GeoPark Stock

GeoPark Limited operates as an independent oil and natural gas exploration and production (‘E&P’) company with operations in Latin America.

The company operates in Colombia, Chile, Brazil and Ecuador. The company is focused on Latin America because it is one of the richest and most underexplored hydrocarbon regions globally, with less presence of independent E&P companies compared to the United States and Canada.

The company produced a net average of 38.6 mboepd during the year ended December 31, 2022, of which 87.4%, 6.1%, 3.9%, 0.4% and 2.2% were, respectively, in Colombia, Chile, Brazil, Argentina and Ecuador, and of which 90.7% was oil. As of December 31, 2022, according to the ANH, the company was ranked as the second largest oil operator in Colombia, where the company made the largest new oil field discovery in the last 20 years and the company is the first private oil and gas operator in Chile. Since 2014, the company has been partners with Petrobras in one of Brazil’s largest producing gas fields. During 2019, the company signed the final participation contracts to start the company’s operations in Ecuador. In January 2020, the company successfully closed the acquisition and initiated operational takeover and integration of Amerisur’s assets in Colombia. In May 2022, the company recorded its first oil sales in Ecuador due to the successful drilling campaign in the Perico Block.

In 2022, the company executed an agreement with Parex to assume a 50% non-operated working interest in the CPO-4-1 Block.

Assets

The company has a well-balanced portfolio of assets that includes working and/or economic interests in 38 hydrocarbon blocks, 37 of which are onshore blocks, including 9 in production as of December 31, 2022. The company’s assets give the company access to more than 5.1 million gross exploratory and productive acres.

As of December 31, 2022, the blocks in Colombia, Chile, Brazil and Ecuador in which the company had a working interest had 70.4 mmboe of net proved reserves, with 91.7%, 5.6%, 2.2% and 0.5% of such net proved reserves located in Colombia, Chile, Brazil and Ecuador, respectively.

The company produced a net average of 38.6 mboepd during the year ended December 31, 2022, of which 87.4%, 6.1%, 3.9%, 0.4% and 2.2%, were in Colombia, Chile, Brazil, Argentina and Ecuador, respectively, and of which 90.7% was oil.

2023 Strategy

As part of the company’s strategy, the company continues to monitor the impact of oil price volatility on the company’s results of operations.

Operations

The company had a well-balanced portfolio of assets that included working and/or economic interests in 38 hydrocarbon blocks, 37 of which were onshore blocks, including 9 in production as of December 31, 2022.

Operations in Colombia

As of December 31, 2022, the company’s Colombian assets gave the company access to more than 3,793,000 gross exploratory and productive acres across 24 blocks in one of South America’s most attractive oil and gas geographies.

Since the company entered Colombia in 2012, the company has achieved successful exploration and development activities at the company’s operated Llanos 34 Block, which as of December 31, 2022, accounts for 66.7% of the company’s production and 77.1% of the company’s proved reserves in Colombia.

The company’s interests in Colombia include working interests and economic interests. ‘Working interests’ are direct participation interests granted to the company pursuant to an E&P contract with the ANH, whereas ‘economic interests’ are indirect participation interests in the net revenues from a given block based on bilateral agreements with the concessionaires.

Eastern Llanos Basin:

The Eastern Llanos Basin is a Cenozoic Foreland basin in the eastern region of Colombia. Two giant fields (Caño Limón and Castilla), three major fields (Rubiales, Apiay and Tame Complex) and approximately fifty minor fields had been discovered. The source rock for the basin is located beneath the east flank of the Eastern Cordillera, as a mixed marine-continental shale basinal facies of the Gachetá formation. The main reservoirs of the basin are represented by the Paleogene Carbonera and Mirador sandstones. Within the Cretaceous sequence, several sandstones are also considered to have good reservoirs.

Llanos 34 Block. The company is the operator of, and have a 45% working interest in, the Llanos 34 Block, which covers approximately 59,085 gross acres (239 sq. km.). The company acquired an interest in and took operatorship of the block in the first quarter of 2012, which at that time had no production, reserves or wells drilled on it, and with 210 sq. km. of existing 3D seismic data on which the company’s team had mapped multiple exploration prospects. From 2012 to 2022, the company engaged in exploration and development activities that resulted in 10 new oil fields discoveries and increased proved reserves and oil production year by year up to a peak oil production of 34,995 bopd. Average net production in 2022 was 25,657 bopd and net reserves of 54.3 mmboe. The Llanos 34 Block has three reservoirs: the Guadalupe Formation, which produces 88% of the company’s oil production in the Block, Mirador, which produces 11% of the company’s oil production in the Block and Gacheta, which produces 1% of the company’s oil production in the Block. During these 11 years of operation in Llanos 34 Block, the company has built all the required infrastructure to produce and manage the fluids of the assets, including 10 production facilities, 59 kilometers of power grid, more than 90 kilometers of flowlines for fluid transfer, 169 kilometers of roads and a 42 kilometers oil pipeline. By the end of 2022, the company has transported more than 51 million barrels of oil from Tigana and Jacana fields through the ODCA pipeline further reducing truck traffic, contributing to the reduction of operational risk, costs and carbon emissions. In August 2022, the company connected the Llanos-34 Block to the national power grid, reducing risk of shutdown, cost and carbon emissions.

