GeoPark Comments on Parex Halting Transaction Discussions
GeoPark commented on Parex Resources' announcement that it has halted discussions with GeoPark regarding a potential transaction: GeoPark's Board and management team have always been open to entering into transactions that maximize value for our shareholders. As such, we entered into discussions with Parex in good faith, aiming to negotiate a mutually agreeable transaction. From the outset of negotiations, we have communicated our belief that Parex's September 4 offer of $9.00 per share undervalues GeoPark. Over six weeks of extensive Special Committee and Board sessions and numerous meetings between our respective senior management teams, we provided Parex and its advisors access to substantial and comprehensive, non-public technical and financial information relevant to our ongoing operations and future upside potential - all of which is clearly incremental to the facts upon which Parex's original offer was founded. Importantly, Parex's $9.00 per share offer ascribed no value to GeoPark's transformative Vaca Muerta acquisition which was announced on September 25. The Board has communicated that any credible or constructive engagement going forward would require a revised proposal beginning in the double-digits.
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GeoPark Acquires Frontera Energy, Doubling Production and Reserves
- Transaction Scale Expansion: GeoPark's acquisition of Frontera Petroleum International Holdings B.V. for $375 million is set to boost its projected 2028 production to over 90,000 boepd, with EBITDA expected to reach approximately $950 million, significantly enhancing the company's cash flow generation capacity.
- Reserves Doubling: The acquisition adds approximately 99 million barrels of 1P reserves and 147 million barrels of 2P reserves, more than doubling GeoPark's reserves, which will support sustained development activity and long-term cash flow visibility, ensuring robust growth of its independent E&P platform in Latin America.
- Improved Financial Health: Post-transaction, GeoPark's net leverage is expected to drop to about 2.0x EBITDA, with continued free cash flow generation and ramp-up of Vaca Muerta development projected to further reduce it to 1.4x by 2028, enhancing the company's financial flexibility and debt servicing capacity.
- Significant Synergies: The transaction is expected to deliver annual synergies of $30-50 million by 2027, with a structured transition plan agreed upon between GeoPark and Frontera Energy to ensure operational continuity and support timely integration, further enhancing asset value.

GeoPark Acquires Frontera International Oil Assets for $375 Million
- Transaction Overview: GeoPark has entered into a definitive agreement with Frontera Energy to acquire Frontera International's oil and gas assets for $375 million, significantly enhancing GeoPark's position as the largest private operator in Colombia.
- Financial Impact: This acquisition is expected to materially increase GeoPark's scale, reserves, and cash flow generation, strengthening its independent E&P platform in Latin America and supporting disciplined growth through economic cycles.
- Strategic Significance: By integrating Frontera's assets, GeoPark can implement a full-field development approach, extending production plateaus and improving investment efficiency, which will benefit regional economies by creating more jobs.
- Future Outlook: Post-transaction, GeoPark will leverage its operational experience and local relationships in Colombia to drive efficient integration and operation of the acquired assets, ensuring long-term value creation and sustainable development.









