v3.22.1
Document and Entity Information - shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2019
Document Information [Line Items]    
Document Type 20-F  
Document Registration Statement false  
Document Annual Report true  
Document Period End Date Dec. 31, 2021  
Document Transition Report false  
Document Shell Company Report false  
Entity File Number 001-36298  
Entity Registrant Name GEOPARK LIMITED  
Entity Central Index Key 0001464591  
Entity Incorporation, State or Country Code D0  
Entity Address, Address Line One Calle 94 N° 11-30, 8o floor  
Entity Address, City or Town Bogotá,  
Entity Address, Country CO  
Title of 12(b) Security Common shares, par value US$0.001 per share  
Trading Symbol GPRK  
Security Exchange Name NYSE  
Entity Common Stock, Shares Outstanding 60,238,026  
Entity Well-known Seasoned Issuer Yes  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
ICFR Auditor Attestation Flag true  
Document Accounting Standard International Financial Reporting Standards  
Entity Emerging Growth Company false  
Entity Shell Company false  
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus FY  
Current Fiscal Year End Date --12-31  
Auditor Name Pistrelli, Henry Martin y Asociados S.R.L. Price Waterhouse & Co. S.R.L.
Auditor Firm ID 1449 1349
Auditor Location Buenos Aires, Argentina Buenos Aires, Argentina
Business Contact [Member]    
Document Information [Line Items]    
Contact Personnel Name Pedro E. Aylwin Chiorrini  
Entity Address, Address Line One Calle 94 N° 11-30, 8o floor  
Entity Address, City or Town Bogotá  
Entity Address, Country CO  
City Area Code 57 1  
Local Phone Number 743 2337  
Other Address [Member]    
Document Information [Line Items]    
Contact Personnel Name Maurice Blanco, Esq.  
Entity Address, Address Line One 450 Lexington Avenue  
Entity Address, City or Town New York  
Entity Address, State or Province NY  
Entity Address, Postal Zip Code 10017  
City Area Code 212  
Local Phone Number 450 4000  
v3.22.1
CONSOLIDATED STATEMENT OF INCOME - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
REVENUE $ 688,543,000 $ 393,692,000 $ 628,907,000
Commodity risk management contracts (loss) gain (109,191,000) 8,081,000 (22,523,000)
Production and operating costs (212,790,000) (125,072,000) (168,964,000)
Geological and geophysical expenses (7,891,000) (14,951,000) (18,593,000)
Administrative expenses (46,828,000) (50,315,000) (60,818,000)
Selling expenses (8,730,000) (5,844,000) (14,113,000)
Depreciation (88,969,000) (118,073,000) (105,532,000)
Write-off of unsuccessful exploration efforts (12,262,000) (52,652,000) (18,290,000)
Impairment loss for non-financial assets, net (4,334,000) (133,864,000) (7,559,000)
Other expenses (11,739,000) (11,665,000) (1,840,000)
OPERATING PROFIT (LOSS) 185,809,000 (110,663,000) 210,675,000
Financial expenses (64,112,000) (64,582,000) (41,070,000)
Financial income 1,652,000 3,166,000 2,360,000
Foreign exchange gain (loss) 5,049,000 (13,008,000) (2,446,000)
PROFIT (LOSS) BEFORE INCOME TAX 128,398,000 (185,087,000) 169,519,000
Income tax expense (67,271,000) (47,863,000) (111,762,000)
PROFIT (LOSS) FOR THE YEAR 61,127,000 (232,950,000) 57,757,000
Attributable to:      
Owners of the Company $ 61,127,000 $ (232,950,000) $ 57,757,000
Earnings (Losses) per share (in US$). Basic $ 1.00 $ (3.84) $ 0.96
Earnings (Losses) per share (in US$). Diluted $ 0.99 $ (3.84) $ 0.92
v3.22.1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of comprehensive income [abstract]      
Profit (Loss) for the year $ 61,127 $ (232,950) $ 57,757
Items that may be subsequently reclassified to profit or loss      
Currency translation differences (1,438) (8,449) (1,498)
(Loss) Gain on cash flow hedges   (6,770) 6,770
Income tax benefit (expense) relating to cash flow hedges   2,166 (2,166)
Other comprehensive (loss) profit for the year (1,438) (13,053) 3,106
Total comprehensive profit (loss) for the year $ 59,689 $ (246,003) $ 60,863
v3.22.1
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($)
Dec. 31, 2021
Dec. 31, 2020
NON-CURRENT ASSETS    
Property, plant and equipment $ 614,047,000 $ 614,665,000
Right-of-use assets 21,014,000 21,402,000
Prepayments and other receivables 148,000 1,060,000
Other financial assets 13,883,000 13,364,000
Deferred income tax asset 14,072,000 18,168,000
TOTAL NON-CURRENT ASSETS 663,164,000 668,659,000
CURRENT ASSETS    
Inventories 10,915,000 13,326,000
Trade receivables 70,531,000 46,918,000
Prepayments and other receivables 22,650,000 27,263,000
Derivative financial instrument assets 126,000 1,013,000
Other financial assets 864,000 28,000
Cash and cash equivalents 100,604,000 201,907,000
Assets held for sale 26,887,000 1,152,000
TOTAL CURRENT ASSETS 232,577,000 291,607,000
TOTAL ASSETS 895,741,000 960,266,000
Equity attributable to owners of the Company    
Share capital 60,000 61,000
Share premium 169,220,000 179,399,000
Reserves 83,554,000 92,216,000
Accumulated losses (314,779,000) (380,866,000)
TOTAL EQUITY (61,945,000) (109,190,000)
NON-CURRENT LIABILITIES    
Borrowings 656,176,000 766,897,000
Lease liabilities 12,513,000 11,457,000
Provisions and other long-term liabilities 62,848,000 82,370,000
Deferred income tax liability 20,947,000 7,190,000
Trade and other payables 1,540,000 4,886,000
TOTAL NON-CURRENT LIABILITIES 754,024,000 872,800,000
CURRENT LIABILITIES    
Borrowings 17,916,000 17,689,000
Lease liabilities 8,231,000 10,890,000
Derivative financial instrument liabilities 20,757,000 15,094,000
Current income tax liabilities 8,801,000 52,775,000
Trade and other payables 127,513,000 100,156,000
Liabilities associated with assets held for sale 20,444,000 52,000
TOTAL CURRENT LIABILITIES 203,662,000 196,656,000
TOTAL LIABILITIES 957,686,000 1,069,456,000
TOTAL EQUITY AND LIABILITIES $ 895,741,000 $ 960,266,000
v3.22.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($)
$ in Thousands
Share Capital [Member].
Share Premium [Member]
Other Reserve [member]
Translation Reserve [member]
(Accumulated Losses) Retained Earnings [Member]
Total
Beginning Balance at Dec. 31, 2018 $ 60 $ 237,840 $ 114,131 $ (2,322) $ (206,688) $ 143,021
Comprehensive income:            
Profit (Loss) for the year 0 0 0 0 57,757 57,757
Other comprehensive profit (loss) for the year 0 0 4,604 (1,498) 0 3,106
Total Comprehensive profit (loss) 0 0 4,604 (1,498) 57,757 60,863
Transactions with owners:            
Share-based payment (Note 31) 3 7,144 0 0 (4,430) 2,717
Repurchase of shares (Note 26.1) (4) (71,268) 0 0 0 (71,272)
Cash Distribution (Note 26.2) 0 0 (2,444) 0 0 (2,444)
Total (1) (64,124) (2,444) 0 (4,430) (70,999)
Ending Balance at Dec. 31, 2019 59 173,716 116,291 (3,820) (153,361) 132,885
Comprehensive income:            
Profit (Loss) for the year 0 0 0 0 (232,950) (232,950)
Other comprehensive profit (loss) for the year 0 0 (4,604) (8,449) 0 (13,053)
Total Comprehensive profit (loss) 0 0 (4,604) (8,449) (232,950) (246,003)
Transactions with owners:            
Share-based payment (Note 31) [1] 2 7,349 0 0 5,445 12,796
Repurchase of shares (Note 26.1) (1) (4,008) 0 0 0 (4,009)
Cash Distribution (Note 26.2) 0 0 (4,859) 0 0 (4,859)
Stock distribution (Note 26.3) 1 2,342 (2,343) 0 0  
Total 2 5,683 (7,202) 0 5,445 3,928
Ending Balance at Dec. 31, 2020 61 179,399 104,485 (12,269) (380,866) (109,190)
Comprehensive income:            
Profit (Loss) for the year 0 0 0 0 61,127 61,127
Other comprehensive profit (loss) for the year 0 0 0 (1,438) 0 (1,438)
Total Comprehensive profit (loss) 0 0 0 (1,438) 61,127 59,689
Transactions with owners:            
Share-based payment (Note 31) 0 1,661 0 0 4,960 6,621
Repurchase of shares (Note 26.1) (1) (11,840) 0 0 0 (11,841)
Cash Distribution (Note 26.2) 0 0 (7,224) 0 0 (7,224)
Total (1) (10,179) (7,224) 0 4,960 (12,444)
Ending Balance at Dec. 31, 2021 $ 60 $ 169,220 $ 97,261 $ (13,707) $ (314,779) $ (61,945)
[1] Includes issuance of shares to certain employees as part of their 2019 bonus compensation of US$ 4,352,000.
v3.22.1
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical)
 12 Months Ended
Dec. 31, 2020
USD ($)
Share Capital [Member].  
Disclosure Of Consolidated Statement Of Changes In Equity [Line Items]  
Share Issued During Period, Value $ 4,352,000
v3.22.1
CONSOLIDATED STATEMENT OF CASH FLOW - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Cash flows from operating activities      
Profit (Loss) for the year $ 61,127,000 $ (232,950,000) $ 57,757,000
Adjustments for:      
Income tax expense 67,271,000 47,863,000 111,762,000
Depreciation 88,969,000 118,073,000 105,532,000
Loss on disposal of property, plant and equipment 787,000 417,000 143,000
Impairment loss for non-financial assets 4,334,000 133,864,000 7,559,000
Write-off of unsuccessful exploration efforts 12,262,000 52,652,000 18,290,000
Accrual of borrowing's interests 44,378,000 48,690,000 29,573,000
Borrowings cancellation costs 6,308,000 0 0
Amortization of other long-term liabilities (223,000) (387,000) (429,000)
Unwinding of long-term liabilities 5,079,000 5,894,000 4,560,000
Accrual of share-based payment 6,621,000 8,444,000 2,717,000
Foreign exchange (gain) loss (5,049,000) 3,594,000 5,289,000
Unrealized (gain) loss on commodity risk management contracts (463,000) 12,978,000 26,411,000
Income tax paid (65,273,000) (25,193,000) (88,638,000)
Changes in working capital (9,351,000) (5,240,000) (45,097,000)
Cash flows from operating activities - net 216,777,000 168,699,000 235,429,000
Cash flows from investing activities      
Purchase of property, plant and equipment (129,258,000) (75,298,000) (126,316,000)
Acquisition of business, net of cash acquired 0 (272,335,000) 0
Proceeds from disposal of long-term assets 2,700,000 0 7,066,000
Cash flows used in investing activities - net (126,558,000) (347,633,000) (119,250,000)
Cash flows from financing activities      
Proceeds from borrowings 172,174,000 350,000,000 0
Debt issuance costs paid (2,019,000) (7,507,000) 0
Principal paid (274,934,000) (3,575,000) (9,790,000)
Interest paid (42,592,000) (37,594,000) (29,099,000)
Borrowings cancellation costs paid (12,908,000) 0 0
Lease payments (7,518,000) (9,380,000) (4,855,000)
Repurchase of shares (11,841,000) (4,009,000) (71,272,000)
Cash distribution (7,224,000) (4,859,000) (2,444,000)
Payments for transactions with former non-controlling interest (3,580,000) (11,931,000) (15,000,000)
Cash flows (used in) from financing activities - net (190,442,000) 271,145,000 (132,460,000)
Net increase (decrease) in cash and cash equivalents (100,223,000) 92,211,000 (16,281,000)
Cash and cash equivalents at January 1 201,907,000 111,180,000 127,727,000
Currency translation differences (1,080,000) (1,484,000) (266,000)
Cash and cash equivalents at the end of the year 100,604,000 201,907,000 111,180,000
Ending Cash and cash equivalents are specified as follows:      
Cash in bank and bank deposits 100,587,000 201,884,000 111,159,000
Cash in hand 17,000 23,000 21,000
Cash and cash equivalents $ 100,604,000 $ 201,907,000 $ 111,180,000
v3.22.1
General Information
 12 Months Ended
Dec. 31, 2021
Disclosure Of General Information [Abstract]  
Disclosure Of General Information About Company And Subsidiaries [Text Block]

Note 1General Information

GeoPark Limited (the “Company”) is a company incorporated under the law of Bermuda. The Registered Office address is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.

The principal activities of the Company and its subsidiaries (the “Group” or “GeoPark”) are exploration, development and production for oil and gas reserves in Colombia, Chile, Brazil, Argentina and Ecuador.

These Consolidated Financial Statements were authorized for issue by the Board of Directors on March 8, 2022 and have been approved to be included in our 2021 annual report (Form 20-F) on March 31, 2022.

​

1.1Overview

​

The 2019 coronavirus (“COVID-19”) outbreak was first reported near the end of 2019 in Wuhan, China. Since then, the virus has spread worldwide. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak to be a pandemic. COVID-19 significantly impacted the world economy in 2020 and 2021 and may continue to do so in the years to come. Many countries have imposed travel bans on millions of people and additionally people in many locations have been subject to quarantine measures. Businesses have been dealing with lost revenue and disrupted supply chains. Countries have imposed lockdowns in response to the pandemic and, as a result of the disruption to businesses, millions of workers have lost their jobs. The COVID-19 pandemic has also resulted in significant volatility in the financial and commodities markets worldwide, including the dramatic drop in the price of crude oil during 2020. Numerous governments have implemented measures to provide both financial and non-financial assistance to the affected entities. Despite the uncertainty of the lasting effect of the COVID-19 outbreak, the crude oil demand recovery resulted in improvements in market conditions from the end of 2020 and onwards.
v3.22.1
Summary of significant accounting policies
 12 Months Ended
Dec. 31, 2021
Disclosure Of Summary of significant accounting policies [Abstract]  
Disclosure of significant accounting policies [text block]

Note 2     Summary of significant accounting policies

The principal accounting policies applied in the preparation of these Consolidated Financial Statements are set out below. These policies have been consistently applied to the years presented, unless otherwise stated.

2.1 Basis of preparation

The Consolidated Financial Statements of GeoPark Limited have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), under the historical cost basis, except for the following: certain financial assets and liabilities (including derivative instruments) measured at fair value, and assets held for sale – measured at fair value less costs to sell.

​

The Consolidated Financial Statements are presented in thousands of United States Dollars (US$’000) and all values are rounded to the nearest thousand (US$’000), except in the footnotes and where otherwise indicated.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Consolidated Financial Statements are disclosed in this note under the title “Accounting estimates and assumptions”.

All the information included in these Consolidated Financial Statements corresponds to the Group, except where otherwise indicated.

2.1.1 Changes in accounting policy and disclosure

2.1.1.1 New and amended standards and interpretations

The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16

The amendments provide temporary relief that address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

●A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest
●Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued
●Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

These amendments had no impact on the Consolidated Financial Statements of the Group.

COVID-19 Related Rent Concessions beyond June 30, 2021 Amendments to IFRS 16

On May 28, 2020, the IASB issued COVID-19 Related Rent Concessions - amendment to IFRS 16 Leases. The amendment provides relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a COVID-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the COVID-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification.

The amendment was intended to apply until June 30, 2021, but as the impact of the COVID-19 pandemic continued, on March 31, 2021, the IASB extended the period of application of the practical expedient to June 30, 2022. The amendment applies to annual reporting periods beginning on or after April 1, 2021. This amendment had no impact on the Consolidated Financial Statements of the Group.

2.2 Going concern

The Directors regularly monitor the Group’s cash position and liquidity risks throughout the year to ensure that it has sufficient funds to meet forecast operational and investment funding requirements. Sensitivities are run to reflect latest expectations of expenditures, oil and gas prices and other factors to enable the Group to manage the risk of any funding short falls and/or potential debt covenant breaches.

Considering the performance of the operations, the Group’s cash position of US$ 100,604,000, the liability management and debt reduction executed in April 2021 (see Note 27), the oil hedge strategy to mitigate the price risk exposure within the next twelve months, and the fact that 97% of its total indebtedness as of December 31, 2021 matures in 2024 or 2027, the Directors have formed a judgement, at the time of approving the Consolidated Financial Statements, that there is a reasonable expectation that the Group has adequate resources to meet all its obligations for the foreseeable future. For this reason, the Directors have continued to adopt the going concern basis in preparing the Consolidated Financial Statements.

2.3 Consolidation

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Intercompany transactions, balances and unrealized gains on transactions between the Group and its subsidiaries are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

2.4 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee. This committee is integrated by the CEO, COO, CFO and managers in charge of the Geoscience, Operations, Legal and Corporate Governance, People and Sustainability departments. This committee reviews the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.

2.5 Foreign currency translation

2.5.1 Functional and presentation currency

The Consolidated Financial Statements are presented in US Dollars, which is the Group’s presentation currency.

Items included in the Consolidated Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of Group companies incorporated in Colombia, Chile, Argentina and Ecuador is the US Dollar, meanwhile for the Group´s Brazilian company the functional currency is the local currency, which is the Brazilian Real.

2.5.2 Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated Statement of Income.

The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: assets and liabilities are translated at the closing rate, and income and expenses are translated at average exchange rates. All resulting exchange differences are recognized in Other comprehensive income.

2.6 Joint arrangements

Under IFRS 11, investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint operations. The Group combines its share in the joint operations individual assets, liabilities, results and cash flows on a line-by-line basis with similar items in its Consolidated Financial Statements.

2.7 Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at the acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognized in the statement of profit or loss in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognized in profit or loss.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.

2.8 Revenue recognition

Revenue from the sale of crude oil and gas is recognized at the point in time when control of the product is transferred to the customer, which is generally when the product is physically transferred into a pipe or other delivery mechanism and the customer accepts the product. Consequently, the Group’s performance obligations are considered to relate only to the sale of crude oil and gas, with each barrel of crude oil equivalent considered to be a separate performance obligation under the contractual arrangements in place.

The Group’s sales of crude oil are priced based on market prices. The sales price is linked to US dollar denominated crude oil international benchmarks, such as Brent, adjusted for certain marketing and quality discounts based on, among other things, American Petroleum Institute (“API”) gravity, viscosity, sulphur content, delivery point and transport costs. The Group’s sales of natural gas are priced based on long-term Gas Supply contracts with customers.

Revenue is shown net of VAT, discounts related to the sale and overriding royalties due to the ex-owners of oil and gas properties where the royalty arrangements represent a retained working interest in the property. See Note 33.1.

2.9 Production and operating costs

Production and operating costs are recognized in the Consolidated Statement of Income on the accrual basis of accounting. These costs include wages and salaries incurred to achieve the revenue for the year. Direct and indirect costs of raw materials and consumables, rentals, and royalties are also included within this account.

2.10 Financial results

Financial results include interest expenses, interest income, bank charges, the amortization of financial assets and liabilities, and foreign exchange gains and losses. The Group has capitalized the borrowing cost directly attributable to wells and facilities identified as qualifying assets. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. The capitalization rate used to determine the amount of borrowing costs to be capitalized is the weighted average interest rate applicable to the Group’s general borrowings, which was 6.90% at year-end 2019. No amounts were capitalized during the year (nil in 2020 and US$ 367,000 in 2019).

2.11 Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation and impairment charges, if applicable. Historical cost includes expenditure that is directly attributable to the acquisition of the items; including provisions for asset retirement obligation.

Oil and gas exploration and production activities are accounted for in accordance with the successful efforts method on a field by field basis. The Group accounts for exploration and evaluation activities in accordance with IFRS 6, Exploration for and Evaluation of Mineral Resources, capitalizing exploration and evaluation costs until such time as the economic viability of producing the underlying resources is determined. Costs incurred prior to obtaining legal rights to explore are expensed immediately to the Consolidated Statement of Income.

Exploration and evaluation costs may include: license acquisition, geological and geophysical studies (i.e.: seismic), direct labor costs and drilling costs of exploratory wells. No depreciation and/or amortization are charged during the exploration and evaluation phase. Upon completion of the evaluation phase, the prospects are either transferred to oil and gas properties or charged to expense (exploration costs) in the period in which the determination is made, depending whether they have discovered reserves or not. If not developed, exploration and evaluation assets are written off after three years, unless it can be clearly demonstrated that the carrying value of the investment is recoverable.

A charge of US$ 12,262,000 has been recognized in the Consolidated Statement of Income within Write-off of unsuccessful exploration efforts (US$ 52,652,000 in 2020 and US$ 18,290,000 in 2019). See Note 20.

​

All field development costs are considered construction in progress until they are finished and capitalized within oil and gas properties, and are subject to depreciation once completed. Such costs may include the acquisition and installation of production facilities, development drilling costs (including dry holes, service wells and seismic surveys for development purposes), project-related engineering and the acquisition costs of rights and concessions related to proved properties.

Workovers of wells made to develop reserves and/or increase production are capitalized as development costs. Maintenance costs are charged to the Consolidated Statement of Income when incurred.

Capitalized costs of proved oil and gas properties and production facilities and machinery are depreciated on a licensed area by the licensed area basis, using the unit of production method, based on commercial proved and probable oil and gas reserves. The calculation of the “unit of production” depreciation considers estimated future finding and development costs and is based on current year-end unescalated price levels. Changes in reserves and cost estimates are recognized prospectively. Reserves are converted to equivalent units on the basis of approximate relative energy content.

Depreciation of the remaining property, plant and equipment assets (i.e. furniture and vehicles) not directly associated with oil and gas activities has been calculated by means of the straight-line method by applying such annual rates as required to write-off their value at the end of their estimated useful lives. The useful lives range between 3 years and 10 years.

Depreciation is allocated in the Consolidated Statement of Income as a separate line to better follow the performance of the business.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see Impairment of non-financial assets in Note 2.13).

2.12 Provisions and other long-term liabilities

Provisions for asset retirement obligations and other environmental liabilities, deferred income, restructuring obligations and legal claims are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Restructuring provisions, if any, comprise lease termination penalties and employee services termination payments.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as financial expense.

2.12.1 Asset Retirement Obligation

The Group records the fair value of the liability for asset retirement obligations in the period in which the wells are drilled. When the liability is initially recorded, the Group capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value at each reporting period, and the capitalized cost is depreciated over the estimated useful life of the related asset. According to interpretations and the application of current legislation, and on the basis of the changes in technology and the variations in the costs of restoration necessary to protect the environment, the Group has considered it appropriate to periodically re-evaluate future costs of well-capping. The effects of this recalculation are included in the Consolidated Financial Statements in the period in which this recalculation is determined and reflected as an adjustment to the provision and the corresponding property, plant and equipment asset.

2.12.2 Deferred Income

Government grants and other contributions relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and they are credited to the Consolidated Statement of Income over the expected lives of the related assets. Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.

2.13 Impairment of non-financial assets

Assets that are not subject to depreciation and/or amortization are tested annually for impairment. Assets that are subject to depreciation and/or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the excess of the asset’s carrying amount over its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units), generally a licensed area. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

No asset should be kept as an exploration and evaluation asset for a period of more than three years, except if it can be clearly demonstrated that the carrying value of the investment will be recoverable.

During 2021, net impairment loss was recognized for US$ 4,334,000 (US$ 133,864,000 and US$ 7,559,000 in 2020 and 2019, respectively). See Note 37. The write-offs are detailed in Note 20.

2.14 Lease contracts

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

2.14.1 Right-of-use assets

The Group recognizes right-of-use assets at the commencement date of the lease. Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, an adjusted for any measurement of lease liabilities.

The cost of right-of-use assets comprise the following:

●the amount of the initial measurement of lease liability,
●any lease payments made at or before the commencement date less any lease incentives received,
●any initial direct costs, and
●restoration costs.

​

The Group leases various offices, facilities, machinery and equipment. Lease contracts are typically made for fixed periods of 1 to 7 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

​

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment.

​

2.14.2 Lease liabilities

​

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. Lease liabilities include the net present value of the following lease payments:

●fixed payments, less any lease incentives receivable,
●variable lease payments that are based on an index or a rate,
●amounts expected to be payable by the lessee under residual value guarantees,
●the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
●payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

​

In calculating the present value, the lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

​

2.14.3 Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of IT equipment and small items of office furniture that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.

2.15 Inventories

Inventories comprise crude oil and materials.

Crude oil is measured at the lower of cost and net realizable value. Materials are measured at the lower of cost and recoverable amount. The cost of materials and consumables is calculated at acquisition price with the addition of transportation and similar costs. Cost is determined using the first-in, first-out (FIFO) method.

2.16 Current and deferred income tax

The tax expense for the year comprises current and deferred income tax. Income tax is recognized in the Consolidated Statement of Income.

The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the financial statements date in the countries where the Company’s subsidiaries operate and generate taxable income. The computation of the income tax expense involves the interpretation of applicable tax laws and regulations in many jurisdictions. The resolution of tax positions taken by the Group, through negotiations with relevant tax authorities or through litigation, can take several years to complete and, in some cases, it is difficult to predict the ultimate outcome.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted as of the financial statements date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled.

In addition, the Group has tax-loss carry-forwards in certain tax jurisdictions that are available to be offset against future taxable profit. However, deferred income tax assets are recognized only to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilized. Management judgment is exercised in assessing whether this is the case. To the extent that actual outcomes differ from management’s estimates, taxation charges or credits may arise in future periods.

Deferred income tax liabilities are provided on taxable temporary differences arising from investments in subsidiaries and joint arrangements, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. The Group is able to control the timing of dividends from its subsidiaries and hence does not expect taxable profit. Hence deferred income tax is recognized in respect of the retained earnings of overseas subsidiaries only if at the date of the Consolidated Financial Statements, dividends have been accrued as receivable or a binding agreement to distribute past earnings in future has been entered into by the subsidiary. As mentioned above the Group does not expect that the temporary differences will revert in the foreseeable future.

Deferred income tax balances are provided in full, with no discounting.

2.17 Non-current assets or disposal groups held for sale

Non-current assets or disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or subsequent write-down of the asset or disposal group to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset or disposal group, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset or disposal group is recognized at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Consolidated Statement of Financial Position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Consolidated Statement of Financial Position.

2.18 Financial assets

Financial assets are divided into the following categories: amortized cost; financial assets at fair value through profit or loss and fair value through other comprehensive income. The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows. The Group reclassifies debt investments when and only when its business model for managing those assets changes.

All financial assets not at fair value through profit or loss are initially recognized at fair value, plus transaction costs. Transaction costs of financial assets carried at fair value through profit or loss, if any, are expensed to profit or loss.

Derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken at each balance sheet date.

Interest and other cash flows resulting from holding financial assets are recognized in the Consolidated Statement of Income when receivable, regardless of how the related carrying amount of financial assets is measured.

Amortized cost are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than twelve months after the balance sheet date. These are classified as non-current assets. These financial assets comprise trade and other receivables and cash and cash equivalents in the Consolidated Statement of Financial Position. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivables. These financial assets are subsequently measured at amortized cost using the effective interest method, less provision for impairment, if applicable.

Any change in their value through impairment or reversal of impairment is recognized in the Consolidated Statement of Income. All of the Group’s financial assets are classified as amortized cost.

2.19 Other financial assets

Non-current other financial assets include contributions made for environmental obligations according to a Colombian and Brazilian government request and are restricted for those purposes.

Current other financial assets include short-term investments with original maturities up to twelve months and over three months.

2.20 Impairment of financial assets

The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.

2.21 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts, if any, are shown within borrowings in the current liabilities section of the Consolidated Statement of Financial Position.

2.22 Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.

2.23 Derivatives and hedging activities

Derivative financial instruments are recognized in the Consolidated Statement of Financial Position as assets or liabilities and initially and subsequently measured at fair value. They are presented as current assets or liabilities if they are expected to be settled within 12 months after the end of the reporting period.

The mark-to-market fair value of the Group's outstanding derivative instruments is based on independently provided market rates and determined using standard valuation techniques, including the impact of counterparty credit risk and are within level 2 of the fair value hierarchy.

2.23.1 Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in Other Reserve within Equity. The gain or loss relating to the ineffective portion is recognized immediately in the Consolidated Statement of Income.

When forward contracts are used to hedge forecast transactions, the Group designates the change in fair value of the forward contract as the hedging instrument. Gains or losses relating to the effective portion of the change in the fair value of the forward contracts are recognized in Other Reserve within Equity.

Where the hedged item subsequently results in the recognition of a non-financial asset, both the deferred hedging gains and losses and the deferred time value of the option contracts or deferred forward points, if any, are included within the initial cost of the asset.

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in Equity at that time remains in Equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in Equity are immediately reclassified to the Consolidated Statement of Income.

For more information about derivatives designated as cash flow hedges please refer to Note 3 Currency risk.

2.23.2 Other Derivatives

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in the Consolidated Statement of Income.

For more information about derivatives related to commodity risk management please refer to Note 8 and for more information about derivatives related to currency risk management please refer to Note 15.

2.24 Borrowings

Borrowings are obligations to pay cash and are recognized when the Group becomes a party to the contractual provisions of the instrument.

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the Consolidated Statement of Income over the period of the borrowings using the effective interest method.

Direct issue costs are charged to the Consolidated Statement of Income on an accrual basis using the effective interest method.

2.25 Share capital

Equity comprises the following:

●"Share capital" representing the nominal value of equity shares.
●"Share premium" representing the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issuance.
●"Other reserve" representing:
-the difference between the proceeds from the transaction with non-controlling interests received against the book value of the shares acquired in the Chilean and Colombian subsidiaries, and
-the changes in the fair value of the effective portion of derivatives designated as cash flow hedges.
●"Translation reserve" representing the differences arising from translation of investments in overseas subsidiaries.
●"(Accumulated losses) Retained earnings" representing:
-accumulated earnings and losses, and
-the equity element attributable to shares granted according to IFRS 2 but not issued at year end.

​

2.26 Share-based payment

The Group operates a number of equity-settled share-based compensation plans comprising share awards payments to employees and other third-party contractors. Share-based payment transactions are measured in accordance with IFRS 2.

Fair value of the stock option plan for employee or contractors services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted calculated using the Geometric Brownian Motion method.

Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each reporting date, the entity revises its estimates of the number of options that are expected to vest. It recognizes the impact of the revision to original estimates, if any, in the Consolidated Statement of Income, with a corresponding adjustment to equity.

The fair value of the share awards payments is determined at the grant date by reference to the market value of the shares and recognized as an expense over the vesting period. When the awards are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
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Financial Instruments-risk management
 12 Months Ended
Dec. 31, 2021
Disclosure Of Financial Instruments risk Management [Abstract]  
Disclosure of financial risk management [text block]

Note 3     Financial Instruments-risk management

The Group is exposed through its operations to the following financial risks:

●Currency risk
●Price risk
●Credit risk– concentration
●Funding and liquidity risk
●Interest rate risk
●Capital risk management

The policy for managing these risks is set by the Board of Directors. Certain risks are managed centrally, while others are managed locally following guidelines communicated from the corporate department. The policy for each of the above risks is described in more detail below.

Currency risk

In Colombia, Chile, Argentina and Ecuador the functional currency is the US Dollar. The fluctuation of the local currencies of these countries against the US Dollar, except for Ecuador where the local currency is the US Dollar, does not impact the loans, costs and revenue held in US Dollars; but it does impact the balances denominated in local currencies. Such is the case of the prepaid taxes.