The company’s partner in the Llanos 34 Block is Verano Energy (a subsidiary of Parex), which has a 55% interest. The company operates in the block pursuant to an E&P contract with the ANH.

Llanos 32 Block. The company has a 12.5% working interest in the Llanos 32 Block. The Llanos 32 Block covers approximately 8,556 gross acres (35 sq. km.). Verano Energy is the operator of this block and has an 87.5% working interest. Since 2015, the operator focused on the commissioning of a gas facility on this block to produce natural gas and light crude oil from the Une formation and to facilitate shipment of processed gas south to the adjacent Llanos 34 Block. For the year ended December 31, 2022, the company’s average net production in the Llanos 32 Block was 436 bopd.

Abanico Block. In October 1996, Ecopetrol and Explotaciones CMS Nomeco Inc. entered into the Abanico Block association contract. Pacific Rubiales Energy is the operator of, and has a 100% working interest in, the Abanico Block, which covers an area of approximately 25,658 gross acres (103 sq. km.). The company does not maintain a direct working interest in the Abanico Block, but rather have a 10% economic interest in the net revenues from the block pursuant to a joint operating agreement initially entered into with Kappa Resources Colombia Limited (now Pacific, who subsequently assigned its participation interest to Cespa de Colombia S.A., who then assigned the interest to Explotaciones CMS Oil & Gas), Maral Finance Corporation and Getionar S.A.

Llanos 86 and Llanos 104 Blocks. The company and Hocol (a subsidiary of Ecopetrol), each with fifty percent (50%) working interest executed an E&P contract over these blocks on July 11, 2019, as a result of the Permanent Competitive Process launched by ANH in 2019. The company is the operator of these contracts that are in their exploratory phase 1 and cover approximately 530,309 gross acres (2,146 sq. km.). Due to the presence of indigenous communities in the area, the company conducted the due prior consultation process with the communities and the process concluded on March 15, 2022.

Llanos 87 Block. GeoPark and Hocol, each with fifty percent (50%) working interest executed an E&P contract over this block on July 11, 2019, as a result of the Permanent Competitive Process launched by ANH in 2019. The company is the operator of this contract that is in exploratory phase 1 and covers approximately 107,624 gross acres (435 sq. km.). In March 2023, the ANH approved the company’s request to extend the exploratory phase 1 until May 14, 2023.

Llanos 123 and Llanos 124 Blocks: GeoPark and Hocol, each with fifty percent (50%) working interest executed an E&P contract over these blocks on December 20, 2019, as a result of the Permanent Competitive Process launched by ANH in 2019. The company is the operator of these contracts that covers approximately 115,956 gross acres (469 sq. km.).

Llanos 94 Block. On July 24, 2019, the E&P contract was awarded to Parex Energy as a result of the Permanent Competitive Process launched by ANH in 2019. This contract is in its exploratory phase 1 and covers approximately 89,175 gross acres (360.8 sq. km.). The company acquired a 50% working interest from Parex and obtained ANH’s approval to such transfer in May 2020. During 2022, the operator of the block submitted to the ANH requests to transfer part of the pending commitments to the Llanos 34 Block.

CPO-5 Block. On December 26, 2008, the E&P contract was executed between ONGC Videsh, as operator and the ANH as a result of the Competitive Process ‘Ronda Colombia 2008’. This contract covers approximately 490,825 gross acres (1,986 sq. km.). The company holds a 30% working interest since the acquisition of Amerisur in 2020. As of December 31, 2022, this contract was in exploratory phase 2 in which the pending commitment corresponds to the acquisition, processing and interpretation of 73 sq. km. There are three commercial fields called Mariposa, Indico and Flamenco. Average net production in 2022 was 5,580 bopd and net reserves were 5.8 mmboe.

