Form 20-F

X

Form 40-F

Table of Contents

GEOPARK LIMITED

TABLE OF CONTENTS

ITEM

1.

Interim Condensed Consolidated Financial Statements and Explanatory Notes for the three-month and six-month periods ended June 30, 2022 and 2023.

Table of Contents

GEOPARK LIMITED

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

AND EXPLANATORY NOTES

For the three-month and six-month periods ended June 30, 2022 and 2023

Table of Contents

GEOPARK LIMITED

JUNE 30, 2023

CONTENTS

Page

3

Condensed Consolidated Statement of Income

4

Condensed Consolidated Statement of Comprehensive Income

5

Condensed Consolidated Statement of Financial Position

6

Condensed Consolidated Statement of Changes in Equity

7

Condensed Consolidated Statement of Cash Flow

8

Explanatory Notes to the Interim Condensed Consolidated Financial Statements

2

Table of Contents

GEOPARK LIMITED

JUNE 30, 2023

CONDENSED CONSOLIDATED STATEMENT OF INCOME

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Amounts in US$ ´000

Note

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

REVENUE

3

182,326

311,229

364,777

560,380

Commodity risk management contracts

4

-

(15,523)

-

(93,676)

Production and operating costs

5

(60,689)

(115,063)

(113,185)

(195,666)

Geological and geophysical expenses

6

(2,543)

(2,953)

(5,060)

(5,697)

Administrative expenses

7

(11,341)

(10,834)

(20,702)

(20,780)

Selling expenses

8

(2,223)

(1,173)

(4,576)

(3,168)

Depreciation

(29,357)

(23,204)

(56,560)

(44,784)

Write-off of unsuccessful exploration efforts

10

(1,613)

-

(12,193)

-

Other (expenses) income

(5,051)

882

(6,407)

5,394

OPERATING PROFIT

69,509

143,361

146,094

202,003

Financial expenses

9

(11,240)

(16,614)

(22,160)

(32,066)

Financial income

9

1,720

1,128

2,812

1,440

Foreign exchange (loss) gain

9

(9,582)

7,087

(12,974)

454

PROFIT BEFORE INCOME TAX

50,407

134,962

113,772

171,831

Income tax expense

(16,657)

(67,101)

(53,765)

(72,966)

PROFIT FOR THE PERIOD

33,750

67,861

60,007

98,865

Earnings per share (in US$). Basic

0.59

1.13

1.04

1.65

Earnings per share (in US$). Diluted

0.59

1.12

1.04

1.63

The above condensed consolidated statement of income should be read in conjunction with the accompanying notes.

3

Table of Contents

GEOPARK LIMITED

JUNE 30, 2023

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Amounts in US$ ´000

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Profit for the period

33,750

67,861

60,007

98,865

Other comprehensive income

Items that may be subsequently reclassified to profit or loss:

Currency translation differences

731

(2,788)

1,332

1,199

(Loss) Profit on cash flow hedges

(58)

(696)

1,084

(4,247)

Income tax benefit (expense) relating to cash flow hedges

29

243

(542)

1,486

Other comprehensive profit (loss) for the period

702

(3,241)

1,874

(1,562)

Total comprehensive profit for the period

34,452

64,620

61,881

97,303

The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

4

Table of Contents

GEOPARK LIMITED

JUNE 30, 2023

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Note

At June 30, 2023

Year ended

Amounts in US$ ´000

(Unaudited)

December 31, 2022

ASSETS

NON CURRENT ASSETS

Property, plant and equipment

10

685,957

666,879

Right-of-use assets

34,357

37,011

Prepayments and other receivables

140

121

Other financial assets

13,939

12,877

Deferred income tax asset

22,303

18,943

TOTAL NON CURRENT ASSETS

756,696

735,831

CURRENT ASSETS

Inventories

18,710

14,434

Trade receivables

56,067

71,794

Prepayments and other receivables

23,276

22,106

Derivative financial instrument assets

15

2,051

967

Cash and cash equivalents

86,422

128,843

TOTAL CURRENT ASSETS

186,526

238,144

TOTAL ASSETS

943,222

973,975

EQUITY

Equity attributable to owners of the Company

Share capital

11

57

58

Share premium

123,016

134,798

Reserves

48,867

61,876

Accumulated losses

(24,654)