In Colombian, Chilean and Argentinean subsidiaries most of the balances are denominated in US Dollars, and since it is the functional currency of the subsidiaries, there is no exposure to currency fluctuation except from receivables or payables originated in local currency mainly corresponding to VAT and income tax.

The Group minimises the local currency positions in Colombia, Chile and Argentina by seeking to balance local and foreign currency assets and liabilities. However, tax receivables (VAT) seldom match with local currency liabilities. Therefore, the Group maintains a net exposure to them, except for what it is described below.

Since December 2018, GeoPark decided to manage its future exposure to local currency fluctuation with respect to income tax balances in Colombia. Consequently, the Group entered into derivative financial instruments with local banks in Colombia in December 2018 and 2019, in order to anticipate any currency fluctuation with respect to income taxes to be paid during the first half of the following year. As of December 31, 2021 and 2020, there are no currency risk management contracts in place. The Group’s derivatives are accounted for as non-hedge derivatives and therefore all changes in the fair values of its derivative contracts are recognized as gains or losses in the results of the periods in which they occur. See the impact in the Consolidated Statement of Income in Note 15.

Most of the Group's assets held in those countries are associated with oil and gas productive assets. Those assets, even in the local markets, are generally settled in US Dollar equivalents.

During 2021, the Colombian Peso devalued by 16% (5% and 1% in 2020 and 2019, respectively), the Chilean Peso devalued by 19% (revalued by 5% in 2020 and devalued by 8% in 2019) and the Argentine Peso devalued by 22% (41% and 59% in 2020 and 2019, respectively), all against the US Dollar.

If the Colombian Peso, the Chilean Peso and the Argentine Peso had each devalued an additional 10% against the US dollar, with all other variables held constant, post-tax profit for the year would have been higher by US$ 9,070,000 (post-tax loss would have been lower by US$ 9,057,000 in 2020 and post-tax profit would have been lower by US$ 645,000 in 2019).

In Brazil, the functional currency is the local currency, which is the Brazilian Real. The fluctuation of the US Dollars against the Brazilian Real does not impact the loans, costs and revenues held in Brazilian Real; but it does impact the balances denominated in US Dollars. Such is the case of the provision for asset retirement obligation and the lease liabilities. The exchange loss generated by the Brazilian subsidiary during 2021 amounted to US$ 498,000 (US$ 4,205,000 in 2020 and US$ 664,000 in 2019).

During 2021, the Brazilian Real devalued by 7% against the US Dollar (29% and 17% in 2020 and 2019, respectively). If the Brazilian Real had devalued an additional 10% against the US dollar, with all other variables held constant, post-tax profit for the year would have been lower by US$ 780,000 (post-tax loss would have been higher by US$ 909,000 in 2020 and post-tax profit would have been lower by US$ 927,000 in 2019).

As currency rate changes between the US Dollar and the local currencies, the Group recognizes gains and losses in the Consolidated Statement of Income.

In relation to the cash consideration, of British Pound Sterling (“GBP”) 241,682,496, payable for the acquisition of Amerisur Resources Plc, GeoPark was exposed to fluctuations of the GBP as of December 31, 2019. Consequently, the Group decided to manage this exposure by entering into a “Deal Contingent Forward” with a UK Bank, in order to anticipate any currency fluctuation. This forward contract was accounted for as a cash flow hedge as of December 31, 2019 and therefore the effective portion of the changes in its fair value was recognized in Other Reserve within Equity. On January 16, 2020, GeoPark removed that amount from the cash flow hedge reserve and included it directly in the initial cost of the acquired business. See Note 36.1.

Price risk

The realized oil price for the Group is linked to US dollar denominated crude oil international benchmarks. The market price of this commodity is subject to significant volatility and has historically fluctuated widely in response to relatively minor changes in the global supply and demand for oil, the geopolitical landscape, armed conflicts, the economic conditions and a variety of additional factors. The main factors affecting realized prices for gas sales vary across countries with some closely linked to international references while others are more domestically driven.

In Colombia, the realized oil price is linked to either the Vasconia crude reference price, a marker broadly used in the Llanos Basin, or the Oriente crude reference price, a marker broadly used for crude sales in Esmeraldas, Ecuador, for the crude oil of the Putumayo Basin that is transported through Ecuador. In both basins, the reference price is then adjusted for certain marketing and quality discounts based on, among other things, API, viscosity, sulphur content, delivery point and transport costs.

In Chile, the oil price is based on Dated Brent minus certain marketing and quality discounts such as, API, sulphur content and others.

GeoPark has signed a long-term Gas Supply Contract with Methanex in Chile. The price of the gas sold under this contract is determined by a formula that considers a basket of international methanol prices, including US and European price indices.

In Brazil, prices for gas produced in the Manati Field are based on a long-term off-take contract with Petrobras. The price of gas sold under this contract is denominated in Brazilian Real and is adjusted annually for inflation pursuant to the Brazilian General Market Price Index (Indice Geral de Preços do Mercado), or IGPM.

In Argentina, the realized oil prices for the production in the Neuquen Basin follows the “Medanito” blend oil price reference, which has traditionally been linked to ICE Brent adjusted by certain marketing and quality discounts based on API, delivery point and transport costs. Though prices have been regulated by the Argentine government in the past, they are currently being determined by market-based formulas.

Gas sales in Argentina are carried out through annual contracts that go from May to April. The price of the gas sold under these contracts depends mainly on domestic supply and demand and regulation affecting the sector. See Note 36.3.1.

If oil and methanol prices had fallen by 10% compared to actual prices during the year, with all other variables held constant, considering the impact of the derivative contracts in place, post-tax profit for the year would have been lower by US$ 17,899,000 (post-tax loss would have been higher by US$ 21,014,000 in 2020 and post-tax profit would have been lower by US$ 38,340,000 in 2019).

GeoPark manages part of the exposure to crude oil price volatility using derivatives. The Group considers these derivative contracts to be an effective manner of properly managing commodity price risk. The price risk management activities mainly employ combinations of options and key parameters are based on forecasted production and budget price levels. GeoPark has also obtained credit lines from industry leading counterparties to minimize the potential cash exposure of the derivative contracts (see Note 8).

Credit risk– concentration

The Group’s credit risk relates mainly to accounts receivable where the credit risks correspond to the recognized values of commodities sold. GeoPark considers that there is no significant risk associated to the Group’s major customers and hedging counterparties.

In Colombia, GeoPark allocates its sales on a competitive basis to industry leading participants including traders and other producers. During 2021, the oil and gas production was sold to three clients which concentrate 99% of the Colombian subsidiaries’ revenue, accounting for 89% of the consolidated revenue (98% of the Colombian subsidiaries’ revenue, accounting for 83% of the consolidated revenue in 2020). Delivery points include wellhead and other locations on the Colombian pipeline system for the Llanos Basin production. The Putumayo Basin production is delivered to clients FOB in Esmeraldas, Ecuador, and to the Colombian pipeline system in case of contingencies in Ecuador that affect the transport through the Ecuadorian pipeline system. The outstanding contracts for Colombian production extend through 2023. GeoPark manages its counterparty credit risk associated to sales contracts by including, in certain contracts, early payment conditions to minimize the exposure.

In Chile, the oil production is sold to ENAP, the State-owned oil and gas company (1% of the consolidated revenue in 2021, 1% in 2020 and 2% in 2019), and the gas production is sold to the local subsidiary of Methanex, a Canadian public company (2% of the consolidated revenue in 2021, 4% in 2020 and 3% in 2019).

In Brazil, all the hydrocarbons from Manati Field are sold to Petrobras, the State-owned company, which is the operator of the Manati Field (3% of the consolidated revenue in 2021, 3% in 2020 and 4% in 2019). The crude oil production from the Recôncavo Basin during 2020 and 2019 (representing less than a 1% of the consolidated revenue) was sold to local customers in the states of Bahia and Espirito Santo and to Petrobras.

In Argentina, the gas sales were channelled thought local gas marketing companies. GeoPark used to have annual agreements for gas sales from May through April. Gas sales in Argentina account for 1% of the consolidated revenues in each year.

The oil sales in Argentina were diversified across clients and delivery points: i) 72% of the oil produced in Argentina (3% of the consolidated revenue) was sold locally in Neuquen, delivered at well-head; ii) 19% of the oil produced in Argentina (1% of the consolidated revenue) was sold to major local Argentinean refineries, delivered via pipeline; and iii) 9% of the oil produced in Argentina was exported to different traders and delivered via vessels. GeoPark managed the counterparty credit risk associated to sales contracts by limiting payment terms offered to minimize the exposure.

The forementioned companies all have a good credit standing and despite the concentration of the credit risk, the Directors do not consider there to be a significant collection risk.

GeoPark executes oil prices hedges via over-the-counter derivatives. Should oil prices drop, the Group could stand to collect from its counterparties under the derivative contracts. The Group’s hedging counterparties are leading financial institutions and trading companies, therefore the Directors do not consider there to be a significant collection risk. See disclosure in Notes 8 and 25.

Funding and Liquidity risk

In the past, the Group has been able to raise capital through different sources of funding including equity, strategic partnerships and financial debt.

The Group is positioned at the end of 2021 with a cash balance of US$ 100,604,000 and 97% of its total indebtedness matures in 2024 or 2027. In addition, the Group has a large portfolio of attractive and largely discretional projects - both oil and gas - in multiple countries with 39,300 boepd in production at year end. This scale and positioning permit the Group to protect its financial condition and selectively allocate capital to the optimal projects subject to prevailing macroeconomic conditions.

The Indentures governing the Company Notes 2024 and 2027 include incurrence test covenants related to compliance with certain thresholds of Net Debt to Adjusted EBITDA ratio and Adjusted EBITDA to Interest ratio. Failure to comply with the incurrence test covenants does not trigger an event of default. However, this situation may limit the Group’s capacity to incur additional indebtedness, as specified in the indentures governing the Notes. As of the date of these Consolidated Financial Statements, the Group is in compliance with all the indentures’ provisions and covenants.

The most significant funding transactions executed during the last three years include:

In January 2020, the Company successfully placed US$ 350,000,000 Notes. These Notes were priced at 99.285% and carry a coupon of 5.50% per annum (yield 5.625% per annum). Final maturity of the Notes will be January 17, 2027. The net proceeds from the Notes were used by the Group to pay the total consideration for the acquisition of Amerisur (see Note 36.1) and to pay any related fees and expenses, and for general corporate purposes.

In June 2020, GeoPark Colombia S.A.S. executed an offtake and prepayment agreement with Trafigura. The prepayment agreement provided GeoPark with access to up to US$ 75,000,000 in the form of prepaid future oil sales. The availability period for the prepayment agreement expired on August 10, 2021. GeoPark did not withdraw any amount from this prepayment agreement.

In April 2021, the Company executed a series of transactions that included a successful tender offer to purchase US$ 255,000,000 of the 2024 Notes that was funded with a combination of cash in hand and a US$ 150,000,000 new issuance from the reopening of the 2027 Notes. The reopening of the 2027 Notes was priced above par at 101.875%, representing a yield to maturity of 5.117%.

In May 2021, GeoPark Colombia S.A.S. executed a loan agreement with Bancolombia for Colombian Pesos 35,000,000,000 (equivalent to US$ 9,388,000 at the moment of the loan execution) to finance working capital requirements in Colombia. The interest rate was the IBR index (interest rate of reference for short-term loans in Colombia) plus 1.6% per annum, the original maturity was on May 14, 2022 and interests were payable monthly. In August 2021, GeoPark optionally prepaid the full amount of the loan, with no additional cost.

In July 2021, GeoPark Colombia S.A.S. executed a loan agreement with Itau Bank for Colombian Pesos 37,653,000,000 (equivalent to US$ 9,973,000 at the moment of the loan execution) to finance working capital requirements in Colombia. The interest rate was 5.38% per annum, the original maturity was on January 3, 2022 and interests were payable monthly. In October 2021, GeoPark optionally prepaid the full amount of the loan, with no additional cost.

On October 7, 2021, GeoPark Colombia S.A.S. signed a loan agreement with Banco BTG Pactual S.A. which provides GeoPark with access to up to US$ 20,000,000 until October 7, 2022. The agreement establishes an interest rate of 4.50% per annum and a commitment fee of 1.95% per annum with respect to any undrawn amount. As of the date of these Consolidated Financial Statements, GeoPark has not withdrawn any amount from this loan agreement.

On October 8, 2021, the Colombian subsidiaries entered into an offtake and prepayment agreement with Shell Western Supply and Trading Limited (“Shell”), one of their key customers. The prepayment agreement provides GeoPark with access to up to US$ 15,000,000 in the form of prepaid future oil sales and has a twelve months availability period. Funds committed by Shell will be made available to GeoPark upon request and will be repaid by GeoPark, through future oil deliveries over the year after funds are disbursed. As of the date of these Consolidated Financial Statements, GeoPark has not withdrawn any amount from this prepayment agreement.

Interest rate risk

The Group’s interest rate risk arises from long-term borrowings issued at variable rates, which expose the Group to interest rate risk.

The Group does not face interest rate risk on its US$ 170,000,000 and US$ 500,000,000 Notes which carry fixed rate coupons of 6.50% and 5.50% per annum, respectively. Consequently, the accruals and interest payments are not substantially affected by the market interest rate changes.

As of December 31, 2021, the outstanding borrowing affected by a variable rate amounted to US$ 2,319,000, representing 0.3% of total borrowings. It corresponds to a loan from Banco Santander taken by the Brazilian subsidiary that has a floating interest rate based on CDI (Interbank certificate of deposit), which represents the average rate of all inter-bank overnight transactions in Brazil. GeoPark considers that there is no significant risk associated to interest rate based on the current exposure to variable rates.

Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the Consolidated Statement of Financial Position) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the Consolidated Statement of Financial Position plus net debt.

The Group’s strategy is to keep the gearing ratio within a 60%to 80% range, in normal market conditions. Due to the market conditions prevailing since 2020, the gearing ratio at year-end is above such range.

The gearing ratios as of December 31, 2021 and 2020 were as follows:

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

 

Net Debt

 

573,488

 

582,679

​

Total Equity

 

(61,945)

 

(109,190)

​

Total Capital

 

511,543

 

473,489

​

Gearing Ratio

 

112

%  

123

%

​
v3.22.1
Accounting estimates and assumptions
 12 Months Ended
Dec. 31, 2021
Disclosure Of Accounting estimates and assumptions [Abstract]  
Disclosure of accounting judgements and estimates [text block]

Note 4     Accounting estimates and assumptions

Estimates and assumptions are used in preparing financial statements. Although these estimates are based on management’s best knowledge of current events and actions, actual results may differ. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The key estimates and assumptions used in these Consolidated Financial Statements are noted below:

●The process of estimating reserves is complex. It requires significant judgements and decisions based on available geological, geophysical, engineering and economic data. The estimation of economically recoverable oil and natural gas reserves and related future net cash flows was performed based on the Reserve Report as of December 31, 2021 prepared by DeGolyer and MacNaughton, an independent international consultancy to the oil and gas industry based in Dallas, Texas, in line with the principles contained in the Society of Petroleum Engineers (SPE) and the Petroleum Resources Management Reporting System (PRMS) framework.

It incorporates many factors and assumptions including:

oexpected reservoir characteristics based on geological, geophysical and engineering assessments;
ofuture production rates based on historical performance and expected future operating and investment activities;
ofuture oil and gas prices and quality differentials;
oassumed effects of regulation by governmental agencies;
otax rates by jurisdiction; and
ofuture development and operating costs.

Management believes these factors and assumptions are reasonable based on the information available to them at the time of preparing the estimates. However, these estimates may change substantially as additional data from ongoing development activities and production performance becomes available and as economic conditions impacting oil and gas prices and costs change.

Such changes may impact the Group’s reported financial position and results, which include: (a) the carrying value of exploration and evaluation assets, oil and gas properties and other property, plant and equipment may be affected due to changes in estimated future cash flows, (b) depreciation and amortization charges in the Consolidated Statement of Income may change where such charges are determined using the unit of production method, or where the useful life of the related assets change, (c) provisions for abandonment may require revision -where changes to reserves estimates affect expectations about when such activities will occur and the associated cost of these activities- and, (d) the recognition and carrying value of deferred income tax assets may change due to changes in the judgements regarding the existence of such assets and in estimates of the likely recovery of such assets.

●Cash flow estimates for impairment assessments of non-financial assets require assumptions about two primary elements: future prices and reserves. Estimates of future prices require significant judgments about highly uncertain future events. Historically, oil and gas prices have exhibited significant volatility. The Group’s forecasts for oil and gas revenues are based on prices derived from future price forecasts amongst industry analysts and internal assessments. Estimates of future cash flows are generally based on assumptions of long-term prices and operating and development costs. Given the significant assumptions required and the possibility that actual conditions may differ, management considers the assessment of impairment to be a critical accounting estimate (see Note 37).
●The Group adopted the successful efforts method of accounting. The Management of the Group makes assessments and estimates regarding whether an exploration and evaluation asset should continue to be carried forward as such when insufficient information exists. This assessment is made on a quarterly basis considering the advice from qualified experts.

The application of the Group’s accounting policy for exploration and evaluation expenditure requires judgement to determine whether future economic benefits are likely from future either exploitation or sale, or whether activities have not reached a stage which permits a reasonable assessment of the existence of reserves. The determination of reserves and resources is, in itself, an estimation process that involves varying degrees of uncertainty depending on how the resources are classified. These estimates directly impact when the Group defers exploration and evaluation expenditure. The deferral policy requires management to make certain estimates and assumptions about future events and circumstances, in particular, whether an economically viable extraction operation can be established. Any such estimates and assumptions may change as new information becomes available. If, after expenditure is capitalized, information becomes available suggesting that the recovery of the expenditure is unlikely, the relevant capitalized amount is written-off in the Consolidated Statement of Income in the period when the new information becomes available.

●Oil and gas assets held in property plant and equipment are mainly depreciated on a unit of production (“UOP”) basis at a rate calculated by reference to proven and probable reserves and incorporating the estimated future cost of developing and extracting those reserves. Future development costs are estimated using assumptions as to the numbers of wells required to produce those reserves, the cost of the wells and future production facilities. This results in a depreciation charge proportional to the depletion of the anticipated remaining production from the block.

The life of each item, which is assessed at least annually, has regard to both its physical life limitations and present assessments of economically recoverable reserves of the block at which the asset is located. These calculations require the use of estimates and assumptions, including the amount of recoverable reserves and estimates of future capital expenditure. The calculation of the UOP rate of depreciation will be impacted to the extent that actual production in the future is different from current forecast production based on total proved and probable reserves, or future capital expenditure estimates change. Changes to proved and probable reserves could arise due to

changes in the factors or assumptions used in estimating reserves, including: (a) the effect on proved and probable reserves of differences between actual commodity prices and commodity price assumptions and (b) unforeseen operational issues.

●Obligations related to the abandonment of wells once operations are terminated may result in the recognition of significant obligations. Estimating the future abandonment costs is difficult and requires management to make estimates and judgments because most of the obligations are many years in the future. Technologies and costs are constantly changing as well as political, environmental, safety and public relations considerations. The Group has adopted the following criterion for recognizing well plugging and abandonment related costs: the present value of future costs necessary for well plugging and abandonment is calculated for each area at the present value of the estimated future expenditure. The liabilities recognized are based upon estimated future abandonment costs, wells subject to abandonment, time to abandonment, and future inflation rates.

The expected timing, extent and amount of expenditure may also change, for example, in response to changes in oil and gas reserves or changes in laws and regulations or their interpretation. Therefore, significant estimates and assumptions are made in determining the provision for decommissioning. As a result, there could be significant adjustments to the provisions established which would affect future financial results.

The provision at reporting date represents management’s best estimate of the present value of the future abandonment costs required.

●From time to time, the Group may be subject to various lawsuits, claims and proceedings that arise in the normal course of business, including employment, commercial, tax, environmental, safety and health matters. For example, from time to time, the Group receives notice of environmental, health and safety violations. Based on what the Group’s Management currently knows, such claims are not expected to have a material impact on the Consolidated Financial Statements.
v3.22.1
Consolidated Statement of Cash Flow
 12 Months Ended
Dec. 31, 2021
Disclosure Of Consolidated Statement Of Cash Flow [Abstract]  
Disclosure of cash flow statement [text block]

Note 5     Consolidated Statement of Cash Flow

The Consolidated Statement of Cash Flow shows the Group’s cash flows for the year for operating, investing and financing activities and the change in cash and cash equivalents during the year.

Cash flows from operating activities are computed from the results for the year adjusted for non-cash operating items, changes in net working capital, and corporate tax. Income tax paid is presented as a separate item under operating activities.

Cash flows from investing activities include payments in connection with the purchase and sale of property, plant and equipment and cash flows relating to the purchase and sale of enterprises to third parties, if any.

Cash flows from financing activities include changes in equity, and proceeds from borrowings and repayment of loans.

Cash and cash equivalents include bank overdraft, if any, and liquid funds with a term of less than three months.

The following chart describes non-cash transactions related to the Consolidated Statement of Cash Flow:

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

    

2019

(Decrease) Increase in asset retirement obligation

 

(651)

 

(1,812)

 

13,299

(Decrease) Increase in provisions for other long-term liabilities

 

(443)

 

(1,051)

 

1,867

Purchase of property, plant and equipment

 

—

 

—

 

(733)

​

Changes in working capital shown in the Consolidated Statement of Cash Flow are disclosed as follows:

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

    

2019

Decrease (Increase) in Inventories

 

1,241

 

1,220

 

(1,675)

(Increase) Decrease in Trade receivables

 

(23,290)

 

3,190

 

(27,839)

(Increase) Decrease in Prepayments and other receivables and Other assets

 

(13,817)

 

38,742

 

(27,547)

Increase (Decrease) in Trade and other payables

 

26,515

 

(48,392)

 

11,964

​

 

(9,351)

 

(5,240)

 

(45,097)

​

​

The following chart shows the movements in the borrowings and lease liabilities for each of the periods presented:

​

​

​

​

​

​

​

​

​

​

​

Lease

​

​

Amounts in US$‘000

​

Borrowings

​

Liabilities

​

Total

As of January 1, 2019

​

447,002

​

—

​

447,002

Initial recognition of lease liabilities

​

—

​

14,610

​

14,610

Addition to lease liabilities

​

—

​

2,496

​

2,496

Accrual of borrowing's interests

​

29,940

​

—

​

29,940

Exchange difference

​

5

​

566

​

571

Foreign currency translation

​

(639)

​

7

​

(632)

Unwinding of discount

​

—

​

419

​

419

Principal paid

​

(9,790)

​

—

​

(9,790)

Interest paid

​

(29,099)

​

—

​

(29,099)

Lease payments

​

—

​

(4,855)

​

(4,855)

As of December 31, 2019

​

437,419

​

13,243

​

450,662

Proceeds from borrowings

​

350,000

​

—

​

350,000

Debt issuance costs paid

​

(7,507)

​

—

​

(7,507)

Acquisitions (Note 36.1)

​

—

​

17,851

​

17,851

Addition to lease liabilities

​

—

​

561

​

561

Accrual of borrowing's interests

​

48,232

​

—

​

48,232

Exchange difference

​

—

​

466

​

466

Foreign currency translation

​

(2,389)

​

(1,641)

​

(4,030)

Unwinding of discount

​

—

​

1,247

​

1,247

Principal paid

​

(3,575)

​

—

​

(3,575)

Interest paid

​

(37,594)

​

—

​

(37,594)

Lease payments

​

—

​

(9,380)

​

(9,380)

As of December 31, 2020

​

784,586

​

22,347

​

806,933

Proceeds from borrowings

​

172,174

​

—

​

172,174

Debt issuance costs paid

​

(2,019)

​

—

​

(2,019)

Addition to lease liabilities

​

—

​

5,288

​

5,288

Accrual of borrowing's interests

​

44,323

​

—

​

44,323

Exchange difference

​

(581)

​

(365)

​

(946)

Foreign currency translation

​

(265)

​

(461)

​

(726)

Unwinding of discount

​

—

​

1,453

​

1,453

Principal paid

​

(274,934)

​

—

​

(274,934)

Interest paid

​

(42,592)

​

—

​

(42,592)

Borrowings cancellation costs

​

6,308

​

—

​

6,308

Borrowings cancellation costs paid

​

(12,908)

​

—

​

(12,908)

Lease payments

​

—

​

(7,518)

​

(7,518)

As of December 31, 2021

​

674,092

​

20,744

​

694,836

​
v3.22.1
Segment information
 12 Months Ended
Dec. 31, 2021
Disclosure Of Segment information [Abstract]  
Disclosure of entity's operating segments [text block]

Note 6     Segment information

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee. This committee is integrated by the CEO, COO, CFO and managers in charge of the Geoscience, Operations, Legal and Corporate Governance, People and Sustainability departments. This committee reviews the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. The committee considers the business from a geographic perspective.

The Executive Committee assesses the performance of the operating segments based on a measure of Adjusted EBITDA. Adjusted EBITDA is defined as (loss) profit for the period (determined as if IFRS 16 Leases has not been adopted), before net finance cost, income tax, depreciation, amortization, certain non-cash items such as impairments and write-offs of unsuccessful exploration efforts, accrual of share-based payment, unrealized result on commodity risk management contracts, geological and geophysical expenses allocated to capitalized projects, and other non-recurring events. Other information provided to the Executive Committee is measured in a manner consistent with that in the Consolidated Financial Statements.

Segment areas (geographical segments)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Ecuador (b)

​

Corporate

​

Total

2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

​

618,268

​

21,471

​

20,109

​

28,695

​

—

​

—

​

688,543

Sale of crude oil

​

616,133

​

6,297

​

661

​

24,468

​

—

​

—

​

647,559

Sale of gas

​

2,135

​

15,174

​

19,448

​

4,227

​

—

​

—

​

40,984

Realized loss on commodity risk management contracts

​

(109,654)

​

—

​

—

​

—

​

—

​

—

​

(109,654)

Production and operating costs

​

(178,384)

​

(11,050)

​

(4,596)

​

(18,760)

​

—

​

—

​

(212,790)

Royalties

​

(106,341)

​

(770)

​

(1,642)

​

(4,270)

​

—

​

—

​

(113,023)

Share-based payment

​

(334)

​

(31)

​

—

​

26

​

—

​

—

​

(339)

Other operating costs

​

(71,709)

​

(10,249)

​

(2,954)

​

(14,516)

​

—

​

—

​

(99,428)

Adjusted EBITDA

​

294,847

​

7,639

​

12,569

​

2,124

​

(2,071)

​

(14,308)

​

300,800

Depreciation

​

(61,279)

​

(14,275)

​

(4,082)

​

(9,130)

​

(200)

​

(3)

​

(88,969)

(Recognition) Reversal of impairment losses

​

—

​

(17,641)

​

—

​

13,307

​

—

​

—

​

(4,334)

Write-off of unsuccessful exploration efforts

​

(7,827)

​

(4,435)

​

—

​

—

​

—

​

—

​

(12,262)

Total assets

​

689,401

​

71,515

​

38,846

​

38,111

​

7,782

​

50,086

​

895,741

Employees (average) (a)

​

308

​

55

​

4

​

92

​

8

​

9

​

476

Employees at year end (a)

​

321

​

52

​

4

​

74

​

3

​

9

​

463

(a)Unaudited

(b)

Includes certain expenses and 4 average employees (who are no longer in the Group at year-end) that correspond to the Peruvian subsidiaries, which act as holding companies of the Ecuadorian branch since Peru is no longer an operating segment due to the retirement from the Morona Block.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Peru (b)

​

Ecuador

​

Corporate

​

Total

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

​

334,606

​

21,704

​

12,783

​

24,599

​

—

​

—

​

—

​

393,692

Sale of crude oil

​

332,461

​

5,103

​

891

​

21,185

​

—

​

—

​

—

​

359,640

Sale of gas

​

2,145

​

16,601

​

11,892

​

3,414

​

—

​

—

​

—

​

34,052

Realized gain on commodity risk management contracts

​

21,059

​

—

​

—

​

—

​

—

​

—

​

—

​

21,059

Production and operating costs

​

(92,319)

​

(10,244)

​

(3,876)

​

(18,633)

​

—

​

—

​

—

​

(125,072)

Royalties

​

(30,453)

​

(753)

​

(1,049)

​

(3,620)

​

—

​

—

​

—

​

(35,875)

Share-based payment

​

(362)

​

(94)

​

—

​

(72)

​

—

​

—

​

—

​

(528)

Other operating costs

​

(61,504)

​

(9,397)

​

(2,827)

​

(14,941)

​

—

​

—

​

—

​

(88,669)

Adjusted EBITDA

​

218,524

​

8,148

​

4,784

​

1,195

​

(1,952)

​

(773)

​

(12,395)

​

217,531

Depreciation

​

(63,687)

​

(33,571)

​

(3,732)

​

(16,564)

​

(401)

​

(52)

​

(66)

​

(118,073)

Recognition of impairment losses

​

—

​

(81,967)

​

(1,717)

​

(16,205)

​

(33,975)

​

—

​

—

​

(133,864)

Write-off of unsuccessful exploration efforts

​

(1,949)

​

(50,167)

​

(536)

​

—

​

—

​

—

​

—

​

(52,652)

Total assets

​

680,828

​

101,742

​

38,172

​

36,803

​

4,656

​

1,127

​

96,938

​

960,266

Employees (average) (a)

​

238

​

68

​

11

​

114

​

10

​

2

​

4

​

447

Employees at year end (a)

​

268

​

57

​

5

​

97

​

5

​

2

​

3

​

437

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Peru (b)

​

Ecuador

​

Corporate

​

Total

2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

​

538,917

​

32,336

​

23,049

​

34,605

​

—

​

—

​

—

​

628,907

Sale of crude oil

​

536,986

​

10,551

​

1,469

​

30,024

​

—

​

—

​

—

​

579,030

Sale of gas

​

1,931

​

21,785

​

21,580

​

4,581

​

—

​

—

​

—

​

49,877

Realized gain on commodity risk management contracts

​

3,888

​

—

​

—

​

—

​

—

​

—

​

—

​

3,888

Production and operating costs

​

(116,944)

​

(19,789)

​

(5,953)

​

(26,278)

​

—

​

—

​

—

​

(168,964)

Royalties

​

(56,399)

​

(1,181)

​

(1,855)

​

(5,141)

​

—

​

—

​

—

​

(64,576)

Share-based payment

​

(231)

​

(31)

​

(29)

​

(38)

​

—

​

—

​

—

​

(329)

Other operating costs

​

(60,314)

​

(18,577)

​

(4,069)

​

(21,099)

​

—

​

—

​

—

​

(104,059)

Adjusted EBITDA

​

367,058

​

8,310

​

11,750

​

868

​

(6,540)

​

(535)

​

(17,576)

​

363,335

Depreciation

​

(46,917)

​

(34,826)

​

(7,445)

​

(15,618)

​

(576)

​

(1)

​

(149)

​

(105,532)

Recognition of impairment losses

​

—

​

—

​

—

​

(7,559)

​

—

​

-

​

-

​

(7,559)

Write-off of unsuccessful exploration efforts

​

—

​

—

​

(5,120)

​

(13,170)

​

—

​

-

​

-

​

(18,290)

Total assets

​

357,125

​

249,207

​

68,480

​

79,062

​

53,993

​

1,119

​

43,146

​

852,132

Employees (average) (a)

​

195

​

89

​

13

​

133

​

26

​

2

​

3

​

461

Employees at year end (a)

​

202

​

77

​

13

​

128

​

14

​

2

​

3

​

439

(a)Unaudited
(b)As of the date of these Consolidated Financial Statements, Peru is no longer an operating segment due to the retirement from the Morona Block.

