GeoPark Reports Results for the Fourth Quarter and Full Year Ended December 31, 2017

Self-Funded Record Production, Reserves, Asset Value and Financial
Results

HOUSTON, Texas–(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, Peru,
Argentina, Brazil, and Chile reports its consolidated financial results
for the three-month period ended December 31, 2017 (“Fourth Quarter” or
“4Q2017”), and its audited annual results for 2017.

A conference call to discuss 4Q2017 Financial Results will be held on
March 8, 2018 at 10:00 a.m. Eastern Standard Time.

All figures are expressed in US Dollars and growth comparisons refer to
the same period of the prior year, except when specified. Definitions
and terms used herein, are provided in the Glossary at the end of this
document. This release does not contain all of the Company’s financial
information. As a result, investors should read this release in
conjunction with GeoPark’s consolidated financial statements and the
notes to those statements for the years ended December 31, 2017 and 2016
available on the Company’s website.

FOURTH QUARTER AND FULL YEAR 2017 HIGHLIGHTS

Record Oil and Gas Production

• Consolidated production up 30% to 30,654 boepd with current production
  of 33,000 boepd
• Colombia production up 39% to 24,378 boepd
• Annual average production up 23% to 27,586 boepd

Record Oil and Gas Reserves

• Certified consolidated proven (1P) reserves of 97 million boe
• Certified consolidated proven and probable (2P) reserves of 159.2
  million boe

Record Oil and Gas Asset Valuation – Total and Per Share

• Certified 1P NPV10 up 38% to $1.5 billion (equivalent to net debt
  adjusted NPV10 of $18.3 per share)
• Certified 2P NPV10 up 21% to $2.3 billion (equivalent to net debt
  adjusted NPV10 of $29.2 per share)
• Colombia 2P NPV10 up 38% to $1.4 billion (equivalent to net debt
  adjusted NPV10 of $15.8 per share)

Record Capital Investment and Cost Efficiencies

• Finding and development costs: Consolidated 2P of $4.0/boe / Colombia
  2P of $2.8/boe
• Full year 2017 operating costs of $7.3 per boe / Colombia $5.6 per boe
  / Llanos 34 $4.3 per boe
• Full year 2017 operating netback/capital expenditure ratio of 2.2x
• Capital investment program of $105.6 million in 2017 generated $404
  million in 2P NPV10

Record Cash Flow/Adjusted EBITDA Growth

• Adjusted EBITDA more than doubled – up 105% to $55.2 million / full
  year up 124% to $175.8 million
• Operating netback up 77% to $69.8 million / full year up 87% to $228.3
  million
• Full year cash flow from operating activities up 72% to $142.2 million
• Net loss reduced to $3.4 million / full year net loss of $17.8 million

Strengthened Balance Sheet and Credit Rating

• Cash in hand of $134.8 million
• Net debt to Adjusted EBITDA ratio decreased from 3.6x to 1.7x in 4Q2017
• 2024 new bond issued ($425 million at 6.5%), with longer maturities
  and lower cost, oversubscribed by four times by high-quality investors
• S&P upgraded GeoPark’s long-term corporate credit rating to B+ with a
  stable outlook

New Acreage/Projects Acquired and New Strategic Acquisition
Partnership Announced

• Colombia: Tiple and Zamuro high-impact exploration acreage acquired
  adjacent to Llanos 34 block
• Argentina: low-cost, cash flow-producing acquisition in the prolific
  Neuquen basin with production, development, exploration and
  unconventional opportunities
• ONGC Videsh + GeoPark strategic Latin American acquisition partnership

James F. Park, Chief Executive Officer of GeoPark, said: “Our team has
GeoPark firing on all cylinders. Through good science and engineering,
we found and produced more oil and gas. Through innovation and
efficiencies, we reduced our capital and operating costs. Through
organic cash flows, we self-funded our work and investment program.
Through effective capital allocation, every dollar of new investment
created multiples of net present value. Through engagement with our
neighbors and conscientious operations, we operated safely, cleanly and
without interruption. Through regional knowledge and scouting, we
acquired new high-impact acreage and projects. Through a rewarding and
motivating workplace, we were able to train and attract talented people
to continue to build our capabilities for the future. Through efforts to
more widely share our performance story, we were the number one
performing E&P stock on the NYSE. Our team now has a proven 15-year
track record of continuous growth, but we feel we are just getting
warmed up for the big opportunities coming our way.”