(81,147)

TOTAL EQUITY

147,286

115,585

LIABILITIES

NON CURRENT LIABILITIES

Borrowings

12

486,757

485,114

Lease liabilities

25,535

22,051

Provisions and other long-term liabilities

13

58,973

51,947

Deferred income tax liability

52,657

70,123

TOTAL NON CURRENT LIABILITIES

623,922

629,235

CURRENT LIABILITIES

Borrowings

12

12,528

12,528

Lease liabilities

9,351

10,000

Derivative financial instrument liabilities

15

-

19

Current income tax liability

44,981

65,002

Trade and other payables

14

105,154

141,606

TOTAL CURRENT LIABILITIES

172,014

229,155

TOTAL LIABILITIES

795,936

858,390

TOTAL EQUITY AND LIABILITIES

943,222

973,975

The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes.

5

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GEOPARK LIMITED

JUNE 30, 2023

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Attributable to owners of the Company

Share

Share

Other

Translation

Accumulated

Amount in US$ '000

Capital

Premium

Reserve

Reserve

losses

Total

Equity at January 1, 2022

60

169,220

97,261

(13,707)

(314,779)

(61,945)

Comprehensive income:

Profit for the six-month period

-

-

-

-

98,865

98,865

Other comprehensive (loss) profit for the period

-

-

(2,761)

1,199

-

(1,562)

Total comprehensive (loss) profit for the period ended June 30, 2022

-

-

(2,761)

1,199

98,865

97,303

Transactions with owners:

Share-based payment

1

534

-

-

2,858

3,393

Repurchase of shares

(1)

(9,478)

-

-

-

(9,479)

Cash distribution

-

-

(9,656)

-

-

(9,656)

Total transactions with owners for the period ended June 30, 2022

-

(8,944)

(9,656)

-

2,858

(15,742)

Balance at June 30, 2022 (Unaudited)

60

160,276

84,844

(12,508)

(213,056)

19,616

Equity at January 1, 2023

58

134,798

73,462

(11,586)

(81,147)

115,585

Comprehensive income:

Profit for the six-month period

-

-

-

-

60,007

60,007

Other comprehensive profit for the period

-

-

542

1,332

-

1,874

Total comprehensive profit for the period ended June 30, 2023

-

-

542

1,332

60,007

61,881

Transactions with owners:

Share-based payment

1

6,870

-

-

(3,514)

3,357

Repurchase of shares

(2)

(18,652)

-

-

-

(18,654)

Cash distribution

-

-

(14,883)

-

-

(14,883)

Total transactions with owners for the period ended June 30, 2023

(1)

(11,782)

(14,883)

-

(3,514)

(30,180)

Balance at June 30, 2023 (Unaudited)

57

123,016

59,121

(10,254)

(24,654)

147,286

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

6

Table of Contents

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

Six-month

Six-month

period ended

period ended

June 30, 2023

June 30, 2022

Amounts in US$ '000

(Unaudited)

(Unaudited)

Cash flows from operating activities

Profit for the period

60,007

98,865

Adjustments for:

Income tax expense

53,765

72,966

Depreciation

56,560

44,784

Loss on disposal of property, plant and equipment

338

8

Write-off of unsuccessful exploration efforts

12,193

-

Amortization of other long-term liabilities

(73)

(89)

Accrual of borrowing interests

15,393

19,817

Borrowings cancellation costs

-

3,037

Unwinding of long-term liabilities

3,288

3,246

Accrual of share-based payment

3,357

3,393

Foreign exchange loss (gain)

15,883

(454)

Unrealized loss on commodity risk management contracts

-

26,529

Income tax paid

(94,219)

(12,348)

Change in working capital

(28,787)

(46,812)