​

​

In 2021, approximately 93% of capital expenditure was incurred by Colombia (82% in 2020 and 61% in 2019), 3% was incurred by Chile (15.5% in 2020 and 8% in 2019), 0% was incurred by Brazil (0.5% in 2020 and 4% in 2019), 0% was incurred by Argentina (1% in 2020 and 15% in 2019), 0% was incurred by Peru (0.5% in 2020 and 11.5% in 2019) and 4% was incurred by Ecuador (0.5% in 2020 and 2019).

​

A reconciliation of total Adjusted EBITDA to total profit (loss) before income tax is provided as follows:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

    

2021

    

2020

    

2019

Adjusted EBITDA

 

300,800

 

217,531

 

363,335

Unrealized gain (loss) on commodity risk management contracts

 

463

 

(12,978)

 

(26,411)

Depreciation (a)

 

(88,969)

 

(118,073)

 

(105,532)

Share-based payment

 

(6,621)

 

(8,444)

 

(2,717)

Impairment and write-off of unsuccessful exploration efforts, net

 

(16,596)

 

(186,516)

 

(25,849)

Lease accounting - IFRS 16

​

7,518

​

9,380

​

4,855

Others (b)

 

(10,786)

 

(11,563)

 

2,994

Operating profit (loss)

 

185,809

 

(110,663)

 

210,675

Financial expenses

 

(64,112)

 

(64,582)

 

(41,070)

Financial income

 

1,652

 

3,166

 

2,360

Foreign exchange gain (loss)

 

5,049

 

(13,008)

 

(2,446)

Profit (Loss) before tax

 

128,398

 

(185,087)

 

169,519

(a)Net of capitalized costs for oil stock included in Inventories.
(b)Includes allocation to capitalized projects. In 2021, also includes termination costs and write-down of tax credits in Argentina and, in 2020, also includes termination costs, and write-down of VAT credits and recognition of a provision for environmental liabilities in Peru.
v3.22.1
Revenue
 12 Months Ended
Dec. 31, 2021
Disclosure Of Revenue [Abstract]  
Disclosure of revenue [text block]

Note 7     Revenue

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

    

2021

    

2020

    

2019

Sale of crude oil

 

647,559

 

359,640

 

579,030

Sale of gas

 

40,984

 

34,052

 

49,877

​

 

688,543

 

393,692

 

628,907

​
v3.22.1
Commodity risk management contracts
 12 Months Ended
Dec. 31, 2021
Disclosure Of Commodity risk management contracts [Abstract]  
Disclosure Of Commodity Risk Management Contracts Explanatory [Text Block]

Note 8     Commodity risk management contracts

The Group has entered into derivative financial instruments to manage its exposure to oil price risk. These derivatives are zero-premium collars, fixed price or zero-premium 3-ways (put spread plus call), and were placed with major financial institutions and commodity traders. The Group entered into the derivatives under ISDA Master Agreements and Credit Support Annexes, which provide credit lines for collateral posting thus alleviating possible liquidity needs under the instruments and protect the Group from potential non-performance risk by its counterparties. The Group’s derivatives are accounted for as non-hedge derivatives and therefore all changes in the fair values of its derivative contracts are recognized as gains or losses in the results of the periods in which they occur.

The following table presents the Group’s production hedged during the year ended December 31, 2021 and for the following periods as a consequence of the derivative contracts in force as of December 31, 2021:

​

​

​

​

​

​

​

​

​

​

Period

    

Reference

    

Type

    

Volume bbl/d

    

Weighted average price US$/bbl

January 1, 2021 - March 31, 2021

​

ICE BRENT

​

Zero Premium Collars

​

23,500

​

38.91 Put 52.72 Call

January 1, 2021 - March 31, 2021

​

VASCONIA(a)

​

Zero Premium Collars

​

2,000

​

35.00 Put 43.01 Call

​

​

​

​

​

​

25,500

​

​

April 1, 2021 - June 30, 2021

​

ICE BRENT

​

Zero Premium Collars

​

25,500

​

40.61 Put 53.59 Call

​

​

​

​

​

​

25,500

​

​

July 1, 2021 - September 30, 2021

​

ICE BRENT

​

Zero Premium Collars

​

18,000

​

43.19 Put 60.64 Call

July 1, 2021 - September 30, 2021

​

VASCONIA(a)

​

Zero Premium Collars

​

2,000

​

41.50 Put 68.57 Call

​

​

​

​

​

​

20,000

​

​

October 1, 2021 - December 31, 2021

​

ICE BRENT

​

Zero Premium Collars

​

19,500

​

43.72 Put 62.65 Call

​

​

​

​

​

​

19,500

​

​

January 1, 2022 - March 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

14,500

​

49.10 Put 74.81 Call

​

​

​

​

​

​

14,500

​

​

April 1, 2022 - June 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

12,500

​

53.35 Put 79.38 Call

​

​

​

​

​

​

12,500

​

​

July 1, 2022 - September 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

10,000

​

58.23 Put 84.37 Call

​

​

​

​

​

​

10,000

​

​

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

6,000

​

60.00 Put 86.38 Call

​

​

​

​

​

​

6,000

​

​

(a)Vasconia Crude (Ice Brent minus Vasconia Differential)

​

​

Since 2020, the Group has entered into Vasconia-based derivative contracts, a new instrument within its hedging portfolio. These derivatives protect both the overall crude price exposure to ICE Brent as well as the Vasconia differential, which reflects the quality adjustment for the GeoPark’s Llanos Basin crude production in Colombia.

​

The table below summarizes the gain (loss) on the commodity risk management contracts:

​

​

​

​

​

​

​

​

​

2021

​

2020

​

2019

Realized (loss) gain on commodity risk management contracts

​

(109,654)

​

21,059

​

3,888

Unrealized gain (loss) on commodity risk management contracts

​

463

​

(12,978)

​

(26,411)

​

​

(109,191)

​

8,081

​

(22,523)

​

The following table presents the Group’s derivative contracts agreed after the balance sheet date:

​

​

​

​

​

​

​

​

​

​

Period

    

Reference

    

Type

    

Volume bbl/d

    

Price US$/bbl

July 1, 2022 - September 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 90.50 Call

July 1, 2022 - September 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 96.70 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 91.40 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 99.30 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 101.70 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

65.00 Put 102.50 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 103.70 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 104.75 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

65.00 Put 104.90 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

70.00 Put 102.30 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

70.00 Put 109.50 Call

April 1, 2023 - June 30, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

65.00 Put 100.75 Call

April 1, 2023 - June 30, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

70.00 Put 103.50 Call

​
v3.22.1
Production and operating costs
 12 Months Ended
Dec. 31, 2021
Disclosure Of Production And Operating Costs [Abstract]  
Disclosure Of Production And Operating Costs Explanatory [Text Block]

Note 9     Production and operating costs

​

​

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

​

2019

Staff costs (Note 11)

​

16,655

​

14,689

​

14,213

Share-based payment (Note 11)

​

339

​

528

​

329

Royalties

​

113,023

​

35,875

​

64,576

Well and facilities maintenance

​

17,989

​

15,039

​

27,660

Operation and maintenance

​

7,826

​

7,491

​

7,743

Consumables

​

19,270

​

16,776

​

17,625

Equipment rental

​

8,127

​

8,570

​

10,476

Safety and Insurance costs

​

4,216

​

4,505

​

4,107

Gas plant costs

​

2,596

​

1,591

​

3,414

Transportation costs

​

3,383

​

5,622

​

2,941

Field camp

​

4,386

​

3,130

​

2,583

Non-operated blocks costs

​

4,941

​

3,442

​

1,353

Other costs

​

10,039

​

7,814

​

11,944

​

​

212,790

​

125,072

​

168,964

​
v3.22.1
Depreciation
 12 Months Ended
Dec. 31, 2021
Disclosure Of Depreciation [Abstract]  
Disclosure of depreciation and amortisation expense [text block]

Note 10     Depreciation

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Oil and gas properties

​

66,011

​

89,344

​

83,276

Production facilities and machinery

​

12,468

​

16,820

​

16,708

Furniture, equipment and vehicles

​

1,960

​

2,317

​

2,096

Buildings and improvements

​

700

​

490

​

804

Depreciation of property, plant and equipment (a)

​

81,139

​

108,971

​

102,884

Related to:

​

  

​

  

​

  

Productive assets

​

78,479

​

106,164

​

99,984

Administrative assets

​

2,660

​

2,807

​

2,900

Depreciation total (a)

​

81,139

​

108,971

​

102,884

(a)Depreciation without considering capitalized costs for oil stock included in Inventories nor depreciation of right-of-use assets.
v3.22.1
Staff costs and Directors Remuneration
 12 Months Ended
Dec. 31, 2021
Disclosure of Staff costs and Directors Remuneration [Abstract]  
Disclosure Of Staff Costs And Directors Remuneration Explanatory [Text Block]

Note 11     Staff costs and Directors’ Remuneration

​

​

​

​

​

​

​

​

​

​

2021

​

2020

​

2019

Number of employees at year end (a)

​

463

​

437

​

439

Amounts in US$ ‘000

​

​

​

​

​

​

Wages and salaries

​

42,236

​

49,338

​

55,325

Share-based payments (b) (Note 31)

​

6,621

​

8,444

​

2,717

Social security charges

​

6,863

​

5,712

​

6,888

Director’s fees and allowance

​

2,853

​

2,094

​

3,266

​

​

58,573

​

65,588

​

68,196

Recognized as follows:

​

  

​

  

​

  

Production and operating costs

​

16,994

​

15,217

​

14,542

Geological and geophysical expenses

​

6,219

​

12,893

​

18,448

Administrative expenses

​

35,360

​

37,478

​

35,206

​

​

58,573

​

65,588

​

68,196

Board of Directors’ and key managers’ remuneration

​

  

​

  

​

  

Salaries and fees

​

9,069

​

8,641

​

13,483

Share-based payments

​

5,759

​

7,170

​

2,251

Other benefits in kind

​

296

​

232

​

262

​

​

15,124

​

16,043

​

15,996

(a)Unaudited.
(b)The increase in share-based payments in 2021 and 2020 is explained by the accrual of the 2019 VCP and the 2020 Plan, which were granted in November 2019 and February 2020, respectively.

​

Directors’ Remuneration

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Executive

​

Executive

​

Non-Executive

​

Director Fees

​

Cash Equivalent

​

​

Directors’ Fees

​

Directors’ Bonus

​

Directors’ Fees

​

Paid in Shares

​

Total Remuneration

​

    

(in US$)

    

(in US$)

    

(in US$)

    

(No. of Shares)

    

(in US$)

Gerald O’Shaughnessy (a)

​

261,560

​

—

​

—

​

—

​

261,560

James F. Park

​

800,000

​

800,000

(b)

—

​

—

​

1,600,000

Pedro E. Aylwin (c)

​

—

​

—

​

—

​

—

​

—

Carlos Gulisano

​

—

​

—

​

82,083

​

7,845

​

185,953

Robert Bedingfield (d)

​

—

​

—

​

32,500

​

15,438

​

238,527

Constantin Papadimitriou (e) (f)

​

—

​

—

​

112,500

​

14,852

​

310,646

Somit Varma (f) (g)

​

—

​

—

​

141,875

​

14,803

​

339,239

Sylvia Escovar Gomez (h)

​

—

​

—

​

67,500

​

11,331

​

223,465

(a)Chair of GeoPark's board until June 8, 2021. Sylvia Escovar Gomez is the new Chair of the Board.
(b)The service contract with the Company to act as Chief Executive Officer established a bonus based on metrics and targets defined by the Compensation Committee over the performance of the Company. The target bonus is an amount equal to the annual salary. On March 10, 2021, the independent directors of the Board approved, as per recommendation of the Compensation Committee, Mr. Park’s bonus for the performance in 2020. Given the impact of COVID-19 and oil price crisis during 2020, the cash bonus approved was reduced to US$ 400,000.
(c)Pedro E. Aylwin has a service contract that provides for him to act as Director of Legal and Governance, so he relinquished his fees as a member of the Board.
(d)Audit Committee and Nomination & Corporate Governance Committee Chairman until November 10, 2021. Mr. Somit Varma was appointed as new Chairman of the Nomination & Corporate Governance Committee.
(e)Compensation Committee Chairman.
(f)Constantin Papadimitriou and Somit Varma, as members of the Strategy & Risk Committee, instructed by the Board, were awarded additional fees on their work related to specific projects and activities. The additional fees for 2021 amounted to US$ 82,500 and US$ 111,875, respectively and are included in the table above.
(g)Strategy & Risk Committee Chairman.
(h)Includes an additional annual remuneration of US$ 50,000 to act as independent Chair of the Board.
v3.22.1
Geological and geophysical expenses
 12 Months Ended
Dec. 31, 2021
Disclosure Of Geological and geophysical expenses [Abstract]  
Disclosure of geological and geophysical expenses [Text Block]

Note 12     Geological and geophysical expenses

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Staff costs (Note 11)

​

6,042

​

12,653

​

18,312

Share-based payment (Note 11)

​

177

​

240

​

136

Allocation to capitalized project

​

(953)

​

(102)

​

(4,834)

Other services

​

2,625

​

2,160

​

4,979

​

​

7,891

​

14,951

​

18,593

​
v3.22.1
Administrative expenses
 12 Months Ended
Dec. 31, 2021
Disclosure Of Administrative expenses [Abstract]  
Disclosure of general and administrative expense [text block]

Note 13     Administrative expenses

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Staff costs (Note 11)

​

26,402

​

27,708

​

29,688

Share-based payment (Note 11)

​

6,105

​

7,676

​

2,252

Consultant fees

​

10,806

​

8,570

​

18,685

Office expenses

​

224

​

1,525

​

1,386

Travel expenses

​

719

​

939

​

4,867

Director’s fees and allowance (Note 11)

​

2,853

​

2,094

​

3,266

Communication and IT costs

​

4,214

​

2,937

​

2,928

Allocation to joint operations

​

(8,574)

​

(6,720)

​

(8,008)

Other administrative expenses

​

4,079

​

5,586

​

5,754

​

​

46,828

​

50,315

​

60,818

​
v3.22.1
Selling expenses
 12 Months Ended
Dec. 31, 2021
Disclosure of Selling expenses [Abstract]  
Disclosure of selling expenses [text block]

Note 14     Selling expenses

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Transportation

​

4,233

​

4,787

​

12,985

Selling taxes and other

​

4,497

​

1,057

​

1,128

​

​

8,730

​

5,844

​

14,113

​
v3.22.1
Financial results
 12 Months Ended
Dec. 31, 2021
Disclosure Of Financial costs [Abstract]  
Disclosure of finance income (cost) [text block]

Note 15     Financial results

​

​

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

​

2019

Financial expenses

​

  

​

  

​

  

Interest and amortization of debt issue costs

​

(44,713)

​

(48,779)

​

(29,977)

Less: amounts capitalized on qualifying assets

​

—

​

—

​

367

Borrowings cancellation costs

​

(6,308)

​

—

​

—

Bank charges and other financial results

​

(8,012)

​

(9,909)

​

(6,900)

Unwinding of long-term liabilities

​

(5,079)

​

(5,894)

​

(4,560)

​

​

(64,112)

​

(64,582)

​

(41,070)

Financial income

​

  

​

  

​

  

Interest received

​

1,652

​

3,166

​

2,360

​

​

1,652

​

3,166

​

2,360

Foreign exchange gains and losses

​

  

​

  

​

  

Foreign exchange gain (loss), net

​

5,049

​

(2,720)

​

(6,163)

Realized result on currency risk management contracts

​

—

​

(9,414)

​

2,843

Unrealized result on currency risk management contracts

​

—

​

(874)

​

874

​

​

5,049

​

(13,008)

​

(2,446)

Total Financial results

​

(57,411)

​

(74,424)

​

(41,156)

​
v3.22.1
Tax reforms
 12 Months Ended
Dec. 31, 2021
Disclosure of Tax reforms [Abstract]  
Disclosure Of New Tax Reforms Explanatory [Text Block]

Note 16     Tax reforms

Colombia

In September 2021, a tax reform was approved in Colombia. The new legislation focuses on corporate income tax, increasing the tax rate from 30% to 35% from fiscal year 2022 onwards (the corporate income tax rate was 31% in 2021, 32% in 2020 and 33% in 2019).

Although the new tax provisions do not affect tax bases or tax rate for fiscal year 2021, the tax rate increase shall be considered for deferred income tax purposes.

Argentina

In June 2021, a tax reform was approved in Argentina. The new legislation focuses on the corporate income tax, with gradual rates on cumulative net income according to the following schedule: i) up to Argentine Peso (“AR$”) 5,000,000: 25% rate; ii) over AR$ 5,000,000 up to AR$ 50,000,000: AR$ 1,250,000 plus 30% on the surplus of AR$ 5,000,000; iii) over AR$ 50,000,000: AR$ 14,750,000 plus 35% on the surplus of AR$ 50,000,000. The detailed schedule applies from fiscal year 2021 onwards (the corporate income tax rate was 30% in 2020 and 2019).

Spain

​

As from December 2021, a set of tax rules approved in December 2020 became applicable for the Spanish holding entities. As stated, the new tax regulations turned a full income tax exemption on dividend and capital gains income into a 95% exemption.
v3.22.1
Income tax
 12 Months Ended
Dec. 31, 2021
Disclosure Of Income tax [Abstract]  
Disclosure of income tax [text block]

Note 17     Income tax

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Current income tax charge

​

(49,291)

​

(41,927)

​

(111,371)

Deferred income tax charge (Note 18)

​

(17,980)

​

(5,936)

​

(391)

​

​

(67,271)

​

(47,863)

​

(111,762)

​

The tax on the Group’s (loss) profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Profit (Loss) before tax

​

128,398

​

(185,087)

​

169,519

Tax losses from non-taxable jurisdictions

​

91,351

​

53,652

​

49,360

Taxable profit

​

219,749

​

(131,435)

​

218,879

​

​

  

​

  

​

  

Income tax calculated at domestic tax rates applicable to Profit in the respective countries

​

(71,086)

​

12,450

​

(79,395)

Tax losses where no deferred tax benefit is recognized

​

(7,510)

​

(23,117)

​

(2,563)

Effect of currency translation on tax base

​

(10,354)

​

(923)

​

(16,795)

Effect of inflation adjustment for tax purposes

​

2,482

​

(867)

​

541

Changes in the income tax rate (Note 16)

​

(1,703)

​

(925)

​

1,279

Write-down of deferred tax benefits previously recognized (a)

​

(7,261)

​

(32,565)

​

—

Previously unrecognized tax losses

​

9,593

​

—

​

1,820

Fiscal recognition of property, plant and equipment

​

8,919

​

—

​

—

Out of period adjustment (b)

​

—

​

—

​

(9,910)

Non-taxable results (c)

​

9,649

​

(1,916)

​

(6,739)

Income tax

​

(67,271)

​

(47,863)

​

(111,762)

(a)Includes write-down of the deferred income tax asset in Peru due to the decision to retire from the Morona Block (see Note 36.4.1) in 2020, and write-down of a portion of tax losses and other deferred income tax assets in Chile, Brazil and Argentina where there is insufficient evidence of future taxable profits to offset them, in accordance with the expected future cash-flows as of December 31, 2021 and 2020.
(b)Adjustment related to prior periods that increased the income tax expense during the year ended December 31, 2019, due to the increase in deferred tax liabilities as a result of computing as temporary, differences generated between the tax and book basis of Property, plant and equipment, that were originally considered as permanent. The Group concluded that this adjustment was not material to the year ended December 31, 2019 or to any previously reported Consolidated Financial Statements.
(c)Includes non-deductible expenses and non-taxable gains in each jurisdiction.

Under current Bermuda law, the Company is not required to pay any taxes in Bermuda on income or capital gains. The Company has received an undertaking from the Minister of Finance in Bermuda that, in the event of any taxes being imposed, they will be exempt from taxation in Bermuda until March 2035. Income tax rates in those countries where the Group operates (Colombia, Chile, Brazil, Argentina and Ecuador) ranges from 15% to 35%. There are no income tax consequences attached to the payment of dividends by the Group to its shareholders.

The Group has tax losses available which can be utilized against future taxable profit in the following countries:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

    

2021

    

2020

    

2019

Chile (a)

 

285,456

 

403,258

 

317,644

Brazil (a)

 

26,781

 

32,452

 

37,848

Argentina (b)

 

35,773

 

20,734

 

22,930

Total tax losses as of December 31

 

348,010

 

456,444

 

378,422

(a)Taxable losses have no expiration date.
(b)Tax losses accumulated as of December 31, 2021 are: US$ 646,000, US$ 1,715,000, US$ 8,211,000, US$ 5,671,000 and US$ 19,530,000 expiring in 2022, 2023, 2024, 2025 and 2026, respectively.

​

At the balance sheet date, deferred tax assets in respect of tax losses in certain companies in Chile and a portion of tax losses in Brazil have not been recognized as there is insufficient evidence of future taxable profits to offset them.
v3.22.1
Deferred income tax
 12 Months Ended
Dec. 31, 2021
Disclosure of deferred income tax [Abstract]  
Disclosure of deferred taxes [text block]

Note 18     Deferred income tax

The gross movement on the deferred income tax account is as follows:

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Deferred income tax as of January 1

​

10,978

​

16,084

Acquisitions (Note 36.1)

​

—

​

4,071

Currency translation differences

​

127

​

(3,241)

Income statement charge

​

(17,980)

​

(5,936)

Deferred income tax as of December 31

​

(6,875)

​

10,978

​

The breakdown and movement of deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At the

​

​

​

​

​

Currency

​

​

​

​

​

​

beginning

​

​

​

Charged to

​

translation

​

​

​

At the end

Amounts in US$ ‘000

    

of year

    

Acquisitions

    

net profit

    

differences

    

Reclassification

    

of year

Deferred income tax assets

​

  

​

​

​

  

​

  

​

  

​

  

Difference in depreciation rates and other

​

(4,628)

​

—

​

4,157

​

127

​

—

​

(344)

Tax losses

​

22,796

​

—

​

(8,380)

​

—

​

—

​

14,416

Total 2021

​

18,168

​

—

​

(4,223)

​

127

​

—

​

14,072

Total 2020

​

26,934

​

4,071

​

(18,414)

​

(3,241)

​

8,818

​

18,168

​

​

​

​

​

​

​

​

​

​

​

​

At the beginning

​

Charged to

​

​

​

At the end

Amounts in US$ ‘000

​

of year

​

net profit

​

Reclassification

​

of year

Deferred income tax liabilities

​

  

​

  

​

  

​

  

Difference in depreciation rates and other

​

(7,190)

​

(13,757)

​

—

​

(20,947)

Total 2021

​

(7,190)

​

(13,757)

​

—

​

(20,947)

Total 2020

​

(10,850)

​

12,478

​

(8,818)

​

(7,190)

​
v3.22.1
Earnings per share
 12 Months Ended
Dec. 31, 2021
Disclosure of earning per share [Abstract]  
Disclosure of earnings per share [text block]

Note 19     Earnings per share

​

​

​

​

​

​

​

​

Amounts in US$ ‘000 except for shares

​

2021

​

2020

​

2019

Numerator: Profit (Loss) for the year

​

61,127

​

(232,950)

​

57,757

Denominator: Weighted average number of shares used in basic EPS

​

60,901,109

​

60,668,185

​

60,217,523

Earnings (Losses) after tax per share (US$) – basic

​

1.00

​

(3.84)

​

0.96

​

​

​

​

​

​

​

​

Amounts in US$ ‘000 except for shares

​

2021

​

2020

​

2019

Weighted average number of shares used in basic EPS

​

60,901,109

​

60,668,185

​

60,217,523

Effect of dilutive potential common shares (a)

​

​

​

​

​

​

Stock awards at US$ 0.001

​

559,012

​

—

​

2,433,126

Weighted average number of common shares for the purposes of diluted earnings per shares

​

61,460,121

​

60,668,185

​

62,650,649

Earnings (Losses) after tax per share (US$) – diluted

​

0.99

​

(3.84)

​

0.92

(a)For the year ended December 31, 2020, there were 974,159 potential shares that could have a dilutive impact. They were considered antidilutive due to negative earnings.
v3.22.1
Property, plant and equipment
 12 Months Ended
Dec. 31, 2021
Disclosure of detailed information about property, plant and equipment [abstract]  
Disclosure of property, plant and equipment [text block]

Note 20     Property, plant and equipment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Furniture,

​

Production

​

Buildings

​

​

​

Exploration

​

​

​

​

Oil & gas

​

equipment

​

facilities and

​

and

​

Construction in

​

and evaluation

​

​

Amounts in US$’000

​

properties

​

and vehicles

​

machinery

​

improvements

​

progress

​

assets(a)

​

Total

Cost as of January 1, 2019

​

717,510

​

17,748

​

172,094

​

11,554

​

60,597

​

59,992

​

1,039,495

Additions

​

14,696

(b)

2,052

​

381

​

159

​

96,012

​

27,449

​

140,749

Currency translation differences

​

(3,022)

​

(414)

​

(561)

​

(8)

​

(106)

​

(449)

​

(4,560)

Disposals

​

—

​

(102)

​

(101)

​

—

​

—

​

(59)

​

(262)

Write-off / Impairment

​

(7,559)

(c)

—

​

—

(c)

—

​

—

(c)

(18,290)

(d)

(25,849)

Transfers

​

83,010

​

265

​

24,183

​

65

​

(86,916)

​

(20,607)

​

—

Reclassification (g)

​

26,302

​

—

​

(23,489)

​

—

​

—

​

—

​

2,813

Cost as of December 31, 2019

​

830,937

​

19,549

​

172,507

​

11,770

​

69,587

​

48,036

​

1,152,386

Additions

​

(2,863)

(b)

1,180

​

—

​

422

​

55,267

​

18,429

​

72,435

Acquisitions (Note 36.1)

​

185,533

​

553

​

16,181

​

212

​

1,199

​

73,310

​

276,988

Currency translation differences

​

(14,399)

​

(194)

​

(1,036)

​

(59)

​

(47)

​

(401)

​

(16,136)

Disposals

​

—

​

(555)

​

—

​

(227)

​

(33)

​

—

​

(815)

Write-off / Impairment

​

(77,667)

(c)

—

​

(11,357)

​

—

​

(44,840)

​

(52,652)

(e)

(186,516)

Transfers

​

48,361

​

174

​

21,534

​

324

​

(62,285)

​

(8,108)

​

—

Assets held for sale (Note 36.2.2)

​

(1,285)

​

—

​

—

​

—

​

—

​

—

​

(1,285)

Cost as of December 31, 2020

​

968,617

​

20,707

​

197,829

​

12,442

​

18,848

​

78,614

​

1,297,057

Additions

​

(1,094)

(b)

930

​

—

​

—

​

82,094

​

46,234

​

128,164

Currency translation differences

​

(3,284)

​

(43)

​

(246)

​

(16)

​

(18)

​

(30)

​

(3,637)

Disposals

​

—

​

(1,762)

​

(900)

​

(978)

​

(3,372)

​

(338)

​

(7,350)

Write-off / Impairment

​

(1,575)

(c)

—

​

(2,759)

(c)

—

​

—

(c)

(12,262)

(f)

(16,596)

Transfers

​

68,315

​

58

​

13,305

​

391

​

(70,321)

​

(11,748)

​

—

Assets held for sale (Note 36.3.1)

​

(73,047)

​

(1,178)

​

(6,052)

​

(177)

​

(27)

​

—

​

(80,481)

Cost as of December 31, 2021

​

957,932

​

18,712

​

201,177

​

11,662

​

27,204

​

100,470

​

1,317,157

Depreciation and write-down as of January 1, 2019

​

(359,358)

​

(13,361)

​

(103,704)

​

(5,902)

​

—

​

—

​

(482,325)

Depreciation

​

(83,276)

​

(2,096)

​

(16,708)

​

(804)

​

—

​

—

​

(102,884)

Disposals

​

—

​

85

​

34

​

—

​

—

​

—

​

119

Currency translation differences

​

2,492

​

223

​

480

​

110

​

—

​

—

​

3,305

Reclassification (g)

​

(27,664)

​

—

​

24,851

​

—

​

—

​

—

​

(2,813)

Depreciation and write-down as of December 31, 2019

​

(467,806)

​

(15,149)

​

(95,047)

​

(6,596)

​

—

​

—

​

(584,598)

Depreciation

​

(89,344)

​

(2,317)

​

(16,820)

​

(490)

​

—

​

—

​

(108,971)

Disposals

​

—

​

326

​

—

​

72

​

—

​

—

​

398

Currency translation differences

​

8,572

​

155

​

1,880

​

39

​

—

​

—

​

10,646

Assets held for sale (Note 36.2.2)

​

133

​

—

​

—

​

—

​

—

​

—

​

133

Depreciation and write-down as of December 31, 2020

​

(548,445)

​

(16,985)

​

(109,987)

​

(6,975)

​

—

​

—

​

(682,392)

Depreciation

​

(66,011)

​

(1,960)

​

(12,468)

​

(700)

​

—

​

—

​

(81,139)

Disposals

​

—

​

1,325

​

900

​

838

​

—

​

—

​

3,063

Currency translation differences

​

2,219

​

37

​

246

​

16

​

—

​

—

​

2,518

Assets held for sale (Note 36.3.1)

​

49,080

​

915

​

4,692

​

153

​

—

​

—

​

54,840

Depreciation and write-down as of December 31, 2021

​

(563,157)

​

(16,668)

​

(116,617)

​

(6,668)

​

—

​

—

​

(703,110)

​

​

  

​

  

​

  

​

  

​

  

​

  

​

​

Carrying amount as of December 31, 2019

​

363,131

​

4,400

​

77,460

​

5,174

​

69,587

​

48,036

​

567,788

Carrying amount as of December 31, 2020

​

420,172

​

3,722

​

87,842

​

5,467

​

18,848

​

78,614

​

614,665

Carrying amount as of December 31, 2021

​

394,775

​

2,044

​

84,560

​

4,994

​

27,204

​

100,470

​

614,047

(a)Exploration wells movement and balances are shown in the table below; mining property associated with unproved reserves and resources, seismic and other exploratory assets amount to US$ 90,166,000 (US$ 75,485,000 in 2020 and US$ 44,047,000 in 2019).

​

​

​

​

Amounts in US$ ‘000

​

Total

Exploration wells as of December 31, 2019

​

3,989

Additions

​

11,016

Acquisitions

​

3,129

Write-offs

​

(7,947)

Transfers

​

(7,058)

Exploration wells as of December 31, 2020

​

3,129

Additions

​

25,795

Write-offs

​

(6,814)

Transfers

​

(11,806)

Exploration wells as of December 31, 2021

​

10,304

​

As of December 31, 2021, there were three exploratory wells that has been capitalized for a period less than a year amounting to US$ 10,304,000.

