G E N T I N A
C H I L EC H I L E
METHANEXPLANT
FELL BLOCK
DELMOSQUITO
BLOCK
Ì
CAPITALBalance Sheet
Resources,Revenues and LongTerm Shareholders
POSITION
PLANFull Cycle Risk-Balanced WorkProgram with
Equipment in Place
PEOPLEManagement Team
with Depth andRecord of Success
In Region
PLATFORMAsset Base with
Production, ProvenReserves and Upside
Potential
ÌÌÌ Ì
Where We Are Now: Building on Strong Fundamentals
MARKETStrengthening
ConditionsProvide Economic
Underpinning
Position: Growth via Consolidation
§ Region: Resource rich and under-exploited. Ideal for atechnically proficient low cost independent.
§ Trends: Larger companies and state companies arerationalising because:
– Governments are pressing companies toinvest in, or sell, idle properties.
– Manpower shortages are restrictinginvestment.
– Size of fields favour smaller companies.– Repsol YPF, Petrobras, ENAP started
process.
§ Focus: Properties with production, development andexploration elements. Ability to kick-start stalled projects.
§ Approach: Move quickly when opportunities arise(backed by good science). More than 100 acquisitionopportunities screened. Negotiations and applicationsunderway.
§ Partnerships: IFC (World Bank), ENAP (State Companyof Chile), Methanex (largest regional gas consumer).
Building on a solid base to create an enterprise of meaningful scale – and increasingmarket value by:
Where We Are Going
Growing Revenues: Increasing production from existing reserves by wellrehabilitation, facility and infrastructure construction, and drilling newdevelopment wells.
Growing Reserves: Finding new oil and gas fields and converting prospectiveand contingent resources and possible reserves into proved and probablereserves
Improving Economics: Increasing gas market prices; reducing operatingcosts, increasing efficiencies
Expanding Opportunities: Acquiring new projects and companies withstrategic fit at favourable terms
Expanding Capabilities: Continue investing in people and technical know-how– and acquire necessary equipment and services
Building Capital: Strengthening the balance sheet and developing creativefinancing solutions for future growth
Giving Back: Providing attractive returns to shareholders; rewardingemployees; supporting local communities; and protecting the environment
§ For further information please visit our website: www.geo-park.com
§ You may also contact us directly by e-mail or at our office:
§ Gerald E. O’Shaughnessy - [email protected]
§ James F. Park - [email protected]
§ Argentina Office: Florida 981, 4th FloorC1005AAS - Buenos Aires, ArgentinaTel: +54 11 4312-9400Fax: +54 11 4312-0149
§ GeoPark is listed on the Alternative InvestmentMarket (AIM) of the London Stock Exchange
§ Ordinary Share Symbol: GPK
Contact Information