Cash flows from operating activities - net

97,705

212,942

Cash flows from investing activities

Purchase of property, plant and equipment

(88,347)

(71,843)

Proceeds from disposal of long-term assets

-

14,425

Cash flows used in investing activities - net

(88,347)

(57,418)

Cash flows from financing activities

Principal paid

-

(84,167)

Interest paid

(13,750)

(19,309)

Borrowings cancellation and other costs paid

-

(8,300)

Lease payments

(5,093)

(3,956)

Repurchase of shares

(18,654)

(9,479)

Cash distribution

(14,883)

(9,656)

Cash flows used in financing activities - net

(52,380)

(134,867)

Net (decrease) increase in cash and cash equivalents

(43,022)

20,657

Cash and cash equivalents at January 1

128,843

100,604

Currency translation differences

601

1,246

Cash and cash equivalents at the end of the period

86,422

122,507

Ending Cash and cash equivalents are specified as follows:

Cash at bank and bank deposits

86,410

122,498

Cash in hand

12

9

Cash and cash equivalents

86,422

122,507

The above condensed consolidated statement of cash flow should be read in conjunction with the accompanying notes.

7

Table of Contents

EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1

General information

GeoPark Limited (the "Company") is a company incorporated under the laws of Bermuda. The Registered Office address is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.

The principal activity of the Company and its subsidiaries (the "Group" or "GeoPark") is the exploration, development and production for oil and gas reserves in Colombia, Chile, Brazil and Ecuador.

These interim condensed consolidated financial statements were authorized for issue by the Board of Directors on August 8, 2023.

Basis of Preparation

The interim condensed consolidated financial statements of GeoPark Limited are presented in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for full annual financial statements and should be read in conjunction with the annual consolidated financial statements as of and for the year ended December 31, 2022, which have been prepared in accordance with IFRS.

The interim condensed consolidated financial statements have been prepared in accordance with the accounting policies applied in the most recent annual consolidated financial statements. The Group has not early adopted any standard, interpretation or amendment that has been issued but is not yet effective. The amendments and interpretations detailed in the annual consolidated financial statements as of and for the year ended December 31, 2022, that apply for the first time in 2023, do not have an impact on the interim condensed consolidated financial statements of the Group.

Whenever necessary, certain comparative amounts have been reclassified to conform to changes in presentation in the current period.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

The activities of the Group are not subject to significant seasonal changes.

Estimates

The preparation of interim financial information requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. Actual results may differ from these estimates.

In preparing these interim condensed consolidated financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual consolidated financial statements as of and for the year ended December 31, 2022.

Financial risk management

The Group's activities expose it to a variety of financial risks: currency risk, price risk, credit risk concentration, funding and liquidity risk, interest risk and capital risk. The interim condensed consolidated financial statements do not include all the financial risk management information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group's annual consolidated financial statements as of and for the year ended December 31, 2022.

8

Table of Contents

Note 1 (Continued)

Financial risk management (Continued)

The Group is continually reviewing its exposure to the current market conditions and adjusting the capital expenditures program which remains flexible, quickly adaptable and expandable as oil and gas prices increase. The Group also continues to add new oil hedges, increasing its price risk protection within the upcoming four quarters. GeoPark maintained a cash position of US$ 86,422,000 and has available US$ 133,304,000in uncommitted credit lines as of June 30, 2023.

Subsidiary undertakings

The following chart illustrates the main companies of the Group structure as of June 30, 2023:

(1) GeoPark Ecuador S.A. holds 50% working interest in the consortiums that operate the Espejo and Perico Blocks.

Details of the subsidiaries and joint operations of the Group are set out in Note 21 to the annual consolidated financial statements as of and for the year ended December 31, 2022.

During the six-month period ended June 30, 2023, the following change took place:

● The merger process between GeoPark Colombia S.A.S., GeoPark Colombia E&P S.A. and Petrodorado South America S.A., with GeoPark Colombia S.A.S. being the surviving company, was approved by the relevant Colombian authorities and the merger became effective as of its registration in the Public Registry of the Chamber of Commerce of Bogota on January 27, 2023.