​

(b)Corresponds to the effect of change in estimate of assets retirement obligations.
(c)See Note 37.
(d)Corresponds to five unsuccessful exploratory wells, four wells drilled in Argentina (Sierra del Nevado, Puelen and Aguada Baguales Blocks) and a well drilled in Brazil (POT-T-747 Block). The charge also includes the write-off of wells and other exploration costs incurred in previous years in the Argentinean Blocks for which no additional work would be performed. In addition, due to the results from REC-T-94, SEAL-T-268 and POT-T-747 Blocks (Brazil), during December 2019 the Group decided to relinquish these blocks so the associated investment was written off.
(e)Corresponds to three unsuccessful exploratory wells drilled in the Isla Norte Block (Chile), Llanos 94 Block (Colombia) and CPO-5 Block (Colombia), and exploration costs incurred in previous years in the POT-T-619 Block (Brazil) for which no additional work would be performed. The charge also includes the write-off of seismic and other exploration costs incurred in previous years in the Fell, Campanario, Flamenco and Isla Norte Blocks (Chile), where, as a result of the drilling campaign performed during 2020 and in accordance with the Group’s accounting policy, it cannot be clearly demonstrated that the carrying value of the investment is recoverable.
(f)Corresponds to two unsuccessful exploratory wells drilled in the Llanos 32 Block (Colombia), other exploration costs incurred in the Fell Block (Chile), an exploratory well drilled in previous years in the CPO-5 Block (Colombia) and other exploration costs incurred in previous years in the PUT-30 Block (Colombia) for which no additional work would be performed.
(g)Corresponds to the final closing of the sale of the La Cuerva and Yamu Blocks (Colombia).
v3.22.1
Subsidiary undertakings
 12 Months Ended
Dec. 31, 2021
Disclosure of subsidiary undertakings [Abstract]  
Disclosure of interests in subsidiaries [text block]

Note 21     Subsidiary undertakings

The following chart illustrates main companies of the Group structure as of  December 31, 2021:

Graphic

​

Group structure

​

During the year ended December 31, 2021, the following changes to the Group structure have taken place:

​

●The Company incorporated a subsidiary in the United States named Market Access LLP (ownership interest: 9%).
●GeoPark Latin America Limited and its Chilean branch GeoPark Latin America Limited - Agencia en Chile were voluntarily dissolved and liquidated.
●The shares of Amerisurexplor Ecuador S.A. were transferred to GeoPark Latin America S.L.U.
●The Peruvian subsidiaries finalized a merger process by which GeoPark Peru S.A.C. continued the operations related to GeoPark S.A.C. and GeoPark Operadora del Peru S.A.C.

​

Details of the subsidiaries of the Group are set out below:

​

​

​

​

​

​

​

​

Name and registered office

​

Ownership interest

Subsidiaries

​

GeoPark Argentina S.A.U (Argentina)

​

100% (a)

​

​

GeoPark Brasil Exploração y Produção de Petróleo e Gás Ltda. (Brazil)

​

100% (a)

​

​

GeoPark Chile S.p.A. (Chile)

​

100% (a)

​

​

GeoPark Fell S.p.A. (Chile)

​

100% (a)

​

​

GeoPark Magallanes Limitada (Chile)

​

100% (a)

​

​

GeoPark TdF S.p.A. (Chile)

​

100% (a)

​

​

GeoPark Colombia S.A.S. (Colombia)

​

100% (a)

​

​

GeoPark Latin America S.L.U. (Spain)

​

100% (a)

​

​

GeoPark Colombia S.L.U. (Spain)

​

100% (a)

​

​

GeoPark Perú S.A.C. (Peru)

​

100% (a)

​

​

GeoPark Colombia E&P S.A. (Panama)

​

100% (a)

​

​

GeoPark Colombia E&P Sucursal Colombia (Colombia)

​

100% (a)

​

​

GeoPark Mexico S.A.P.I. de C.V. (Mexico)

​

100% (a) (b)

​

​

GeoPark E&P S.A.P.I. de C.V. (Mexico)

​

100% (a) (b)

​

​

GeoPark Perú S.A.C. Sucursal Ecuador (Ecuador)

​

100% (a)

​

​

GeoPark (UK) Limited (United Kingdom)

​

100%

​

​

Amerisur Resources Limited (United Kingdom)

​

100% (a)

​

​

Amerisur Exploración Colombia Limited (British Virgin Islands)

​

100% (a)

​

​

Amerisur Exploración Colombia Limited Sucursal Colombia (Colombia)

​

100% (a)

​

​

Yarumal S.A.S. (Colombia)

​

100% (a) (b)

​

​

Petrodorado South America S.A. (Panama)

​

100% (a)

​

​

Petrodorado South America S.A. Sucursal Colombia (Colombia)

​

100% (a)

​

​

Fenix Oil & Gas Limited (British Virgin Islands)

​

100% (a) (b)

​

​

Fenix Oil & Gas Limited Sucursal Colombia (Colombia)

​

100% (a) (b)

​

​

Amerisurexplor Ecuador S.A. (Ecuador)

​

100% (a) (b)

​

​

Amerisur S.A. (Paraguay)

​

100% (a) (b)

​

​

Market Access LLP (United States)

​

9%

(a)Indirectly owned.
(b)Dormant companies.

​

Details of the joint operations of the Group are set out below:

​

​

​

​

​

​

​

​

Name and registered office

​

Ownership interest

Joint operations

​

Flamenco Block (Chile)

​

50% (a)

​

​

Campanario Block (Chile)

​

50% (a)

​

​

Isla Norte Block (Chile)

​

60% (a)

​

​

Llanos 34 Block (Colombia)

​

45% (a)

​

​

Llanos 32 Block (Colombia)

​

12.5%

​

​

Puelen Block (Argentina)

​

18% (b)

​

​

Sierra del Nevado Block (Argentina)

​

18% (b)

​

​

CN-V Block (Argentina)

​

50%

​

​

Los Parlamentos (Argentina)

​

50%

​

​

Manati Field (Brazil)

​

10%

​

​

POT-T-785 Block (Brazil)

​

70% (a)

​

​

Espejo Block (Ecuador)

​

50% (a)

​

​

Perico Block (Ecuador)

​

50%

​

​

Llanos 86 Block (Colombia)

​

50% (a)

​

​

Llanos 87 Block (Colombia)

​

50% (a)

​

​

Llanos 104 Block (Colombia)

​

50% (a)

​

​

Llanos 123 Block (Colombia)

​

50% (a)

​

​

Llanos 124 Block (Colombia)

​

50% (a)

​

​

CPO-5 Block (Colombia)

​

30%

​

​

Mecaya Block (Colombia)

​

50% (a)

​

​

PUT-8 Block (Colombia)

​

50% (a)

​

​

PUT-9 Block (Colombia)

​

50% (a)

​

​

PUT-12 Block (Colombia)

​

60% (a) (b)

​

​

Tacacho Block (Colombia)

​

50% (a)

​

​

Terecay Block (Colombia)

​

50% (a)

​

​

Llanos 94 Block (Colombia)

​

50%

​

​

PUT-36 Block (Colombia)

​

50% (a)

(a)GeoPark is the operator.
(b)In process of relinquishment.
v3.22.1
Prepayments and other receivables
 12 Months Ended
Dec. 31, 2021
Disclosure Of Prepayments And Other Receivables [Abstract]  
Disclosure of prepayments and other assets [text block]

Note 22     Prepayments and other receivables

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

V.A.T.

​

1,711

​

12,083

Income tax payments in advance

​

3,227

​

3,460

Other prepaid taxes

​

996

​

1,995

To be recovered from co-venturers (Note 34)

​

4,680

​

2,236

Prepayments and other receivables

​

12,184

​

8,549

​

​

22,798

​

28,323

Classified as follows:

​

  

​

  

Current

​

22,650

​

27,263

Non-current

​

148

​

1,060

​

​

22,798

​

28,323

​

Movements on the Group provision for impairment are as follows:

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

At January 1

​

144

​

550

Foreign exchange (loss) income

​

(13)

​

(25)

Uses

​

(124)

​

(381)

​

​

7

​

144

​
v3.22.1
Inventories
 12 Months Ended
Dec. 31, 2021
Classes of current inventories [abstract]  
Disclosure of inventories [text block]

Note 23     Inventories

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

Crude oil

​

5,419

​

7,537

Materials and spares

​

5,496

​

5,789

​

​

10,915

​

13,326

​
v3.22.1
Trade receivables
 12 Months Ended
Dec. 31, 2021
Trade receivables.  
Disclosure of Trade receivables [text block]

Note 24     Trade receivables

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

Trade receivables

​

70,531

​

46,918

​

​

70,531

​

46,918

​

As of December 31, 2021 and 2020, there are no balances that were aged by more than 3 months. Trade receivables that are aged by less than three months are not considered impaired.

​

The credit period for trade receivables is 30 days. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable. The Group does not hold any collateral as security related to trade receivables.

The carrying value of trade receivables is considered to represent a reasonable approximation of its fair value due to their short-term nature.
v3.22.1
Financial instruments by category
 12 Months Ended
Dec. 31, 2021
Financial Instruments [Abstract]  
Disclosure of financial instruments [text block]

Note 25     Financial instruments by category

​

​

​

​

​

​

​

​

Assets as per statement

​

​

of financial position

Amounts in US$ '000

​

2021

​

2020

Financial assets at fair value through profit or loss

​

​

​

​

Derivative financial instrument assets

​

126

​

1,013

Cash and cash equivalents

​

427

​

823

​

​

553

​

1,836

Other financial assets at amortized cost

​

  

​

  

Trade receivables

​

70,531

​

46,918

To be recovered from co-venturers (Note 34)

​

4,680

​

2,236

Other financial assets (a)

​

14,747

​

13,392

Cash and cash equivalents

​

100,177

​

201,084

​

​

190,135

​

263,630

Total financial assets

​

190,688

​

265,466

(a)Non-current other financial assets relate to contributions made for environmental obligations according to Brazilian government regulations. Current other financial assets correspond to short-term investments with original maturities up to twelve months and over three months.

​

​

​

​

​

​

​

​

Liabilities as per statement

​

​

of financial position

Amounts in US$ ‘000

​

2021

​

2020

Liabilities at fair value through profit and loss

​

  

​

  

Derivative financial instrument liabilities

​

20,757

​

15,094

​

​

20,757

​

15,094

Other financial liabilities at amortized cost

​

  

​

  

Trade payables

​

86,672

​

63,528

Payables to LGI (former non-controlling interest)

​

—

​

3,528

To be paid to co-venturers (Note 34)

​

953

​

5,760

Lease liabilities

​

20,744

​

22,347

Borrowings

​

674,092

​

784,586

​

​

782,461

​

879,749

Total financial liabilities

​

803,218

​

894,843

​

25.1 Credit quality of financial assets

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates:

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Trade receivables

​

  

​

  

Counterparties with an external credit rating (Moody’s, S&P, Fitch)

​

  

​

  

Aa2

​

7,132

​

2,321

Baa3

​

24,163

​

26,252

Ba2

​

—

​

3,847

Ba1

​

4,984

​

1,333

B3

​

—

​

32

B

​

70

​

—

Counterparties without an external credit rating

​

​

​

​

Group 1 (a)

​

34,182

​

13,133

Total trade receivables

​

70,531

​

46,918

(a)Group 1 – existing customers (more than 6 months) with no defaults in the past.

All trade receivables are denominated in US Dollars, except in Brazil where they are denominated in Brazilian Real.

Cash at bank and other financial assets (a)

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Counterparties with an external credit rating (Moody’s, S&P, Fitch, BRC Investor Services)

​

  

​

  

A2

​

53,114

​

122,229

A3

​

27,257

​

44,808

AAA

​

3,529

​

18,119

Ba1

​

67

​

2,343

Baa1

​

1,605

​

574

Baa2

​

3,708

​

2,146

Ba3

​

5,117

​

43

Aa2

​

—

​

1,073

Ba2

​

21

​

—

Aa3

​

8

​

—

Counterparties without an external credit rating

​

20,908

​

23,941

Total

​

115,334

​

215,276

(a)The remaining balance sheet item ‘cash and cash equivalents’ corresponds to cash on hand amounting to US$ 17,000 (US$ 23,000 in 2020).

25.2 Financial liabilities- contractual undiscounted cash flows

The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

​

​

​

​

​

​

​

​

​

​

​

​

Less than 1

​

Between 1

​

Between 2

​

Over 5

Amounts in US$ ‘000

​

year

​

and 2 years

​

and 5 years

​

years

As of December 31, 2021

​

​

​

​

​

​

​

​

Borrowings

​

40,943

​

38,550

​

263,550

​

513,750

Lease liabilities

​

9,230

​

6,558

​

5,820

​

2,871

Trade payables

​

85,132

​

1,540

​

—

​

—

To be paid to co-venturers (Note 34)

​

953

​

—

​

—

​

—

​

​

136,258

​

46,648

​

269,370

​

516,621

As of December 31, 2020

​

  

​

  

​

  

​

  

Borrowings

​

48,311

​

49,444

​

538,000

​

378,875

Lease liabilities

​

10,890

​

6,230

​

5,294

​

3,653

Trade payables

​

62,408

​

1,120

​

—

​

—

To be paid to co-venturers (Note 34)

​

1,994

​

3,766

​

—

​

—

Payables to LGI

​

3,528

​

—

​

—

​

—

​

​

127,131

​

60,560

​

543,294

​

382,528

​

25.3 Fair value measurement of financial instruments

Accounting policies for financial instruments have been applied to classify as either: amortized cost, financial assets at fair value through profit or loss and fair value through other comprehensive income. For financial instruments that are measured in the statement of financial position at fair value, IFRS 13 requires a disclosure of fair value measurements by level according to the following fair value measurement hierarchy:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).

Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

This note provides an update on the judgements and estimates made by the Group in determining the fair values of the financial instruments since the last annual financial report.

25.3.1 Fair value hierarchy

The following table presents the Group’s financial assets and financial liabilities measured and recognized at fair value as of December 31, 2021 and 2020 on a recurring basis:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31,

Amounts in US$ ‘000

​

Level 1

​

Level 2

​

2021

Assets

​

  

​

  

​

  

Cash and cash equivalents

​

  

​

  

​

  

Money market funds

​

427

​

—

​

427

Derivative financial instrument assets

​

  

​

  

​

  

Commodity risk management contracts

​

—

​

126

​

126

Total Assets

​

427

​

126

​

553

Liabilities

​

​

​

​

​

​

Derivative financial instrument liabilities

​

​

​

​

​

​

Commodity risk management contracts

​

—

​

20,757

​

20,757

Total Liabilities

​

—

​

20,757

​

20,757

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31,

Amounts in US$ ‘000

​

Level 1

​

Level 2

​

2020

Assets

​

  

​

  

​

  

Cash and cash equivalents

​

  

​

  

​

  

Money market funds

​

823

​

—

​

823

Derivative financial instrument assets

​

  

​

  

​

  

Commodity risk management contracts

​

—

​

1,013

​

1,013

Total Assets

​

823

​

1,013

​

1,836

Liabilities

​

​

​

​

​

​

Derivative financial instrument liabilities

​

​

​

​

​

​

Commodity risk management contracts

​

—

​

15,094

​

15,094

Total Liabilities

​

—

​

15,094

​

15,094

​

There were no transfers between Level 2 and 3 during the period.

The Group did not measure any financial assets or financial liabilities at fair value on a non-recurring basis as of December 31, 2021.

25.3.2 Valuation techniques used to determine fair values

Specific valuation techniques used to value financial instruments include:

●The use of quoted market prices or dealer quotes for similar instruments.
●The mark-to-market fair value of the Group’s outstanding derivative instruments is based on independently provided market rates and determined using standard valuation techniques, including the impact of counterparty credit risk and are within level 2 of the fair value hierarchy.
●The fair value of the remaining financial instruments is determined using discounted cash flow analysis. All of the resulting fair value estimates are included in level 2.

25.3.3 Fair values of other financial instruments (unrecognized)

The Group also has a number of financial instruments which are not measured at fair value in the balance sheet. For the majority of these instruments, the fair values are not materially different to their carrying amounts, since the interest receivable/payable is either close to current market rates or the instruments are short-term in nature.

Borrowings are comprised primarily of fixed rate debt and variable rate debt with a short-term portion where interest has already been fixed. They are classified under other financial liabilities and measured at their amortized cost.

The fair value of these financial instruments as of December 31, 2021 amounts to US$ 661,404,000 (US$ 797,126,000 in 2020). The fair values are based on market price for the Notes and cash flows discounted for other borrowings using a rate based on the borrowing rate and are within level 1 and level 2 of the fair value hierarchy, respectively.
v3.22.1
Equity
 12 Months Ended
Dec. 31, 2021
Disclosure Of Equity [Abstract]  
Disclosure of Equity [text block]

Note 26     Equity

​

26.1 Share capital and Share premium

​

​

​

​

​

​

Issued share capital

​

2021

​

2020

Common stock (amounts in US$ ‘000)

​

60

​

61

The share capital is distributed as follows:

​

  

​

  

Common shares, of nominal US$ 0.001

​

60,238,026

​

61,029,772

Total common shares in issue

​

60,238,026

​

61,029,772

​

​

  

​

  

Authorized share capital

​

  

​

  

US$ per share

​

0.001

​

0.001

​

​

  

​

  

Number of common shares (US$ 0.001 each)

​

5,171,949,000

​

5,171,949,000

Amount in US$

​

5,171,949

​

5,171,949

​

Details regarding the share capital of the Company are set out below.

26.1.1 Common shares

As of December 31, 2021, the outstanding common shares confer the following rights on the holder:

●the right to one vote per share
●ranking pari passu, the right to any dividend declared and payable on common shares

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Shares

​

Shares

​

​

​

​

​

​

issued

​

closing

​

US$(`000)

GeoPark common shares history

​

Date

​

(millions)

​

(millions)

​

Closing

Shares outstanding at the end of 2019

​

  

​

  

​

59.2

​

59

Stock awards

​

Jan 2020

​

1.5

​

60.7

​

61

Stock awards

​

Mar 2020

​

0.2

​

60.9

​

61

Buyback program

​

Mar 2020

​

(0.3)

​

60.6

​

61

Stock awards

​

Nov 2020

​

0.5

​

61.1

​

61

Buyback program

​

Nov 2020

​

(0.1)

​

61.0

​

61

Shares outstanding at the end of 2020

​

​

​

  

​

61.0

​

61

Stock awards

​

May 2021

​

0.2

​

61.2

​

61

Buyback program

​

Jun 2021

​

(0.1)

​

61.1

​

61

Buyback program

​

Sep 2021

​

(0.4)

​

60.7

​

61

Buyback program

​

Dec 2021

​

(0.5)

​

60.2

​

60

Shares outstanding at the end of 2021

​

  

​

  

​

60.2

​

60

​

26.1.2 Stock Award Program and Other Share Based Payments

Non-Executive Directors Fees

During 2021, the Company issued 64,269 (60,204 in 2020 and 29,220 in 2019) shares to Non-Executive Directors in accordance with contracts as compensation, generating a share premium of US$ 861,000 (US$ 665,000 in 2020 and US$ 499,000 in 2019). The amount of shares issued is determined considering the contractual compensation and the fair value of the shares for each relevant period.

Stock Award Program and Other Share Based Payments

On November 12, 2020, 499,614 common shares were allotted to the trustee of the Employee Beneficiary Trust (“EBT”) to be assigned to certain employees as part of their 2019 bonus compensation, generating a share capital and share premium of US$ 1,000 and US$ 4,351,000, respectively.

On January 2, 2020 and 2019 (50%each year, as set up in the plan), the vested Value Creation Plan (“VCP”) awards, representing 2,976,781 common shares, was issued to key management (including 878,150 common shares issued to Directors involved in the performance of the Company), generating a share premium of US$ 4,668,000 (50% each year).

On July 8, 2019, 1,484,847 common shares were allotted to the trustee of the EBT to be assigned to employees since the 2016 and 2018 Plans vested, generating a share premium of US$ 4,311,000.

26.1.3 Buyback Program

On December 20, 2018, the Company’s Board of Directors approved a program to repurchase up to 10% of its shares outstanding or approximately 6,063,000 shares. The repurchase program began on December 21, 2018 and expired on December 31, 2019. During 2019, the Company purchased 4,318,320 common shares (145,917 in 2018) for a total amount of US$ 71,272,000 (US$ 1,801,000 in 2018). These transactions had no impact on the Group’s results.

​

On February 10, 2020, the Company’s Board of Directors approved another program to repurchase up to 10% of its shares outstanding or approximately 5,930,000 shares. The repurchase program began on February 11, 2020 and was suspended in April 2020 as part of the revised work program for 2020 because of the COVID-19 pandemic and the oil price crisis. During 2020, the Company purchased 316,445 common shares for a total amount of US$ 3,071,000. These transactions had no impact on the Group’s results.

​

On November 4, 2020, the Company’s Board of Directors approved a new program to repurchase up to 10% of its shares outstanding or approximately 6,062,000 shares. The repurchase program began on November 5, 2020 and was set to expire on November 15, 2021. On November 10, 2021, the Company’s Board of Directors approved the renewal of this repurchase program until November 10, 2022. During 2021, the Company purchased 960,454 common shares (101,986 in 2020) for a total amount of US$ 11,841,000 (US$ 938,000 in 2020). These transactions had no impact on the Group’s results.

​

26.2 Cash distributions

On November 6, 2019, the Company’s Board of Directors declared the initiation of a quarterly cash distribution of US$ 0.0413 per share. Consequently, on December 10, 2019 and April 8, 2020, US$ 2,444,000 and US$ 2,343,000 were distributed to shareholders, respectively. The quarterly cash distributions were temporary suspended from April 2020 as part of the revised work program for 2020 due to the COVID-19 pandemic and the oil price crisis.

​

On November 4, 2020, the Company’s Board of Directors declared an extraordinary cash distribution of US$ 0.0206 per share for 2020 and a quarterly cash distribution of US$ 0.0206 per share. Consequently, on December 9, 2020, US$ 2,516,000 were distributed to shareholders of record at the close of business on November 20, 2020.

​

On March 10, 2021 and May 5, 2021, the Company’s Board of Directors declared quarterly cash distributions of US$ 0.0205 per share that were paid on April 13, 2021 and May 28, 2021 for US$ 1,133,000 and US$ 1,220,000, respectively.

On August 4, 2021 and November 10, 2021, the Company’s Board of Directors declared quarterly cash distributions of US$ 0.041 per share that were paid on August 31, 2021 and December 7, 2021 for US$ 2,442,000 and US$ 2,429,000, respectively.

These distributions are deducted from Other Reserve.

​

26.3 Stock distribution

​

On February 10, 2020, the Company’s Board of Directors declared a special stock distribution of 0.004 shares per share. Consequently, on March 11, 2020, 242,650 common shares were distributed to the shareholders of record at the close of business on February 25, 2020.
v3.22.1
Borrowings
 12 Months Ended
Dec. 31, 2021
Disclosure Of Borrowings [Abstract]  
Disclosure of borrowings [text block]

Note 27     Borrowings

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Outstanding amounts as of December 31

​

  

​

  

2024 Notes (a) (c)

​

171,880

​

428,737

2027 Notes (b) (c)

​

499,893

​

352,113

Banco Santander (d)

​

2,319

​

3,736

​

​

674,092

​

784,586

Classified as follows:

​

  

​

  

Current

​

17,916

​

17,689

Non-current

​

656,176

​

766,897

(a)On September 21, 2017, the Company successfully placed US$ 425,000,000 Notes, which were offered to qualified institutional buyers in accordance with Rule 144A under the United States Securities Act (the “Securities Act”), and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes carry a coupon of 6.50% per annum. The debt issuance cost for this transaction amounted to US$ 6,683,000 (debt issuance effective rate: 6.90%). The Notes are fully and unconditionally guaranteed jointly and severally by GeoPark Chile SpA and GeoPark Colombia S.A.S. Final maturity of the Notes will be September 21, 2024. For additional information, see reference (c).
(b)On January 17, 2020, the Company successfully placed US$ 350,000,000 Notes, which were offered in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act and outside the United States to non U.S. persons in accordance with Regulation S under the Securities Act. The Notes were priced at 99.285% and carry a coupon of 5.50% per annum (yield 5.625% per annum). The debt issuance cost for this transaction amounted to US$ 5,004,000 (debt issuance effective rate: 5.88%). The Notes are fully and unconditionally guaranteed jointly and severally by GeoPark Chile SpA and GeoPark Colombia S.A.S. Final maturity of the Notes will be January 17, 2027. For additional information, see reference (c).
(c)In April 2021, the Company executed a series of transactions that included a successful tender offer to purchase US$ 255,000,000 of the 2024 Notes that was funded with a combination of cash in hand and a US$ 150,000,000 new issuance from the reopening of the 2027 Notes. The new notes offering and the tender offer closed on April 23, 2021 and April 26, 2021, respectively.

The tender total consideration included the tender offer consideration of US$ 1,000 for each US$ 1,000 principal amount of the 2024 Notes plus an early tender payment of US$ 50 for each US$ 1,000 principal amount of the 2024 Notes. The tender also included a consent solicitation to align the covenants of the 2024 Notes to those of the 2027 Notes.

The reopening of the 2027 Notes was priced above par at 101.875%, representing a yield to maturity of 5.117%. The debt issuance cost for this transaction amounted to US$ 2,019,000. The Notes were offered in a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes are fully and unconditionally guaranteed jointly and severally by GeoPark Chile SpA and GeoPark Colombia S.A.S.

After these transactions, the Company reduced its total indebtedness nominal amount by US$ 105,000,000 and improved its financial profile by extending its debt maturities. The current outstanding nominal amount of the 2024 Notes and 2027 Notes is US$ 170,000,000 and US$ 500,000,000, respectively. The Company recorded a loss of US$ 6,308,000 within Financial expenses for the year ended December 31, 2021 as a consequence of these transactions.

The indentures governing the 2024 Notes and the 2027 Notes include incurrence test covenants that provide among other things, that, the Net Debt to Adjusted EBITDA ratio should not exceed 3.25 times and the Adjusted EBITDA to Interest ratio should exceed 2.5 times. Failure to comply with the incurrence test covenants does not trigger an event of default. However, this situation may limit the Company’s capacity to incur additional indebtedness, as specified in the indentures governing the Notes. Incurrence covenants as opposed to maintenance covenants must be tested by the Company before incurring additional debt or performing certain corporate actions including but not limited to dividend payments, restricted payments and others. As of the date of these Consolidated Financial Statements, the Company is in compliance of all the indentures’ provisions and covenants.

In October 2018, GeoPark Brasil Exploração e Produção de Petróleo e Gás Ltda. executed a loan agreement with Banco Santander for Brazilian Real 77,640,000 (equivalent to US$ 20,000,000 at the moment of the loan execution) to repay an existing US$-denominated intercompany loan to GeoPark Latin America Limited- Agencia en Chile. The interest rate applicable to this loan is CDI plus 2.25% per annum. “CDI” (Interbank certificate of deposit) represents the average rate of all inter-bank overnight transactions in Brazil. The principal and the interest are paid semi-annually, with final maturity in October 2020.

(d)In September 2020, GeoPark Brasil Exploração e Produção de Petróleo e Gás Ltda. executed the refinancing of the outstanding principal with Banco Santander for a total amount of Brazilian Real 19,410,000 (equivalent to US$ 3,441,000 at the moment of the refinancing execution). The interest rate is CDI plus 3.55% per annum. Interests are paid on a monthly basis, and principal will be paid semi-annually in three equal instalments in October 2021, April 2022 and October 2022.

In May 2021, GeoPark Colombia S.A.S. executed a loan agreement with Bancolombia for Colombian Pesos 35,000,000,000 (equivalent to US$ 9,388,000 at the moment of the loan execution) to finance working capital requirements in Colombia as a consequence of the demonstrations and road blockades across the country that affected logistics and supply chains during May and June. The interest rate was the IBR index (interest rate of reference for short-term loans in Colombia) plus 1.6% per annum, the original maturity was on May 14, 2022 and interests were payable monthly. In August 2021, GeoPark optionally prepaid the full amount of the loan, with no additional cost.

In July 2021, GeoPark Colombia S.A.S. executed a loan agreement with Itau Bank for Colombian Pesos 37,653,000,000 (equivalent to US$ 9,973,000 at the moment of the loan execution) to finance working capital requirements in Colombia as a consequence of the demonstrations and road blockades across the country that affected logistics and supply chains during May and June. The interest rate was 5.38% per annum, the original maturity was on January 3, 2022 and interests were payable monthly. In October 2021, GeoPark optionally prepaid the full amount of the loan, with no additional cost.

As of the date of these Consolidated Financial Statements, the Group has available credit lines for US$ 143,255,000.
v3.22.1
Leases
 12 Months Ended
Dec. 31, 2021
Presentation of leases for lessee [abstract]  
Disclosure of leases [text block]

Note 28     Leases

​

The Consolidated Statement of Financial Position shows the following amounts relating to leases:

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Right of use assets

​

  

​

  

Production, facilities and machinery

​

15,175

​

14,806

Buildings and improvements

​

5,839

​

6,596

​

​

21,014

​

21,402

Lease liabilities

​

  

​

  

Current

​

8,231

​

10,890

Non-current

​

12,513

​

11,457

​

​

20,744

​

22,347

​

The Consolidated Statement of Income shows the following amounts relating to leases:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Depreciation charge of Right of use assets

​

  

​

  

​

  

Production, facilities and machinery

​

(5,526)

​

(6,472)

​

(1,834)

Buildings and improvements

​

(1,136)

​

(1,600)

​

(1,810)

​

​

(6,662)

​

(8,072)

​

(3,644)

Unwinding of long-term liabilities (included in Financial results)

​

(1,453)

​

(1,247)

​

(419)

Expenses related to short-term leases (included in Production and operating cost and Administrative expenses)

​

(1,101)

​

(1,317)

​

(13,463)

Expenses related to low-value leases (included in Administrative expenses)

​

(906)

​

(736)

​

(314)

​

The table below summarizes the amounts of Right-of-use assets recognized and the movements during the reporting years:

​

​

​

​

​

​

Amounts in US$‘000

​

2021

​

2020

Right-of-use assets as of January 1

​

21,402

​

13,462

Additions / changes in estimates

​

5,288

​

561

Acquisitions (Note 36.1)

​

—

​

16,674

Foreign currency translation

​

986

​

(1,223)

Depreciation

​

(6,662)

​

(8,072)

Right-of-use assets as of December 31

​

21,014

​

21,402

​

The table below summarizes the amounts of Lease liabilities recognized and the movements during the reporting years:

​

​

​

​

​

​

Amounts in US$‘000

​

2021

​

2020

Lease liabilities as of January 1

​

22,347

​

13,243

Additions / changes in estimates

​

5,288

​

561

Acquisitions (Note 36.1)

​

—

​

17,851

Exchange difference

​

(365)

​

466

Foreign currency translation

​

(461)

​

(1,641)

Unwinding of discount

​

1,453

​

1,247

Lease payments

​

(7,518)

​

(9,380)

Lease liabilities as of December 31

​

20,744

​

22,347

​
v3.22.1
Provisions and other long-term liabilities
 12 Months Ended
Dec. 31, 2021
Disclosure Of Provisions And Other Long term Liabilities [Abstract]  
Disclosure of provisions [text block]

Note 29     Provisions and other long-term liabilities

​

​

​

​

​

​

​

​

​

​

​

​

Asset retirement

​

Deferred

​

​

​

​

Amounts in US$ ‘000

​

obligation

​

Income

​

Other

​

Total

As of January 1, 2020

​

56,113

​

2,267

​

3,682

​

62,062

Addition to provision / changes in estimates

​

(1,812)

​

(258)

​

1,904

​

(166)

Acquisitions (Note 36.1)

​

5,629

​

2,339

​

8,551

​

16,519

Exchange difference

​

2,215

​

(93)

​

133

​

2,255

Foreign currency translation

​

(2,057)

​

—

​

—

​

(2,057)

Amortization

​

—

​

(387)

​

—

​

(387)

Unwinding of discount

​

4,276

​

—

​

371

​

4,647

Amounts used during the year

​

(272)

​

(40)

​

(139)

​

(451)

Liabilities associated with assets held for sale

​

(52)

​

—

​

—

​

(52)

As of December 31, 2020

​

64,040

​

3,828

​

14,502

​

82,370

Addition to provision / changes in estimates

​

(651)

​

(46)

​

59

​

(638)

Acquisitions (Note 36.1)

​

—

​

—

​

—

​

—

Exchange difference

​

(668)

​

(228)

​

(1,079)

​

(1,975)

Foreign currency translation

​

(651)

​

—

​

(2)

​

(653)

Amortization

​

—

​

(223)

​

—

​

(223)

Unwinding of discount

​

3,140

​

—

​

486

​

3,626

Amounts used during the year

​

(170)

​

—

​

(291)

​

(461)

Liabilities associated with assets held for sale

​

(19,198)

​

—

​

—

​

(19,198)

As of December 31, 2021

​

45,842

​

3,331

​

13,675

​

62,848

​

The provision for asset retirement obligation relates to the estimation of future disbursements related to the abandonment and decommissioning of oil and gas wells (see Note 4).

