London September 2010
2
A T L A
N T I C
O C
E A N
S T R
A I T
M A G A L L A N E S O F
A R G E N T I N AA R G E N T I N A
C H I L EC H I L E
PUNTA ARENAS
OTWAY25%
FELL100%TRANQUILO
25%
Proven Production and Development
High Impact Exploration Upside
ASSETS CAPABILITIES EXECUTION OPPORTUNITY COMMITMENT+ + + +
Value Drivers Oil and Gas Finder and Developer
DEL MOSQUITO100%
3
0
10
20
30
40
50
60
March 2006 March 2008 July 2009 September 10 (e)
2P R
eser
ves
(MM
boe)
2P Gas 2P Oil
Executive Summary 1H 2010 Performance
0
1
2
3
4
5
6
7
8
2005 2006 2007 2008 2009 1H 2010
(Mbo
e/d)
Gas Oil and Condensate
Production
Reserves
Financial Performance:
• 120% Increase in Revenue (US$ 39.6 MM)
– Oil selling price increased by 92%
– Gas selling price increased by 58%
• Net Income Increase (US$9.7 MM)
• 142% Increase in Cash Flow (US$ 23.7 MM)
• 170% Increase in CAPEX: (US$34.3 MM)
Operational Performance:
• 8% Oil and Gas Production Increase (6,872 boepd)
– Oil production grew by 94% to an average of 1,966 barrels
• Consistent Drilling Success (13 new wells)
• 40% Oil and Gas Reserve Increase (2P of 55 mmboe):
– Based on GeoPark’s estimates, after deducting production since D&M report in July 2009
LGI Strategic Partnership:
• To jointly to acquire and develop upstream oil and gas projects throughout Latin America.
4
1H 2010 Revenue mix
Oil61%
Gas39%
1H 2009 Revenue mix
Oil38%
Gas62%
Interim Results 1H 2010 Performance
1H 2010 Revenues Reconciliation Revenue Mix
Revenues, OPEX and EBITDA per BOE
Revenues 1H 2009 vs 1H 2010 (in US$'000)
39,627
17,982
(2.139)
6,560
6,244
10,980
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1H 2009 Decrease in gasproduction
Increase in oilproduction
Increase in gasprice
Increase in oilprice
1H 2010
-15
-10
-5
0
5
10
15
20
25
30
35
1H 2007 1H 2008 1H 2009 1H 2010
-50%
-25%
0%
25%
50%
75%
Revenue/BOE OPEX/BOE EBITDA/BOE EBITDA Mg/BOE
US
$/B
OE
5
Net Income Balance Sheet
Amounts in US$ ´000 1H 2010 1H 2009
Revenues 39,627 17,982
Total expenses (15,942) (11,198)
EBITDA 23,685 6,784
Depreciation (10,406) (8,058)
Accrual of stock options and stock awards (429) (618)
Capitalization of interests and G&G costs 936 1,006
Financial results (708) (2,501)
Stand by costs - (1,049)
Write off and impairment result (500) -
Income tax (2,257) (59)
Other operating costs (616) (541)
INCOME / (LOSS) 9,705 (5,036)
Interim Results 1H 2010 Performance
Amounts in US$ ´000 1H 2010 1H 2009
PP&E 146 109
Inventories 2 2
Cash and Equivalents 9 8
Other Assets 18 13
TOTAL ASSETS 174 131
Long-Term Borrowings 42 37
Short-Term Borrowings 14 11
Other Liabilities 22 19
TOTAL LIABILITIES 78 68
TOTAL EQUITY 78 68
8,526
(34,285)
(4,634)
23,685
23,760
Initial cash EBITDA Net Borrow ings andWK
Net capex Ending cash
1H 2010 Cash Flow Reconciliation 1H 2010 CAPEX Detail
Wells 72%
Prod. Facilities and Machinery
E&E Assetsfrom JV
Seismic Others
6
References
FELL BLOCK
NATIONAL PARK
PROBABLE OIL
PROVED OIL
PROVED GAS
POSSIBLE GAS
PROBABLE GAS
PROSPECT
LEAD
POSSIBLE OIL
3D SEISMIC
2010 Drilling Program
Total : 14 Wells• 5 Exploration (2 Oil, 3 Gas)• 5 Appraisal (3 Oil, 2 Gas)• 4 Develop. (3 Oil, 1 Gas)
Completed :• Dicky -16 (WOC) • Alakaluf -6• Alakaluf -8• Guanaco -3• Aonikenk Sur 1• Alakaluf -7• Alakaluf -9• Tetera -4• Co. Iturbe -1• Ayelén -2 (WOC)• Yagán N. -2 (WOC)• Guanaco -4 • Dicky -18 (WOC)
Next Wells :• Ayelén -1 (Drilling)• Guanaco -6• MAy -35 • Copihue -1
Development
Exploration &
appraisal
Productive Oil
Productive Gas
2010 Drilling Program
5 km
C H I L E
A R G E N T I N A
Aonikenk Sur x-1
Copihue x-1Tetera a-4
Alakaluf 9 App.
