GeoPark Limited

Good morning and welcome to the Geopark Limited conference call following the results announcement from the fourth quarter ended December 31, 2020. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please 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, it is available at the Investor Support section on the company's corporate website at www.geo-park.com. A replay of today's call may be accessed through this webcast in 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 risks and uncertainties that could cause actual results 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 competitive developments and risk factors 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 IFRS and are stated in U.S. dollars unless otherwise noted. Reserved figures correspond to PRMS standards. On the call today from Geopark is James F. Park, Chief Executive Officer, Augusto Zubillaga, Chief Operating Officer, Andres Ocampo, Chief Financial Officer, Martin Terado, Director of Operations, and Stacy Stemmel, 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 joining you this morning with our executive team in Bogota, Colombia, and Buenos Aires, Argentina, to report on our fourth quarter and full year 2020 financial results, present an upgraded work and investment program for 2021, and highlight our steps to continue returning more value to our shareholders. As everyone has personally experienced, 2020 was a historically challenging year, and we must first recognize and express gratitude for the superhuman efforts by the Geopark women and men that made it possible for us to prevail through the storms of 2020 and successfully continue along our hard fought 18 year growth trajectory. As we have done repeatedly in our history, Geopark has emerged from this crisis as a better and stronger company today. Our bottom line illustrates our accomplishments. We kept our teams safe and healthy. We operated in the field without interruption for 365 days. We grew oil and gas production for the 18th straight year to over 40,000 barrels per day. We found more oil and gas and now have 2P reserves of 175 million barrels with a net present value of $2.5 billion. We expanded our Colombian exploration resources to over 750 million barrels, with increased acreage in the Llanos and Putamaya basins. We beat down each and every cost and achieved savings of over $290 million. We funded all our work and obligations with our own cash flow. We invested $75 million and recovered nearly three times this amount in EBITDA of $217 million. We acquired a new company, Amerisor, and fully integrated it into our company. We completely restructured our asset portfolio and organization under a revised business model. We strengthened our balance sheet and almost doubled our cash in hand to $200 million. We provided important aid and support during the pandemic to our neighboring communities. We moved to reduce our carbon footprint and minimize social and environmental impacts. And even with low oil prices of $40 to $45, we reinstated our shareholder value initiatives with share buybacks and cash dividends. As always, the underlying foundation for Geoparks performance is our in-house integrated value system we call SPEED. This program was a founding element of our company and one of our proudest accomplishments, always pushing us to be the employer of choice, partner of choice, and neighbor of choice. SPEED stands for our priorities of safety, prosperity, including governance, our employees, the environment, and our development of communities where we operate. We consider this ESG+, and we welcome the increased scrutiny from investors about an area where we excel. So 2021 is already well underway with seven rigs at work, seismic being run to identify new prospects on our high-potential acreage, and our team fully engaged in getting every molecule of hydrocarbons safely, cleanly, and profitably out of the ground and to market. With higher prices and increased cash generation, we are accelerating our profitable production growth. We have expanded our work program to now invest $130 to $150 million to drill 37 to 42 wells, focused mainly on the continued development of our prolific Llanos 34 block and some high-impact drilling on our surrounding blocks in the Llanos Basin, including the CP05 block. We look forward to executing this exciting, fully funded risk balance work program and developing our big growth opportunity in Columbia, while maintaining a strong balance sheet and continuing to return tangible value to our shareholders.

Thank you, and we would be pleased to answer any questions you may have.