GeoPark Limited

Good morning and welcome to the GO Park Limited Conference Call following the results announcement for the fourth quarter ended December 31, 2019. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at this time, press star 1 on your telephone keypad. If you would like to withdraw your question, press the pound key. If you do not have a copy of the press release, please call SARD, Verbinion & Company in New York at 1-212-687-8080 and we will have one sent to you. Alternatively, you may obtain a copy of the release at the Investor Support section on the company's corporate website, www.geo-park.com. A replay of today's call will be accessed at the Investor Support section of the Geopark corporate website. Before we continue, please note that certain statements contained in the results press release and on this conference call are forward-looking statements rather than historical facts and are subject to risk and uncertainties that could cause actual risks to differ materially from those described. With respect to such forward-looking statements, the company seeks protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include a variety of factors, including competitors listed from time to time in the company's SEC reports and public releases. Those lists are intended to identify certain principal factors that could cause actual results to differ materially from those described in the forward-looking statements, but are not intended to represent a complete list of the company's business. All financial figures included herein were prepared in accordance with the IAS standards and are stated in U.S. dollars unless otherwise noted. Reserves figures correspond to PRMS standards. On the call today from GeoPark is James F. Park, Chief Executive Officer, Augusto Zubiaga, Chief Operating Officer, Andreas Ocampo, Chief Financial Officer, and Stacy Simel, Shareholder Value Director. And now I'll turn the call over to Mr. James Park. Mr. Park, you may begin.

Thank you and welcome, everyone. We are with our executive team. united as ever in our efforts, but currently physically separated and calling in from our respective homes and locations. At the outset, we would first like to express our profound gratitude and admiration for the Geopark women and men who are working day and night pushing us through this downturn and continuously... protecting our shareholders, and positioning us for the new world on the other side. In six countries, our team moved with quickness and agility to protect the health and safety of our employees, contractors, and communities, and ensure that our hydrocarbons keep flowing to the markets. With creative logistical support, our office staff... but our field operations require men and women to be on site and have their hands on the iron. Our field teams again proved why they are the backbone of our company. Before opening up to questions, let's please look at four elements of our business during this first quarter. Firstly, our team continued to drive performance with solid performance Record production of 45,700 barrels per day, representing 16% growth compared to last year. Strong cash generation with an adjusted EBITDA of $78 million. And leading capital efficiency with $2.3 generated for every $1 investment. On certain higher cost mature projects within our portfolio, We took non-cash accounting impairments of $97.5 million, which made us record a net loss of $89.5 million for the quarter. Our team moved lightning fast into battle mode for the arrival of the global pandemic, the collapse in the world economy, and the flooding of the oil markets with unneeded and unwanted barrels. In addition to quickly protecting the health and safety of our teams and contractors, we worked with our neighbors and community to keep them informed of operations and risks and provide them with safety . Following our tested business model and track record, our seasoned team simultaneously attacked every component and dimension of our business. So far, more than $280 million of capital and cost savings have been implemented across the board with more coming. This included reducing our self-funded work program by $3 million, focusing on our most strategic assets like the YANOS-34 and CPO-5 blocks in Columbia, and other savings such as voluntary salary and bonus by our team and board. We also temporarily shut in 6,500 to 7,500 barrels per day of higher cost production to preserve cash and shareholder value . This also helped us minimize activity and the potential spread of the virus in the field and in our surrounding communities. Can be readily brought back on stream without suffering mechanical delays or reservoir damage. Thirdly, the underlying strength of our asset and key characteristics of our company provide a foundation to protect against and endure through this and other crises. Additional tools at hand include a strong balance sheet with $165.5 million of cash and safety net funding alternatives, such as a $75 million oil prepayment with $50 million committed and $130 million in uncommitted credit lines, providing us with liquidity if needed. Geopark's long-term debt profile has no principal payments until September 2024, and Standard & Poor's and Fitch both recently reaffirmed our long-term corporate credit rating at B+. We are also aggressively protecting our base oil price by effectively using hedges. With approximately 26,000 barrels per day and only 70% of our oil production, edged in the second quarter, and so far approximately 17,500 barrels per day, fourth quarters respectfully. Fourthly, as a long-term opportunity-driven company working in the most attractive hydrocarbon region today, we are looking ahead with excitement to the recovery opportunity to streamline and improve our overall business and more strongly position Geopark for continued economic growth and success. As always, we are protecting critical people, tools, and capabilities for the short, medium, and long term. And our flexible work programs, operational agility, and big inventory of organic projects allow us to quickly expand our investment plan as prices were the first step up at $35 plus breadth. We got a head start in this recovery effort by already closing on and integrating into Geopark the AmeriSol resources acquisition during January. This gave us additional important low-cost production, reserves, and high-potential acreage adjacent to and on... a new entry into the Putamaya Basin with production reserves, a pipeline, attractive exploration acreage, and a new partnership with Oxy. In addition, we went to the capital markets in January and raised a $350 million bond, which was oversubscribed more than six times by top-tier investors and achieved the lowest interest rate ever. for a single B-rated company in Latin America. Thank you, and we would be . Any questions you may have. And please be patient as we try to coordinate across the continent today.

At this time, I would like to remind everyone that if you would like to ask a question, to press star 1 on your telephone keypad now. Again, that's star 1 for any questions. We'll pause for just a moment to compile the Q&A roster. The first question will come from Robin Hayworth with Stifel. Please go ahead.