CPO-4-1 Block. On January 18, 2022, the E&P contract was executed between Parex Energy and the ANH as a result of the Permanent Competitive Process launched by ANH in 2019. On April 29, 2022, an amendment to the E&P contract was executed, whereby the ANH approved the assignment of a 50% non-operated working interest to the company. As of December 31, 2022, this contract was in exploratory phase 1 and covers approximately 148,263 gross acres (600 sq. km.).

Magdalena Basin:

VIM-3 Block. On July 23, 2014, the company was awarded an exploratory license during the 2014 Colombia Bidding Round, carried out by the ANH. The VIM-3 Block is located in the Lower Magdalena Basin. In 2018, the company filed a request before the ANH to terminate the E&P contract due to environmental restrictions in the block. These restrictions became apparent once the National Authority of Environmental Licenses issued the environmental license. As of December 31, 2022, the termination was approved by the ANH and the final liquidation of the contract is pending.

Putumayo Basin:

Andaquies Block. The company is the operator of and have a 100% working interest in the Andaquies Block, which covers approximately 114,879 gross acres (465 sq. km.). As of December 31, 2022, the contract was in phase 3 of the exploration period. On February 14, 2020, the company presented its withdrawal from the E&P contract and requested the ANH to approve the transfer of the pending commitments to the Llanos 32 Block. On February 20, 2020, the ANH approved the request. As of December 31, 2022, termination of the E&P contract has been approved by the ANH and the final liquidation of the contract is pending.

Coati Block. The company is the operator of and have a 100% working interest in the Coati Block, which covers approximately 61,843 gross acres (250 sq. km.). The evaluation area is suspended. On November 3, 2022, the company submitted to the ANH a request to withdraw from the exploration period of the Coati E&P contract and transfer the pending commitments to other E&P contracts. As of December 31, 2022, the transfer of the investment was being carried out.

Mecaya Block. The company is the operator of and have a 50% working interest in the Mecaya Block, which covers approximately 74,128 gross acres (300 sq. km.). Sierracol Energy is the owner of the remaining 50% working interest. As of December 31, 2022, the contract was in unified phases 1 and 2 of the exploration period, which remaining exploration commitment consists of the acquisition of 52.2 sq. km. Both the unified phases 1 and 2 and the evaluation program are suspended due to force majeure events (relating to prior consultations).

Platanillo Block. The company is the operator of and have a 100% working interest in the Platanillo Block, which covers approximately 27,300 gross acres (110 sq. km.). On September 11, 2009, the company began the commercial exploitation of the Platanillo Block. Average net production in 2022 was 2,077 bopd and net reserves of2.6 mmboe.

Putumayo 8 Block. The company is the operator of and have a 50% working interest in the Putumayo 8 Block, which covers approximately 102,800 gross acres (416 sq. km.). Sierracol Energy is the owner of the remaining 50% working interest. The contract is in unified phases 1 and 2 of the exploration period. On October 25, 2022, the company submitted to the ANH a request to transfer the investment commitment related to the pending 3D seismic to the Platanillo Block. As of December 31, 2022, such investment has been fulfilled and the ANH approval is pending.

Putumayo 9 Block. The company is the operator of and have a 50% working interest in the Putumayo 9 Block, which covers approximately 121,453 gross acres (492 sq. km.). Sierracol Energy is the owner of the remaining 50% working interest. As of December 31, 2022, the contract is in phase 1 of the exploration period. Phase 1 was suspended on June 25, 2019, due to the occurrence of a force majeure event consisting of the issuance of the Municipal Agreement No. 007 of Puerto Guzmán, which prohibits the hydrocarbon exploration and production activities in such municipality.

Putumayo 12 Block. The company is the operator of and have a 60% working interest in the Putumayo 12 Block, which covers approximately 134,534 gross acres (544 sq. km.). Pluspetrol Colombia Corporation (‘Pluspetrol’) is the owner of the remaining 40% working interest.

Putumayo 14 Block. The company is the operator of and have a 100% working interest in the Putumayo 14 Block, which covers approximately 114,560 gross acres (464 sq. km.). On March 10, 2022, the company submitted to the ANH a request to withdraw from the PUT-14 E&P contract and transfer the pending commitments to the Platanillo and CPO-5 Blocks.

Putumayo 30 Block. The company is the operator of and has a 100% working interest in the Putumayo 30 Block, which covers approximately 95,172 gross acres (385 sq. km.). On February 23, 2021, the company submitted to the ANH the company’s request to withdraw from to the E&P contract and transfer the remaining commitments to other E&P contracts. The ANH approved the request. The remaining investment was transferred to Llanos 34 Block and Platanillo Block. As of December 31, 2022, the E&P contract was in process of liquidation.

