GeoPark Limited (NYSE: GPRK): Further positive exploration results
• The Bisbita Centro-1 well (Llanos-123) encountered hydrocarbons in the Guadalupe formation. The well is currently producing ~860 bbl/d of 19 degrees API oil with a water cut of less than 1%.• At Llanos-87, the Zorzal Este exploration well that encountered 40 feet of pay in the Guadalupe is currently producing ~660 bbl/d of 33 degrees API oil with a water cut of less than 1%.
• The Zorzal Este 2 well (Llanos-87) spudded in late November 2023 and is expected to reach total depth in late December 2023/early January 2024.
• Overall the FY23 exploration programme has added 5.5 mbbl/d gross production, including 3,200 bbl/d at Llanos-123 and Llanos-87 blocks and 2,300 bbl/d at Perico in Ecuador. Importantly these new areas of production are associated with discoveries made since the summer. They should start contributing to the reserves estimate at YE23.
• Zorzal and Toritos could be particularly material and be important contributors to production and reserves growth in 2024. The 2024 work programme includes 3-9 gross wells to continue delineating these new plays.
• We re-iterate our target price of US$25 per share.
New CFO
GeoPark has appointed Jaime Caballero Uribe to the position of CFO. Until August 2023, Mr Caballero Uribe was Group CFO at Ecopetrol (listed on the NYSE) the largest corporation in Colombia and one of the 400 largest companies in the world. Mr Caballero Uribe was previously CFO for the Brazil Region (which includes Colombia, Uruguay and Venezuela) at BP.
Valuation
As we incorporate the results at Bisbita and Zorzal Este, we have increased our Core NAV and ReNAV from respectively ~US$17/sh and ~US$24/sh to US$19/sh and US$25/sh.
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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