Stephane Foucaud

Stephane Foucaud inquired about the next value steps for the Frontera deal, potential actions to secure the acquisition against a competing offer, GeoPark's view on potential conflicts of interest regarding Parex's director nominations, and an update on current production in Argentina.

Answer

CEO Felipe Bayón stated that Frontera must assess the new offer, while GeoPark's arrangement agreement remains in place, and the board will assess all options with financial discipline. Bayón explicitly identified a conflict of interest regarding Parex's director nominations, viewing it as a hostile strategy. Regarding Argentina, Bayón expressed satisfaction with the Vaca Muerta entry, announcing the mobilization of a Nabors rig next week to start drilling five wells, expecting an uplift in production by year-end. COO Martín Terrado elaborated on Vaca Muerta progress, including workover campaigns, permits, and the upcoming drilling, targeting an exit rate of 5,000-6,000 boepd for 2026.

Stephane Foucaud from Auctus Advisors asked about the remaining value steps for the Frontera acquisition until closing, including potential mechanisms like break fees, and raised concerns about potential conflicts of interest regarding Parex's director nominations while simultaneously making an offer for Frontera's assets. He also requested an update on current production and operational progress in Argentina.

Answer

CEO Felipe Bayón stated that assessing the new offer is Frontera's decision, while GeoPark's arrangement agreement remains in place, and the board will evaluate all options to create long-term shareholder value without losing financial discipline. Bayón explicitly stated his belief in a conflict of interest regarding Parex's nominations, viewing it as a deliberate and hostile strategy. For Argentina, Bayón expressed satisfaction with the Vaca Muerta entry, highlighting two workover campaigns and the imminent start of a five-well drilling campaign next week, expecting a production uplift by year-end. COO Martín Terrado elaborated on Vaca Muerta progress, including incident-free operations, 37% cheaper second workover campaign, submitted environmental permits, awarded contract for Loma Jarillosa Este upgrade, and the upcoming drilling of five wells with 220 fracs.

Stephane Foucaud asked for the current production level excluding Ecuador, the potential resources from recent exploration wells, and clarification on a perceived write-down at the CPO-5 block.

Answer

COO Martín Terrado stated that July production was strong, near the top of the first-half average of 28,200 boe/d. CFO Jaime Caballero Uribe clarified there were no CPO-5 write-offs in 2025; the reference was to a 2024 event. Chief Exploration & Development Officer Rodrigo Dalle Fiore added that recent discoveries were promising but it was too early to quantify reserves pending further appraisal.

Stephane Foucaud of Auctus Advisors LLP inquired about the status of the Cote D'Ivoire FPSO project, asking if it was still ahead of schedule, and questioned the directional outlook for Q3 operating cash flow given several moving parts.

Answer

CEO George Maxwell confirmed the FPSO project remains ahead of schedule, with potential for accelerated spending if the trend continues. CFO Ronald Bain added that Q3 operating cash flow is expected to see a positive inflow, driven by the collection of a $19 million receivable from June and anticipated improvements in other receivables, which should offset the impact of lower sales in the quarter.

Stephane Foucaud of Auctus Advisors asked about the 2025 drilling plans for Canada and their dependency on an upcoming exploration well. He also requested a reconciliation of a production figure discrepancy in the presentation slides.

Answer

George Maxwell (executive) stated that a drilling program in Canada for 2025 is likely, with a size similar to 2024, to maintain the liquids-to-gas ratio. The success of the exploration well could cause a 'slight change in sequencing' for future wells. He attributed the minor production number discrepancy to rounding in the presentation.