Putumayo 36 Block. The company is the operator of and have a 50% working interest in the Putumayo 36 Block, which covers approximately 148,021 gross acres (599 sq. km.). Sierracol is the owner of the remaining 50% working interest. As part of the prior consultation process, the Ministry of Interior certified the presence of one indigenous community in the area. As of December 31, 2022, the contract is in phase 0 as the applicable prior consultation process must be completed.

Tacacho and Terecay Blocks. The company is the operator of and has a 50% working interest in the Tacacho and Terecay Blocks, which covers approximately 589,009 gross acres (2,384 sq. km.) and 586,625 gross acres (2,374 sq. km.), respectively. Sierracol Energy is the owner of the remaining 50% working interest. Both contracts are in phase 1, which is suspended due to the occurrence of force majeure events related to social and public order conditions of the area. The outstanding investment commitments correspond to (i) the acquisition, processing and interpretation of 480 km. On September 21, 2022, the company submitted to the ANH a request for termination of the E&P contract. As of December 31, 2022, the termination request is under review by the ANH.

As per farm-out agreement executed on November 21, 2018, Sierracol Energy shall carry the company in certain exploration activities for the Mecaya, PUT-9, Tacacho and Terecay Contracts.

Operations in Chile

The company’s Chilean assets currently give the company access to 657,000 of gross exploratory and productive acres across 4 blocks in a large fully-operated land base across the Magallanes Basin, with existing reserves, production and cash flows.

The company’s Chilean blocks are located in the provinces of Última Esperanza, Magallanes and Tierra del Fuego in the Magallanes Basin, a proven oil and gas-producing area. As of December 31, 2022, the Magallanes Basin accounted for all of Chile’s oil and gas production.

The company’s geophysical analyses suggest additional development potential in known fields and exploration potential in undrilled prospects and plays, including opportunities in the Springhill, Tertiary, Tobífera and Estratos con Favrella formations. The Springhill formation has historically been the source of production in the Fell Block, though the Estratos con Favrella shale formation is the principal source rock of the Magallanes Basin, and it contains unconventional resource potential.

Fell Block

In 2006, the company became the operator and 100% interest owner of the Fell Block. When the company first acquired an interest in the Fell Block in 2002, it had no material oil and gas production. Since then, the company has completed more than 1,100 sq. km. of 3D seismic surveys and drilled 141 exploration and development wells. In the year ended December 31, 2022, the company produced an average of 2,338 boepd in the Fell Block, consisting of 81.2% gas.

The Fell Block has an area of 367,800 gross acres (1,488 sq. km.) and its center is located approximately 140 km. northeast of the city of Punta Arenas. It is bordered on the north by the international border between Argentina and Chile and on the south by the Magellan Strait.

From 2006 through August 2011, the company successfully explored and developed the Fell Block, which allowed the company to transition approximately 84% of the Fell Block’s area from an exploration phase into an exploitation phase, which the company expects will last through 2032. There are no minimum work and investment commitments under the Fell Block CEOP associated with the exploitation phase.

The Fell Block is located in the north-eastern part of the Magallanes Basin. The principal producing reservoir is composed of sandstones in the Springhill formation, at depths of 2,200 to 3,500 meters. Additional reservoirs have been discovered and put into production in the Fell Block—namely, Tobífera formation volcanoclastic rocks at depths of 2,900 to 3,600 meters, and Upper Tertiary and Upper Cretaceous sandstones, at depths of 700 to 2,000 meters.

The Fell Block also contains the Estratos con Favrella shale reservoir as a broad area within Fell Block (1,000 sq. km.) which appears to be in the oil window for this play.

Tierra del Fuego Blocks (Isla Norte, Campanario and Flamenco Blocks)

In the first and second quarters of 2012, the company entered into three CEOPs with ENAP and Chile granting the company working interests in the Isla Norte, Campanario and Flamenco Blocks, located in the center-north of the Tierra del Fuego Province of Chile. The company is the operator of all three of these blocks, with working interests of 60%, 50% and 50%, respectively. These three blocks, which collectively cover 347,700 gross acres (1,407 sq. km.) and are geologically contiguous to the Fell Block.

Flamenco Block. The company is the operator of, and have a 50% working interest in, the Flamenco Block, in partnership with ENAP. The block covers approximately 47,135 gross acres (191 sq. km.). In June 2013, the company discovered a new oil and gas field in the block following the successful testing of the Chercán 1 well, the first well drilled by the company in Tierra del Fuego. The company has completed all the committed activities for the first and second exploration periods under the CEOP governing the Flamenco Block. The company opted out of the third exploration period, and as of December 31, 2022, the exploration phase in the Flamenco Block has been concluded.

