GeoPark Limited, a leading independent energy company with over two decades of successful operations across Latin America, has announced its operational update for the fourth quarter of 2024, covering the period from October to December 2024 (“4Q2024”). With a focus on strategic growth and operational performance, the update provides a detailed overview of It’s production activities, exploration initiatives, and plans in Latin America, as well as ongoing developments in Vaca Muerta, Argentina, and other key regions.
Oil and Gas Production Overview
During the fourth quarter of 2024, GeoPark reported consolidated average oil and gas production of 31,489 barrels of oil equivalent per day (boepd), reflecting a 5% decrease compared to the third quarter of 2024 (3Q2024). The drop in production was largely attributed to external disruptions such as blockades that impacted operations in the Llanos 34 (GeoPark operated, 45% working interest, WI) and CPO-5 (GeoPark non-operated, 30% WI) blocks in Colombia. Despite these challenges, GeoPark maintained a strong operational performance overall.
For the entire year, They achieved an annual average oil and gas production of 33,937 boepd, a solid result that underscores the company’s resilience in navigating production challenges across its Latin American assets.
At the close of 2024, It was operating a total of 10 rigs, including 4 drilling rigs and 6 workover rigs. Notably, one drilling rig was deployed in the prolific Vaca Muerta formation in Argentina. GeoPark successfully drilled 43 wells throughout the year, including 7 wells in the Vaca Muerta area. The company’s focus on operational safety and efficiency remained a priority, with zero recordable incidents reported during 4Q2024 on GeoPark-operated assets.
Llanos 34 Block: Enhancing Recovery with Waterflooding Projects
The Llanos 34 block, one of GeoPark’s most significant assets, continued to play a pivotal role in the company’s overall production during 4Q2024. Despite facing some challenges, the block averaged 19,342 boepd net (42,981 boepd gross) during the quarter, marking a 5% decline compared to 3Q2024. This decline was partially offset by the success of GeoPark’s workover and drilling campaigns, which contributed to increased production, particularly from the Curucucu 4 well, which is currently producing approximately 800 boepd gross.
In terms of enhanced recovery initiatives, the waterflooding campaigns in Llanos 34 have continued to deliver strong results. The waterflooding process has significantly bolstered production, adding approximately 5,500 gross boepd during 4Q2024, accounting for 13% of total production from the block. In addition, three new injector wells were brought online in October and December 2024, further optimizing recovery rates.
Furthermore, GeoPark added two development wells to its drilling campaign: Tigui 26 and Curucucu 2, both of which are expected to enhance the overall production outlook for the Llanos 34 block in the near term.
CPO-5 Block: Impact of Blockades on Production
The CPO-5 block, located in Colombia, faced operational setbacks during 4Q2024 due to blockades in the Indico field, resulting in a 17% decrease in production compared to 3Q2024. The block averaged 6,402 boepd net (21,342 boepd gross) in 4Q2024, and GeoPark is actively working to mitigate the impact of these blockades on production levels.
Despite the challenges, the CPO-5 block continues to show potential for growth and development. In September 2024, GeoPark’s Cante Flamenco 2 appraisal well reached total depth (TD), encountering 14 feet of net pay in the Lower Mirador Formation and 15 feet of net pay in the Ubaque Formation. The well is currently undergoing testing and evaluation, which is expected to provide valuable insights into the future potential of the field.
In addition, GeoPark conducted 3D seismic surveys over an area of 232 square kilometers, identifying new prospective opportunities that will be evaluated in the coming months to drive future production growth.
Vaca Muerta: Continued Strong Performance and Reserves Growth
GeoPark’s operations in Argentina’s Vaca Muerta formation continued to show strong performance during 4Q2024, with average production reaching 15,052 boepd gross, a 19% increase compared to 3Q2024. Production in the Mata Mora Norte block (GeoPark non-operated, 45% WI) and the Confluencia Norte block (GeoPark non-operated, 50% WI) were key contributors to this growth.