9

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Note 2

Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee. This committee is integrated by the Chief Executive Officer, Chief Financial Officer, Chief Technical Officer, Chief Operating Officer, Chief Strategy, Sustainability and Legal Officer and Chief People Officer. This committee reviews the Group's internal reporting to assess performance and allocate resources. Management has determined the operating segments based on these reports. The committee considers the business from a geographic perspective.

The Executive Committee assesses the performance of the operating segments based on a measure of Adjusted EBITDA. Adjusted EBITDA is defined as profit (loss) for the period (determined as if IFRS 16 Leases has not been adopted), before net finance cost, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful exploration efforts, accrual of share-based payment, unrealized result on commodity risk management contracts, geological and geophysical expenses allocated to capitalized projects, and other non-recurring events. Other information provided to the Executive Committee is measured in a manner consistent with that in the consolidated financial statements.

Six-month period ended June 30, 2023:

Amounts in US$ '000

Total

Colombia

Chile

Brazil

Argentina

Ecuador

Corporate

Revenue

364,777

340,294

7,974

7,487

-

7,073

1,949

Sale of crude oil

348,942

339,912

1,698

259

-

7,073

-

Sale of purchased crude oil

1,949

-

-

-

-

-

1,949

Sale of gas

13,886

382

6,276

7,228

-

-

-

Production and operating costs

(113,185)

(101,210)

(4,045)

(2,136)

-

(4,158)

(1,636)

Royalties

(10,758)

(9,922)

(250)

(586)

-

-

-

Economic rights

(39,562)

(39,562)

-

-

-

-

-

Share-based payment

(259)

(232)

(25)

-

-

(2)

-

Operating costs

(62,606)

(51,494)

(3,770)

(1,550)

-

(4,156)

(1,636)

Depreciation

(56,560)

(47,331)

(5,535)

(1,175)

(11)

(2,506)

(2)

Adjusted EBITDA

218,836

215,623

2,578

3,978

(1,193)

1,449

(3,599)

Six-month period ended June 30, 2022:

Amounts in US$ '000

Total

Colombia

Chile

Brazil

Argentina

Ecuador

Corporate

Revenue

560,380

522,913

15,338

11,720

1,962

3,084

5,363

Sale of crude oil

535,416

521,890

8,293

485

1,664

3,084

-

Sale of purchased crude oil

5,363

-

-

-

-

-

5,363

Sale of gas

19,601

1,023

7,045

11,235

298

-

-

Production and operating costs

(195,666)

(177,067)

(8,761)

(2,898)

(1,579)

(927)

(4,434)

Royalties

(33,555)

(31,740)

(626)

(916)

(273)

-

-

Economic rights

(107,255)

(107,255)

-

-

-

-

-

Share-based payment

(529)

(465)

(65)

-

1

-

-

Operating costs

(54,327)

(37,607)

(8,070)

(1,982)

(1,307)

(927)

(4,434)

Depreciation

(44,784)

(35,879)

(7,176)

(1,518)

(187)

(22)

(2)

Adjusted EBITDA

267,358

261,989

5,448

7,476

(3,827)

883

(4,611)

Total Assets

Total

Colombia

Chile

Brazil

Argentina

Ecuador

Corporate

June 30, 2023

943,222

808,172

56,742

34,317

252

35,413

8,326

December 31, 2022

973,975

797,390

63,379

34,329

1,296

35,690

41,891

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Table of Contents

Note 2 (Continued)

Segment Information (Continued)

A reconciliation of total Adjusted EBITDA to total Profit before income tax is provided as follows:

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Adjusted EBITDA

103,913

144,791

218,836

267,358

Unrealized gain (loss) on commodity risk management contracts

-

21,084

-

(26,529)

Depreciation (a)

(29,357)

(23,204)

(56,560)

(44,784)

Write-off of unsuccessful exploration efforts

(1,613)

-

(12,193)

-

Share-based payment

(1,899)

(2,367)

(3,357)

(3,393)

Lease accounting - IFRS 16

3,193

2,174

5,093

3,956

Others (b)