Isla Norte Block. The company is the operator of and have a 60% working interest in partnership with ENAP in the Isla Norte Block, which covers approximately 97,650 gross acres (395 sq. km.). As of December 31, 2022, the company had completed 100% of the commitments of the first exploratory period.

Campanario Block. The company is the operator of, and has a 50% working interest in, the Campanario Block, in partnership with ENAP. The block covers approximately 144,150 gross acres (583 sq. km.). As of December 31, 2022, the company had completed 100% of the commitments of the first exploratory period. The drilling campaign relating to the committed wells of Isla Norte and Campanario Blocks started in February 2020 but due to the COVID-19 pandemic, the execution of the 2020 work plan was interrupted.

Therefore, the company presented to the Ministry of Energy notifications of declaration of force majeure, which were approved and the company obtained an extension of the second exploratory period to fulfill the commitments of the Campanario and Isla Norte Blocks until the first half of 2024.

Operations in Brazil

The company’s Brazilian assets give the company access to 61,400 of gross exploratory and productive acres across 6 blocks (5 exploratory blocks and the BCAM-40 Concession, which is in production phase) in an attractive oil and gas geography.

Manati Field

The company has a 10% working interest in the BCAM-40 Concession, which originally included an interest in the Manati Field, which is located in the Camamu-Almada Basin. Petrobras is the operator of, and has a 35% working interest in, the BCAM-40 Concession, which covers approximately 22,784 gross acres (92.2 sq. km.). In addition to the company, Petrobras’ partners in the block are PetroRio S.A. and Enauta Energia S.A. (Enauta), with 10% and 45% working interests, respectively. Petrobras operates the BCAM-40 Concession pursuant to a concession agreement with the ANP, executed on August 6, 1998. In September 2009, Petrobras announced the relinquishment of BCAM-40’s exploration area within the concession to the ANP, except for the Manati Field.

The Manati Field is located 65 km. south of Salvador, offshore at a water depth of 35 meters. The field was discovered in October 2000, and, in 2002, Petrobras declared the field commercially viable. Production began in January 2007. As of December 31, 2022, 11 wells had been drilled in the Manati Field, 6 of which are productive and connected to a fixed production platform installed at a depth of 35 meters, located 9 km. from the coast of the State of Bahia. From the platform, the gas flows by sea and land through a 125 km. pipeline to the Estação Vandemir Ferreira or EVF gas treatment plant. The gas is sold to Petrobras up to a maximum volume as determined in the existing Petrobras Gas Sales Agreement.

Operations in Argentina

Los Parlamentos Block Farm-in Agreement

In June 2018, the company announced the acquisition of a 50% working interest in the Los Parlamentos exploratory block in partnership with YPF, the largest oil and gas producer in Argentina.

2014 Mendoza Bidding Round

On August 20, 2014, the consortium of Pluspetrol and the company was awarded two exploration licenses in the Sierra del Nevado and Puelen Blocks, as part of the 2014 Mendoza Bidding Round in Argentina, carried out by Empresa Mendocina de Energía S.A. (‘EMESA’). The consortium consists of Pluspetrol (operator with a 72% working interest), EMESA (non-operator with a 10% working interest) and the company (non-operator with an 18% working interest). As of December 31, 2022, the company fulfilled the commitments in the Puelen and Sierra del Nevado Blocks and the company is in process of relinquishing the Puelen Block. Final approval for the relinquishment of Sierra del Nevado Block was obtained on February 16, 2022.

Operations in Ecuador

Espejo and Perico Blocks

On May 22, 2019, the company signed final participation contracts for the Espejo and Perico Blocks, which were awarded to the company in the Intracampos Bid Round held in Quito, Ecuador in April 2019. The company is the operator of the Espejo Block with a 50% working interest and Frontera is the operator of the Perico Block with 50% working interest.

As of December 31, 2022, the company drilled three exploratory wells in the Perico Block and the company has completed the acquisition of 60 sq km of 3D seismic and drilled two exploratory wells in the Espejo Block.

Marketing and Delivery Commitments

Colombia

The company’s production in Colombia consists primarily of crude oil.

During 2022, the company’s sales were allocated on a competitive basis to leading industry participants, including traders and other producers. The company continued to deliver at both at well-head and at various points in the Colombian pipeline system and via Ecuador for the Putumayo production.

Chile

The company’s customer base in Chile is limited in number and primarily consists of ENAP and Methanex. For the year ended December 31, 2022, the company sold 100% of its oil production in Chile to ENAP and 100% of the company’s gas production to Methanex, with sales to ENAP and Methanex accounting for 3% of the company’s total revenues.