Production: Significant oil production growth of 39% in Colombia
increased average consolidated oil and gas production to 30,654 boepd in
4Q2017 from 23,593 boepd in 4Q2016. The increase was mainly attributed
to new oil production from the Tigana/Jacana oil fields in Llanos 34
block in Colombia. On a consolidated basis, gas production increased by
11% compared to 4Q2016, primarily attributed to increased industrial
demand in Brazil.

For further detail, please refer to 4Q2017 Operational Update published
on January 10, 2018.

Reference and Realized Oil Prices: Brent crude oil price averaged
$61.5 per bbl during 4Q2017, and the consolidated realized oil sales
price averaged $43.0 per bbl in 4Q2017, representing a 24% increase from
$34.6 per bbl in 3Q2017 and a 38% increase from $31.2 per bbl in 4Q2016.
Differences between reference and realized prices are a result of
commercial and transportation discounts as well as the Vasconia price
differential in Colombia, which averaged $4.0 per bbl in 4Q2017 from
$2.8 per bbl in 3Q2017 and $5.7 per bbl in 4Q2016. Commercial and
transportation discounts in Colombia were reduced to $14.9 per bbl in
4Q2017 from $15.2 per bbl in 3Q2017 and $15.0 per bbl in 4Q2016.

Company efforts are currently underway to continue improving realized
oil prices, including negotiation of existing conditions with off-takers
plus construction of a flowline and related facilities in Llanos 34
block, expected to continue improving current commercial and
transportation discounts.

The following table provides a breakdown of reference and net realized
oil prices in Colombia and Chile in 4Q2017:

Revenue: Higher oil and gas production and pricing drove total
consolidated revenues up by 76% to $106.3 million in 4Q2017, compared to
$60.3 million in 4Q2016.

Sales of crude oil: Consolidated oil
revenues increased by 87% to $92.2 million in 4Q2017, driven by a 35%
increase in oil sales volumes and a 38% increase in realized oil prices.
Oil revenues represented 87% of total revenues compared to 82% in 4Q2016.

• Colombia: In 4Q2017, oil revenues increased by 98% to $87.5 million
  mainly due to increased sales volumes and higher realized prices. Oil
  sales volumes increased by 40% to 23,283 bopd. Realized oil prices
  also increased by 40% to $42.6 per bbl, in line with higher Brent
  prices and a lower Vasconia discount. Colombia earn-out payments
  (deducted from Colombia oil revenues) increased to $3.7 million in
  4Q2017, compared to $2.3 million in 4Q2016, in line with increased
  production and higher oil revenues.
• Chile: In 4Q2017, oil revenues decreased by 11% to $4.4 million due to
  lower sales volumes partially offset by higher realized prices. Oil
  sales volumes decreased by 31% to 902 bopd and realized oil prices
  increased by 28% to $53.1 per barrel, in line with higher Brent prices.

Sales of gas: Consolidated gas revenues
increased by 28% to $14.1 million in 4Q2017 compared to $11.0 million in
4Q2016 due to 15% higher realized gas prices and 11% higher gas sales
volumes.

• Chile: In 4Q2017, gas revenues increased by 6% to $4.4 million mainly
  due to higher gas prices, partially offset by lower sales volumes. Gas
  prices increased by 24% to $4.5 per mcf ($27.1 per boe) in 4Q2017, due
  to increased methanol prices. Gas sales volumes decreased by 15% to
  10,630 mcfpd (1,772 boepd).
• Brazil: In 4Q2017, gas revenues increased by 42% to $9.4 million, due
  to both higher realized prices and sales volumes. Gas prices, net of
  taxes, increased by 8% to $5.7 per mcf ($34.0 per boe) due to the
  annual gas price inflation adjustment of approximately 7%, effective
  January 2017. Gas sales volumes increased by 31% to 18,000 mcfpd
  (3,000 boepd), primarily due to higher gas consumption by Brazilian
  industrial users.