Deferred income relates to government grants and other contributions relating to the purchase of property, plant and equipment in Colombia. The amortization is in line with the related assets.

​

Other includes the provision for an environmental contingency in the United Kingdom and other environmental obligations in Colombia and Peru. On January 8, 2020, Amerisur announced that it had received a copy of a claim form issued in the High Court of England and Wales (the “Court”) by Leigh Day solicitors on behalf of a group of claimants (the “Claimants”) described as members of a farming community in the department of Putumayo in Colombia. The claim states that the Claimants seek compensation for economic and non-economic damages said to be caused by alleged environmental contamination and pollution caused by Amerisur’s operations in Colombia. Amerisur stated that the accusations of environmental damage referenced in the claim are being investigated by Colombian authorities and to-date have been deemed to be without merit. Amerisur further stated that it viewed the substance of the claim to be without merit. Following court hearings held in January and February 2020, an interim freezing order was imposed on Amerisur in respect to GBP 4,465,600 (equivalent to US$ 6,022,000 as of December 31, 2021) of its assets located in the United Kingdom. On November 10, 2020, the freezing order was discharged by agreement between the parties as Amerisur provided alternative security in the form of a Letter of Credit from an UK Bank. On January 12, 2021 a hearing was held, where the Court ordered the Claimants to serve the Group Particulars of Claim (GPoC) by February 26, 2021. Amerisur served its defence to the GPoC on May 21, 2021. A Case Management Conference was held on July 7, 2021, where the Court ordered: i) to schedule a limited trial, relating to 2 preliminary Colombian law issues, namely, limitation and parent company liability; and ii) to schedule a Costs Management Conference. The Costs Management Conference was held on October 26, 2021 before the Court. The Court ruled that: i) Amerisur’s costs of the general pollution claims are enforceable against the Claimants only after the conclusion of the proceedings and those costs have been either assessed or agreed; and, ii) Amerisur’s application for an interim payment in respect of those costs and for security for costs were dismissed. As of the date of these Consolidated Financial Statements, the process is ongoing.
v3.22.1
Trade and other payables
 12 Months Ended
Dec. 31, 2021
Disclosure Of Trade and other payables [Abstract]  
Disclosure of trade and other payables [text block]

Note 30     Trade and other payables

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

V.A.T

​

7,473

​

3,453

Trade payables

​

86,672

​

63,528

Payables to LGI (former non-controlling interest)

​

—

​

3,528

Customer advance payments

​

426

​

—

Other short-term advance payments (a)

​

1,558

​

—

Staff costs to be paid

​

17,973

​

13,752

Royalties to be paid

​

7,347

​

5,287

Taxes and other debts to be paid

​

6,651

​

9,734

To be paid to co-venturers (Note 34)

​

953

​

5,760

​

​

129,053

​

105,042

Classified as follows:

​

  

​

  

Current

​

127,513

​

100,156

Non-current

​

1,540

​

4,886

(a)Advance payment collected in relation with the sale of the Aguada Baguales, El Porvenir and Puesto Touquet Blocks (see Note 36.3.1).

The average credit period (expressed as creditor days) during the year ended December 31, 2021 was 89 days (2020: 110 days).

The fair value of these short-term financial instruments is not individually determined as the carrying amount is a reasonable approximation of fair value.
v3.22.1
Share-based payment
 12 Months Ended
Dec. 31, 2021
Disclosure Of Share Based Payment [Abstract]  
Disclosure of share-based payment arrangements [text block]

Note 31     Share-based payment

The Group has established different stock awards programs and other share-based payment plans to incentivize the Directors, senior management and employees, enabling them to benefit from the increased market capitalization of the Company.

During 2018, GeoPark announced the 2018 Equity Incentive Plan (the “Plan”) to motivate and reward those employees, directors, consultants and advisors of the Group to perform at the highest level and to further the best interests of the Company and its shareholders. This Plan is designed as a master plan, with a 10-year term, and embraces all equity incentive programs that the Company decides to implement throughout such term. The maximum number of Shares available for issuance under the Plan is 5,000,000 Shares.

In November 2019, the Group approved a share-based compensation program for approximately 800,000 shares to be granted in 2020. The main characteristics of the Stock Awards Programs are:

​

●Employees not included in the VCP and new hiring are eligible.
●Exercise price is equal to the nominal value of shares.
●Vesting date: January 2, 2023.
●Each employee could receive between three and six salaries (to be pro-rated between the hiring date and the vesting date for new hiring) by achieving the following conditions: continue to be an employee, the stock market price at the date of vesting should be higher than the share price at the date of grant and obtain the Group minimum production, adjusted EBITDA and reserves target for the year of vesting.

​

During 2019, the Group approved a plan named Value Creation Plan (“VCP”) oriented to key Management. The main characteristics of the VCP are:

​

●Awards payables in a variable number of shares which shall not exceed the quantity of 3,024,172 shares.
●Subject to certain market conditions, among others, reaching a stock market price for the Company shares of above US$ 19.42 at vesting date.
●Vesting date: December 31, 2021 and 2022 (50% each year).

​

VCP has been classified as an equity-settled plan. 20% of this plan was awarded to Directors involved in the performance of the Company. As of December 31, 2021, the conditions were not achieved to execute this program.

Details of these costs and the characteristics of the different stock awards programs and other share-based payments are described in the following table and explanations:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Awards at the

​

Awards granted

​

Awards

​

Awards

​

Awards at

​

Charged to net loss / profit

Year of issuance

​

beginning

​

in the year

​

forfeited

​

exercised

​

year end

​

2021

​

2020

​

2019

2020

​

405,125

​

97,277

​

(88,337)

​

—

​

414,065

​

862

​

1,274

​

—

2018 (a)

​

—

​

—

​

—

​

—

​

—

​

—

​

—

​

416

2016 (b)

​

—

​

—

​

—

​

—

​

—

​

—

​

—

​

50

Subtotal

​

405,125

​

97,277

​

(88,337)

​

—

​

414,065

​

862

​

1,274

​

466

Shares granted to Non-Executive Directors

​

—

​

64,269

​

—

​

(64,269)

​

—

​

861

​

665

​

500

Executive Directors Bonus

​

156,497

​

118,272

​

—

​

(104,439)

​

170,330

​

800

​

800

​

800

VCP 2019

​

378,053

​

—

​

(378,053)

​

—

​

—

​

4,098

​

5,705

​

951

​

​

939,675

​

279,818

​

(466,390)

​

(168,708)

​

584,395

​

6,621

​

8,444

​

2,717

(a)The vesting date of the program was June 30, 2019. A total of 131,330 shares were issued, considering the vesting conditions.
(b)The vesting date of the program was June 30, 2019. A total of 1,353,517 shares were issued, considering the vesting conditions.

The awards that are forfeited correspond to employees that had left the Group before vesting date.
v3.22.1
Interests in Joint operations
 12 Months Ended
Dec. 31, 2021
Disclosure Of Interests in Joint operations [Abstract]  
Disclosure of interests in joint arrangements [text block]

Note 32     Interests in Joint operations

The Group has interests in joint operations, which are engaged in the exploration of hydrocarbons in Colombia, Chile, Brazil, Argentina and Ecuador.

GeoPark is the operator in the Llanos 34, Llanos 86, Llanos 87, Llanos 104, Llanos 123 and Llanos 124 Blocks in Colombia, in the Flamenco, Campanario and Isla Norte Blocks in Chile, in the POT-T-747 and REC-T-128 Blocks in Brazil, and in the Espejo Block in Ecuador.

​

The following amounts represent the Group’s share in the assets, liabilities and results of the joint operations which have been recognized in the Consolidated Statement of Financial Position and Statement of Income:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Subsidiary /

​

​

    

​

​

Other 

​

Total 

​

Total 

​

Net Assets/

​

​

​

Operating 

Joint operation

​

Interest

​

PP&E

​

Assets

​

Assets

​

Liabilities

​

 (Liabilities)

​

Revenue

​

profit (loss)

2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

GeoPark Colombia S.A.S.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Llanos 34 Block

​

45

%  

260,589

​

1,866

​

262,455

​

(5,573)

​

256,882

​

486,779

​

341,473

Llanos 32 Block

​

12.5

%  

2,730

​

—

​

2,730

​

(197)

​

2,533

​

7,690

​

5,378

Llanos 86 Block

​

50

%  

408

​

—

​

408

​

—

​

408

​

—

​

(60)

Llanos 87 Block

​

50

%  

1,220

​

—

​

1,220

​

—

​

1,220

​

—

​

(60)

Llanos 94 Block

​

50

%  

1,489

​

—

​

1,489

​

(270)

​

1,219

​

—

​

(171)

Llanos 104 Block

​

50

%  

434

​

—

​

434

​

—

​

434

​

—

​

(60)

Llanos 123 Block

​

50

%  

907

​

—

​

907

​

—

​

907

​

—

​

(60)

Llanos 124 Block

​

50

%  

841

​

—

​

841

​

—

​

841

​

—

​

(60)

CPO-5 Block

​

30

%  

210,154

​

—

​

210,154

​

(929)

​

209,225

​

88,479

​

55,131

Amerisur Exploración Colombia Limitada Sucursal Colombia

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mecaya Block

​

50

%  

3,837

​

—

​

3,837

​

(84)

​

3,753

​

—

​

—

PUT-8 Block

​

50

%  

7,070

​

—

​

7,070

​

—

​

7,070

​

—

​

—

PUT-9 Block

​

50

%  

4,342

​

—

​

4,342

​

—

​

4,342

​

—

​

—

PUT-36 Block

​

50

%  

2,870

​

—

​

2,870

​

—

​

2,870

​

—

​

—

Tacacho Block

​

50

%  

3,629

​

—

​

3,629

​

—

​

3,629

​

—

​

—

Terecay Block

​

50

%  

226

​

—

​

226

​

—

​

226

​

—

​

—

GeoPark TdF S.p.A.

​

​

 

​

​

​

​

​

​

​

​

  

​

​

​

​

Flamenco Block

​

50

%  

—

​

—

​

—

​

(2,082)

​

(2,082)

​

—

​

(137)

Campanario Block

​

50

%  

—

​

—

​

—

​

(551)

​

(551)

​

—

​

(106)

Isla Norte Block

​

60

%  

—

​

—

​

—

​

(138)

​

(138)

​

—

​

(122)

GeoPark Brasil Exploração y Produção de Petróleo e Gas Ltda.

​

​

 

​

​

​

​

​

​

​

​

  

​

​

​

​

Manati Field

​

10

%  

6,851

​

18,269

​

25,120

​

(13,657)

​

11,463

​

20,109

​

9,899

POT-T‑785

​

70

%  

157

​

—

​

157

​

—

​

157

​

—

​

—

GeoPark Argentina S.A.U.

​

​

 

​

​

​

​

​

​

​

​

  

​

​

​

​

CN-V Block

​

50

%  

—

​

149

​

149

​

(528)

​

(379)

​

—

​

(839)

Los Parlamentos Block

​

50

%  

—

​

—

​

—

​

—

​

—

​

—

​

(285)

Puelen Block

​

18

%  

—

​

12

​

12

​

(18)

​

(6)

​

—

​

(55)

Sierra del Nevado Block

​

18

%  

—

​

1

​

1

​

(5)

​

(4)

​

—

​

(10)

GeoPark Perú S.A.C. - Sucursal Ecuador

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Espejo

​

50

%  

1,132

​

78

​

1,210

​

(610)

​

600

​

—

​

(589)

Perico

​

50

%  

4,658

​

1,449

​

6,107

​

(4,535)

​

1,572

​

—

​

(669)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Subsidiary /

​

​

    

​

​

Other

​

Total 

​

Total 

​

Net Assets/

​

​

​

Operating

Joint operation

​

Interest

​

PP&E

​

 Assets

​

Assets

​

Liabilities

​

 (Liabilities)

​

Revenue

​

 profit (loss)

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

GeoPark Colombia S.A.S.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Llanos 34 Block

​

45

%  

212,914

​

2,834

​

215,748

​

(6,829)

​

208,919

​

273,077

​

203,386

Llanos 32 Block

​

12.5

%  

1,484

​

—

​

1,484

​

(273)

​

1,211

​

5,885

​

4,248

Llanos 86 Block

​

50

%  

137

​

—

​

137

​

—

​

137

​

—

​

—

Llanos 87 Block

​

50

%  

333

​

—

​

333

​

—

​

333

​

—

​

—

Llanos 94 Block

​

50

%  

42

​

—

​

42

​

(68)

​

(26)

​

—

​

—

Llanos 104 Block

​

50

%  

145

​

—

​

145

​

—

​

145

​

—

​

—

Llanos 123 Block

​

50

%  

248

​

—

​

248

​

—

​

248

​

—

​

—

Llanos 124 Block

​

50

%  

240

​

—

​

240

​

—

​

240

​

—

​

—

Petrodorado South America S.A. Sucursal Colombia

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

CPO-5 Block

​

30

%  

218,298

​

—

​

218,298

​

(455)

​

217,843

​

29,552

​

14,398

Amerisur Exploración Colombia Limitada Sucursal Colombia

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Mecaya Block

​

50

%  

1,301

​

—

​

1,301

​

(128)

​

1,173

​

—

​

—

PUT-8 Block

​

50

%  

2,334

​

—

​

2,334

​

—

​

2,334

​

—

​

—

PUT-9 Block

​

50

%  

924

​

—

​

924

​

—

​

924

​

—

​

—

PUT-12 Block

​

60

%  

610

​

—

​

610

​

—

​

610

​

—

​

—

PUT-36 Block

​

50

%  

31

​

—

​

31

​

—

​

31

​

—

​

—

Tacacho Block

​

50

%  

3,591

​

—

​

3,591

​

—

​

3,591

​

—

​

—

Terecay Block

​

50

%  

173

​

—

​

173

​

—

​

173

​

—

​

—

GeoPark TdF S.p.A.

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

Flamenco Block

​

50

%  

—

​

—

​

—

​

(1,577)

​

(1,577)

​

—

​

(7,532)

Campanario Block

​

50

%  

—

​

—

​

—

​

(372)

​

(372)

​

—

​

(16,913)

Isla Norte Block

​

60

%  

—

​

—

​

—

​

(132)

​

(132)

​

—

​

(9,418)

GeoPark Brasil Exploração y Produção de Petróleo e Gas Ltda.

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

Manati Field

​

10

%  

13,280

​

15,557

​

28,837

​

(11,515)

​

17,322

​

12,286

​

3,339

REC-T‑128

​

70

%  

—

​

1,152

​

1,152

​

(52)

​

1,100

​

497

​

(72)

POT-T‑785

​

70

%  

79

​

—

​

79

​

—

​

79

​

—

​

—

GeoPark Argentina S.A.U.

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

CN-V Block

​

50

%  

—

​

107

​

107

​

(164)

​

(57)

​

—

​

(289)

Los Parlamentos Block

​

50

%  

—

​

—

​

—

​

—

​

—

​

—

​

(244)

Puelen Block

​

18

%  

—

​

20

​

20

​

(106)

​

(86)

​

—

​

(156)

Sierra del Nevado Block

​

18

%  

—

​

7

​

7

​

(6)

​

1

​

—

​

(13)

GeoPark Perú S.A.C.

​

​

 

​

​

​

​

​

​

​

​

  

​

​

​

​

Morona

​

75

%  

3,651

​

607

​

4,258

​

(6,622)

​

(2,364)

​

—

​

(36,980)

GeoPark Perú S.A.C. - Sucursal Ecuador

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Espejo

​

50

%  

409

​

29

​

438

​

(131)

​

307

​

—

​

(464)

Perico

​

50

%  

397

​

52

​

449

​

(229)

​

220

​

—

​

(543)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Subsidiary /

​

​

    

​

​

Other 

​

Total 

​

Total 

​

Net Assets/

​

​

​

Operating

Joint operation

​

Interest

​

PP&E

​

Assets

​

Assets

​

Liabilities

​

 (Liabilities)

​

Revenue

​

 profit (loss)

2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

GeoPark Colombia S.A.S.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Llanos 34 Block

​

45

%  

208,156

​

3,128

​

211,284

​

(6,267)

​

205,017

​

513,378

​

398,953

Llanos 32 Block

​

12.5

%  

1,136

​

—

​

1,136

​

(519)

​

617

​

6,053

​

2,791

Llanos 86 Block

​

50

%  

21

​

—

​

21

​

—

​

21

​

—

​

—

Llanos 87 Block

​

50

%  

40

​

—

​

40

​

—

​

40

​

—

​

—

Llanos 104 Block

​

50

%  

26

​

—

​

26

​

—

​

26

​

—

​

—

GeoPark TdF S.p.A.

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

Flamenco Block

​

50

%  

4,623

​

—

​

4,623

​

(1,382)

​

3,241

​

—

​

(313)

Campanario Block

​

50

%  

16,445

​

—

​

16,445

​

(331)

​

16,114

​

—

​

(156)

Isla Norte Block

​

60

%  

8,896

​

—

​

8,896

​

(101)

​

8,795

​

—

​

(189)

GeoPark Brasil Exploração y Produção de Petróleo e Gas Ltda.

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

Manati Field

​

10

%  

18,537

​

18,066

​

36,603

​

(15,980)

​

20,623

​

22,375

​

9,263

POT-T‑747

​

70

%  

—

​

—

​

—

​

—

​

—

​

—

​

(1,516)

REC-T‑128

​

70

%  

3,886

​

919

​

4,805

​

(143)

​

4,662

​

674

​

57

POT-T-785

​

70

%  

125

​

—

​

125

​

—

​

125

​

—

​

—

GeoPark Argentina S.A.U.

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

CN-V Block

​

50

%  

—

​

274

​

274

​

(237)

​

37

​

—

​

(15,451)

Puelen Block

​

18

%  

—

​

47

​

47

​

(41)

​

6

​

—

​

(1,959)

Sierra del Nevado Block

​

18

%  

—

​

63

​

63

​

(79)

​

(16)

​

—

​

(1,705)

GeoPark Perú S.A.C.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Morona

​

75

%  

8,921

​

6,862

​

15,783

​

(10,161)

​

5,622

​

—

​

(4,976)

GeoPark Perú S.A.C. - Sucursal Ecuador

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Espejo

​

50

%  

199

​

321

​

520

​

(610)

​

(90)

​

—

​

(272)

Perico

​

50

%  

304

​

61

​

365

​

(541)

​

(176)

​

—

​

(176)

​

Capital commitments are disclosed in Note 33.2.
v3.22.1
Commitments
 12 Months Ended
Dec. 31, 2021
Disclosure Of Commitments [Abstract]  
Disclosure of commitments [text block]

Note 33     Commitments

33.1 Royalty commitments

In Colombia, royalties on production are payable to the Colombian Government and are determined on a field-by-field basis using the level of production sliding scale detailed below:

​

​

​

​

Average daily production in barrels

    

Production Royalty rate

Up to 5,000

 

8%

5,000 to 125,000

 

8% + (production - 5,000) * 0.1

125,000 to 400,000

 

20%

400,000 to 600,000

 

20% + (production - 400,000) * 0.025

Greater than 600,000

 

25%

​

The production royalty rate depends on the crude quality. When the API is lower than 15°, the payment is reduced to the 75% of the total calculation.

According to each E&P Contract, the Colombian National Hydrocarbons Agency (“ANH”) also has an additional economic right, offered by the operator at the moment of the ANH bid. This additional economic right, which is based on the production of the block after royalty discount, is equal to 1% in the Llanos 34 and Llanos 32 Blocks, 23% in the CPO-5 Block and 0% in the Platanillo Block.

When the accumulated production of each field, including the royalties’ volume, exceeds 5,000,000 of barrels and the WTI price exceeds certain price level previously determined, the Group should also deliver to ANH a share of the production net of royalties in accordance with a formula defined in each E&P Contract, which basically depends on the WTI price and the crude quality.

Additionally, GeoPark is obligated to pay an overriding royalty of 4% and 2.5%, respectively, to the previous owners of the Llanos 34 and CPO-5 Blocks, based on the production and sale of hydrocarbons discovered in the blocks. During 2021, the Group has accrued US$ 22,562,077 (US$ 14,018,000 in 2020 and US$ 24,700,000 in 2019) in relation with these overriding royalty agreements. Furthermore, there are overriding royalty agreements in place from 1.2% to 8.5% of the net production in the Andaquies, Coati, Mecaya, PUT-8, PUT-9, Tacacho and Terecay Blocks. Since they are exploratory blocks with no production during 2021, these agreements had no impact on the Group’s results.

In Chile, royalties are payable to the Chilean Government. In the Fell Block, royalties are calculated at 5% of crude oil production and 3% of gas production. In the Flamenco Block, Campanario Block and Isla Norte Block, royalties are calculated at 5% of gas and oil production.

In Brazil, the Brazilian National Petroleum, Natural Gas and Biofuels Agency (ANP) is responsible for determining monthly minimum prices for petroleum produced in concessions for purposes of royalties payable with respect to production. Royalties generally correspond to a percentage ranging between 5% and 10% applied to reference prices for oil or natural gas, as established in the relevant bidding guidelines (edital de licitação) and concession agreement. In determining the percentage of royalties applicable to a concession, the ANP takes into consideration, among other factors, the geological risks involved and the production levels expected. In the Manati Block, royalties are calculated at 7.5% of gas production.

In Argentina, crude oil and gas production accrues royalties payable to the Provinces of Mendoza and Neuquen equivalent to 15% on estimated value at well head of those products. This value is equivalent to final sales price less transport, storage and treatment costs.

33.2 Capital commitments

During 2021, the Group incurred investments of US$ 20,172,000 to fulfil its commitments, at GeoPark’s working interest.

​

33.2.1 Colombia

The future investment commitments assumed by GeoPark, at its working interest, are up to:

●Llanos 34 Block: 3 exploratory wells (US$ 17,381,000) before November 10, 2021. Pursuant to a private agreement with the partner in the block, the investment commitment incurred by GeoPark amounts to US$ 12,840,000. As of the date of these Consolidated Financial Statements, GeoPark has already drilled the three exploratory wells and is waiting for ANH’s approval to fulfill the investment commitment.
●Llanos 32 Block: 5 exploratory wells before February 20, 2022. Pursuant to a private agreement with the partner in the block, the investment commitment incurred by GeoPark amounts to US$ 9,225,000. As of the date of these Consolidated Financial Statements, the five exploratory wells have already been drilled and ANH approval of the fulfillment of the investment commitment is pending.
●Llanos 87 Block: 3D seismic reprocessing, aerogeophysic and 4 exploratory wells (US$ 13,150,000) before January 18, 2023.
●Llanos 94 Block: 3D seismic acquisition and reprocessing and 3 exploratory wells (US$ 10,901,000) before October 1, 2023.
●Llanos 123 Block: 3D seismic reprocessing, geochemistry and 2 exploratory wells (US$ 6,777,000) before January 14, 2024.
●Llanos 124 Block: 3D seismic acquisition and reprocessing, geochemistry and 3 exploratory wells (US$ 10,031,000) before January 14, 2024.
●CPO-5 Block: 3D seismic acquisition, processing and interpretation and 1 exploratory well (US$ 2,794,000) before July 8, 2024. Pursuant to a private agreement with the partner in the block, the investment commitment to be incurred by GeoPark amounts to US$ 9,313,000.
●Coati Block: 3D seismic and 2D seismic acquisition (US$ 4,500,000). The exploratory period is currently suspended.
●Mecaya Block: 3D seismic or 1 exploratory well (US$ 2,000,000). The exploratory period is currently suspended. Pursuant to a private agreement with the partner in the block, the investment commitment to be incurred by GeoPark amounts to US$ 600,000.
●Platanillo Block: 2 exploratory wells (US$ 10,894,000) before February 2, 2022.
●PUT-8 Block: 3D seismic acquisition and reprocessing and 3 exploratory wells (US$ 13,107,000) before July 5, 2023. Part of the 3D seismic committed in the block has already been acquired during 2020 and 2021.
●PUT-9 Block: 3D seismic acquisition and 2 exploratory wells (US$ 10,550,000). GeoPark has signed a private agreement with the other partner in the block resulting in the total investment commitment to be incurred by GeoPark amounting to US$ 4,365,000. The exploratory period is currently suspended.
●PUT-12 Block: 2D seismic acquisition, reprocessing and interpretation, geochemistry and 1 exploratory well (US$ 14,347,000). On February 23, 2021, GeoPark filed a termination request before the ANH due to force majeure that restricts the possibility to fulfill the exploratory commitments in the block.
●Tacacho Block: 2D seismic acquisition, processing and interpretation (US$ 4,080,000). GeoPark has signed a private agreement with the other partner in the block resulting in the total investment commitment to be incurred by GeoPark amounting to US$ 1,224,000. The exploratory period is currently suspended.
●Terecay Block: 2D seismic acquisition, processing and interpretation (US$ 4,046,000). GeoPark has signed a private agreement with the other partner in the block resulting in the total investment commitment to be incurred by GeoPark amounting to US$ 2,856,000. The exploratory period is currently suspended.
●The Llanos 86, Llanos 104, PUT-14 and PUT-36 Blocks are in a Preliminary Phase as of the date of these Consolidated Financial Statements. During this Preliminary Phase, GeoPark must request from the Ministry of Interior a certificate that indicates presence or no presence of indigenous communities and develop previous consultation, if applicable. Only when this process has been completed and the corresponding regulatory approvals have been obtained, the blocks will enter into Phase 1, where the exploratory commitments are mandatory. The investment commitments for the blocks over three-years term of Phase 1 would be the following:
-Llanos 86 Block: 3D seismic, 2D seismic reprocessing and 1 exploratory well (US$ 9,479,000)
-Llanos 104 Block: 3D seismic, 2D seismic reprocessing and 1 exploratory well (US$ 8,424,000)
-PUT-14 Block: 2D seismic acquisition and 1 exploratory well (US$ 16,122,000)
-PUT-36 Block: 3D seismic acquisition and 2 exploratory wells (US$ 11,301,000)

​

33.2.2 Chile

The remaining investment commitment to be assumed 100% by GeoPark for the second exploratory phase in the Campanario and Isla Norte Blocks are up to:

●Campanario Block: 2 exploratory wells before April 20, 2023 (US$ 5,002,000)
●Isla Norte Block: 1 exploratory well before February 19, 2023 (US$ 867,000)

​

As of December 31, 2021, the Group has established guarantees for its total commitments.

​

33.2.3 Brazil

The future investment commitments assumed by GeoPark are up to:

●POT-T-785 Block: 3D seismic and electromagnetic survey before January 29, 2023 (US$ 70,000).
●REC-T-58 Block: 3D seismic and electromagnetic survey before February 14, 2025 (US$ 140,000).
●REC-T-67 Block: 3D seismic and electromagnetic survey before February 14, 2025 (US$ 140,000).
●REC-T-77 Block: 3D seismic and electromagnetic survey before February 14, 2025 (US$ 140,000).
●POT-T-834 Block: 3D seismic and electromagnetic survey before February 14, 2025 (US$ 140,000).

​

33.2.4 Argentina

The investment commitment in the Los Parlamentos Block (50% working interest) for the first exploratory period, ending on October 30, 2022, which includes 1 exploratory well and 3D seismic, amounts to US$ 6,000,000, at GeoPark’s working interest.

​

33.2.5 Ecuador

​

The investment commitments assumed by GeoPark, at its 50% working interest, in the Espejo and Perico Blocks during the first exploratory period are up to:

●Espejo Block: 3D seismic and 4 exploratory wells before June 17, 2025 (US$ 20,912,000).
●Perico Block: 4 exploratory wells before June 16, 2025 (US$ 18,084,000).
v3.22.1
Related parties
 12 Months Ended
Dec. 31, 2021
Disclosure Of Related Parties [Abstract]  
Disclosure of related party [text block]

Note 34      Related parties

Controlling interest

The main shareholders of GeoPark Limited, a company registered in Bermuda, as of December 31, 2021, are:

​

​

​

​

​

​

​

​

    

Common

    

Percentage of outstanding

 

Shareholder

​

 shares

​

 common shares

 

James F. Park (a)

 

8,414,255

 

13.97

%

Compass Group LLC (b)

 

6,102,239

 

10.13

%

Gerald E. O’Shaughnessy (c)

 

6,043,163

 

10.03

%

Renaissance Technologies LLC (d)

 

3,538,931

 

5.87

%

Other shareholders

 

36,139,438

 

59.99

%

​

 

60,238,026

 

100.00

%

(a)Held by James F. Park directly and indirectly through GoodRock LLC, which is controlled by Mr. Park. The information set forth above and listed in the table is based solely on the disclosure set forth in Mr. Park’s most recent Schedule 13G filed with the SEC on February 14, 2022. 602,400 of Mr. Park’s shares have been pledged pursuant to lending arrangements.
(b)The information set forth above and listed in the table is based solely on the disclosure set forth in Compass Group LLC’s most recent Schedule 13G filed with the SEC on February 14, 2022.
(c)Held by Mr. O’Shaughnessy directly and indirectly through GP Investments LLP, GPK Holdings LLC, The Globe Resources Group, Inc., and other investment vehicles.
(d)The information set forth above and listed in the table is based solely on the disclosure set forth in Renaissance’s most recent Schedule 13G filed with the SEC on February 11, 2022.

​

Balances outstanding and transactions with related parties

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balances

​

​

​

​

​

​

Transaction 

​

 at year

​

​

​

​

Account (Amounts in US$ ´000)

    

in the year

    

 end

    

Related Party

    

Relationship

2021

​

​

​

​

​

​

​

​

To be recovered from co-venturers

​

—

​

4,680

​

Joint Operations

​

Joint Operations

To be paid to co-venturers

​

—

​

(953)

​

Joint Operations

​

Joint Operations

Geological and geophysical expenses

​

160

​

—

​

Carlos Gulisano

​

Non-Executive Director (a)

Administrative expenses

​

656

​

—

​

Pedro E. Aylwin

​

Executive Director (b)

2020

​

  

​

  

​

  

​

  

To be recovered from co-venturers

​

—

​

2,236

​

Joint Operations

​

Joint Operations

To be paid to co-venturers

​

—

​

(5,760)

​

Joint Operations

​

Joint Operations

Geological and geophysical expenses

​

130

​

—

​

Carlos Gulisano

​

Non-Executive Director (a)

Administrative expenses

​

561

​

—

​

Pedro E. Aylwin

​

Executive Director (b)

2019

​

  

​

  

​

  

​

  

To be recovered from co-venturers

​

—

​

1,035

​

Joint Operations

​

Joint Operations

To be paid to co-venturers

​

—

​

(4,803)

​

Joint Operations

​

Joint Operations

Geological and geophysical expenses

​

160

​

—

​

Carlos Gulisano

​

Non-Executive Director (a)

Administrative expenses

​

581

​

—

​

Pedro E. Aylwin

​

Executive Director (b)

(a)Corresponding to consultancy services.
(b)Corresponding to wages and salaries for US$ 392,000 (US$ 336,000 in 2020 and US$ 390,000 in 2019) and bonus for US$ 230,000 (US$ 225,000 in 2020 and US$ 191,000 in 2019). During 2021, Aylwin, Mendoza, Luksic & Valencia Law firm, where Pedro Aylwin is a partner and has a participation through Asesorías e Inversiones A&P Ltda, received US$ 34,000 for general legal services to all the Chilean entities, in Chilean corporate, labor, environmental, regulatory, and commercial laws.