Alakaluf a-7
Guanaco x-3Munición Oeste x-2
Alakaluf 6
Alakaluf 8
Ayelen 1
Guanaco 4Yagán Norte 2
Cerro Iturbe x-1 Ayelen a-2
MAy 35Di-18
Guanaco 6STRAIT
OF
MAGALLANES
Production and Development Base Fell Block
7
Production Fell Block
Bringing Production On Line:
Learning to Produce at Technical Limits:
0
1
2
3
4
5
6
7
8
9
2005 2006 2007 2008 2009 2010 2010
Ave
rage
Dai
ly P
rodu
ctio
n (M
boe/
d)
Gas Oil and Condensate
Annual Production Growth: 96%/year
Forecast
(3Q)
2010 Budget
-8%∆∆∆∆ Prod:Oil: -18%Gas: -4% 2010 FY Average Daily Production Guidance:
• 2010 production is expected to be between 15% to 20% above the 2009 average.
• Exit production is projected to be above 8,500 boepd.
• Average daily production for 2010 is approximately 8% below prior expectations.
Initiatives to Boost Production:
• Review surface networks to identify bottle-necks.
• Review workover opportunities.
• Screen stimulation technology.0
100
200
300
400
500
600
700
800
Well
Per
form
ance
Netw
ork/F
acilit
iesRi
g Sc
hedu
ling
Down
time
Unde
r Stu
dy
TOTA
L
BO
ED
8
High Impact Exploration Tra nquilo Block
MARCOU_1
49
8A
6
3A
5
MANZANO_2
MANZANO
4
ZURDO_1
KERBER_1 / 2
ESPERANZA_3
ESPERANZA_2
ESPERANZA_1
DIANA_2
DIANA_1
GALES
MORRO CHICO
ESPERANZA
TN_1
5
4 3
98
76 2A2
TRANQUILO_1
SAN_JOSE_1
SAN_ANTONIO_1
EL_SALTO_1
KERBER
DIANA
MARCOU
Satellite ImageSatellite ImageDigital Elevation ModelDigital Elevation Model
CHILE
ARGENTINA
DIANA
KERBER
GALES
TranquiloTranquiloBlockBlock
MARCOU
ESPERANZA
10 km
Total UMR: 1,251 BCFAv. POS: 19%
Total UMR: 89 BCFAv. POS: 18%
Total UMR: 86 BCFAv. POS: 15%
3D ESPERANZA: 93 Km2
2D ESPERANZA – KERBER - GALES: 226 Km
2D DIANA: 144 Km
3D MARCOU: 70 Km2
• Total Area: 6648 Km2• 2D Seismic: 1428.3 Km• Total Wells: 23• Type of Contract: CEOP (Contrato Especial de Operacion
Petrolera)• Consortium (*): GeoPark 25%, Pluspetrol 25%, Winterhsall
25%, IFC 12.5% and Methanex 12.5%.• Operator: GeoPark.
• Work Program Commitment:
First Exploration Period (3 Years)1- Acquire, process & interpret 370 Km 2D Seismic2- Acquire, process & interpret 160 Sqkm 3D Seismic3- Drill 6 exploration Wells at the following depth:
600 (x2),800,1000,1700 & 2300 mbgl(*) Subject to Chilean Government approval.
Progress
23%
3D Esperanza Completed
100%
39%
2D Seismic (Diana, Gales, Kerber) Interrupted (to be restarted in Nov 2010)
3D Marcou (Cabo Negro) Interrupted (to be restarted in 2011)
2010 Update
9
High Impact Exploration Otw ay Block
• Total Area: 5965 Km2• 2D Seismic: 988.5 Km• Total Wells: 31• Type of Contract: CEOP (Contrato Especial de Operacion
Petrolera)• Consortium: GeoPark 25%, Pluspetrol 25%, Winterhsall 25%,
IFC 12.5% and Methanex 12.5%.• Operator: GeoPark.
