GeoPark, a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil, Chile and Ecuador announces its business approach for the new oil price scenarios and current revisions to its 2020 work program.

2020 STRATEGY AND OUTLOOK

GeoPark begins 2020 from a strong financial position, which includes cash in hand of $168.5 million[1], $168 million of uncommitted credit lines and a long-term financial debt profile with no principal payments until 2024.

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, Chile and Ecuador today announces its business approach for the new oil price scenarios and current revisions to its 2020 work program.

Specifically, GeoPark’s program and strategy are guided by the following principles and priorities:

• Keep Team Healthy: Protect workforce and families from the pandemic and its interruptions
• Continuity of Field Operations: Ensure backup plans and teams in place to guarantee continuity of operations and business
• Preserve Cash: Adjust the work program to maintain flexibility and balance sheet strength
• Capital Allocation Discipline: Prioritize lower-risk, higher netback, and quick cash flow generating projects
• Do More for Less: Implement operating, G&A and capital cost reduction measures
• Stay Agile: Continuous monitoring of work programs and adjustment – up or down – as necessary
• Build for the Long-Term: Protect critical tools and capabilities necessary for the long-term

Examples of the ongoing cost-cutting initiatives already implemented and providing results include:

• Renegotiation of all service contracts, as well as any other type of contract
• Improvements in operational efficiency
• Temporary suspension of certain marginal fields
• Overall reduction of G&A and structure costs, starting with a voluntary salary and bonus reduction by GeoPark’s management team and Board of Directors, as well as general renegotiation of fees and expenses
• Temporary suspension of quarterly cash dividends (following upcoming payment on April 8) and share buybacks

Additional cost reductions are expected from reduced government royalties and a general depreciation of Latin American currencies, positively impacting GeoPark’s operating and G&A costs.

James F. Park, Chief Executive Officer of GeoPark, said:
“The world and our industry are facing a challenging test, however, we are confident and optimistic based on five key factors. First, GeoPark’s tested experience in prevailing through previous major crises with a 17-year steady track record of continuous growth. Second, GeoPark’s people who are among the most skilled, dedicated and experienced professionals in the industry. Third, GeoPark’s low-cost, efficient and safe operating base and asset quality that provide cash flow at even the lowest oil prices. Fourth, GeoPark’s strong balance sheet and proven capital discipline and agility in quickly adjusting work programs enable it to withstand shocks of even an extreme nature. Fifth, GeoPark’s culture of alignment, hard work, perseverance and seeing opportunity where others don’t.”

REVISED 2020 WORK PROGRAM AND OIL PRICE SENSITIVITIES

Effective immediately, GeoPark has adjusted its 2020 capital expenditures program to $70-80 million, approximately a 60% reduction from prior preliminary estimates (approximately $180-200 million including capital expenditures for Amerisur assets).

The bulk of the revised 2020 work program will be allocated to the Llanos basin in Colombia to continue unlocking the potential of the Llanos 34 block (GeoPark operated, 45% WI) and to carry out discretionary development, appraisal and exploration activities in the newly acquired CPO-5 block (GeoPark non-operated, 30% WI).

The Llanos 34 and CPO-5 blocks represent key strategic assets providing GeoPark with the lowest risk production and reserve replacement opportunities and attractive operating netbacks even in a low oil price environment.

Key features and strengths of the revised 2020 work program include:

• A low-cost production base, of which 90% is cash flow positive at $25-30 per bbl oil prices
• Capital efficient work programs with an operating netback to capital expenditures ratio 2.0-2.5+ times even with Brent at $25-30 per bbl
• Oil hedges covering 30% of the Company’s oil production through December 2020

The table below summarizes key operational and financial information and sensitivities of operating netbacks at different oil prices, assuming a $70-80 million base case capital expenditures work program for Brent prices at around $25-30 per bbl and potentially expanding to $90-100 million if Brent prices recover to $35-40 per bbl.