The company gathers the gas the company produces in several wells through the company’s own flow lines and inject it into several gas pipelines owned by ENAP. The transportation of the gas the company sells to Methanex through these pipelines is pursuant to a private contract between Methanex and ENAP. The company does not own any natural gas pipelines for the transportation of natural gas.

Brazil

The company’s production in Brazil consists of natural gas, condensate and crude oil.

Ecuador

Ecuador has a well-developed crude oil market with broad access to international markets and an extensive pipeline transportation system. The company’s oil production, which began in 2022, is transported through the Ecuadorean pipeline system, with Esmeraldas as the delivery point, and 100% of the company’s sales are exported on a competitive basis to industry leading participants, including traders and other producers.

Significant Agreements

Colombia

E&P contracts

The company has entered into E&P contracts granting the company the right to explore and operate, as well as working interests in twenty three blocks in Colombia.

Eastern Llanos Basin:

Llanos 34 Block E&P Contract. Pursuant to an E&P contract between Unión Temporal Llanos 34 (a consortium between Ramshorn and Winchester Oil and Gas— now GeoPark Colombia S.A.S.) and the ANH that became effective as of March 13, 2009 (‘Llanos 34 Block E&P contract’), Unión Temporal Llanos 34 was granted the right to explore and operate the Llanos 34 Block, and Winchester Oil and Gas and Ramshorn were granted a 40% and a 60% working interest, respectively, in the Llanos 34 Block. The company was also granted the right to operate the Llanos 34 Block. As of December 31, 2022, the members of the Unión Temporal Llanos 34 are GeoPark Colombia S.A.S. with 45%, and Verano Limited with 55% working interest.

Eastern Llanos Basin:

Llanos 34 Block E&P contract. Pursuant to an E&P contract between Unión Temporal Llanos 34 (a consortium between Ramshorn and Winchester Oil and Gas— now GeoPark Colombia S.A.S.) and the ANH that became effective as of March 13, 2009 (‘Llanos 34 Block E&P contract’), Unión Temporal Llanos 34 was granted the right to explore and operate the Llanos 34 Block, and Winchester Oil and Gas and Ramshorn were granted a 40% and a 60% working interest, respectively, in the Llanos 34 Block. The company was also granted the right to operate the Llanos 34 Block. As of December 31, 2022, the members of the Unión Temporal Llanos 34 are GeoPark Colombia S.A.S. with 45%, and Verano Limited with 55% working interest.

On September 19, 2019, the additional exploration period of the Llanos 34 Block E&P contract ended (the E&P contract provides a 1-year Evaluation Program after a discovery declaration). As of December 31, 2022, the Guaco Evaluation Program is still ongoing. The Llanos 34 Block E&P contract also provides a 24-year exploitation period for each production area, beginning on the date of a commercial declaration. The exploitation period may be extended for periods of up to 10 years at a time if certain conditions are met and subject to ANH approval. As of the date of this annual report there are production areas for the Max, Túa, Tarotaro, Tigana, Jacana, Chachalaca, Tilo, Chiricoca and Jacamar fields.

Llanos 32 Block. The company has a 12.5% working interest in the Llanos 32 Block. Verano Energy is the operator of this block and has an 87.5% working interest. On February 20, 2022, the exploratory period ended. Economic rights to the ANH are similar to Llanos 34 Block’s.

Abanico Block. In October 1996, Ecopetrol and Explotaciones CMS Nomeco Inc. entered into the Abanico Block association contract. Pacific Rubiales Energy is the operator of, and has a 100% working interest in, the Abanico Block. The company does not maintain a direct working interest in the Abanico Block, but rather have a 10% economic interest in the net revenues from the block pursuant to a joint operating agreement initially entered into with Kappa Resources Colombia Limited (now Pacific, who subsequently assigned its participation interest to Cespa de Colombia S.A., who then assigned the interest to Explotaciones CMS Oil & Gas), Maral Finance Corporation and Getionar S.A.

Llanos 86, Llanos 87, Llanos 104, Llanos 123 and Llanos 124 Blocks. The company and Hocol (a subsidiary of Ecopetrol), each with fifty percent (50%) working interest, executed E&P contracts over these blocks in 2019, as a result of the Permanent Competitive Process launched by ANH. The company is the operator of these contracts that are in exploratory phase 1.

Llanos 94 Block. On July 24, 2019 the E&P contract was awarded to Parex Energy as a result of the Permanent Competitive Process launched by ANH in 2019. This contract is in its exploratory phase 1. The company acquired a 50% working interest from Parex and obtained ANH’s approval to such transfer in May, 2020.

