GPRK News & Events

GeoPark announced the renewal of its offtake and prepayment agreement with Vitol, extending the term and expanding the scope of collaboration across the Llanos basin in Colombia. The new offtake agreement provides for GeoPark to sell and deliver to Vitol 100% of its crude oil production from the Llanos 34, Llanos 123, and CPO-5 blocks, extending the current agreement from its original expiry in June 2027 through December 31, 2028. The renewed terms restore GeoPark's weighted-average netbacks to single-digit levels, comparable to 2020 benchmarks, effectively offsetting the cumulative impact of midstream tariff adjustments and inflationary trends over the past five years. Portfolio realizations are expected to improve by approximately 33c per barrel on a weighted-average basis compared to the company's average over the past six months, supporting stronger margins and improved cash-flow visibility. The new terms take effect in January, with deliveries beginning in January for Llanos 34 and in May for CPO-5 and Llanos 123, and remaining in force through December 31, 2028. As part of the renewal, GeoPark will have access to a prepayment facility from Vitol that provides for a total of up to $500M, consisting of a firm $330M committed availability with an option to increase the availability by up to another $170 million in prepaid future oil sales over the period of the offtake contract. The renewed prepayment facility reflects the strength of GeoPark's operational delivery in the Llanos basin, and builds on the track record established under the prior agreement. Amounts under the facility do not constitute a mandatory funding requirement and if drawn can be repaid through future oil deliveries or prepaid at any time without penalty. The interest cost for any drawn amounts is based on a one-month term SOFR risk-free rate plus a margin of 3.50% per annum, representing a 25-bps reduction versus the prior prepayment agreement with Vitol, and, together with the decline in SOFR, would currently be equivalent to an interest rate of approximately 7.15%-7.25%. Funds committed by Vitol will be made available until June 30, 2027, subject to certain conditions.

The company reports Q4 output: "Annual average oil and gas production of 28,233 boepd, above the upper range of the 2025 guidance of 26,000 - 28,000 boepd. Outperformance was driven by solid base delivery and secondary recovery from the Llanos 34 Block, stable production from the CPO-5 Block (GeoPark non-operated, 30% WI) and successful drilling results in the Llanos 123 Block. Q4 average oil and gas production of 28,351 boepd, was 1% higher than Q3, reflecting stable delivery from core operated and non-operated assets, as well as fresh production coming online in our Vaca Muerta assets."

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.

GeoParks expects Adjusted EBITDA to more than double by 2028, driving a larger enterprise value supported by increased cash flow, lower leverage, and a broader, more diversified asset base. GeoPark will continue to focus on its operational strengths, financial discipline, and portfolio of high-quality assets, including executing its two-pronged strategy in Colombia and Argentina: Maximizing Core Production and Cash Generation in Colombia: The Company is focused on sustaining and improving the performance of its flagship Llanos 34 block and other key operated and non-operated assets. Following a strong 2025 and positive developments since GeoPark's 2025 Investor Day, Colombian production has reached a positive inflection point earlier than expected. Production is set to grow, supported by disciplined development, base optimization, enhanced recovery techniques, and strong results from recent wells. Colombia will continue to provide a solid foundation to generate sustainable free cash flow, balance sheet strength, and shareholder returns. Returning to Growth with Vaca Muerta, Argentina: With the successful integration of the Loma Jarillosa Este and Puesto Silva Oeste blocks, GeoPark is confident it can unlock material long-term growth from its position in the unconventional Neuquen Basin. The team is focusing on accelerating drilling activity to deliver a step-change in production and cash flow. Vaca Muerta is expected to become a core growth platform in GeoPark's portfolio by year-end 2028. GeoPark remains open to considering offers that appropriately value the Company