GeoPark Announces Argentina Acquisition: Position, Cash Flow, Reserves and Upside

BUENOS AIRES, Argentina–(BUSINESS WIRE)–GeoPark Limited (“GeoPark” or the “Company”) (NYSE: “GPRK”), a leading
independent Latin American oil and gas explorer, operator and
consolidator with operations and growth platforms in Colombia, Chile,
Brazil, Argentina, and Peru, today announced the acquisition of three
blocks in the Neuquen Basin in Argentina with oil and gas production,
reserves and resources.

On December 18, 2017, GeoPark executed an asset purchase agreement
(“APA”) with Pluspetrol, a private oil and gas company with strong
presence across Latin America, to acquire a 100% working interest and
operatorship of the Aguada Baguales, El Porvenir and Puesto Touquet
blocks (“the blocks”) for a total consideration of $52 million. Closing
of the transaction is subject to customary regulatory approvals, and is
expected in the first quarter 2018.

The blocks include:

• oil and gas production of 2,700 barrels of oil equivalent per day
  (boepd) – 70% light oil and 30% gas
• low risk self-funding development and exploration opportunities to
  increase production
• proven and probable (2P) oil and gas reserves of approximately 12-14
  million barrels of oil equivalent (mmboe) and 3P reserves of
  approximately 18-20 mmboe (GeoPark estimates)
• exploration resources of approximately 15-30 mmboe (GeoPark
  estimates), plus additional upside potential in the Vaca Muerta
  unconventional play
• 137,000 acres well-positioned in the Neuquen Basin
• production facilities, including hydrocarbons treatment, storage, and
  delivery infrastructure

GeoPark is acquiring the blocks to strengthen its growing position in
Argentina and has identified attractive development and exploration
projects on the blocks with the potential to significantly increase
production and reserves – mainly funded with its own cash flow. The
acquisition will also provide tax savings and operational synergies with
GeoPark’s existing platform in Argentina.

James F. Park, Chief Executive Officer of GeoPark, said: “We are very
pleased to acquire these attractive blocks – with a full mix of
production, reserves and upside – in the heart of the Neuquen Basin; one
of the most prolific hydrocarbon basins in Latin America and where our
team has a proven history of exploration success and operating
experience. This acquisition is another important building block being
added to the underlying foundation of GeoPark’s risk-balanced project
portfolio, which has been the steady engine behind GeoPark’s 15-year
consistent track-record of continuous growth across Latin America.”

NOTICE

Additional information about GeoPark can be found in the “Investor
Support” section on the website at www.geo-park.com.

Rounding amounts and percentages: Certain amounts and percentages
included in this press release have been rounded for ease of
presentation. Percentage figures included in this press release have not
in all cases been calculated on the basis of such rounded figures, but
on the basis of such amounts prior to rounding. For this reason, certain
percentage amounts in this press release may vary from those obtained by
performing the same calculations using the figures in the financial
statements. In addition, certain other amounts that appear in this press
release may not sum due to rounding.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This press release contains statements that constitute forward-looking
statements. Many of the forward-looking statements contained in this
press release can be identified by the use of forward-looking words such
as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’
‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among
others.

Forward-looking statements that appear in a number of places in this
press release include, but are not limited to, statements regarding the
intent, belief or current expectations, regarding various matters,
including expected reserves, exploration resources, production growth,
payback timing, IRR, capital expenditures plan and the transaction
closing. Forward-looking statements are based on management’s beliefs
and assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties, and
actual results may differ materially from those expressed or implied in
the forward-looking statements due to various factors.

Forward-looking statements speak only as of the date they are made, and
the Company does not undertake any obligation to update them in light of
new information or future developments or to release publicly any
revisions to these statements in order to reflect later events or
circumstances, or to reflect the occurrence of unanticipated events. For
a discussion of the risks facing the Company which could affect whether
these forward-looking statements are realized, see filings with the U.S.
Securities and Exchange Commission.

Contacts

INVESTORS:
Stacy Steimel – Shareholder Value Director
Santiago,
Chile
T: +562 2242 9600
[email protected]
or
MEDIA:
Jared
Levy – Sard Verbinnen & Co
New York, USA
T: +1 (212)
687-8080
[email protected]
or
Kelsey
Markovich – Sard Verbinnen & Co
New York, USA
T: +1 (212)
687-8080
[email protected]