CPO-5 Block E&P contract. On December 26, 2008, the E&P contract was executed between ONGC Videsh, as operator and the ANH as a result of the Competitive Process ‘Ronda Colombia 2008’. The company holds a 30% working interest since the acquisition of Amerisur. The contract is in phase 2 of the exploration period as of the date of this annual report. There are two existing commercial fields called Mariposa and Indico field. Indico was declared commercially viable on August 19, 2021.

CPO-4-1 Block. On January 18, 2022, the E&P contract was executed between Parex Energy and the ANH as a result of the Permanent Competitive Process launched by ANH in 2019. On April 29, 2022, an amendment to the E&P contract was executed, whereby the ANH approved the assignment of a 50% non-operated working interest to the company. As of December 31, 2022, this contract was in exploratory phase 1.

Pursuant to CPO-4-1 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the CPO-4-1 Block.

Additionally, the company is required to pay a surface and subsoil usage fee to the ANH. The company is required to comply with the VEE (economic value for exclusivity) equivalent to the commitments for the exploratory period; however, if the company does not perform such commitments, the VEE amount calculated as provided in the CPO-4-1 E&P contract, must be paid to the ANH. The ANH also has an additional economic right equivalent to 1% of production, net of royalties.

In accordance with the CPO-4-1 Block E&P contract, when the accumulated production of the area of the contract, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Magdalena Basin:

VIM-3 Block. On July 23, 2014, the company were awarded an exploratory license during the 2014 Colombia Bidding Round, carried out by the ANH. The VIM-3 Block is located in the Lower Magdalena Basin. In 2018, the company filed a request before the ANH to terminate the E&P contract due to environmental restrictions in the block. These restrictions became apparent once the National Authority of Environmental Licenses issued the environmental license. As of December 31, 2022, the termination was approved by the ANH and the final liquidation of the contract is pending.

Putumayo Basin:

Andaquies Block E&P contract. The company is the operator of and have a 100% working interest in the Andaquies. As of December 31, 2022, termination of the E&P contract has been approved by the ANH and the final liquidation of the contract is pending.

Coati Block E&P contract. The company is the operator of and have a 100% working interest in the Coati Block. The Coati Block is divided into two areas: an exploration area in phase 3 of the exploration period, suspended due to Force Majeure Events (Prior Consultations); and an evaluation area, declared on September 2006, by the former operator in the southern part of the Block for the Temblon wells (Temblon Evaluation Program), which includes the completion and evaluation of the Coatí-1 well.

Pursuant to the Coati Block E&P contract and applicable law, the company is required to pay a royalty of 23% to the ANH based on hydrocarbons produced in the block.

Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Coati Block E&P contract.

In accordance with the Coati Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Mecaya Block E&P contract. The company is the operator of and have a 50% working interest in the Mecaya Block. Sierracol Energy is the owner of the remaining 50% working interest in the contract. As of December 31, 2022, the contract is in unified phases 1 and 2 of the exploration period, and it is suspended due to Force Majeure Events (Prior Consultations).

Pursuant to the Mecaya Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the Mecaya Block.

Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Mecaya Block E&P contract.

In accordance with the Mecaya Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Platanillo Block E&P contract. The company is the operator of and have a 100% working interest in the Platanillo Block. On September 11, 2009, the company began commercial exploitation.

Pursuant to the Platanillo Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the Platanillo Block.

Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Platanillo Block E&P contract.

In accordance with the Platanillo Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Putumayo 8 Block E&P contract. The company is the operator of and have a 50% working interest in the Putumayo 8 Block. Sierracol Energy is the owner of the remaining 50% working interest. The contract is in unified phases 1 and 2 of the exploration period.

Pursuant to the Putumayo 8 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block.

Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Putumayo 8 Block E&P contract. The ANH also has an additional economic right equivalent to 2% of production, net of royalties.

In accordance with the Putumayo 8 Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Putumayo 9 Block E&P contract. The company is the operator of and have a 50% working interest in the Putumayo 9 Block. Sierracol Energy is the owner of the remaining 50% working interest. As of December 31, 2022, the contract is in phase 1 of the exploration period, which is suspended since June 25, 2019, due to the occurrence of a Force Majeure event (issuance of the Municipal Agreement which prohibits the execution of hydrocarbons exploration and production activities in Puerto Guzmán Municipality).

Pursuant to the Putumayo 9 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block.

Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Putumayo 9 Block E&P contract. The ANH also has an additional economic right equivalent to 18% of production, net of royalties.