• Work Program Commitment:
First Exploration Period (3 Years)1- Acquire 270 Sqkm 3D Seismic2- Drill 2 exploration wells (TD: 2200 & 3000m)
PATOS-1TRES PUENTES-1
LAS HOJAS-1
VULCANO_1
PARRILLAR_1
OTWAY_1
MINA_RICA_4
MINA_RICA_3 MINA RICA-2/2A
MINA_RICA_1
COREY_4
COREY_3
COREY_2
COREY_1
PRAT 1
PONSOMBY_1
KON_AIKE_2
KON_AIKE_1
GRIMAL_1
CHILENITA_1
ARACELIS_3
ARACELIS_2ARACELIS_1
CHILENITA_2
TRES BRAZOS-1
LEÑADURA-1
CANELOS 1
EL GANSO 1
PECKET
P-6
P-3P-4P-5
P-2PECKET 1
RIESCO
CABO NEGRO
OtwayOtwayBlockBlock
Satellite ImageSatellite ImageDigital Elevation ModelDigital Elevation Model
CHILENITA
ARACELIS-Pta. EUGENIA
RIO PESCADO
PRAT-Cta.CANDEM-CANELOS
10 km
Total UMR: 197 BCFAv. POS: 24%
Total UMR: 122 BCFAv. POS: 15%
Total UMR: 1,570 BCFAv. POS: 17%
Total UMR: 161 BCFAv. POS: 14%
2D ISLA RIESCO: 175 Km
3D CABO NEGRO: 270 Km2Progress
2D Seismic n/a (Isla de Riesco)
56%
2010 Update
3D Cabo Negro Interrupted (to be restarted in 2011)
10
New Opportunities Strategic Growth Partnership
A T L A
N T I C
O C
E A N
M A G A L L A N E S O F
LG International strategic growth partnership:
• Partnership with LGI to build a diversified risk-balanced portfolio of upstream projects across Latin America.
• Side by side acquisitions initially targeting US$ 100-500 million range size.
• GeoPark is General Manager of partnership and Operator of acquired projects.
• LGI contributes technical and financial strength.
• High flexibility: GeoPark participation in projects from 10 to 75% and LGI participation in projects from 25 to 90%
DEL MOSQUITO
TRANQUILO FELL
LOMA CORTADERAL
CERRO DOÑA JUANA
OTWAY
A T
L A
N T
I C
O C
E A
N
P A
C I
F I
C
O C
E A
N
COLOMBIA
BRAZILPERU
ARGENTINA
CH
ILE
DEL MOSQUITO
TRANQUILO FELL
LOMA CORTADERAL
CERRO DOÑA JUANA
OTWAY
A T
L A
N T
I C
O C
E A
N
P A
C I
F I
C
O C
E A
N
COLOMBIA
BRAZILPERU
ARGENTINA
CH
ILE
SOUTH AMERICA
GEOPARK OPERATED BLOCKS
SOUTH AMERICAGEOPARK OPERATED BLOCKS
CURRENT COUNTRIES
TARGET COUNTRIES+
H
H
M
M
L
LRangeValue
Prosp
ectivity-Upside
200 400
US$MMProject I
600
Project IV
Project VII
Project VIII
Project III
Project VI
Project II
Project V
Projects in Discussion
Projects UnderEvaluation
Projects BeingInitiated
Projects in Discussion
Projects UnderEvaluation
Projects BeingInitiated
11
Commitment Underpins Long Term Success
Creating a safe and organized workplace ensuring that everyone returns home from work everyday
without injury.
Respecting and protecting the region, laws, customs and people where we work – and creating real and sustainable opportunities and benefits for the local communities.
Performing with effort, quality and beyond our commitments to
continuously build market value for shareholders. Only a financially
healthy company can provide benefits for others.
Leaving the environment in the same or better natural condition than when
it was encountered.
SAFETY PROSPERITY
ENVIRONMENTCOMMUNITY
EMPLOYEESProviding the opportunity for
employees to grow professionally, contribute to and share in the
success of the Company.
CREATING VALUE BUSINESS MODEL
S.P.E.E.D.
12
Company Directory
Web Page: www.geo-park.com
E-mail: [email protected]
Main Office
GEOPARK HOLDINGS LIMITED
Florida 981, 4th floor
1005 Buenos Aires, Argentina
Phone: (+54 11) 4312 9400
Operations Office
GEOPARK CHILE LIMITED
Maipú 979, Punta Arenas, Chile
Phone (+56 61) 617 210
Nominated Adviser & Broker
Oriel Securities Limited
125 Wood Street
London EC2V 7AN, United Kingdom
www.orielsecurities.com
Reporting Petroleum Engineers
DeGolyer and MacNaughton
5001 Spring Valley Road Suite 800 East
Dallas, Texas 75244, USA
www.demac.com
Solicitors
Norton Rose LLP
3 More London Riverside
London SE1 2AQ
www.nortonrose.com
Auditors
PricewaterhouseCoopers
1 Embankment Place
London WC2N 6RH
www.pwc.com