There have been no other transactions with the Board of Directors, Executive officers, significant shareholders or other related parties during the year besides the intercompany transactions which have been eliminated in the Consolidated Financial Statements, the normal remuneration of Board of Directors and other benefits informed in Note 11.
v3.22.1
Auditors Fees
 12 Months Ended
Dec. 31, 2021
Auditor's remuneration [abstract]  
Disclosure of auditors' remuneration [text block]

Note 35     Auditors Fees

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

    

2019

Audit fees

 

1,023

 

926

 

763

Audit related fees

 

65

 

—

 

510

Tax services fees

 

47

 

35

 

165

Non-audit services fees

 

—

 

—

 

5

Total Auditors Fees

 

1,135

 

961

 

1,443

​

Fees are shown net of VAT and other associated tax charges.

Non-audit services fees relate to consultancy and other services.
v3.22.1
Business transactions
 12 Months Ended
Dec. 31, 2021
Disclosure Of Business transactions [Abstract]  
Disclosure Of Business Transactions Explanatory [Text Block]

Note 36     Business transactions

36.1 Acquisition of Amerisur Resources Plc

On January 16, 2020, GeoPark acquired the 100% share capital of Amerisur Resources Plc, a company listed on the Alternative Investment Market (“AIM”) of the London Stock Exchange. After the acquisition, the company was delisted and its name changed to Amerisur Resources Limited. The principal activities of Amerisur Resources Limited and its subsidiaries (“Amerisur”) are exploration, development and production for oil and gas reserves in Latin America. Amerisur owns thirteen production, development and exploration blocks in Colombia (twelve operated blocks in the Putumayo basin

and one non-operated block in the Llanos basin) and an export oil pipeline from Colombia to Ecuador named Oleoducto Binacional Amerisur (“OBA”).

GeoPark paid a cash consideration of US$ 314,163,077 at the transaction date.

In accordance with the acquisition method of accounting, the acquisition cost was allocated to the underlying assets acquired and liabilities assumed based primarily upon their estimated fair values at the date of acquisition. An income approach (being the net present value of expected future cash flows) was adopted to determine the fair values of the mineral interest. Estimates of expected future cash flows reflect estimates of projected future revenues, production costs and capital expenditures based on our business model. The excess of acquisition cost, if any, over the net identifiable assets acquired represents goodwill.

The following table summarizes the combined consideration paid for the acquired business and the final allocation of fair value of the assets acquired and liabilities assumed for the abovementioned transaction:

​

​

​

​

Amounts in US$‘000

    

Total

Cash

 

314,163

Total consideration

​

314,163

Property, plant and equipment (including mineral interest)

​

276,988

Right-of-use assets

​

16,674

Deferred income tax asset

​

4,071

Prepayments and other receivables

​

30,024

Trade receivables

 

5,964

Inventories

​

4,128

Other assets

​

5,991

Cash and cash equivalents

 

41,828

Lease liabilities

​

(17,851)

Provision for other long-term liabilities

​

(16,519)

Current income tax liability

​

(3,426)

Trade and other payables

​

(33,709)

Total identifiable net assets

​

314,163

​

Considering that Amerisur issues financial information on a monthly basis, the Group has considered the identified assets and liabilities as of December 31, 2019. If the purchase price allocation exercise had been carried out as of January 16, 2020, it would not have deferred significantly.

Since the acquisition date, Amerisur contributed revenue of US$ 42,855,000 and net loss of US$ 5,523,000 within the Consolidated Statement of Income for the year ended December 31, 2020.

36.2 Brazil

36.2.1 Manati Block

On November 22, 2020, GeoPark signed an agreement to sell its 10% non-operated working interest in the Manati Block in Brazil. The total consideration amounts to Brazilian Real 144,400,000 (equivalent to US$ 27,787,000 as of December 31, 2020), including a fixed payment of Brazilian Real 124,400,000 plus an earn-out of Brazilian Real 20,000,000, which is subject to obtaining certain regulatory approvals. The transaction is subject to certain conditions that should be met before March 31, 2022, including the acquisition by the acquirer of the remaining working interest and operatorship of the Manati gas field, and other regulatory approvals. As of the date of these Consolidated Financial Statements, these conditions have not been met.

36.2.2 REC-T-128 Block

In July 2020, GeoPark initiated a farm-out process to sell its 70% interest in the non-producing REC-T-128 Block in Brazil. On March 1, 2021, the farm-out agreement was signed. The total consideration is US$ 1,100,000, plus a contingent payment of up to US$ 710,000. The closing of the transaction took place in May 2021, after the corresponding customary regulatory approvals. 

36.3 Argentina

36.3.1 Aguada Baguales, El Porvenir and Puesto Touquet Blocks

In August 2021, the Company’s Board of Directors approved the decision to evaluate farm-out or divestment opportunities to sell its 100% working interest and operationship in the Aguada Baguales, El Porvenir and Puesto Touquet Blocks in Argentina, including the associated gas transportation license through the Puesto Touquet pipeline. Several local and international companies have participated in the process and submitted binding offers in September 2021.

On November 3, 2021, GeoPark signed a sale and purchase and assignment agreement for a total consideration of US$ 16,000,000, subject to working capital adjustments. GeoPark has collected an advance payment of US$ 1,600,000. The closing of the transaction took place on January 31, 2022, after the corresponding regulatory approvals and GeoPark received the remaining outstanding payment.

As of December 31, 2021, the amount of Property, plant and equipment related to the blocks and the liabilities associated with them have been classified as held for sale. Immediately before the classification as held for sale, the recoverable amount of the blocks was estimated and an impairment reversal of US$ 13,307,000 was recognized in the Consolidated Statement of Income. The reversal was limited so that the carrying amount of the blocks does not exceed the lower of its recoverable amount, or the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the blocks in prior years (see Note 37).

36.4 Peru

36.4.1 Morona Block

On July 15, 2020, GeoPark notified its irrevocable decision to retire from the non-producing Morona Block (Block 64) in Peru, due to extended force majeure, which allows for the termination of the license contract. On April 6, 2021, the final agreement with Petroperu was signed and, on May 31, 2021, the joint operation agreement was terminated. On September 28, 2021, the supreme decree approving the assignment was issued by the Peruvian Government, and the public deed corresponding to that assignment was finally executed by GeoPark and Petroperu on November 15, 2021. Consequently, from such date, all the rights and obligations under the Morona Block license contract are the exclusive responsibility of Petroperu.

During 2020, the Group recognized an impairment of its Property, plant and equipment for a total amount of US$ 33,976,000, wrote-down VAT credits for US$ 6,017,000 and Deferred income tax asset for US$ 8,353,000, recognizing those charges within Other expenses and Income tax expenses, respectively, in the Consolidated Statement of Income, and recognized a provision for environmental obligations for a present value of US$ 1,886,000, with impact in Other expenses in the Consolidated Statement of Income.
v3.22.1
Impairment test on Property, plant and equipment
 12 Months Ended
Dec. 31, 2021
Disclosure of impairment of assets [Abstract]  
Disclosure of impairment of assets [text block]

Note 37     Impairment test on Property, plant and equipment

During 2021, the crude oil demand recovery resulted in improvements in the market conditions. Nevertheless, a revision of the estimation of the proved reserves in the Fell Block (Chile) at year-end evidenced a significant decline as compared to the prior year estimation. Management considered this to be an impairment indicator and the Group carried out an impairment review of this cash-generating unit (“CGU”). No impairment indicators were noted in the other CGUs.

The Management of the Group considers as CGU each of the blocks or group of blocks in which the Group has working or economic interests. The blocks with no material investment on property, plant and equipment or with operations that are not linked to oil and gas prices were not subject to the impairment test.

The main assumptions taken into account for the impairment tests were:

-The future oil prices have been calculated taking into consideration the oil price curves available in the market, provided by international advisory companies, and weighted through internal estimations in accordance with price curves used by DeGolyer and MacNaughton.
-The following Brent oil prices were considered: US$ 74.93 per Bbl for 2022, US$ 66.41 per Bbl for 2023, US$ 67.74 per Bbl for 2024, US$ 69.09 per Bbl for 2025 and US$ 70.48 per Bbl for 2026 and onwards. These prices were based on Brent future price estimations; the Group adjusted them on its model valuation to reflect the effective price applicable in each location (see Note 3 “Price risk”).
-Three gas price scenarios were projected and weighted in order to minimize misleading estimations: low-price, middle-price and high-price. These gas price scenarios were based on the gas sales agreement in place with Methanex in Chile.
-The model valuation was based on the expected cash flow approach.
-The revenues were calculated linking price curves with levels of production according to certified reserves.
-The levels of production have been linked to certified risked P1, P2 and P3 reserves case by case (see Note 4).
-Production and structure costs were estimated considering internal historical data according to GeoPark’s own records and aligned to the 2022 approved budget.
-The capital expenditures were estimated considering the drilling campaign necessary to develop the certified reserves.
-The assets subject to impairment test are the ones classified as Oil and Gas properties, Production facilities and machinery and Construction in progress.
-The carrying amount subject to impairment test includes mineral interest, if any.
-The income tax charges have considered future changes in the applicable income tax rates (see Note 16).

​

As a consequence of the evaluation, the following amounts of impairment loss were (recognized) reversed:

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

2021

​

2020

​

2019

Chile (a)

​

(17,641)

​

(81,967)

​

—

Brazil (b)

​

—

​

(1,717)

​

—

Argentina (c)

​

13,307

​

(16,205)

​

(7,559)

Peru (d)

​

—

​

(33,975)

​

—

​

​

(4,334)

​

(133,864)

​

(7,559)

(a)Recognition of impairment loss in the Fell Block due to the decline in the proved reserves estimation in 2021 and the commercial viability has been decreased significantly as a consequence of the lower crude prices relative to its high cash costs of production in 2020.
(b)Recognition of impairment loss in the REC-T-128 Block due to the fair value less cost to sale determined in the context of the farm-out process described in Note 36.2.2.
(c)Reversal of impairment loss in the Aguada Baguales and El Porvenir Blocks in 2021 due to the known market price of the blocks in the context of the transaction described in Note 36.3.1. Recognition of impairment loss in the Aguada Baguales and El Porvenir Blocks in 2020 due to the commercial viability has been decreased significantly as a consequence of the lower crude prices relative to its high cash costs of production, which also led to reduced estimates of the quantities of hydrocarbons recoverable, and in the CN-V Block in 2019 for the total amount capitalized in the block due to a negative revision of reserves.
(d)Recognition of impairment loss in the Morona Block due to the situation described in Note 36.4.1.

​

With regard to the assessment of value in use for the identified CGUs subject to impairment indicators, Management believes that there are no reasonably possible changes in any of the above key assumptions that would cause the carrying value of the CGUs to materially exceed its recoverable amount.
v3.22.1
Supplemental information on oil and gas activities
 12 Months Ended
Dec. 31, 2021
Disclosure of Supplemental information on oil and gas activities [Abstract]  
Disclosure Of Supplemental Information On Oil And Gas Activities [Text Block]

Note 38     Supplemental information on oil and gas activities (unaudited)

The following information is presented in accordance with ASC No. 932 “Extractive Activities- Oil and Gas”, as amended by ASU 2010 - 03 “Oil and Gas Reserves. Estimation and Disclosures”, issued by FASB in January 2010 in order to align the current estimation and disclosure requirements with the requirements set in the SEC final rules and interpretations, published on December 31, 2008. This information includes the Group’s oil and gas production activities carried out in each country.

Table 1 - Costs incurred in exploration, property acquisitions and development

The following table presents those costs capitalized as well as expensed that were incurred during each of the years ended December 31, 2021, 2020 and 2019. The acquisition of properties includes the cost of acquisition of proved or unproved oil and gas properties. Exploration costs include geological and geophysical costs, costs necessary for retaining undeveloped properties, drilling costs and exploratory wells equipment. Development costs include drilling costs and equipment for developmental wells, the construction of facilities for extraction, treatment and storage of hydrocarbons and all necessary costs to maintain facilities for the existing developed reserves.

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

Year ended December 31, 2021

​

  

​

  

​

  

​

  

​

  

Acquisition of properties

​

  

​

  

​

  

​

  

​

  

Proved

​

—

​

—

​

—

​

—

​

—

Unproved

​

—

​

—

​

—

​

—

​

—

Total property acquisition

​

—

​

—

​

—

​

—

​

—

Exploration

​

40,828

​

3,940

​

3

​

998

​

45,769

Development (a)

​

81,310

​

1,900

​

(2,212)

​

2

​

81,000

Total costs incurred

​

122,138

​

5,840

​

(2,209)

​

1,000

​

126,769

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

Year ended December 31, 2020

​

  

​

  

​

  

​

  

​

  

Acquisition of properties

​

  

​

  

​

  

​

  

​

  

Proved

​

202,913

​

—

​

—

​

—

​

202,913

Unproved

​

73,310

​

—

​

—

​

—

​

73,310

Total property acquisition

​

276,223

​

—

​

—

​

—

​

276,223

Exploration

​

19,142

​

9,447

​

668

​

694

​

29,951

Development (a)

​

51,793

​

3,580

​

412

​

(3,855)

​

51,930

Total costs incurred

​

70,935

​

13,027

​

1,080

​

(3,161)

​

81,881

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Peru

​

Total

Year ended December 31, 2019

​

  

​

  

​

  

​

  

​

  

​

  

Acquisition of properties

​

​

​

​

​

​

​

​

​

​

​

  

Proved

​

—

​

—

​

—

​

—

​

—

​

—

Unproved

​

—

​

—

​

—

​

—

​

—

​

—

Total property acquisition

​

—

​

—

​

—

​

—

​

—

​

—

Exploration

​

22,008

​

8,483

​

5,219

​

4,116

​

—

​

39,826

Development (a)

​

68,818

​

2,611

​

143

​

25,109

​

14,408

​

111,089

Total costs incurred

​

90,826

​

11,094

​

5,362

​

29,225

​

14,408

​

150,915

(a)Includes the effect of change in estimate of assets retirement obligations.

Table 2 - Capitalized costs related to oil and gas producing activities

​

The following table presents the capitalized costs as of December 31, 2021, 2020 and 2019, for proved and unproved oil and gas properties, and the related accumulated depreciation as of those dates.

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

As of December 31, 2021

​

  

​

  

​

  

​

  

​

  

Proved properties (a)

​

  

​

  

​

  

​

  

​

  

Equipment, camps and other facilities

​

125,078

​

72,766

​

3,333

​

—

​

201,177

Mineral interest and wells

​

580,931

​

334,993

​

42,008

​

—

​

957,932

Other uncompleted projects

​

26,136

​

818

​

250

​

—

​

27,204

Unproved properties (b)

​

94,419

​

—

​

271

​

—

​

94,690

Gross capitalized costs

​

826,564

​

408,577

​

45,862

​

—

​

1,281,003

Accumulated depreciation

​

(282,616)

​

(358,417)

​

(38,741)

​

—

​

(679,774)

Total net capitalized costs

​

543,948

​

50,160

​

7,121

​

—

​

601,229

(a)Includes capitalized amounts related to asset retirement obligations, impairment loss recognized in Chile for US$ 17,641,000 and impairment loss reversed in Argentina for US$ 13,307,000.
(b)Do not include Ecuador capitalized costs.

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

As of December 31, 2020

​

  

​

  

​

  

​

  

​

  

Proved properties (a)

​

  

​

  

​

  

​

  

​

  

Equipment, camps and other facilities

​

115,577

​

74,363

​

3,580

​

4,309

​

197,829

Mineral interest and wells

​

511,040

​

348,366

​

47,729

​

61,482

​

968,617

Other uncompleted projects (b)

​

13,048

​

2,158

​

245

​

26

​

15,477

Unproved properties (c)

​

77,388

​

—

​

432

​

—

​

77,820

Gross capitalized costs

​

717,053

​

424,887

​

51,986

​

65,817

​

1,259,743

Accumulated depreciation

​

(228,929)

​

(345,611)

​

(38,273)

​

(45,619)

​

(658,432)

Total net capitalized costs

​

488,124

​

79,276

​

13,713

​

20,198

​

601,311

(a)Includes capitalized amounts related to asset retirement obligations, impairment loss in Chile, Argentina and Brazil for US$ 81,967,000, US$ 16,205,000 and US$ 1,717,000, respectively.
(b)Do not include Peru capitalized costs.
(c)Do not include Ecuador capitalized costs.

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

As of December 31, 2019

​

  

​

  

​

  

​

  

​

  

Proved properties (a)

​

  

​

  

​

  

​

  

​

  

Equipment, camps and other facilities

​

79,999

​

84,069

​

4,615

​

3,824

​

172,507

Mineral interest and wells

​

282,973

​

402,392

​

64,179

​

81,393

​

830,937

Other uncompleted projects (b)

​

19,754

​

11,984

​

209

​

765

​

32,712

Unproved properties

​

567

​

45,681

​

1,788

​

—

​

48,036

Gross capitalized costs

​

383,293

​

544,126

​

70,791

​

85,982

​

1,084,192

Accumulated depreciation

​

(172,207)

​

(313,379)

​

(46,370)

​

(30,897)

​

(562,853)

Total net capitalized costs

​

211,086

​

230,747

​

24,421

​

55,085

​

521,339

(a)Includes capitalized amounts related to asset retirement obligations, impairment loss in Argentina for US$ 7,559,000.
(b)Do not include Peru capitalized costs.

Table 3 - Results of operations for oil and gas producing activities

The breakdown of results of the operations shown below summarizes revenues and expenses directly associated with oil and gas producing activities for the years ended December 31, 2021, 2020 and 2019. Income tax for the years presented was calculated utilizing the statutory tax rates.

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

Year ended December 31, 2021

​

  

​

  

​

  

​

  

​

  

Revenue

​

618,268

​

21,471

​

20,109

​

28,695

​

688,543

Production costs, excluding depreciation

​

​

​

​

​

​

​

​

​

​

Operating costs

​

(72,043)

​

(10,280)

​

(2,954)

​

(14,490)

​

(99,767)

Royalties

​

(106,341)

​

(770)

​

(1,642)

​

(4,270)

​

(113,023)

Total production costs

​

(178,384)

​

(11,050)

​

(4,596)

​

(18,760)

​

(212,790)

Exploration expenses (a)

​

(11,276)

​

(4,509)

​

—

​

(998)

​

(16,783)

Accretion expense (b)

​

(576)

​

(1,319)

​

(535)

​

(710)

​

(3,140)

Impairment loss for non-financial assets

​

—

​

(17,641)

​

—

​

13,307

​

(4,334)

Depreciation, depletion and amortization

​

(54,588)

​

(12,806)

​

(2,933)

​

(8,152)

​

(78,479)

Results of operations before income tax

​

373,444

​

(25,854)

​

12,045

​

13,382

​

373,017

Income tax (expense) benefit

​

(115,989)

​

3,878

​

(4,095)

​

(4,684)

​

(120,890)

Results of oil and gas operations

​

257,455

​

(21,976)

​

7,950

​

8,698

​

252,127

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

Year ended December 31, 2020

​

  

​

  

​

  

​

  

​

  

Revenue

​

334,606

​

21,704

​

12,783

​

24,599

​

393,692

Production costs, excluding depreciation

​

​

​

​

​

​

​

​

​

​

Operating costs

​

(61,866)

​

(9,491)

​

(2,827)

​

(15,013)

​

(89,197)

Royalties

​

(30,453)

​

(753)

​

(1,049)

​

(3,620)

​

(35,875)

Total production costs

​

(92,319)

​

(10,244)

​

(3,876)

​

(18,633)

​

(125,072)

Exploration expenses (a)

​

(12,493)

​

(50,301)

​

(1,000)

​

(694)

​

(64,488)

Accretion expense (b)

​

(670)

​

(1,358)

​

(867)

​

(1,381)

​

(4,276)

Impairment loss for non-financial assets

​

—

​

(81,967)

​

(1,717)

​

(16,205)

​

(99,889)

Depreciation, depletion and amortization

​

(56,720)

​

(32,233)

​

(2,488)

​

(14,723)

​

(106,164)

Results of operations before income tax

​

172,404

​

(154,399)

​

2,835

​

(27,037)

​

(6,197)

Income tax (expense) benefit

​

(55,169)

​

23,160

​

(964)

​

8,111

​

(24,862)

Results of oil and gas operations

​

117,235

​

(131,239)

​

1,871

​

(18,926)

​

(31,059)

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

Year ended December 31, 2019

​

  

​

  

​

  

​

  

​

  

Revenue

​

538,917

​

32,336

​

23,049

​

34,605

​

628,907

Production costs, excluding depreciation

​

​

​

​

​

​

​

​

​

​

Operating costs

​

(60,545)

​

(18,608)

​

(4,098)

​

(21,137)

​

(104,388)

Royalties

​

(56,399)

​

(1,181)

​

(1,855)

​

(5,141)

​

(64,576)

Total production costs

​

(116,944)

​

(19,789)

​

(5,953)

​

(26,278)

​

(168,964)

Exploration expenses (a)

​

(10,921)

​

(126)

​

(6,152)

​

(13,947)

​

(31,146)

Accretion expense (b)

​

(813)

​

(1,283)

​

(832)

​

(722)

​

(3,650)

Impairment loss for non-financial assets

​

—

​

—

​

—

​

(7,559)

​

(7,559)

Depreciation, depletion and amortization

​

(44,906)

​

(34,344)

​

(6,200)

​

(14,534)

​

(99,984)

Results of operations before income tax

​

365,333

​

(23,206)

​

3,912

​

(28,435)

​

317,604

Income tax (expense) benefit

​

(120,560)

​

3,481

​

(1,330)

​

8,531

​

(109,878)

Results of oil and gas operations

​

244,773

​

(19,725)

​

2,582

​

(19,904)

​

207,726

(a)Do not include Peru and Ecuador costs.
(b)Represents accretion of ARO and other environmental liabilities.

Table 4 - Reserve quantity information

Estimated oil and gas reserves

Proved reserves represent estimated quantities of oil (including crude oil and condensate) and natural gas, which available geological and engineering data demonstrates with reasonable certainty to be recoverable in the future from known reservoirs under existing economic and operating conditions. Proved developed reserves are proved reserves that can reasonably be expected to be recovered through existing wells with existing equipment and operating methods. The choice of method or combination of methods employed in the analysis of each reservoir was determined by the stage of development, quality and reliability of basic data, and production history.

The Group believes that its estimates of remaining proved recoverable oil and gas reserve volumes are reasonable and such estimates have been prepared in accordance with the SEC Modernization of Oil and Gas Reporting rules, which were issued by the SEC at the end of 2008.

The Group estimates its reserves at least once a year. The Group’s reserves estimation as of December 31, 2021, 2020, 2019 and 2018 was based on the DeGolyer and MacNaughton Reserves Report (the “D&M Reserves Report”). DeGolyer and MacNaughton prepared its proved oil and natural gas reserve estimates in accordance with Rule 4-10 of Regulation S–X, promulgated by the SEC, and in accordance with the oil and gas reserves disclosure provisions of ASC 932 of the FASB Accounting Standards Codification (ASC) relating to Extractive Activities - Oil and Gas (formerly SFAS no. 69 Disclosures about Oil and Gas Producing Activities).

Reserves engineering is a subjective process of estimation of hydrocarbon accumulation, which cannot be exactly measured, and the reserve estimation depends on the quality of available information and the interpretation and judgement of the engineers and geologists. Therefore, the reserves estimations, as well as future production profiles, are often different than the quantities of hydrocarbons which are finally recovered. The accuracy of such estimations depends, in general, on the assumptions on which they are based.

The estimated GeoPark net proved reserves for the properties evaluated as of December 31, 2021, 2020, 2019 and 2018 are summarized as follows, expressed in thousands of barrels (Mbbl) and millions of cubic feet (MMcf):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31, 2021

​

As of December 31, 2020

​

As of December 31, 2019

​

As of December 31, 2018

​

​

Oil and

​

​

​

Oil and

​

​

​

Oil and

​

​

​

Oil and

​

​

​

​

condensate

​

Natural gas

​

condensate

​

Natural gas

​

condensate

​

Natural gas

​

condensate

​

Natural gas

​

    

(Mbbl)

    

(MMcf)

    

(Mbbl)

    

(MMcf)

    

(Mbbl)

    

(MMcf)

    

(Mbbl)

    

(MMcf)

Net proved developed

​

  

​

  

​

  

​

  

​

  

​

  

​

  

​

  

Colombia (a)

​

47,766

​

1,207

​

43,817

​

1,695

​

39,397

​

2,319

​

32,326

​

1,763

Chile (b)

​

755

​

15,196

​

798

​

19,054

​

898

​

14,406

​

696

​

11,944

Brazil (c)

​

43

​

13,601

​

34

​

13,927

​

48

​

14,872

​

55

​

17,339

Argentina (d)

​

1,186

​

3,379

​

1,685

​

5,599

​

1,658

​

5,785

​

2,058

​

6,207

Total consolidated

​

49,750

​

33,383

​

46,334

​

40,275

​

42,001

​

37,382

​

35,135

​

37,253

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net proved undeveloped

​

  

​

  

​

  

​

  

​

  

​

  

​

  

​

​

Colombia (e)

​

31,019

​

—

​

45,240

​

—

​

51,212

​

—

​

42,449

​

359

Chile (b)

​

575

​

1,563

​

1,229

​

5,661

​

2,809

​

6,413

​

2,622

​

8,823

Argentina (f)

​

603

​

—

​

104

​

—

​

1,370

​

450

​

1,440

​

3,174

Peru (g)

​

—

​

—

​

—

​

—

​

19,210

​

—

​

18,460

​

—

Total consolidated

​

32,197

​

1,563

​

46,573

​

5,661

​

74,601

​

6,863

​

64,971

​

12,356

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Total proved reserves

​

81,947

​

34,946

​

92,907

​

45,936

​

116,602

​

44,245

​

100,106

​

49,609

(a)Llanos 34 Block, CPO-5 Block, Llanos 32 Block and Platanillo Block account for 88%, 8%, 2% and 2% (Llanos 34 Block, CPO-5 Block, Llanos 32 Block and Platanillo Block account for 86%, 8%, 3% and 3% in 2020, Llanos 34
Block and Llanos 32 Block account for 97% and 3% in 2019, and Llanos 34 Block, La Cuerva Block, Yamu Block and Llanos 32 Block account for 96%, 1.5%, 1.5% and 1% in 2018) of the proved developed reserves, respectively.
(b)Fell Block accounts for 100% of the reserves.
(c)BCAM-40 Block accounts for 100% of the reserves.
(d)Aguada Baguales Block, Puesto Touquet Block, and El Porvenir Block account for 45%, 21% and 33% (Aguada Baguales Block, Puesto Touquet Block, and El Porvenir Block account for 50%, 26% and 24% in 2020, 49%, 30% and 21% in 2019 and 48%, 33% and 19% in 2018) of the proved developed reserves, respectively.
(e)Llanos 34 Block, Llanos 32 Block, CPO-5 Block and Platanillo Block account 88%, 5%, 5% and 3% (Llanos 34 Block, Llanos 32 Block and CPO-5 Block account 91%, 5% and 4% in 2020, Llanos 34 Block and Llanos 32 Block account 96% and 4% in 2019, and Llanos 34 Block, La Cuerva Block and Yamu Block account for 97%, 2% and 1% in 2018) of the proved undeveloped reserves, respectively.
(f)Aguada Baguales Block accounts for 100% (Aguada Baguales Block accounts for 100% in 2020 and 2019, and Aguada Baguales Block and El Porvenir Block account for 75% and 25% in 2018) of the proved undeveloped reserves, respectively.
(g)Morona Block accounted for 100% of the reserves.

​

Table 5 - Net proved reserves of oil, condensate and natural gas

Net proved reserves (developed and undeveloped) of oil and condensate:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Thousands of barrels

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Peru

​

Total

Reserves as of December 31, 2018

​

74,775

​

3,318

​

55

​

3,498

​

18,460

​

100,106

Increase (decrease) attributable to:

​

  

​

  

​

  

​

  

​

  

​

  

Revisions (a)

​

18,341

​

541

​

4

​

95

​

750

​

19,731

Extensions and discoveries (b)

​

8,071

​

36

​

—

​

—

​

—

​

8,107

Production

​

(10,578)

​

(188)

​

(11)

​

(565)

​

—

​

(11,342)

Reserves as of December 31, 2019

​

90,609

​

3,707

​

48

​

3,028

​

19,210

​

116,602

Increase (decrease) attributable to:

​

  

​

  

​

  

​

  

​

  

​

​

Revisions (c)

​

(1,964)

​

(1,825)

​

(7)

​

(734)

​

—

​

(4,530)

Extensions and discoveries (d)

​

4,545

​

279

​

—

​

—

​

—

​

4,824

Purchase or (Disposal) of Minerals in place (e)

​

6,853

​

—

​

—

​

—

​

(19,210)

​

(12,357)

Production

​

(10,986)

​

(134)

​

(7)

​

(505)

​

—

​

(11,632)

Reserves as of December 31, 2020

​

89,057

​

2,027

​

34

​

1,789

​

—

​

92,907

Increase (decrease) attributable to:

​

  

​

  

​

  

​

  

​

  

​

​

Revisions (f)

​

(3,207)

​

(597)

​

18

​

(169)

​

—

​

(3,955)

Extensions and discoveries (g)

​

3,375

​

—

​

—

​

603

​

—

​

3,978

Production

​

(10,440)

​

(100)

​

(9)

​

(434)

​

—

​

(10,983)

Reserves as of December 31, 2021

​

78,785

​

1,330

​

43

​

1,789

​

—

​

81,947

(a)For the year ended December 31, 2019, the Group’s oil and condensate proved reserves were revised upward by 19.7 mmbbl. The primary factors leading to the above were:

- A technical revision of the expected results of future wells in the Jacana and Tigana Fields that led to an increase in reserves of 12.3 mmbbl.

- Better than expected performance from existing wells that increase the proved developed reserves, mostly originated in Colombia (6.3 mmbbl) from the Tigana and Jacana fields in the Llanos 34 Block. There were also minor increments in Argentina (0.4 mmbbl) originated in better performance of the Aguada Baguales Field wells; and in Chile (0.3 mmbbl) mostly in the Yagan Norte, Konawentru, Alakaluf and Yagan Fields.

- An updated geological model for the Situche Field in the Morona Block originated a new estimation of the proved original oil in place volumes that increased the proved undevelop reserves of the block by 0.7 mmbbl.

- Such increase was partially offset by a lower average oil prices resulted in a 0.3 mmbbl and 0.3 mmbbl decrease in reserves from the blocks in Colombia and Argentina, respectively.

- There were also better well types considered for the Kiuaku, Loij and Konawentru Field that originated a minor increment of 0.2 mmbbl partially compensated by a reduction of 0.04 mmbbl in Argentina Challaco Field condensate due to an unsuccessful well.

(b)

In Colombia, the extensions and discoveries are primary due to the Tigana and Jacana fields appraisal wells and the Guaco field discovery in the Llanos 34 Block and the Azogue field discovery in the Llanos 32 Block. In the Fell Block in Chile, the discovery of the Jauke field.

( c)

For the year ended December 31, 2020, the Group’s oil and condensate proved reserves were revised downward by 4.5 mmbbl. The primary factors leading to the above were:

- Lower average oil prices resulted in a 4.2 mmbbl, 1.1 mmbbl and 0.3 mmbbl decrease in reserves from the blocks in Colombia, Argentina and Chile, respectively.

