GeoPark Limited (NYSE: GPRK): Current net production of >38 mboe/d including 9 mbbl/d at CPO-5
• 1Q24 production of 35,473 boe/d., Production from CPO-5 was impacted by blockades over 22 days. As a result, net production at CPO-5 was only ~5.6 mbbl/d (vs our forecast of 7.5 mbbl/d).• Production at CPO-5 has now been restored. In addition, the Indico well started production in April with current gross rate of 3.71 mbbl/d. Overall net production at CPO-5 is now ~9 mbbl/d, the highest rate achieved on the block.
• Production in the Manati gas field has been temporarily suspended since mid-March, when it was producing approximately 1,200 boe/d, due to unscheduled maintenance activities Production is expected to be restored in May.
• The horizontal drilling programme at Llanos-34 is delivering good results, with net current net production of 24.3-24.8 mbbl/d (up ~1 mbbl/d vs 1Q24).
• Overall, current net production is over 38 mboe/d.
• The FY24 production guidance of 35.5-39.0 mboe/d is unchanged and we re-iterate our target price of US$26 per share. Further visibility on the Argentina acquisition could be a catalyst for the share price.
Growing exploration
650+ km2 of 3D seismic was acquired on Llanos-86 and Llanos-104 with exploration drilling expected in 1Q25. These areas are adjacent to the eastern side of CPO-5. 232 km2 of 3D seismic was acquired in the northeastern part of CPO-5. GeoPark has spudded the Cisne 1 exploration well to further delineate the northern area of the block where reserves can grow. In addition, GeoPark is expected to drill one appraisal and one exploration well on Llanos-123, one appraisal well at Perico (Ecuador) and one exploration well at Espejo (Ecuador).
Valuation
Our Core NAV and ReNAV are broadly unchanged at respectively US$20.84 per share and US$25.51 per share. The current dividend yield is ~5.5%.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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