The cornerstone of this expansion is GeoPark’s acquisition of the Loma Jarillosa Este and Puesto Silva Oeste blocks from Pluspetrol in October 2025, adding 36.7 mmboe to the portfolio. This boost enabled a remarkable 430% reserves replacement ratio, underscoring GeoPark’s capacity to replenish and grow its production base. The newly acquired Argentine assets now represent approximately 30% of the company’s total reserves. GeoPark has implemented productivity enhancements at Loma Jarillosa Este, including installing rod pumps in select wells, which currently produce nearly 1,870 barrels per day from six wells.
GeoPark is actively advancing its development plans in Vaca Muerta, aiming to significantly scale up production with a target plateau of 20,000 barrels per day by 2028. A new drilling program scheduled for the second half of 2026 is central to this goal. The operator’s strategic focus on hydraulic fracturing (fracking) techniques in these unconventional tight oil reservoirs has been highlighted as a key factor to enhance extraction efficiency and accelerate output growth.
In Colombia, GeoPark maintained a stable and growing asset base, with proven and probable reserves increasing by approximately 2.6 mmboe, excluding the effects of recent divestments. This growth stems from technical revisions and operational improvements in key blocks such as CPO-5 and Llanos 123, including enhanced recovery initiatives in the Bisbita field and successful infill drilling campaigns in Llanos 34. The block CPO-5 benefited from improved performance in the Índico field, while Llanos 34 continues to provide a consistent production foundation.
The company’s reserve life index now stands at 7.2 years for proven reserves and 12.7 years for proven and probable reserves, reflecting the strengthened and diversified portfolio. GeoPark reported a net increase of 31.2 mmboe in its 2P reserves after considering asset sales. The certified proven reserves total 69 mmboe. This balanced portfolio combines the high-growth potential of Argentina’s shale resources with the steady cash flow from Colombia’s mature conventional fields.
Financially, GeoPark continues to demonstrate capital discipline and operational efficiency, with a low finding, development, and acquisition (FD&A) cost of USD 4.3 per barrel of oil equivalent based on 2P reserves. The company’s net present value (NPV10) of 2P reserves is estimated at USD 1.3 billion, translating into a per-share value of USD 15.80 after net debt adjustments.
Despite facing a challenging oil price environment and a reduction in second-quarter 2025 earnings driven by a non-recurring impairment linked to divestment of Ecuadorian assets, GeoPark reported resilient operational metrics. The company’s adjusted EBITDA margin remained strong at 60%, supported by proactive cost management and strategic hedging covering approximately 87% of its production at guaranteed price floors between USD 68 and 70 per barrel of Brent crude for 2025.
GeoPark’s CEO Felipe Bayón, who took the helm in 2025, emphasized the company’s ongoing commitment to optimizing its portfolio through a combination of organic growth and strategic acquisitions. He underscored the role of Vaca Muerta as a transformative asset that complements a stable and resilient Colombian base, positioning GeoPark for sustainable expansion across Latin America’s diverse energy landscapes.
The company’s financial health is marked by a strong cash position of USD 266 million and a modest net leverage ratio of 1.1x, with no significant debt maturities until 2027. In parallel, GeoPark has initiated share buybacks aimed at reducing interest expenses and enhancing shareholder value.
As energy markets grow increasingly complex, GeoPark’s strategic moves in Argentina and Colombia demonstrate a well-calibrated approach to balancing high-potential unconventional resource development with stable conventional operations, supported by disciplined financial management and technological expertise in hydraulic fracturing.
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This article was curated and published as part of our South American energy market coverage.