- A reduction of 1.6 mmbbl in Chile due to the revision of the type well in the Kiaku and Loij fields and a reduction in Argentina of 0.2 mmbbl, associated to the revision of the type of well in the Aguada Baguales fields.

- Lower than expected performance from the existing wells in Colombia that reduced the proved developed reserves from the Jacana, Tigana and Tigui fields (2.8 mmbbl).

- Such decrease was partially offset by a better performance of proved undeveloped reserves in Colombia (5.1 mmbbl) originated by a new estimation of original oil in place and better type wells considered in the Jacana and Tigana fields. In addition, the proved developed reserves increased in the Aguada Baguales Block in Argentina (0.5 mmbbl) and the Konawentru and Guanaco Fields in Chile of 0.1 mmbbl due to better performance of the existing wells.

(d) In Colombia, the extensions and discoveries are primary due to the Tigui Field appraisal wells and in Chile are due to the Jauke Field discovery in the Fell Block.
(e) Purchase of Minerals in place refers to the CPO-5 and Platanillo Blocks acquisition during 2020 in Colombia. The reduction in Peru is due to the decision to retire from the Morona Block (see Note 36.4.1).
(f) For the year ended December 31, 2021, the Group’s oil and condensate proved reserves were revised downward by 4.0 mmbbl. The primary factors leading to the above were:

- Lower than expected performance from the existing wells that reduced the proved developed reserves in Colombia (8.9 mmbbl), in Argentina (0.3 mmbbl), and in Chile (0.3 mmbbl).

- A decrease of 0.6 mmbbl in Chile due to a change in a previously adopted development plan in the Fell Block.

- Such decrease was partially offset by a higher average oil prices resulted in a 5.7 mmbbl, 0.1 mmbbl and 0.3 mmbbl increase in reserves from the blocks in Colombia, Argentina and Chile, respectively.

(g) In Colombia, the extensions and discoveries are primary due to the Tigui Field appraisal wells and in Argentina are due to the Aguada Baguales Field.

​

Net proved reserves (developed and undeveloped) of natural gas:

​

​

​

​

​

​

​

​

​

​

​

​

Millions of cubic feet

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Total

Reserves as of December 31, 2018

​

2,122

​

20,767

​

17,339

​

9,381

​

49,609

Increase (decrease) attributable to:

​

  

​

  

​

  

​

  

​

​

Revisions (a)

​

621

​

(167)

​

1,812

​

(1,791)

​

475

Extensions and discoveries (b)

​

295

​

5,386

​

—

​

—

​

5,681

Production

​

(719)

​

(5,167)

​

(4,279)

​

(1,355)

​

(11,520)

Reserves as of December 31, 2019

​

2,319

​

20,819

​

14,872

​

6,235

​

44,245

Increase (decrease) attributable to:

​

  

​

  

​

  

​

  

​

​

Revisions (c)

​

(211)

​

(385)

​

1,840

​

889

​

2,133

Extensions and discoveries (d)

​

—

​

10,456

​

—

​

—

​

10,456

Production

​

(413)

​

(6,175)

​

(2,785)

​

(1,525)

​

(10,898)

Reserves as of December 31, 2020

​

1,695

​

24,715

​

13,927

​

5,599

​

45,936

Increase (decrease) attributable to:

​

  

​

​

​

  

​

  

​

​

Revisions (e)

​

14

​

(3,553)

​

3,470

​

(636)

​

(705)

Production

​

(502)

​

(4,403)

​

(3,796)

​

(1,584)

​

(10,285)

Reserves as of December 31, 2021

​

1,207

​

16,759

​

13,601

​

3,379

​

34,946

(a)For the year ended December 31, 2019, the Group’s proved natural gas reserves were revised upward by 0.5 billion cubic feet. This was the combined effect of:

- An increase of proved developed reserves due to better performance of existing wells in Chile (2.2 billion cubic feet) mostly associated to the Pampa Larga, Ache and Monte Aymond Fields; in Brazil (1.8 billion cubic feet) in the Manati Field; Colombia (0.6 billion cubic feet) due to a better performance of the Tigana and Jacana Fields; and Argentina (0.1 billion cubic feet) mostly associated to a better performance of wells in the Aguada Baguales Field.

- The above was partially offset by lower than expected performance for the proved undeveloped reserves in Chile (2.4 billion cubic feet) mostly associated to the increase of water production in Ache Field; and Argentina (1.3 billion cubic feet) associated to an unsuccessful well drilled in the Challaco Bajo Field.

- Lower average prices resulted in a decrease of 0.5 billion cubic feet reduction in gas proved developed reserves in Argentina.

(b)The extensions and discoveries are primary due to the Jauke Field discovery in the Fell Block, in Chile, and the gas discovery of the Une Formation in the Azogue field in the Llanos 32 Block, in Colombia.
(c)For the year ended December 31, 2020, the Group’s proved natural gas reserves were revised upwards by 2.1 billion cubic feet. This was the combined effect of:

- An increase of proved developed reserves due to better performance of existing wells in Chile (7.9 billion cubic feet) mostly associated to the Jauke and Ache Fields, in Brazil (3.0 billion cubic feet) associated to new gas sales plateau in 2021 and forward which leads to better than expected performance of the Manati Field and in Argentina (1.9 billion cubic feet) due to better performance of the Puesto Touquet and El Porvenir Blocks.

- The above was partially offset by lower than expected performance of proved undeveloped reserves in Chile (5.8 billion cubic feet) due to revisions of the type of well in the Pampa Larga Field.

- Lower average prices resulted in a decrease of 2.5 billion cubic feet, 1.2 billion cubic feet and 1.2 billion cubic feet reduction in gas reserves in Chile, Brazil and Argentina, respectively.

(d)The extensions and discoveries are primary due to the Jauke Field discovery in the Fell Block, in Chile.
(e)For the year ended December 31, 2021, the Group’s proved natural gas reserves were revised downward by 0.7 billion cubic feet. This was the combined effect of:

- A decrease of proved developed reserves due to lower performance of existing wells in Argentina (1.6 billion cubic feet) and in Chile (2.7 billion cubic feet) partially offset by better than expected performance in the Manati Field in Brazil (2.5 billion cubic feet).

- A decrease of 3.4 billion cubic feet in Chile due to the revision of the type well associated with the incremental activity that reduced the proved undeveloped reserves.

- A decrease of 1.5 billion cubic feet in Chile due to a change in a previously adopted development plan in the Fell Block.

-Such decrease was partially offset by higher average prices which resulted in an increase of 4.0 billion cubic feet, 1 billion cubic feet and 1 billion cubic feet in Chile, Brazil, and Argentina, respectively.

​

Revisions refer to changes in interpretation of discovered accumulations and some technical and logistical needs in the area obliged to modify the timing and development plan of certain fields under appraisal and development phases.

Table 6 - Standardized measure of discounted future net cash flows related to proved oil and gas reserves

The following table discloses estimated future net cash flows from future production of proved developed and undeveloped reserves of crude oil, condensate and natural gas. As prescribed by SEC Modernization of Oil and Gas Reporting rules and ASC 932 of the FASB Accounting Standards Codification (ASC) relating to Extractive Activities – Oil and Gas (formerly SFAS no. 69 Disclosures about Oil and Gas Producing Activities), such future net cash flows were estimated using the average first day-of-the-month price during the 12-month period for 2021, 2020 and 2019 and using a 10%annual discount factor. Future development and abandonment costs include estimated drilling costs, development and exploitation installations and abandonment costs. These future development costs were estimated based on evaluations made by the Group. The future income tax was calculated by applying the statutory tax rates in effect in the respective countries in which we have interests, as of the date this supplementary information was filed.

This standardized measure is not intended to be and should not be interpreted as an estimate of the market value of the Group’s reserves. The purpose of this information is to give standardized data to help the users of the financial statements to compare different companies and make certain projections. It is important to point out that this information does not include, among other items, the effect of future changes in prices, costs and tax rates, which past experience indicates that are likely to occur, as well as the effect of future cash flows from reserves which have not yet been classified as proved reserves, of a discount factor more representative of the value of money over the lapse of time and of the risks inherent to the production of oil and gas. These future changes may have a significant impact on the future net cash flows disclosed

below. For all these reasons, this information does not necessarily indicate the perception the Group has on the discounted future net cash flows derived from the reserves of hydrocarbons.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

Colombia

    

Chile

    

Brazil

    

Argentina

    

Peru

    

Total

As of December 31, 2021

​

  

​

  

​

  

​

  

​

  

​

  

Future cash inflows

​

4,381,191

​

136,152

​

89,208

​

109,678

​

—

​

4,716,229

Future production costs

​

(1,715,554)

​

(69,067)

​

(34,930)

​

(61,660)

​

—

​

(1,881,211)

Future development costs

​

(197,461)

​

(40,339)

​

(1,955)

​

(49,200)

​

—

​

(288,955)

Future income taxes

​

(754,205)

​

—

​

(3,449)

​

(2,947)

​

—

​

(760,601)

Undiscounted future net cash flows

​

1,713,971

​

26,746

​

48,874

​

(4,129)

​

—

​

1,785,462

10% annual discount

​

(496,150)

​

6,121

​

(7,171)

​

4,471

​

—

​

(492,729)

Standardized measure of discounted future net cash flows

​

1,217,821

​

32,867

​

41,703

​

342

​

—

​

1,292,733

As of December 31, 2020

​

  

​

  

​

  

​

  

​

  

​

​

Future cash inflows

​

2,561,947

​

130,200

​

68,857

​

83,125

​

—

​

2,844,129

Future production costs

​

(850,029)

​

(82,290)

​

(36,254)

​

(65,536)

​

—

​

(1,034,109)

Future development costs

​

(197,859)

​

(28,620)

​

(2,355)

​

(24,640)

​

—

​

(253,474)

Future income taxes

​

(409,276)

​

—

​

(327)

​

—

​

—

​

(409,603)

Undiscounted future net cash flows

​

1,104,783

​

19,290

​

29,921

​

(7,051)

​

—

​

1,146,943

10% annual discount

​

(345,550)

​

(2,258)

​

(4,543)

​

7,032

​

—

​

(345,319)

Standardized measure of discounted future net cash flows

​

759,233

​

17,032

​

25,378

​

(19)

​

—

​

801,624

As of December 31, 2019

​

  

​

  

​

  

​

  

​

  

​

​

Future cash inflows

​

4,323,914

​

294,202

​

86,191

​

187,064

​

1,255,239

​

6,146,610

Future production costs

​

(1,159,621)

​

(104,688)

​

(32,608)

​

(118,797)

​

(512,607)

​

(1,928,321)

Future development costs

​

(276,804)

​

(35,420)

​

(2,166)

​

(49,595)

​

(278,388)

​

(642,373)

Future income taxes

​

(858,700)

​

(5,594)

​

(1,409)

​

(2,251)

​

(143,416)

​

(1,011,370)

Undiscounted future net cash flows

​

2,028,789

​

148,500

​

50,008

​

16,421

​

320,828

​

2,564,546

10% annual discount

​

(715,217)

​

(44,277)

​

(6,626)

​

(5,080)

​

(199,611)

​

(970,811)

Standardized measure of discounted future net cash flows

​

1,313,572

​

104,223

​

43,382

​

11,341

​

121,217

​

1,593,735

​

Table 7 - Changes in the standardized measure of discounted future net cash flows from proved reserves

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

Colombia

    

Chile

    

Brazil

    

Argentina

    

Peru

    

Total

Present value as of December 31, 2018

​

1,379,063

​

89,830

​

41,549

​

34,867

​

238,533

​

1,783,842

Sales of hydrocarbon, net of production costs

​

(411,528)

​

(14,284)

​

(17,289)

​

(13,280)

​

—

​

(456,381)

Net changes in sales price and production costs

​

(299,642)

​

12,799

​

6,923

​

(20,694)

​

(48,823)

​

(349,437)

Changes in estimated future development costs

​

(268,377)

​

(22,163)

​

1,165

​

573

​

(175,248)

​

(464,050)

Extensions and discoveries less related costs

​

182,857

​

17,300

​

—

​

—

​

—

​

200,157

Development costs incurred

​

69,694

​

4,023

​

445

​

4,325

​

—

​

78,487

Revisions of previous quantity estimates

​

415,349

​

9,508

​

5,482

​

(2,358)

​

11,992

​

439,973

Net changes in income taxes

​

23,398

​

(2,025)

​

729

​

3,760

​

51,917

​

77,779

Accretion of discount

​

222,758

​

9,235

​

4,378

​

4,148

​

42,846

​

283,365

Present value as of December 31, 2019

​

1,313,572

​

104,223

​

43,382

​

11,341

​

121,217

​

1,593,735

Sales of hydrocarbon, net of production costs

​

(221,620)

​

(12,803)

​

8,080

​

(10,454)

​

—

​

(236,797)

Net changes in sales price and production costs

​

(975,716)

​

(117,895)

​

(14,580)

​

(113)

​

—

​

(1,108,304)

Changes in estimated future development costs

​

514,317

​

20,870

​

(19,606)

​

(2,587)

​

—

​

512,994

Extensions and discoveries less related costs

​

59,898

​

13,914

​

—

​

—

​

—

​

73,812

Development costs incurred

​

69,694

​

10,743

​

394

​

445

​

—

​

81,276

Revisions of previous quantity estimates

​

(27,190)

​

(13,002)

​

3,519

​

(10)

​

—

​

(36,683)

Purchase or (Disposals) of Minerals in place

​

90,315

​

—

​

—

​

—

​

(121,217)

​

(30,902)

Net changes in income taxes

​

(281,264)

​

—

​

(290)

​

—

​

—

​

(281,554)

Accretion of discount

​

217,227

​

10,982

​

4,479

​

1,359

​

—

​

234,047

Present value as of December 31, 2020

​

759,233

​

17,032

​

25,378

​

(19)

​

—

​

801,624

Sales of hydrocarbon, net of production costs

​

(516,844)

​

(11,520)

​

(15,677)

​

(16,855)

​

—

​

(560,896)

Net changes in sales price and production costs

​

924,875

​

64,048

​

19,393

​

(3,145)

​

—

​

1,005,171

Changes in estimated future development costs

​

96,364

​

(18,731)

​

861

​

20,674

​

—

​

99,168

Extensions and discoveries less related costs

​

80,933

​

—

​

—

​

(1,020)

​

—

​

79,913

Development costs incurred

​

87,877

​

4,111

​

—

​

—

​

—

​

91,988

Revisions of previous quantity estimates

​

(76,850)

​

(23,776)

​

11,957

​

465

​

—

​

(88,204)

Net changes in income taxes

​

(254,618)

​

—

​

(2,780)

​

244

​

—

​

(257,154)

Accretion of discount

​

116,851

​

1,703

​

2,571

​

(2)

​

—

​

121,123

Present value as of December 31, 2021

​

1,217,821

​

32,867

​

41,703

​

342

​

—

​

1,292,733

​
v3.22.1
Summary of significant accounting policies (Policies)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Summary of significant accounting policies [Abstract]  
Basis of preparation

2.1 Basis of preparation

The Consolidated Financial Statements of GeoPark Limited have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), under the historical cost basis, except for the following: certain financial assets and liabilities (including derivative instruments) measured at fair value, and assets held for sale – measured at fair value less costs to sell.

​

The Consolidated Financial Statements are presented in thousands of United States Dollars (US$’000) and all values are rounded to the nearest thousand (US$’000), except in the footnotes and where otherwise indicated.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the Consolidated Financial Statements are disclosed in this note under the title “Accounting estimates and assumptions”.

All the information included in these Consolidated Financial Statements corresponds to the Group, except where otherwise indicated.
Changes in accounting policy and disclosure

2.1.1 Changes in accounting policy and disclosure

2.1.1.1 New and amended standards and interpretations

The Group applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after January 1, 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16

The amendments provide temporary relief that address the financial reporting effects when an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR). The amendments include the following practical expedients:

●A practical expedient to require contractual changes, or changes to cash flows that are directly required by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest
●Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without the hedging relationship being discontinued
●Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR instrument is designated as a hedge of a risk component

These amendments had no impact on the Consolidated Financial Statements of the Group.

COVID-19 Related Rent Concessions beyond June 30, 2021 Amendments to IFRS 16

On May 28, 2020, the IASB issued COVID-19 Related Rent Concessions - amendment to IFRS 16 Leases. The amendment provides relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a COVID-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the COVID-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification.

The amendment was intended to apply until June 30, 2021, but as the impact of the COVID-19 pandemic continued, on March 31, 2021, the IASB extended the period of application of the practical expedient to June 30, 2022. The amendment applies to annual reporting periods beginning on or after April 1, 2021. This amendment had no impact on the Consolidated Financial Statements of the Group.
Going concern

2.2 Going concern

The Directors regularly monitor the Group’s cash position and liquidity risks throughout the year to ensure that it has sufficient funds to meet forecast operational and investment funding requirements. Sensitivities are run to reflect latest expectations of expenditures, oil and gas prices and other factors to enable the Group to manage the risk of any funding short falls and/or potential debt covenant breaches.

Considering the performance of the operations, the Group’s cash position of US$ 100,604,000, the liability management and debt reduction executed in April 2021 (see Note 27), the oil hedge strategy to mitigate the price risk exposure within the next twelve months, and the fact that 97% of its total indebtedness as of December 31, 2021 matures in 2024 or 2027, the Directors have formed a judgement, at the time of approving the Consolidated Financial Statements, that there is a reasonable expectation that the Group has adequate resources to meet all its obligations for the foreseeable future. For this reason, the Directors have continued to adopt the going concern basis in preparing the Consolidated Financial Statements.
Consolidation

2.3 Consolidation

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

Intercompany transactions, balances and unrealized gains on transactions between the Group and its subsidiaries are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Segment reporting

2.4 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Committee. This committee is integrated by the CEO, COO, CFO and managers in charge of the Geoscience, Operations, Legal and Corporate Governance, People and Sustainability departments. This committee reviews the Group’s internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on these reports.
Foreign currency translation

2.5 Foreign currency translation

2.5.1 Functional and presentation currency

The Consolidated Financial Statements are presented in US Dollars, which is the Group’s presentation currency.

Items included in the Consolidated Financial Statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The functional currency of Group companies incorporated in Colombia, Chile, Argentina and Ecuador is the US Dollar, meanwhile for the Group´s Brazilian company the functional currency is the local currency, which is the Brazilian Real.

2.5.2 Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the Consolidated Statement of Income.

The results and financial position of foreign operations that have a functional currency different from the presentation currency are translated into the presentation currency as follows: assets and liabilities are translated at the closing rate, and income and expenses are translated at average exchange rates. All resulting exchange differences are recognized in Other comprehensive income.
Joint arrangements

2.6 Joint arrangements

Under IFRS 11, investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint operations. The Group combines its share in the joint operations individual assets, liabilities, results and cash flows on a line-by-line basis with similar items in its Consolidated Financial Statements.
Business Combination

2.7 Business combinations

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at the acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in administrative expenses.

The Group determines that it has acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. Contingent consideration classified as an asset or liability that is a financial instrument and within the scope of IFRS 9 Financial Instruments, is measured at fair value with the changes in fair value recognized in the statement of profit or loss in accordance with IFRS 9. Other contingent consideration that is not within the scope of IFRS 9 is measured at fair value at each reporting date with changes in fair value recognized in profit or loss.

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss.
Revenue recognition

2.8 Revenue recognition

Revenue from the sale of crude oil and gas is recognized at the point in time when control of the product is transferred to the customer, which is generally when the product is physically transferred into a pipe or other delivery mechanism and the customer accepts the product. Consequently, the Group’s performance obligations are considered to relate only to the sale of crude oil and gas, with each barrel of crude oil equivalent considered to be a separate performance obligation under the contractual arrangements in place.

The Group’s sales of crude oil are priced based on market prices. The sales price is linked to US dollar denominated crude oil international benchmarks, such as Brent, adjusted for certain marketing and quality discounts based on, among other things, American Petroleum Institute (“API”) gravity, viscosity, sulphur content, delivery point and transport costs. The Group’s sales of natural gas are priced based on long-term Gas Supply contracts with customers.

Revenue is shown net of VAT, discounts related to the sale and overriding royalties due to the ex-owners of oil and gas properties where the royalty arrangements represent a retained working interest in the property. See Note 33.1.
Production and operating costs

2.9 Production and operating costs

Production and operating costs are recognized in the Consolidated Statement of Income on the accrual basis of accounting. These costs include wages and salaries incurred to achieve the revenue for the year. Direct and indirect costs of raw materials and consumables, rentals, and royalties are also included within this account.
Financial results

2.10 Financial results

Financial results include interest expenses, interest income, bank charges, the amortization of financial assets and liabilities, and foreign exchange gains and losses. The Group has capitalized the borrowing cost directly attributable to wells and facilities identified as qualifying assets. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale. The capitalization rate used to determine the amount of borrowing costs to be capitalized is the weighted average interest rate applicable to the Group’s general borrowings, which was 6.90% at year-end 2019. No amounts were capitalized during the year (nil in 2020 and US$ 367,000 in 2019).
Property, plant and equipment

2.11 Property, plant and equipment

Property, plant and equipment are stated at historical cost less depreciation and impairment charges, if applicable. Historical cost includes expenditure that is directly attributable to the acquisition of the items; including provisions for asset retirement obligation.

Oil and gas exploration and production activities are accounted for in accordance with the successful efforts method on a field by field basis. The Group accounts for exploration and evaluation activities in accordance with IFRS 6, Exploration for and Evaluation of Mineral Resources, capitalizing exploration and evaluation costs until such time as the economic viability of producing the underlying resources is determined. Costs incurred prior to obtaining legal rights to explore are expensed immediately to the Consolidated Statement of Income.

Exploration and evaluation costs may include: license acquisition, geological and geophysical studies (i.e.: seismic), direct labor costs and drilling costs of exploratory wells. No depreciation and/or amortization are charged during the exploration and evaluation phase. Upon completion of the evaluation phase, the prospects are either transferred to oil and gas properties or charged to expense (exploration costs) in the period in which the determination is made, depending whether they have discovered reserves or not. If not developed, exploration and evaluation assets are written off after three years, unless it can be clearly demonstrated that the carrying value of the investment is recoverable.

A charge of US$ 12,262,000 has been recognized in the Consolidated Statement of Income within Write-off of unsuccessful exploration efforts (US$ 52,652,000 in 2020 and US$ 18,290,000 in 2019). See Note 20.

​

All field development costs are considered construction in progress until they are finished and capitalized within oil and gas properties, and are subject to depreciation once completed. Such costs may include the acquisition and installation of production facilities, development drilling costs (including dry holes, service wells and seismic surveys for development purposes), project-related engineering and the acquisition costs of rights and concessions related to proved properties.

Workovers of wells made to develop reserves and/or increase production are capitalized as development costs. Maintenance costs are charged to the Consolidated Statement of Income when incurred.

Capitalized costs of proved oil and gas properties and production facilities and machinery are depreciated on a licensed area by the licensed area basis, using the unit of production method, based on commercial proved and probable oil and gas reserves. The calculation of the “unit of production” depreciation considers estimated future finding and development costs and is based on current year-end unescalated price levels. Changes in reserves and cost estimates are recognized prospectively. Reserves are converted to equivalent units on the basis of approximate relative energy content.

Depreciation of the remaining property, plant and equipment assets (i.e. furniture and vehicles) not directly associated with oil and gas activities has been calculated by means of the straight-line method by applying such annual rates as required to write-off their value at the end of their estimated useful lives. The useful lives range between 3 years and 10 years.

Depreciation is allocated in the Consolidated Statement of Income as a separate line to better follow the performance of the business.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount (see Impairment of non-financial assets in Note 2.13).
Provisions and other long-term liabilities

2.12 Provisions and other long-term liabilities

Provisions for asset retirement obligations and other environmental liabilities, deferred income, restructuring obligations and legal claims are recognized when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Restructuring provisions, if any, comprise lease termination penalties and employee services termination payments.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as financial expense.

2.12.1 Asset Retirement Obligation

The Group records the fair value of the liability for asset retirement obligations in the period in which the wells are drilled. When the liability is initially recorded, the Group capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is accreted to its present value at each reporting period, and the capitalized cost is depreciated over the estimated useful life of the related asset. According to interpretations and the application of current legislation, and on the basis of the changes in technology and the variations in the costs of restoration necessary to protect the environment, the Group has considered it appropriate to periodically re-evaluate future costs of well-capping. The effects of this recalculation are included in the Consolidated Financial Statements in the period in which this recalculation is determined and reflected as an adjustment to the provision and the corresponding property, plant and equipment asset.

2.12.2 Deferred Income

Government grants and other contributions relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred income and they are credited to the Consolidated Statement of Income over the expected lives of the related assets. Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.
Impairment of non-financial assets

2.13 Impairment of non-financial assets

Assets that are not subject to depreciation and/or amortization are tested annually for impairment. Assets that are subject to depreciation and/or amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognized for the excess of the asset’s carrying amount over its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units), generally a licensed area. Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

No asset should be kept as an exploration and evaluation asset for a period of more than three years, except if it can be clearly demonstrated that the carrying value of the investment will be recoverable.

During 2021, net impairment loss was recognized for US$ 4,334,000 (US$ 133,864,000 and US$ 7,559,000 in 2020 and 2019, respectively). See Note 37. The write-offs are detailed in Note 20.
Lease contracts

2.14 Lease contracts

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

2.14.1 Right-of-use assets

The Group recognizes right-of-use assets at the commencement date of the lease. Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, an adjusted for any measurement of lease liabilities.

The cost of right-of-use assets comprise the following:

●the amount of the initial measurement of lease liability,
●any lease payments made at or before the commencement date less any lease incentives received,
●any initial direct costs, and
●restoration costs.

​

The Group leases various offices, facilities, machinery and equipment. Lease contracts are typically made for fixed periods of 1 to 7 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

​

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment.

​

2.14.2 Lease liabilities

​

At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. Lease liabilities include the net present value of the following lease payments:

●fixed payments, less any lease incentives receivable,
●variable lease payments that are based on an index or a rate,
●amounts expected to be payable by the lessee under residual value guarantees,
●the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and
●payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

​

In calculating the present value, the lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

​

2.14.3 Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of IT equipment and small items of office furniture that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term.
Inventories

2.15 Inventories

Inventories comprise crude oil and materials.

Crude oil is measured at the lower of cost and net realizable value. Materials are measured at the lower of cost and recoverable amount. The cost of materials and consumables is calculated at acquisition price with the addition of transportation and similar costs. Cost is determined using the first-in, first-out (FIFO) method.
Current and deferred income tax

2.16 Current and deferred income tax

The tax expense for the year comprises current and deferred income tax. Income tax is recognized in the Consolidated Statement of Income.

The current income tax charge is calculated on the basis of the tax laws enacted or substantially enacted at the financial statements date in the countries where the Company’s subsidiaries operate and generate taxable income. The computation of the income tax expense involves the interpretation of applicable tax laws and regulations in many jurisdictions. The resolution of tax positions taken by the Group, through negotiations with relevant tax authorities or through litigation, can take several years to complete and, in some cases, it is difficult to predict the ultimate outcome.

Deferred income tax is recognized, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted as of the financial statements date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled.

In addition, the Group has tax-loss carry-forwards in certain tax jurisdictions that are available to be offset against future taxable profit. However, deferred income tax assets are recognized only to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilized. Management judgment is exercised in assessing whether this is the case. To the extent that actual outcomes differ from management’s estimates, taxation charges or credits may arise in future periods.

Deferred income tax liabilities are provided on taxable temporary differences arising from investments in subsidiaries and joint arrangements, except for deferred income tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. The Group is able to control the timing of dividends from its subsidiaries and hence does not expect taxable profit. Hence deferred income tax is recognized in respect of the retained earnings of overseas subsidiaries only if at the date of the Consolidated Financial Statements, dividends have been accrued as receivable or a binding agreement to distribute past earnings in future has been entered into by the subsidiary. As mentioned above the Group does not expect that the temporary differences will revert in the foreseeable future.

Deferred income tax balances are provided in full, with no discounting.
Non-current assets or disposal groups held for sale

2.17 Non-current assets or disposal groups held for sale

Non-current assets or disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt from this requirement.

An impairment loss is recognized for any initial or subsequent write-down of the asset or disposal group to fair value less costs to sell. A gain is recognized for any subsequent increases in fair value less costs to sell of an asset or disposal group, but not in excess of any cumulative impairment loss previously recognized. A gain or loss not previously recognized by the date of the sale of the non-current asset or disposal group is recognized at the date of derecognition.

Non-current assets (including those that are part of a disposal group) are not depreciated or amortized while they are classified as held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to be recognized.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the Consolidated Statement of Financial Position. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the Consolidated Statement of Financial Position.
Financial assets

2.18 Financial assets

Financial assets are divided into the following categories: amortized cost; financial assets at fair value through profit or loss and fair value through other comprehensive income. The classification depends on the Group’s business model for managing the financial assets and the contractual terms of the cash flows. The Group reclassifies debt investments when and only when its business model for managing those assets changes.

All financial assets not at fair value through profit or loss are initially recognized at fair value, plus transaction costs. Transaction costs of financial assets carried at fair value through profit or loss, if any, are expensed to profit or loss.

Derecognition of financial assets occurs when the rights to receive cash flows from the investments expire or are transferred and substantially all of the risks and rewards of ownership have been transferred. An assessment for impairment is undertaken at each balance sheet date.

Interest and other cash flows resulting from holding financial assets are recognized in the Consolidated Statement of Income when receivable, regardless of how the related carrying amount of financial assets is measured.

Amortized cost are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than twelve months after the balance sheet date. These are classified as non-current assets. These financial assets comprise trade and other receivables and cash and cash equivalents in the Consolidated Statement of Financial Position. They arise when the Group provides money, goods or services directly to a debtor with no intention of trading the receivables. These financial assets are subsequently measured at amortized cost using the effective interest method, less provision for impairment, if applicable.

Any change in their value through impairment or reversal of impairment is recognized in the Consolidated Statement of Income. All of the Group’s financial assets are classified as amortized cost.
Other financial assets

2.19 Other financial assets

Non-current other financial assets include contributions made for environmental obligations according to a Colombian and Brazilian government request and are restricted for those purposes.

Current other financial assets include short-term investments with original maturities up to twelve months and over three months.
Impairment of financial assets

2.20 Impairment of financial assets

The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the receivables.
Cash and cash equivalents

2.21 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and

which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts, if any, are shown within borrowings in the current liabilities section of the Consolidated Statement of Financial Position.
Trade and other payables

2.22 Trade and other payables

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of the business if longer). If not, they are presented as non-current liabilities.

Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method.
Derivatives and hedging activities

2.23 Derivatives and hedging activities

Derivative financial instruments are recognized in the Consolidated Statement of Financial Position as assets or liabilities and initially and subsequently measured at fair value. They are presented as current assets or liabilities if they are expected to be settled within 12 months after the end of the reporting period.

The mark-to-market fair value of the Group's outstanding derivative instruments is based on independently provided market rates and determined using standard valuation techniques, including the impact of counterparty credit risk and are within level 2 of the fair value hierarchy.

2.23.1 Cash flow hedges that qualify for hedge accounting

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in Other Reserve within Equity. The gain or loss relating to the ineffective portion is recognized immediately in the Consolidated Statement of Income.

When forward contracts are used to hedge forecast transactions, the Group designates the change in fair value of the forward contract as the hedging instrument. Gains or losses relating to the effective portion of the change in the fair value of the forward contracts are recognized in Other Reserve within Equity.

Where the hedged item subsequently results in the recognition of a non-financial asset, both the deferred hedging gains and losses and the deferred time value of the option contracts or deferred forward points, if any, are included within the initial cost of the asset.

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in Equity at that time remains in Equity until the forecast transaction occurs, resulting in the recognition of a non-financial asset. When the forecast transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging that were reported in Equity are immediately reclassified to the Consolidated Statement of Income.