(4,728)

883

(5,725)

5,395

Operating profit

69,509

143,361

146,094

202,003

Financial expenses

(11,240)

(16,614)

(22,160)

(32,066)

Financial income

1,720

1,128

2,812

1,440

Foreign exchange (loss) gain

(9,582)

7,087

(12,974)

454

Profit before tax

50,407

134,962

113,772

171,831

(a) Net of capitalized costs for oil stock included in Inventories. Depreciation for the six-month period ended June 30, 2023, includes US$ 938,000 (US$ 1,023,000 in 2022) generated by assets not related to production activities. For the three-month period ended June 30, 2023, the amount included in depreciation is US$ 452,000 (US$ 484,000 in 2022).
(b) Includes allocation to capitalized projects. In 2022, it also includes the gain from the sale of the Aguada Baguales, El Porvenir and Puesto Touquet Blocks in Argentina.

Note 3

Revenue

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Sale of crude oil

173,828

296,420

348,942

535,416

Sale of purchased crude oil

1,157

5,363

1,949

5,363

Sale of gas

7,341

9,446

13,886

19,601

182,326

311,229

364,777

560,380

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Note 4

Commodity risk management contracts

The Group has entered into derivative financial instruments to manage its exposure to oil price risk. These derivatives are zero-premium collars and were placed with major financial institutions and commodity traders. The Group entered into the derivatives under ISDA Master Agreements and Credit Support Annexes, which provide credit lines for collateral posting thus alleviating possible liquidity needs under the instruments and protect the Group from potential non-performance risk by its counterparties.

The Group's derivatives that hedge cash flows from the sales of crude oil for periods through December 31, 2022, are accounted for as non-hedge derivatives and therefore all changes in the fair values of these derivative contracts are recognized immediately as gains or losses in the results of the periods in which they occur.

The Group's derivatives that hedge cash flows from the sales of crude oil for periods from January 1, 2023 onwards, are designated and qualify as cash flow hedges. The effective portion of changes in the fair values of these derivative contracts are recognized in Other Reserve within Equity. The gain or loss relating to the ineffective portion, if any, is recognized immediately as gains or losses in the results of the periods in which they occur. The amount accumulated in Other Reserves is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the hedged cash flows affect profit or loss.

The following table summarizes the Group's production hedged during the six-month period ended June 30, 2023, and for the following periods as a consequence of the derivative contracts in force as of June 30, 2023:

Volume

Average

Period

Reference

Type

bbl/d

price US$/bbl

January 1, 2023 - March 31, 2023

ICE BRENT

Zero Premium Collars

9,500

66.05 Put 112.59 Call

April 1, 2023 - June 30, 2023

ICE BRENT

Zero Premium Collars

10,000

69.25 Put 110.56 Call

July 1, 2023 - September 30, 2023

ICE BRENT

Zero Premium Collars

9,000

70.00 Put 94.69 Call

October 1, 2023 - December 31, 2023

ICE BRENT

Zero Premium Collars

6,000

69.17 Put 90.25 Call

January 1, 2024 - March 31, 2024

ICE BRENT

Zero Premium Collars

1,000

65.00 Put 82.00 Call

The table below summarizes the loss on the commodity risk management contracts:

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Realized loss on commodity risk management contracts

-

(36,607)

-

(67,147)

Unrealized gain (loss) on commodity risk management contracts

-

21,084

-

(26,529)

Total

-

(15,523)

-

(93,676)

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Note 5

Production and operating costs

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Staff costs

3,996

3,453

7,107

6,950

Share-based payment

234

411

259

529

Royalties

3,578

18,763

10,758

33,555

Economic rights

23,450

64,007

39,562

107,255

Well and facilities maintenance

6,001

5,166

11,374

9,953

Operation and maintenance

2,049

1,647

3,681

3,432

Consumables

8,454

4,768

16,099

10,081

Equipment rental

552

1,881

1,767

4,268

Transportation costs

1,421

994

2,963

1,975

Field camp

1,619

904

2,824

1,899

Safety and insurance costs

1,095

1,012

1,822

2,100

Personnel transportation

918

630

1,678

1,231

Consultant fees

473

753

959

1,075

Gas plant costs

428

416

977

1,098

Non-operated blocks costs

5,097

3,443

9,598

4,705

Crude oil stock variation

(116)

