GeoPark divests certain non-core assets, to reduce workforce

GeoPark (GPRK) announced divestments of certain non-core assets and cost reduction initiatives to better position the company for profitable, dependable and sustainable long-term growth. In line with its commitment to disciplined capital allocation, the company will divest the non-core, non-operated Llanos 32 Block in Colombia and Manati gas field in Brazil for an aggregate total consideration of $20M. Combined, these assets had aggregate net 1P PRMS reserves of 2.9 mmboe at 2024 year-end and an average production of 712 boepd in 2024. Together, the assets represented approximately 1,500 boepd in the 2025 plan, with an associated adjusted EBITDA of $10M-13M at $70-80/bbl Brent. Furthermore, GeoPark is evaluating strategic options for its assets in Ecuador. In addition to the timely monetization of the above non-core assets, GeoPark is currently implementing targeted cost reduction and cost efficiency measures that the company expects will deliver annual savings of approximately $5M-7M in OPEX/G&A costs. These initiatives include immediate adjustments to structure costs, including reductions in its workforce and to consultants, contractors, and other administrative expenses. The above measures aim to focus activity and capital allocation on high-impact, high materiality assets, in alignment with GeoPark’s North Star growth strategy. Further details on the divestments of the Llanos 32 Block and in the Manati gas field are provided in the annex below.