Commodity risk management contracts: Consolidated commodity risk
management contracts registered a realized loss of $5.8 million in
4Q2017, totaling realized losses of $2.1 million in full year 2017 ($3.8
million cash gains were recorded and cashed-in during the first nine
months of 2017). Unrealized cash losses amounted to $12.6 million in
4Q2017 compared to $3.1 million loss in 4Q2016 resulting from the
significant increase in forward Brent oil price curve. The company uses
risk management contracts to minimize the impact of oil price
fluctuations on the Company´s self-funded work program.

Production and operating costs[1]:
Consolidated operating costs per barrel decreased by 9% to $7.3 per boe
in 4Q2017 from $8.1 per boe in 4Q2016. Following the 30% increase in oil
and gas sales volumes, total operating costs increased by $3.0 million
to $19.6 million. Consolidated royalties increased by $6.8 million to
$10.7 million in 4Q2017, mainly as the Jacana oil field in the Llanos 34
block accumulated more than five million barrels of production that
triggered Colombia’s “high price” royalty scheme beginning in 2Q2017,
and to a lesser extent due to increased volumes and higher realized
prices.

Below is a breakdown of production and operating costs by country:

• Colombia: Operating costs per boe remained flat at $6.1 per boe in
  both 4Q2017 and 4Q2016, due to:
  • Significant increase in volumes sold, 40% compared to a year
    earlier, that increased overall operating costs by 40% to $13.1
    million in 4Q2017 from $9.3 million in 4Q2016,
  • Incremental costs related to the reopening of mature oil fields
    temporarily closed in 4Q2016 which have higher operating costs per
    barrel compared to Llanos 34 block.
• Chile: Operating costs decreased by 6% to $5.2 million in 4Q2017 from
  $5.6 million in 4Q2016 mainly due to lower volumes sold (-21%). As a
  result of the lower volumes, operating costs per boe increased by 18%
  to $21.3.
• Brazil: Operating costs decreased by 45% to $1.0 million in 4Q2017
  from $1.7 million in 4Q2016, mainly due to a one-time recovery of
  maintenance costs in Manati that were incurred in previous quarters.
  Operating costs per boe decreased to $3.4 per boe from $8.0 in 4Q2016.

Selling expenses: Consolidated selling expenses decreased to $0.3
million in 4Q2017 compared to $0.6 million in 4Q2016.

Administrative, Geological and Geophysical expenses: Consolidated
G&A and G&G expenses increased by 15% to $14.5 million in 4Q2017
compared to $12.6 million in 4Q2016 mainly due to higher staff costs
resulting from an increased scale of operations. Consolidated G&A and
G&G costs per boe decreased by 13% to $5.5 per boe in 4Q2017 (vs. $6.1
per boe in 4Q2016).

Adjusted EBITDA: Consolidated adjusted EBITDA of $55.2 million
was more than two times higher than the $27.0 million in 4Q2016. That is
the equivalent of $20.6 per barrel and was driven by the combination of
increased production and higher realized oil and gas prices.

• Colombia: Adjusted EBITDA of $51.6 million in 4Q2017 (+95% vs. 4Q2016)
• Chile: Adjusted EBITDA of $1.1 million in 4Q2017 (+75% vs. 4Q2016)
• Brazil: Adjusted EBITDA of $7.2 million in 4Q2017 (+116% vs. 4Q2016)
• Corporate, Argentina and Peru: Adjusted EBITDA of negative $4.7
  million in 4Q2017

The table below shows production, volumes sold and breakdown of the most
significant components of adjusted EBITDA for 4Q2017 and 4Q2016, on a
per country and per barrel basis:

Depreciation: Consolidated depreciation increased by 17% to $19.8
million in 4Q2017, compared to $16.9 million in 4Q2016, due to higher
volumes sold. On a per barrel basis, however, depreciation costs were
lower given drilling successes and increased reserves. Depreciation
costs per boe decreased by 10% to $7.4 per boe.

Write-off of unsuccessful exploration efforts: Consolidated
write-off of unsuccessful exploration efforts was $1.1 million in
4Q2017, compared to $17.7 million in 4Q2016. Amounts recorded in 4Q2017
mainly correspond to unsuccessful exploration efforts in non-operated
Sierra del Nevado and Puelen blocks in Argentina.