1,043

(1,275)

(1,289)

Purchased crude oil

957

4,617

1,636

4,617

Other costs

483

1,155

1,396

2,232

60,689

115,063

113,185

195,666

Note 6

Geological and geophysical expenses

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Staff costs

1,849

1,887

3,836

3,859

Share-based payment

166

543

246

406

Communication and IT costs

463

283

940

945

Consultant fees

232

51

435

153

Allocation to capitalized project

(323)

(1)

(682)

(1)

Other services

156

190

285

335

2,543

2,953

5,060

5,697

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Table of Contents

Note 7

Administrative expenses

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Staff costs

6,861

5,741

12,557

11,817

Share-based payment

1,494

1,413

2,847

2,458

Consultant fees

2,567

2,334

4,522

3,991

Safety and insurance costs

854

1,046

1,978

1,976

Travel expenses

611

398

1,102

571

Non-operated blocks expenses

331

83

657

296

Director fees and allowance

201

144

401

837

Communication and IT costs

879

349

1,446

1,050

Allocation to joint operations

(3,156)

(2,124)

(6,298)

(4,393)

Other administrative expenses

699

1,450

1,490

2,177

11,341

10,834

20,702

20,780

Note 8

Selling expenses

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Staff costs

133

229

234

448

Share-based payment

5

-

5

-

Transportation

1,438

860

2,873

2,238

Selling taxes and other

647

84

1,464

482

2,223

1,173

4,576

3,168

Note 9

Financial results

Three-month

Three-month

Six-month

Six-month

period ended

period ended

period ended

period ended

Amounts in US$ '000

June 30, 2023

June 30, 2022

June 30, 2023

June 30, 2022

Financial expenses

Bank charges and other financial costs

(1,797)

(2,915)

(3,479)

(5,952)

Interest and amortization of debt issue costs

(7,699)

(9,460)

(15,393)

(19,831)

Borrowings cancellation costs

-

(2,218)

-

(3,037)

Unwinding of long-term liabilities

(1,744)

(2,021)

(3,288)

(3,246)

(11,240)

(16,614)

(22,160)

(32,066)

Financial income

Interest received

1,720

1,128

2,812

1,440

1,720

1,128

2,812

1,440

Foreign exchange gains and losses

Foreign exchange (loss) gain

(11,606)

7,087

(15,883)

454

Result on currency risk management contracts

2,024

-

2,909

-

(9,582)

7,087

(12,974)

454

Total financial results

(19,102)

(8,399)

(32,322)

(30,172)

14

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Note 10

Property, plant and equipment

Furniture,

Exploration

equipment

Production

Buildings

and

Oil & gas

and

facilities and

and

Construction

evaluation

Amounts in US$ '000

properties

vehicles

machinery

improvements

in progress

assets

Total

Cost at January 1, 2022

957,932

18,421

201,177

11,662

27,204

100,470

1,316,866

Additions

(4,065)

(a)​

411

-

-

57,093

19,069

72,508

Disposals

-

(324)

(26)

-

-

-

(350)

Transfers

53,582

14

11,111

23

(56,050)

(8,680)

-

Currency translation differences

2,747

36

218

6

16

18

3,041

Cost at June 30, 2022

1,010,196

18,558

212,480

11,691

28,263

110,877

1,392,065

Cost at January 1, 2023

1,079,257

19,093

222,727

11,027

16,480

113,041

1,461,625

Additions

3,848

(a)​

520

12

10

51,367

28,575

84,332

Disposals

-

(1,209)

-

(2,150)

(38)

-

(3,397)

Write-offs

-

-

-

-

-

(12,193)

(b)​

(12,193)

Transfers

44,085

-

6,445

5

(45,690)