In November 2024, GeoPark achieved a production record of 16,060 boepd gross from the Vaca Muerta area, driven by steady growth in the Mata Mora Norte block and the successful production from the first exploration pad in the Confluencia Norte block. The first pad in Confluencia Norte achieved a peak production of 4,700 boepd gross, marking GeoPark’s first Vaca Muerta production in Rio Negro province. The pad consists of three wells, each with a 3,000-meter lateral length, and the results are comparable to production from the four-well pads in the Mata Mora Norte block.
GeoPark also received an updated reserves report from DeGolyer & MacNaughton (D&M), as of June 30, 2024, detailing the following net reserves in the Mata Mora Norte block:
- 39.1 million barrels of oil equivalent (mmboe) of 1P reserves
- 75.2 mmboe of 2P reserves
- 142.8 mmboe of 3P reserves
GeoPark plans to release the full 2024 D&M reserves report in February 2025, which is expected to show a significant increase in reserves in the Vaca Muerta area. The growth in Vaca Muerta reserves is expected to offset any potential declines in reserves from other regions, particularly Colombia.
Llanos Exploration: Successful Drilling Campaigns Drive Growth
In the Llanos region, GeoPark’s exploration efforts in the Llanos 123 block (GeoPark operated, 50% WI) delivered positive results during 4Q2024. The company reported a 13% increase in average production from the Llanos 123 block, with 1,792 boepd net (3,584 boepd gross) during the quarter, primarily driven by successful appraisal results.
During the quarter, GeoPark drilled the Toritos Sur-2 appraisal well, which reached total depth (TD) in November 2024 and is currently awaiting testing. Additionally, the Saltador-2 appraisal well was drilled in November 2024 but was completed as a disposal well due to low productivity. The Bisbita Oeste-1 appraisal well reached TD in late December 2024 and is scheduled for testing in January 2025.
GeoPark also received environmental licenses for its Llanos 86 and Llanos 104 blocks (GeoPark operated, 50% WI), which will allow the company to initiate exploration and development activities in both blocks. Final processing of 3D seismic data has identified new opportunities to be drilled in the coming months.
Putumayo: New Exploration Campaign Underway
In the Putumayo region, GeoPark is advancing its exploration efforts in the Platanillo and PUT-8 blocks. The Platanillo field was shut in due to its cost structure, but GeoPark remains focused on maximizing value in the region.
In the PUT-8 block (GeoPark operated, 50% WI), GeoPark spudded the Bienparado Norte-1 exploration well in December 2024, which reached TD in the first week of January 2025. Completion is expected in 1Q2025. Additionally, the license for the Bienparado Sur-1 exploration well was approved in December 2024, with drilling expected to begin in 1Q2025.
Looking Ahead: Key Catalysts for 1Q2025
GeoPark has laid out an ambitious drilling and exploration plan for 1Q2025, targeting 3-6 gross wells in Colombia and 4 gross wells in Argentina. Key projects include:
- Llanos 34 Block: Drilling 1 infill well in the Tigui area and 1 well in the Curucucu field.
- CPO-5 Block: Workover campaign to install an artificial lift in the Indico field.
- Mata Mora Norte Block: Putting on production at PAD-9 (3 wells) and finishing drilling PAD-12 (4 wells).
- Llanos 123 Block: Drilling 1-2 appraisal wells.
- PUT-8 Block: Drilling 1 exploration well.
Production Breakdown by Country
GeoPark’s quarterly production for 4Q2024 was as follows:
- Colombia: 29,740 boepd, a 13% decrease compared to 4Q2023.
- Ecuador: 1,749 boepd, a 23% increase compared to 4Q2023.
- Brazil: No production in 4Q2024, reflecting the company’s divestment in the region in early 2024.
- Chile: No production in 4Q2024 due to the divestment of operations in Chile.
Overall, GeoPark’s total production for 4Q2024 was 31,489 boepd, an 18% decrease compared to 4Q2023.