In accordance with the Putumayo 9 Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Putumayo 12 Block E&P contract. The company is the operator of and have a 60% working interest in the Putumayo 12 Block. Pluspetrol Colombia Corporation (‘Pluspetrol’) is the owner of the remaining 40% working interest. As of December 31, 2022, termination of the E&P contract has been approved by the ANH and the final liquidation of the contract is pending.

Putumayo 14 Block E&P contract. The company is the operator of and have a 100% working interest in the Putumayo 14 Block. On March 10, 2022, the company submitted to the ANH a request to withdraw from the PUT-14 E&P contract and transfer the pending commitments to the Platanillo and CPO-5 Blocks. Once total investment is reached through such transfers, ANH will proceed with the contract’s termination. As of December 31, 2022, part of the abovementioned investment has already been incurred and the ANH approval of the fulfillment is pending.

Putumayo 30 Block E&P contract. The company is the operator of and have a 100% working interest in the Putumayo 30 Block. On February 23, 2021, the company submitted to the ANH the company’s request to withdraw from to the E&P contract and transfer the remaining commitments to other E&P contracts. The ANH approved the request and the remaining investment was transferred to Llanos 34 Block and Platanillo Block. As of December 31, 2022, the E&P contract was in process of liquidation.

Putumayo 36 Block E&P contract. The company is the operator of and have a 50% working interest in the Putumayo 36 Block. Sierracol is the owner of the remaining 50% working interest. The contract is in preliminary phase, which is suspended since April 1, 2020 due to the occurrence of a Force Majeure Event (issuance of the Municipal Agreement which prohibits the execution of hydrocarbons exploration and production activities in Puerto Guzmán Municipality).

Pursuant to the Putumayo 36 Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block.

Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Putumayo 36 Block E&P contract, and the payment of 25% of the Economic Right for the use of the subsoil for institutional strengthening and Technology Transfer.

The ANH also has an additional economic right equivalent to 1% of production, net of royalties.

In accordance with the Putumayo 36 Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

Tacacho Block E&P contract. The company is the operator of and have a 50% working interest in the Tacacho Block. Sierracol Energy is the owner of the remaining 50% working interest. The contract is in phase 1 of the exploration period, which is suspended due to the occurrence of force majeure events related with social and public order conditions of the area.

Pursuant to the Tacacho Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block. Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Tacacho Block E&P contract. In accordance with the Tacacho Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

On September 21, 2022, the company submitted to the ANH a request for termination of the E&P contract. As of December 31, 2022, the request was under review by the ANH.

Terecay Block E&P contract. The company is the operator of and have a 50% working interest in the Terecay Block. Sierracol Energy is the owner of the remaining 50% working interest. The contract is in phase 1 of the exploration period, which is suspended due to the occurrence of force majeure events related with social and public order conditions of the area.

Pursuant to the Terecay Block E&P contract and applicable law, the company is required to pay a royalty to the ANH based on hydrocarbons produced in the block. Additionally, the company is required to pay a subsoil use fee to the ANH. The ANH also has the right to receive an additional fee when prices for oil or gas, as the case may be, exceed the prices set forth in the Terecay Block E&P contract. In accordance with the Terecay Block operation contract, when the accumulated production of each field, including the royalties’ volume, exceeds 5 million barrels and the WTI exceeds a defined base price, the company should deliver to ANH a share of the production net of royalties in accordance with an established formula.

On September 21, 2022, the company submitted to the ANH a request for termination of the E&P contract. As of December 31, 2022, the request is under review by the ANH.

Customers

In Colombia, the oil and gas production was sold to three clients that concentrate 97% of the Colombian subsidiaries revenue (90% of the company’s total consolidated revenue) for the year ended December 31, 2022. In Chile, the company’s primary customers are ENAP and Methanex. As of December 31, 2022, ENAP purchased all of the company’s Chilean oil and condensate production and Methanex purchased all of the company’s natural gas production in Chile, and together represented 3% of the company’s total revenue for the year ended December 31, 2022. In Brazil, all of the company’s hydrocarbons in Manati were sold to Petrobras and represented 2% of the company’s total revenue for the year ended December 31, 2022. In Ecuador, 100% of the company’s sales (1% of the company’s total revenue for the year ended December 31, 2022) were exported on a competitive basis to industry leading participants, including traders and other producers.

Certain Bermuda Law Considerations

The company has been designated by the Bermuda Monetary Authority as a non-resident for Bermuda exchange control purposes.

History

The company was founded in 2002 by Gerald E. O’Shaughnessy and James F. Park. The company was incorporated as an exempted company pursuant to the laws of Bermuda as GeoPark Holdings Limited in 2006. The company changed its name to GeoPark Limited in 2013.