(4,845)

-

Currency translation differences

3,698

48

295

9

22

24

4,096

Cost at June 30, 2023

1,130,888

18,452

229,479

8,901

22,141

124,602

1,534,463

Depreciation and write-down at January 1, 2022

(563,157)

(16,377)

(116,617)

(6,668)

-

-

(702,819)

Depreciation

(34,607)

(683)

(5,872)

(340)

-

-

(41,502)

Disposals

-

323

19

-

-

-

342

Currency translation differences

(2,262)

(31)

(218)

(6)

-

-

(2,517)

Depreciation and write-down at June 30, 2022

(600,026)

(16,768)

(122,688)

(7,014)

-

-

(746,496)

Depreciation and write-down at January 1, 2023

(642,280)

(16,799)

(129,073)

(6,594)

-

-

(794,746)

Depreciation

(45,643)

(665)

(6,591)

(273)

-

-

(53,172)

Disposals

-

1,182

-

1,877

-

-

3,059

Currency translation differences

(3,299)

(44)

(295)

(9)

-

-

(3,647)

Depreciation and write-down at June 30, 2023

(691,222)

(16,326)

(135,959)

(4,999)

-

-

(848,506)

Carrying amount at June 30, 2022

410,170

1,790

89,792

4,677

28,263

110,877

645,569

Carrying amount at June 30, 2023

439,666

2,126

93,520

3,902

22,141

124,602

685,957

(a) Corresponds to the effect of the change in the estimate of assets retirement obligations.
(b) Corresponds to two unsuccessful exploratory wells drilled in the Llanos 87 Block (Colombia) and other exploration costs incurred in the Llanos 94 and the Coati Blocks (Colombia) for which no additional work was performed.

15

Table of Contents

Note 11

Equity

Share capital

At

Year ended

Issued share capital

June 30, 2023

December 31, 2022

Common stock (US$ ´000)

57

58

The share capital is distributed as follows:

Common shares, of nominal US$ 0.001

56,569,653

57,621,998

Total common shares in issue

56,569,653

57,621,998

Authorized share capital

US$ per share

0.001

0.001

Number of common shares (US$ 0.001 each)

5,171,949,000

5,171,949,000

Amount in US$

5,171,949

5,171,949

GeoPark's share capital only consists of common shares. The authorized share capital consists of 5,171,949,000 common shares, par value US$ 0.001 per share. All of the Company's issued and outstanding common shares are fully paid and nonassessable.

Cash distributions

On March 8, 2023, and May 3, 2023, the Company's Board of Directors declared cash dividends of US$ 0.13 per share which were paid on March 31, 2023, and May 31, 2023.

Buyback program

On November 9, 2022, the Company's Board of Directors approved the renewal of the program to repurchase up to 10% of its shares outstanding or approximately 5,854,285 shares until December 31, 2023. During the six-month period ended June 30, 2023, the Company purchased 1,723,823common shares for a total amount of US$ 18,654,000. These transactions have no impact on the Group's results.

Other reserves

GeoPark applies hedge accounting for the derivative financial instruments entered to manage its exposure to oil price risk. Consequently, the Group's derivatives that hedge cash flows from the sales of crude oil for periods from January 1, 2023 onwards, are designated and qualify as cash flow hedges and, therefore, the effective portion of changes in the fair values of these derivative contracts and the income tax relating to those results are recognized in Other Reserve within Equity. The amount accumulated in Other Reserves is reclassified to profit or loss as a reclassification adjustment in the same period or periods during which the hedged cash flows affect profit or loss. No reclassifications have been made during the six-month period ended June 30, 2023.