Impairment of Non-Financial Assets: Consolidated non-cash
impairment of non-financial assets was zero in 4Q2017 compared to a $5.7
million gain in 4Q2016 ($5.7 million non-cash recovery in Colombia).

Other expenses: Other operating expenses were $2.7 million in
4Q2017, compared to $0.9 million in 4Q2016.

CONSOLIDATED NON-OPERATING RESULTS AND PROFIT FOR THE PERIOD

Net financial expenses: Net financial costs decreased by 7% to
$8.2 million in 4Q2017, compared to $8.9 million in 4Q2016, mainly
resulting from lower bank charges and other financial results.

Foreign exchange: Net foreign exchange charges were a $3.6
million loss in 4Q2017 and $1.4 million loss in 4Q2016, mainly due to
the devaluation of the Brazilian Real over the US Dollar-denominated net
debt incurred at the local subsidiary level, where the Real is the
functional currency.

Income tax: Income taxes amounted to a $10.7 million in 4Q2017,
as compared to a $9.7 million in 4Q2016, in line with higher taxable
profits in 4Q2017.

Net income: Net losses amounted to $3.4 million in 4Q2017
compared to $26.0 million in 4Q2016. The net loss in 4Q2017 resulted
from unrealized hedge charges.

BALANCE SHEET

Cash and cash equivalents: Cash and cash equivalents totaled
$134.8 million as of December 31, 2017 compared to $73.6 million a year
earlier. The difference reflects cash generated from operating
activities of $142.2 million and cash from financing activities of $24.0
million, partially offset by cash used in investing activities of $105.6
million.

Cash generated from operating activities of $142.2 million is net of a
$15.6 million advance payment paid in December 2017 to Pluspetrol, as a
security deposit related to the recently announced acquisition of Aguada
Baguales, El Porvenir and Puesto Touquet blocks in Neuquen basin in
Argentina, which is expected to close in March 2018.

Cash from financing activities of $24.0 million includes net proceeds
from the issuance of 2024 Notes of $418.3 million, offset by: (i)
principal paid of $355.0 million related to the payment of 2020 Notes
and the prepayment of the Itau loan, (ii) cancellation costs of $12.3,
and (iii) interest payments of $27.7 million.

Cash used in investing activities of $105.6 million (76% allocated to
Colombia) includes capital expenditures related to development,
appraisal and exploration activities carried out in 2017 that allowed
GeoPark to increase its reserves with low finding and development costs
of $3.6/boe for 1P and $4.0/boe for 2P reserves (or $2.4/boe and
$2.8/boe for 1P and 2P, respectively in Colombia).

Financial debt: Total financial debt (net of issuance costs)
amounted to $426.2 million, including the $425 million 2024 Notes issued
in September 2017. Short-term debt amounted to $7.7 million as of
December 31, 2017.

FINANCIAL RATIOSa

Issuance of 2024 Notes: During September 2017, the Company
successfully placed $425 million notes (“2024 Notes”). The 2024 Notes
carry a coupon of 6.50% per annum. Funds were used to repay financial
debt, to provide financial flexibility and for general corporate
purposes.

The indenture governing the 2024 Notes includes incurrence test
covenants that require the net debt to adjusted EBITDA ratio be lower
than 3.5 times and the adjusted EBITDA to interest ratio higher than 2
times until September 2019. Failure to comply with the incurrence test
covenants would not trigger an event of default. As of the date of this
release the Company is in compliance with all provisions and covenants.

COMMODITY RISK OIL MANAGEMENT CONTRACTS

The Company has the following commodity risk management contracts
(reference ICE Brent), in place as of the date of this release:

For further details, please refer to Note 8 of GeoPark’s consolidated
financial statements for the year ended December 31, 2017, available on
the Company’s website.

Contacts

GeoPark Limited
INVESTORS:
Santiago, Chile
Stacy
Steimel – Shareholder Value Director
ssteimel@geo-park.com
or
MEDIA:
New
York, USA
Jared Levy – Sard Verbinnen & Co
T: +1 (212)
687-8080
jlevy@sardverb.com
or
Kelsey
Markovich – Sard Verbinnen & Co
T: +1 (212) 687-8080
kmarkovich@sardverb.com

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