GeoPark Acquires Working Interest In Four High Quality Adjacent Blocks In World Class Vaca Muerta; GeoPark Will Pay $190M For A Total Of 122,315 Gross Acres, Will Fund 100% Of Exploratory Commitments Up To $113M Gross, To Be Funded Over 2-Years, An Acquisition Of Midstream Capacity According To The WI Of $11M, And A $10M Bonus Contingent On Results In The Confluencia Exploration Campaign

Existing Production, Reserves and Cash Flow

Low-Risk Development Underway With Large Scale Upside

Well-Positioned Acreage With Available Infrastructure

Proven Unconventional Strategic Partner

GeoPark Limited ("GeoPark" or the "Company") (NYSE:GPRK), a leading independent Latin American oil and gas explorer, operator, and consolidator, today announced that it has signed an Asset Purchase Agreement with Phoenix Global Resources ("PGR"), a subsidiary of Mercuria Energy Trading ("Mercuria"), for the acquisition of non-operated working interest (WI) in four adjacent unconventional blocks in the Neuquén Basin in Argentina as follows: a 45% WI in each of the Mata Mora Norte producing block and Mata Mora Sur exploration block, located in Neuquén Province, and a 50% WI in each of the Confluencia Norte and Confluencia Sur exploration blocks, located in Rio Negro Province.

Summary of Terms

• GeoPark will pay $190 million for a total of 122,315 gross acres (58,402 net acres)
• In addition to the upfront consideration, GeoPark will fund 100% of exploratory commitments up to $113 million gross ($57 million of net carry), to be funded over two years, an acquisition of midstream capacity according to the WI of $11 million, and a $10 million bonus contingent on results in the Confluencia exploration campaign
• The transaction is expected to close before the end of 3Q2024, pending customary regulatory approvals

Competitive Valuation Metrics

• For Mata Mora Norte Block, the valuation is approximately $9,000 per acre8
• Based on net reserves, the valuations are $7.1/boe 1P reserves and $3.5/boe 2P reserves (D&M, December 2023)
• Valuation per flowing barrel at closing is approximately $28,000
• The 2024 EV/EBITDA multiple is 1.8x (at $80-90 Brent oil price)
• The plateau EV/EBITDA multiple is 0.6x (at $70 Brent oil price)

Financing and Capital Structure

• The upfront consideration will be funded with a mix of available cash and a partial draw of an existing oil prepayment facility that offers flexible and cost-effective terms. Longer term commitments will be funded with a combination of cash generated by the assets and financing
• The pro forma net debt to Adjusted EBITDA ratio following the transaction is not expected to exceed 1.1x9

Strategic Facilities and Infrastructure

• Facilities are in place to handle 20,000 boepd of gross production, and additional facilities will be in place by 2025-2026 to handle the expected plateau production
• Two oil pipelines run directly through the block and a third is under construction, facilitating transport options for exports
• Approximately 90% of oil sales are transported by pipeline, with 70% destined for export and 30% for the domestic market
• Gas production is approximately 6% of total production, with 50% sold to third parties and 50% used for internal consumption