GeoPark Limited (NYSE: GPRK): Four new exploration wells at Confluencia Sur
• The FY24 production had been reported previously.• Gross production in Argentina is approximately 15,000 boe/d and is expected to increase to around 16,000-17,000 boe/d by the end of 2025.
• The acquisition of the Argentinian assets is anticipated to be completed in late 1Q25 or early 2Q25 pending the regulatory approval of the Neuquen province.
• While the test results at the three wells drilled at Confluencia Norte in 2024 exceeded expectations, no reserves were booked for this area in 2024 since the licence is still in the exploration phase. The booking of reserves is expected to occur in 2026 as the company sanctions the development of the licence.
• During 2Q25, GeoPark is expected to start drilling four new exploration wells at Confluencia Sur. This could be very material as this block is estimated to hold 56 mmboe 3C contingent resources net to GeoPark.
• We reiterate our target price of US$17 per share. Our unrisked NAV for Confluncia Norte and Sur is ~US$17 per share.
Valuation
Our ReNAV now stands at ~US$17.63 per share. The main potential upside is at Confluencia Norte (C3 resources of 39 mmboe) and Confluencia Sur (C3 resources of 56 mmboe), where we carry an unrisked NAV of approximately US$6.90 per share.
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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