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Note 12

Borrowings

The outstanding amounts are as follows:

At

Year ended

Amounts in US$ '000

June 30, 2023

December 31, 2022

2027 Notes

499,285

497,642

499,285

497,642

Classified as follows:

Current

12,528

12,528

Non-Current

486,757

485,114

Note 13

Provisions and other long-term liabilities

The outstanding amounts are as follows:

At

Year ended

Amounts in US$ '000

June 30, 2023

December 31, 2022

Assets retirement obligation

45,720

40,903

Deferred income

790

757

Other

12,463

10,287

58,973

51,947

Note 14

Trade and other payables

The outstanding amounts are as follows:

At

Year ended

Amounts in US$ '000

June 30, 2023

December 31, 2022

Trade payables

79,374

102,125

To be paid to co-venturers

2,952

2,815

Customer advance payments

-

481

Staff costs to be paid

6,670

9,306

Royalties to be paid

1,964

9,403

V.A.T.

7,482

8,513

Taxes and other debts to be paid

6,712

8,963

105,154

141,606

Classified as follows:

Current

105,154

141,606

Non-Current

-

-

17

Table of Contents

Note 15

Fair value measurement of financial instruments

Fair value hierarchy

The following table presents the Group's financial assets and financial liabilities measured and recognized at fair value at June 30, 2023, and December 31, 2022, on a recurring basis:

At

Amounts in US$ '000

Level 1

Level 2

June 30, 2023

Assets

Cash and cash equivalents

Money market funds

324

-

324

Derivative financial instrument assets

Commodity risk management contracts

-

2,051

2,051

Total Assets

324

2,051

2,375

At

Amounts in US$ '000

Level 1

Level 2

December 31, 2022

Assets

Cash and cash equivalents

Money market funds

242

-

242

Derivative financial instrument assets

Commodity risk management contracts

-

967

967

Total Assets

242

967

1,209

Liabilities

Derivative financial instrument liabilities

Commodity risk management contracts

-

19

19

Total Liabilities

-

19

19

There were no transfers between Level 2 and 3 during the period. The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as of June 30, 2023.

Fair values of other financial instruments (unrecognized)

The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. For the majority of these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature.

Borrowings are comprised of fixed rate debt and are measured at their amortized cost. The Group estimates that the fair value of its financial liabilities is approximately 82% of its carrying amount, including interest accrued as of June 30, 2023. Fair value was calculated based on market price for the Notes and is within Level 1 of the fair value hierarchy.

18

Table of Contents

Note 16

Capital commitments

Capital commitments are detailed in Note 33.2 to the audited Consolidated Financial Statements as of December 31, 2022. The following updates have taken place during the six-month period ended June 30, 2023:

The Group incurred investments of US$ 19,420,000 to fulfil its commitments, at GeoPark's working interest.

Colombia

The Colombian National Hydrocarbons Agency ("ANH") approved GeoPark's request to extend the exploratory phase in the Llanos 87 Block until May 14, 2023. As of the date of these interim condensed consolidated financial statements, the investments needed to fullfil the commitments in the block have already been incurred and the ANH approval is pending.

GeoPark drilled one of the two exploratory wells committed in the Llanos 123 Block. This investment requires the approval from the ANH to fulfil the Group's commitment.

Brazil

The Brazilian National Petroleum, Natural Gas and Biofuels Agency ("ANP") approved GeoPark's request to extend the exploratory phase in the POT-T-785 until April 29, 2025.

Argentina

On July 5, 2023, the local authority approved the request to suspend the first exploratory period in the Los Parlamentos Block until October 30, 2023.

Note 17

Subsequent events

On August 3, 2023, GeoPark Colombia S.A.S., as borrower, and GeoPark Limited, as guarantor, signed a senior unsecured credit agreement with Banco BTG Pactual S.A. and Banco Latinoamericano de Comercio Exterior S.A. which provides GeoPark with access to up to US$ 80,000,000, with an availability period of fifteen months and final maturity of twenty-four months. The agreement establishes a commitment fee of 1.85% per annum with respect to any undrawn amount and, if drawn, an interest rate of SOFR + 3.70%. "SOFR" (Secured Overnight Financing Rate) is a broad measure of the cost of borrowing cash overnight collateralized by treasury securities. As of the date of these interim condensed consolidated financial statements, GeoPark has not withdrawn any amount.

19

Table of Contents

Attachments

Disclaimer

Geopark Limited published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 21:42:44 UTC.