GeoPark Holdings Limited provides an operations update for the Fourth Quarter 2011. Final results for the full year ended 31 December 2011 will be released during April 2012.

Summary

GeoPark is on-track to achieve its sixth successive year of continuous performance growth. During the Fourth Quarter 2011, key achievements and developments include:

■ Major expansion of the Company's business in Chile via the acquisition of three high potential blocks in Tierra del Fuego. ■ Average oil and gas production rate of 9,400 barrels of oil equivalent per day in December 2011, with approximately 45% representing crude oil and condensate production. ■ Completing an aggressive 2011 drilling program of 25 wells with a success rate of approximately 70% and which includes on the Fell Block in Chile: ■ discovery of the new Punta Delgada Norte gas field; ■ successful appraisal of the Yagan Norte oil field with a new oil producer in the Tobifera formation; ■ successful appraisal of the Copihue oil and gas field with a new oil and gas producer; and ■ successful continued development of the Guanaco oil field with three new oil producers. ■ Completion of the sale of an additional 10% interest of GeoPark's Chile business to LG International for US$78 million. ■ Gross cash resources at year-end 2011 in excess of US$200 million to invest in new project acquisitions in Latin America with the Company's strategic partner LGI.

Organic Growth

GeoPark has nine hydrocarbon blocks in Chile and Argentina, covering approximately 4 million gross acres, and is completing a 25 well drilling program in 2011 focused principally in Chile in order both to develop and produce its proved and probable reserve base, as well as to explore for new reserves on its extensive prospect inventory.

Key developments include:

■ Exploration well Renoval 1 is the first well drilled on the Tranquilo Block in Chile by GeoPark and is targeting the Esperanza gas prospect with over 700 billion cubic feet of unrisked mean resources. The well is currently on completion, with three zones in the Morro Chico formation to be fracked and tested.

■ Exploration well Punta Delgada Norte 4 was completed in October 2011 with a successful discovery in the Springhill reservoir. After completing the test, the well was tied-in and is on stream and delivering gas at an average rate of approximately 2 million cubic feet per day to Methanex. During the drilling phase, the well indicated the shallow Tertiary formation may also have production potential.

■ Appraisal well Yagan Norte 3 was completed in December 2011 with a successful test in the Tobifera section. After completing the test, the well was tied-in and is currently on stream and delivering oil at a rate of 400 barrels of oil per day to ENAP. Yagan Norte 3 also appears to have production potential from the Springhill formation. GeoPark is currently carrying out a side-track to a previously drilled well, Yagan Norte 2, in order to further produce from the Tobifera formation in this same accumulation.

■ Appraisal well Copihue 2 was completed in December 2011 with a successful test in the Springhill formation. After completing the test, the well was tied-in and is currently on stream and delivering oil and gas at an approximate rate of 130 bopd to ENAP and 1.6 mmcfpd of gas to Methanex. A new appraisal well, Copihue 3, is now being drilled.

■ Guanaco oil field development continued with the drilling of 5 new wells to increase production and define the field boundary. In addition, feasibility studies were initiated for a water-flooding secondary recovery project.

■ Oil and gas production increased progressively throughout the second half of 2011 to a current December average of approximately 9,400 boepd. Oil and gas production during the second half has increased approximately 37% compared to the first half of 2011 and is expected to average approximately 7,600 boepd for the full year.

New Project Growth and Strategic Developments

■ The Government of Chile announced the successful farm-in by GeoPark to three new highly prospective exploration blocks in Tierra del Fuego under a private process organised by ENAP. The three blocks of Isla Norte, Flamenco and Campanario cover more than 400,000 acres and are geologically contiguous to the Fell Block. GeoPark has committed to spend in excess of US$100 million on the three new blocks over the next three years. Following final regulatory approval, the Company is expecting to begin with a seismic campaign during the First Quarter 2012 and begin drilling activity during the Fourth Quarter 2012. Following its successful results and methodology employed on the Fell Block, the Company will also evaluate early production opportunities from existing non-producing wells.

■ GeoPark closed the sale of an additional 10% stake in its Chilean upstream business to LGI for US$78 million in October 2011. This development further cements the strategic relationship between GeoPark and LGI and demonstrates the value of the business GeoPark has built in Chile. It also creates a strong foundation for a significant expansion of GeoPark's footprint in Latin America. As a result of inflows from the sale of 20% of the Chile business to LGI during 2011, GeoPark is ending the year with in excess of US$200 million in gross cash resources.

■ Following the expiration of the Fell Block exploration period in August 2011, GeoPark declared and obtained commerciality over 84% of the original Fell Block acreage with a further expiration scheduled in 2032.

■ GeoPark has initiated a review of the oil and gas shale potential of its acreage in Argentina and Chile. In Argentina, GeoPark has two blocks in the Neuquen Basin with the attractive Vaca Muerta shale opportunity. In Chile, GeoPark's extensive acreage in the Magallanes Basin contains the Estratos con Favrella shale formation.

■ As part of its partnership with LGI to acquire a portfolio of upstream assets throughout Latin America, GeoPark continues actively to review a range of asset and corporate opportunities, from a risk-reward and shareholder value creation perspective, in Chile, Colombia, Peru, Brazil and Argentina.

Tags: Geopark Holdings Ltd.