For more information about derivatives designated as cash flow hedges please refer to Note 3 Currency risk.

2.23.2 Other Derivatives

Certain derivative instruments do not qualify for hedge accounting. Changes in the fair value of any derivative instrument that does not qualify for hedge accounting are recognized immediately in the Consolidated Statement of Income.

For more information about derivatives related to commodity risk management please refer to Note 8 and for more information about derivatives related to currency risk management please refer to Note 15.
Borrowings

2.24 Borrowings

Borrowings are obligations to pay cash and are recognized when the Group becomes a party to the contractual provisions of the instrument.

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the Consolidated Statement of Income over the period of the borrowings using the effective interest method.

Direct issue costs are charged to the Consolidated Statement of Income on an accrual basis using the effective interest method.
Share capital

2.25 Share capital

Equity comprises the following:

●"Share capital" representing the nominal value of equity shares.
●"Share premium" representing the excess over nominal value of the fair value of consideration received for equity shares, net of expenses of the share issuance.
●"Other reserve" representing:
-the difference between the proceeds from the transaction with non-controlling interests received against the book value of the shares acquired in the Chilean and Colombian subsidiaries, and
-the changes in the fair value of the effective portion of derivatives designated as cash flow hedges.
●"Translation reserve" representing the differences arising from translation of investments in overseas subsidiaries.
●"(Accumulated losses) Retained earnings" representing:
-accumulated earnings and losses, and
-the equity element attributable to shares granted according to IFRS 2 but not issued at year end.
Share-based payment

​

2.26 Share-based payment

The Group operates a number of equity-settled share-based compensation plans comprising share awards payments to employees and other third-party contractors. Share-based payment transactions are measured in accordance with IFRS 2.

Fair value of the stock option plan for employee or contractors services received in exchange for the grant of the options is recognized as an expense. The total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted calculated using the Geometric Brownian Motion method.

Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At each reporting date, the entity revises its estimates of the number of options that are expected to vest. It recognizes the impact of the revision to original estimates, if any, in the Consolidated Statement of Income, with a corresponding adjustment to equity.

The fair value of the share awards payments is determined at the grant date by reference to the market value of the shares and recognized as an expense over the vesting period. When the awards are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
v3.22.1
Financial Instruments-risk management (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Financial Instruments risk Management [Abstract]  
Schedule of Gearing Ratios

The gearing ratios as of December 31, 2021 and 2020 were as follows:

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

 

Net Debt

 

573,488

 

582,679

​

Total Equity

 

(61,945)

 

(109,190)

​

Total Capital

 

511,543

 

473,489

​

Gearing Ratio

 

112

%  

123

%
v3.22.1
Consolidated Statement of Cash Flow (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Consolidated Statement Of Cash Flow [Abstract]  
Schedule of Non-cash Transactions Related to the Consolidated Statement of Cash Flow

The following chart describes non-cash transactions related to the Consolidated Statement of Cash Flow:

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

    

2019

(Decrease) Increase in asset retirement obligation

 

(651)

 

(1,812)

 

13,299

(Decrease) Increase in provisions for other long-term liabilities

 

(443)

 

(1,051)

 

1,867

Purchase of property, plant and equipment

 

—

 

—

 

(733)
Schedule of Changes in Working Capital Shown in the Consolidated Statement of Cash Flow

Changes in working capital shown in the Consolidated Statement of Cash Flow are disclosed as follows:

​

​

​

​

​

​

​

​

Amounts in US$‘000

    

2021

    

2020

    

2019

Decrease (Increase) in Inventories

 

1,241

 

1,220

 

(1,675)

(Increase) Decrease in Trade receivables

 

(23,290)

 

3,190

 

(27,839)

(Increase) Decrease in Prepayments and other receivables and Other assets

 

(13,817)

 

38,742

 

(27,547)

Increase (Decrease) in Trade and other payables

 

26,515

 

(48,392)

 

11,964

​

 

(9,351)

 

(5,240)

 

(45,097)

​
Schedule of reconciliation of liabilities arising from cash flow activities

The following chart shows the movements in the borrowings and lease liabilities for each of the periods presented:

​

​

​

​

​

​

​

​

​

​

​

Lease

​

​

Amounts in US$‘000

​

Borrowings

​

Liabilities

​

Total

As of January 1, 2019

​

447,002

​

—

​

447,002

Initial recognition of lease liabilities

​

—

​

14,610

​

14,610

Addition to lease liabilities

​

—

​

2,496

​

2,496

Accrual of borrowing's interests

​

29,940

​

—

​

29,940

Exchange difference

​

5

​

566

​

571

Foreign currency translation

​

(639)

​

7

​

(632)

Unwinding of discount

​

—

​

419

​

419

Principal paid

​

(9,790)

​

—

​

(9,790)

Interest paid

​

(29,099)

​

—

​

(29,099)

Lease payments

​

—

​

(4,855)

​

(4,855)

As of December 31, 2019

​

437,419

​

13,243

​

450,662

Proceeds from borrowings

​

350,000

​

—

​

350,000

Debt issuance costs paid

​

(7,507)

​

—

​

(7,507)

Acquisitions (Note 36.1)

​

—

​

17,851

​

17,851

Addition to lease liabilities

​

—

​

561

​

561

Accrual of borrowing's interests

​

48,232

​

—

​

48,232

Exchange difference

​

—

​

466

​

466

Foreign currency translation

​

(2,389)

​

(1,641)

​

(4,030)

Unwinding of discount

​

—

​

1,247

​

1,247

Principal paid

​

(3,575)

​

—

​

(3,575)

Interest paid

​

(37,594)

​

—

​

(37,594)

Lease payments

​

—

​

(9,380)

​

(9,380)

As of December 31, 2020

​

784,586

​

22,347

​

806,933

Proceeds from borrowings

​

172,174

​

—

​

172,174

Debt issuance costs paid

​

(2,019)

​

—

​

(2,019)

Addition to lease liabilities

​

—

​

5,288

​

5,288

Accrual of borrowing's interests

​

44,323

​

—

​

44,323

Exchange difference

​

(581)

​

(365)

​

(946)

Foreign currency translation

​

(265)

​

(461)

​

(726)

Unwinding of discount

​

—

​

1,453

​

1,453

Principal paid

​

(274,934)

​

—

​

(274,934)

Interest paid

​

(42,592)

​

—

​

(42,592)

Borrowings cancellation costs

​

6,308

​

—

​

6,308

Borrowings cancellation costs paid

​

(12,908)

​

—

​

(12,908)

Lease payments

​

—

​

(7,518)

​

(7,518)

As of December 31, 2021

​

674,092

​

20,744

​

694,836
v3.22.1
Segment information (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Segment information [Abstract]  
Schedule of Segment Information by Segment Areas (Geographical Segments)

Segment areas (geographical segments)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Ecuador (b)

​

Corporate

​

Total

2021

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

​

618,268

​

21,471

​

20,109

​

28,695

​

—

​

—

​

688,543

Sale of crude oil

​

616,133

​

6,297

​

661

​

24,468

​

—

​

—

​

647,559

Sale of gas

​

2,135

​

15,174

​

19,448

​

4,227

​

—

​

—

​

40,984

Realized loss on commodity risk management contracts

​

(109,654)

​

—

​

—

​

—

​

—

​

—

​

(109,654)

Production and operating costs

​

(178,384)

​

(11,050)

​

(4,596)

​

(18,760)

​

—

​

—

​

(212,790)

Royalties

​

(106,341)

​

(770)

​

(1,642)

​

(4,270)

​

—

​

—

​

(113,023)

Share-based payment

​

(334)

​

(31)

​

—

​

26

​

—

​

—

​

(339)

Other operating costs

​

(71,709)

​

(10,249)

​

(2,954)

​

(14,516)

​

—

​

—

​

(99,428)

Adjusted EBITDA

​

294,847

​

7,639

​

12,569

​

2,124

​

(2,071)

​

(14,308)

​

300,800

Depreciation

​

(61,279)

​

(14,275)

​

(4,082)

​

(9,130)

​

(200)

​

(3)

​

(88,969)

(Recognition) Reversal of impairment losses

​

—

​

(17,641)

​

—

​

13,307

​

—

​

—

​

(4,334)

Write-off of unsuccessful exploration efforts

​

(7,827)

​

(4,435)

​

—

​

—

​

—

​

—

​

(12,262)

Total assets

​

689,401

​

71,515

​

38,846

​

38,111

​

7,782

​

50,086

​

895,741

Employees (average) (a)

​

308

​

55

​

4

​

92

​

8

​

9

​

476

Employees at year end (a)

​

321

​

52

​

4

​

74

​

3

​

9

​

463

(a)Unaudited

(b)

Includes certain expenses and 4 average employees (who are no longer in the Group at year-end) that correspond to the Peruvian subsidiaries, which act as holding companies of the Ecuadorian branch since Peru is no longer an operating segment due to the retirement from the Morona Block.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Peru (b)

​

Ecuador

​

Corporate

​

Total

2020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

​

334,606

​

21,704

​

12,783

​

24,599

​

—

​

—

​

—

​

393,692

Sale of crude oil

​

332,461

​

5,103

​

891

​

21,185

​

—

​

—

​

—

​

359,640

Sale of gas

​

2,145

​

16,601

​

11,892

​

3,414

​

—

​

—

​

—

​

34,052

Realized gain on commodity risk management contracts

​

21,059

​

—

​

—

​

—

​

—

​

—

​

—

​

21,059

Production and operating costs

​

(92,319)

​

(10,244)

​

(3,876)

​

(18,633)

​

—

​

—

​

—

​

(125,072)

Royalties

​

(30,453)

​

(753)

​

(1,049)

​

(3,620)

​

—

​

—

​

—

​

(35,875)

Share-based payment

​

(362)

​

(94)

​

—

​

(72)

​

—

​

—

​

—

​

(528)

Other operating costs

​

(61,504)

​

(9,397)

​

(2,827)

​

(14,941)

​

—

​

—

​

—

​

(88,669)

Adjusted EBITDA

​

218,524

​

8,148

​

4,784

​

1,195

​

(1,952)

​

(773)

​

(12,395)

​

217,531

Depreciation

​

(63,687)

​

(33,571)

​

(3,732)

​

(16,564)

​

(401)

​

(52)

​

(66)

​

(118,073)

Recognition of impairment losses

​

—

​

(81,967)

​

(1,717)

​

(16,205)

​

(33,975)

​

—

​

—

​

(133,864)

Write-off of unsuccessful exploration efforts

​

(1,949)

​

(50,167)

​

(536)

​

—

​

—

​

—

​

—

​

(52,652)

Total assets

​

680,828

​

101,742

​

38,172

​

36,803

​

4,656

​

1,127

​

96,938

​

960,266

Employees (average) (a)

​

238

​

68

​

11

​

114

​

10

​

2

​

4

​

447

Employees at year end (a)

​

268

​

57

​

5

​

97

​

5

​

2

​

3

​

437

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

Colombia

​

Chile

​

Brazil

​

Argentina

​

Peru (b)

​

Ecuador

​

Corporate

​

Total

2019

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Revenue

​

538,917

​

32,336

​

23,049

​

34,605

​

—

​

—

​

—

​

628,907

Sale of crude oil

​

536,986

​

10,551

​

1,469

​

30,024

​

—

​

—

​

—

​

579,030

Sale of gas

​

1,931

​

21,785

​

21,580

​

4,581

​

—

​

—

​

—

​

49,877

Realized gain on commodity risk management contracts

​

3,888

​

—

​

—

​

—

​

—

​

—

​

—

​

3,888

Production and operating costs

​

(116,944)

​

(19,789)

​

(5,953)

​

(26,278)

​

—

​

—

​

—

​

(168,964)

Royalties

​

(56,399)

​

(1,181)

​

(1,855)

​

(5,141)

​

—

​

—

​

—

​

(64,576)

Share-based payment

​

(231)

​

(31)

​

(29)

​

(38)

​

—

​

—

​

—

​

(329)

Other operating costs

​

(60,314)

​

(18,577)

​

(4,069)

​

(21,099)

​

—

​

—

​

—

​

(104,059)

Adjusted EBITDA

​

367,058

​

8,310

​

11,750

​

868

​

(6,540)

​

(535)

​

(17,576)

​

363,335

Depreciation

​

(46,917)

​

(34,826)

​

(7,445)

​

(15,618)

​

(576)

​

(1)

​

(149)

​

(105,532)

Recognition of impairment losses

​

—

​

—

​

—

​

(7,559)

​

—

​

-

​

-

​

(7,559)

Write-off of unsuccessful exploration efforts

​

—

​

—

​

(5,120)

​

(13,170)

​

—

​

-

​

-

​

(18,290)

Total assets

​

357,125

​

249,207

​

68,480

​

79,062

​

53,993

​

1,119

​

43,146

​

852,132

Employees (average) (a)

​

195

​

89

​

13

​

133

​

26

​

2

​

3

​

461

Employees at year end (a)

​

202

​

77

​

13

​

128

​

14

​

2

​

3

​

439

(a)Unaudited
(b)As of the date of these Consolidated Financial Statements, Peru is no longer an operating segment due to the retirement from the Morona Block.

​
Schedule of Reconciliation of Total Adjusted EBITDA to Total Profit (Loss) Before Income Tax

A reconciliation of total Adjusted EBITDA to total profit (loss) before income tax is provided as follows:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

    

2021

    

2020

    

2019

Adjusted EBITDA

 

300,800

 

217,531

 

363,335

Unrealized gain (loss) on commodity risk management contracts

 

463

 

(12,978)

 

(26,411)

Depreciation (a)

 

(88,969)

 

(118,073)

 

(105,532)

Share-based payment

 

(6,621)

 

(8,444)

 

(2,717)

Impairment and write-off of unsuccessful exploration efforts, net

 

(16,596)

 

(186,516)

 

(25,849)

Lease accounting - IFRS 16

​

7,518

​

9,380

​

4,855

Others (b)

 

(10,786)

 

(11,563)

 

2,994

Operating profit (loss)

 

185,809

 

(110,663)

 

210,675

Financial expenses

 

(64,112)

 

(64,582)

 

(41,070)

Financial income

 

1,652

 

3,166

 

2,360

Foreign exchange gain (loss)

 

5,049

 

(13,008)

 

(2,446)

Profit (Loss) before tax

 

128,398

 

(185,087)

 

169,519

(a)Net of capitalized costs for oil stock included in Inventories.
(b)Includes allocation to capitalized projects. In 2021, also includes termination costs and write-down of tax credits in Argentina and, in 2020, also includes termination costs, and write-down of VAT credits and recognition of a provision for environmental liabilities in Peru.
v3.22.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Revenue [Abstract]  
Schedule of Information on Revenue

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

    

2021

    

2020

    

2019

Sale of crude oil

 

647,559

 

359,640

 

579,030

Sale of gas

 

40,984

 

34,052

 

49,877

​

 

688,543

 

393,692

 

628,907
v3.22.1
Commodity risk management contracts (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Commodity risk management contracts [Abstract]  
Schedule of Group's Derivative Contracts

The following table presents the Group’s production hedged during the year ended December 31, 2021 and for the following periods as a consequence of the derivative contracts in force as of December 31, 2021:

​

​

​

​

​

​

​

​

​

​

Period

    

Reference

    

Type

    

Volume bbl/d

    

Weighted average price US$/bbl

January 1, 2021 - March 31, 2021

​

ICE BRENT

​

Zero Premium Collars

​

23,500

​

38.91 Put 52.72 Call

January 1, 2021 - March 31, 2021

​

VASCONIA(a)

​

Zero Premium Collars

​

2,000

​

35.00 Put 43.01 Call

​

​

​

​

​

​

25,500

​

​

April 1, 2021 - June 30, 2021

​

ICE BRENT

​

Zero Premium Collars

​

25,500

​

40.61 Put 53.59 Call

​

​

​

​

​

​

25,500

​

​

July 1, 2021 - September 30, 2021

​

ICE BRENT

​

Zero Premium Collars

​

18,000

​

43.19 Put 60.64 Call

July 1, 2021 - September 30, 2021

​

VASCONIA(a)

​

Zero Premium Collars

​

2,000

​

41.50 Put 68.57 Call

​

​

​

​

​

​

20,000

​

​

October 1, 2021 - December 31, 2021

​

ICE BRENT

​

Zero Premium Collars

​

19,500

​

43.72 Put 62.65 Call

​

​

​

​

​

​

19,500

​

​

January 1, 2022 - March 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

14,500

​

49.10 Put 74.81 Call

​

​

​

​

​

​

14,500

​

​

April 1, 2022 - June 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

12,500

​

53.35 Put 79.38 Call

​

​

​

​

​

​

12,500

​

​

July 1, 2022 - September 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

10,000

​

58.23 Put 84.37 Call

​

​

​

​

​

​

10,000

​

​

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

6,000

​

60.00 Put 86.38 Call

​

​

​

​

​

​

6,000

​

​

(a)Vasconia Crude (Ice Brent minus Vasconia Differential)

The following table presents the Group’s derivative contracts agreed after the balance sheet date:

​

​

​

​

​

​

​

​

​

​

Period

    

Reference

    

Type

    

Volume bbl/d

    

Price US$/bbl

July 1, 2022 - September 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 90.50 Call

July 1, 2022 - September 30, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 96.70 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 91.40 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 99.30 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 101.70 Call

October 1, 2022 - December 31, 2022

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

65.00 Put 102.50 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 103.70 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

60.00 Put 104.75 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

65.00 Put 104.90 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

70.00 Put 102.30 Call

January 1, 2023 - March 31, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

70.00 Put 109.50 Call

April 1, 2023 - June 30, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

65.00 Put 100.75 Call

April 1, 2023 - June 30, 2023

​

ICE BRENT

​

Zero Premium Collars

​

1,500

​

70.00 Put 103.50 Call
Summary of Gain (Loss) on the Commodity Risk Management Contracts

The table below summarizes the gain (loss) on the commodity risk management contracts:

​

​

​

​

​

​

​

​

​

2021

​

2020

​

2019

Realized (loss) gain on commodity risk management contracts

​

(109,654)

​

21,059

​

3,888

Unrealized gain (loss) on commodity risk management contracts

​

463

​

(12,978)

​

(26,411)

​

​

(109,191)

​

8,081

​

(22,523)
v3.22.1
Production and operating costs (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Production And Operating Costs [Abstract]  
Schedule of Production and Operating Costs

​

​

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

​

2019

Staff costs (Note 11)

​

16,655

​

14,689

​

14,213

Share-based payment (Note 11)

​

339

​

528

​

329

Royalties

​

113,023

​

35,875

​

64,576

Well and facilities maintenance

​

17,989

​

15,039

​

27,660

Operation and maintenance

​

7,826

​

7,491

​

7,743

Consumables

​

19,270

​

16,776

​

17,625

Equipment rental

​

8,127

​

8,570

​

10,476

Safety and Insurance costs

​

4,216

​

4,505

​

4,107

Gas plant costs

​

2,596

​

1,591

​

3,414

Transportation costs

​

3,383

​

5,622

​

2,941

Field camp

​

4,386

​

3,130

​

2,583

Non-operated blocks costs

​

4,941

​

3,442

​

1,353

Other costs

​

10,039

​

7,814

​

11,944

​

​

212,790

​

125,072

​

168,964
v3.22.1
Depreciation (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Depreciation [Abstract]  
Schedule of Depreciation

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Oil and gas properties

​

66,011

​

89,344

​

83,276

Production facilities and machinery

​

12,468

​

16,820

​

16,708

Furniture, equipment and vehicles

​

1,960

​

2,317

​

2,096

Buildings and improvements

​

700

​

490

​

804

Depreciation of property, plant and equipment (a)

​

81,139

​

108,971

​

102,884

Related to:

​

  

​

  

​

  

Productive assets

​

78,479

​

106,164

​

99,984

Administrative assets

​

2,660

​

2,807

​

2,900

Depreciation total (a)

​

81,139

​

108,971

​

102,884

(a)Depreciation without considering capitalized costs for oil stock included in Inventories nor depreciation of right-of-use assets.
v3.22.1
Staff costs and Directors Remuneration (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of Staff costs and Directors Remuneration [Abstract]  
Schedule of Staff Costs and Directors Remuneration

​

​

​

​

​

​

​

​

​

​

2021

​

2020

​

2019

Number of employees at year end (a)

​

463

​

437

​

439

Amounts in US$ ‘000

​

​

​

​

​

​

Wages and salaries

​

42,236

​

49,338

​

55,325

Share-based payments (b) (Note 31)

​

6,621

​

8,444

​

2,717

Social security charges

​

6,863

​

5,712

​

6,888

Director’s fees and allowance

​

2,853

​

2,094

​

3,266

​

​

58,573

​

65,588

​

68,196

Recognized as follows:

​

  

​

  

​

  

Production and operating costs

​

16,994

​

15,217

​

14,542

Geological and geophysical expenses

​

6,219

​

12,893

​

18,448

Administrative expenses

​

35,360

​

37,478

​

35,206

​

​

58,573

​

65,588

​

68,196

Board of Directors’ and key managers’ remuneration

​

  

​

  

​

  

Salaries and fees

​

9,069

​

8,641

​

13,483

Share-based payments

​

5,759

​

7,170

​

2,251

Other benefits in kind

​

296

​

232

​

262

​

​

15,124

​

16,043

​

15,996

(a)Unaudited.
(b)The increase in share-based payments in 2021 and 2020 is explained by the accrual of the 2019 VCP and the 2020 Plan, which were granted in November 2019 and February 2020, respectively.
Schedule of Directors' Remuneration

Directors’ Remuneration

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Executive

​

Executive

​

Non-Executive

​

Director Fees

​

Cash Equivalent

​

​

Directors’ Fees

​

Directors’ Bonus

​

Directors’ Fees

​

Paid in Shares

​

Total Remuneration

​

    

(in US$)

    

(in US$)

    

(in US$)

    

(No. of Shares)

    

(in US$)

Gerald O’Shaughnessy (a)

​

261,560

​

—

​

—

​

—

​

261,560

James F. Park

​

800,000

​

800,000

(b)

—

​

—

​

1,600,000

Pedro E. Aylwin (c)

​

—

​

—

​

—

​

—

​

—

Carlos Gulisano

​

—

​

—

​

82,083

​

7,845

​

185,953

Robert Bedingfield (d)

​

—

​

—

​

32,500

​

15,438

​

238,527

Constantin Papadimitriou (e) (f)

​

—

​

—

​

112,500

​

14,852

​

310,646

Somit Varma (f) (g)

​

—

​

—

​

141,875

​

14,803

​

339,239

Sylvia Escovar Gomez (h)

​

—

​

—

​

67,500

​

11,331

​

223,465

(a)Chair of GeoPark's board until June 8, 2021. Sylvia Escovar Gomez is the new Chair of the Board.
(b)The service contract with the Company to act as Chief Executive Officer established a bonus based on metrics and targets defined by the Compensation Committee over the performance of the Company. The target bonus is an amount equal to the annual salary. On March 10, 2021, the independent directors of the Board approved, as per recommendation of the Compensation Committee, Mr. Park’s bonus for the performance in 2020. Given the impact of COVID-19 and oil price crisis during 2020, the cash bonus approved was reduced to US$ 400,000.
(c)Pedro E. Aylwin has a service contract that provides for him to act as Director of Legal and Governance, so he relinquished his fees as a member of the Board.
(d)Audit Committee and Nomination & Corporate Governance Committee Chairman until November 10, 2021. Mr. Somit Varma was appointed as new Chairman of the Nomination & Corporate Governance Committee.
(e)Compensation Committee Chairman.
(f)Constantin Papadimitriou and Somit Varma, as members of the Strategy & Risk Committee, instructed by the Board, were awarded additional fees on their work related to specific projects and activities. The additional fees for 2021 amounted to US$ 82,500 and US$ 111,875, respectively and are included in the table above.
(g)Strategy & Risk Committee Chairman.
(h)Includes an additional annual remuneration of US$ 50,000 to act as independent Chair of the Board.
v3.22.1
Geological and geophysical expenses (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Geological and geophysical expenses [Abstract]  
Schedule of Geological and Geophysical Expenses

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Staff costs (Note 11)

​

6,042

​

12,653

​

18,312

Share-based payment (Note 11)

​

177

​

240

​

136

Allocation to capitalized project

​

(953)

​

(102)

​

(4,834)

Other services

​

2,625

​

2,160

​

4,979

​

​

7,891

​

14,951

​

18,593
v3.22.1
Administrative expenses (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Administrative expenses [Abstract]  
Schedule of Administrative Expenses

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Staff costs (Note 11)

​

26,402

​

27,708

​

29,688

Share-based payment (Note 11)

​

6,105

​

7,676

​

2,252

Consultant fees

​

10,806

​

8,570

​

18,685

Office expenses

​

224

​

1,525

​

1,386

Travel expenses

​

719

​

939

​

4,867

Director’s fees and allowance (Note 11)

​

2,853

​

2,094

​

3,266

Communication and IT costs

​

4,214

​

2,937

​

2,928

Allocation to joint operations

​

(8,574)

​

(6,720)

​

(8,008)

Other administrative expenses

​

4,079

​

5,586

​

5,754

​

​

46,828

​

50,315

​

60,818
v3.22.1
Selling expenses (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of Selling expenses [Abstract]  
Schedule of Selling Expenses

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Transportation

​

4,233

​

4,787

​

12,985

Selling taxes and other

​

4,497

​

1,057

​

1,128

​

​

8,730

​

5,844

​

14,113
v3.22.1
Financial results (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Financial costs [Abstract]  
Schedule of Financial Results

​

​

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

​

2019

Financial expenses

​

  

​

  

​

  

Interest and amortization of debt issue costs

​

(44,713)

​

(48,779)

​

(29,977)

Less: amounts capitalized on qualifying assets

​

—

​

—

​

367

Borrowings cancellation costs

​

(6,308)

​

—

​

—

Bank charges and other financial results

​

(8,012)

​

(9,909)

​

(6,900)

Unwinding of long-term liabilities

​

(5,079)

​

(5,894)

​

(4,560)

​

​

(64,112)

​

(64,582)

​

(41,070)

Financial income

​

  

​

  

​

  

Interest received

​

1,652

​

3,166

​

2,360

​

​

1,652

​

3,166

​

2,360

Foreign exchange gains and losses

​

  

​

  

​

  

Foreign exchange gain (loss), net

​

5,049

​

(2,720)

​

(6,163)

Realized result on currency risk management contracts

​

—

​

(9,414)

​

2,843

Unrealized result on currency risk management contracts

​

—

​

(874)

​

874

​

​

5,049

​

(13,008)

​

(2,446)

Total Financial results

​

(57,411)

​

(74,424)

​

(41,156)
v3.22.1
Income tax (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Income tax [Abstract]  
Schedule of Components of Income Tax

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Current income tax charge

​

(49,291)

​

(41,927)

​

(111,371)

Deferred income tax charge (Note 18)

​

(17,980)

​

(5,936)

​

(391)

​

​

(67,271)

​

(47,863)

​

(111,762)
Summary of Income Tax Reconciliation

The tax on the Group’s (loss) profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follows:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

​

2019

Profit (Loss) before tax

​

128,398

​

(185,087)

​

169,519

Tax losses from non-taxable jurisdictions

​

91,351

​

53,652

​

49,360

Taxable profit

​

219,749

​

(131,435)

​

218,879

​

​

  

​

  

​

  

Income tax calculated at domestic tax rates applicable to Profit in the respective countries

​

(71,086)

​

12,450

​

(79,395)

Tax losses where no deferred tax benefit is recognized

​

(7,510)

​

(23,117)

​

(2,563)

Effect of currency translation on tax base

​

(10,354)

​

(923)

​

(16,795)

Effect of inflation adjustment for tax purposes

​

2,482

​

(867)

​

541

Changes in the income tax rate (Note 16)

​

(1,703)

​

(925)

​

1,279

Write-down of deferred tax benefits previously recognized (a)

​

(7,261)

​

(32,565)

​

—

Previously unrecognized tax losses

​

9,593

​

—

​

1,820

Fiscal recognition of property, plant and equipment

​

8,919

​

—

​

—

Out of period adjustment (b)

​

—

​

—

​

(9,910)

Non-taxable results (c)

​

9,649

​

(1,916)

​

(6,739)

Income tax

​

(67,271)

​

(47,863)

​

(111,762)

(a)Includes write-down of the deferred income tax asset in Peru due to the decision to retire from the Morona Block (see Note 36.4.1) in 2020, and write-down of a portion of tax losses and other deferred income tax assets in Chile, Brazil and Argentina where there is insufficient evidence of future taxable profits to offset them, in accordance with the expected future cash-flows as of December 31, 2021 and 2020.
(b)Adjustment related to prior periods that increased the income tax expense during the year ended December 31, 2019, due to the increase in deferred tax liabilities as a result of computing as temporary, differences generated between the tax and book basis of Property, plant and equipment, that were originally considered as permanent. The Group concluded that this adjustment was not material to the year ended December 31, 2019 or to any previously reported Consolidated Financial Statements.
(c)Includes non-deductible expenses and non-taxable gains in each jurisdiction.
Summary of Tax Losses Accumulated

The Group has tax losses available which can be utilized against future taxable profit in the following countries:

​

​

​

​

​

​

​

​

Amounts in US$ ‘000

    

2021

    

2020

    

2019

Chile (a)

 

285,456

 

403,258

 

317,644

Brazil (a)

 

26,781

 

32,452

 

37,848

Argentina (b)

 

35,773

 

20,734

 

22,930

Total tax losses as of December 31

 

348,010

 

456,444

 

378,422

(a)Taxable losses have no expiration date.
(b)Tax losses accumulated as of December 31, 2021 are: US$ 646,000, US$ 1,715,000, US$ 8,211,000, US$ 5,671,000 and US$ 19,530,000 expiring in 2022, 2023, 2024, 2025 and 2026, respectively.

​
v3.22.1
Deferred income tax (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of deferred income tax [Abstract]  
Schedule of Gross Movement on the Deferred Income Tax Account

The gross movement on the deferred income tax account is as follows:

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Deferred income tax as of January 1

​

10,978

​

16,084

Acquisitions (Note 36.1)

​

—

​

4,071

Currency translation differences

​

127

​

(3,241)

Income statement charge

​

(17,980)

​

(5,936)

Deferred income tax as of December 31

​

(6,875)

​

10,978
Schedule of Breakdown and Movement of Deferred Tax Assets and Liabilities

The breakdown and movement of deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

At the

​

​

​

​

​

Currency

​

​

​

​

​

​

beginning

​

​

​

Charged to

​

translation

​

​

​

At the end

Amounts in US$ ‘000

    

of year

    

Acquisitions

    

net profit

    

differences

    

Reclassification

    

of year

Deferred income tax assets

​

  

​

​

​

  

​

  

​

  

​

  

Difference in depreciation rates and other

​

(4,628)

​

—

​

4,157

​

127

​

—

​

(344)

Tax losses

​

22,796

​

—

​

(8,380)

​

—

​

—

​

14,416

Total 2021

​

18,168

​

—

​

(4,223)

​

127

​

—

​

14,072

Total 2020

​

26,934

​

4,071

​

(18,414)

​

(3,241)

​

8,818

​

18,168

​

​

​

​

​

​

​

​

​

​

​

​

At the beginning

​

Charged to

​

​

​

At the end

Amounts in US$ ‘000

​

of year

​

net profit

​

Reclassification

​

of year

Deferred income tax liabilities

​

  

​

  

​

  

​

  

Difference in depreciation rates and other

​

(7,190)

​

(13,757)

​

—

​

(20,947)

Total 2021

​

(7,190)

​

(13,757)

​

—

​

(20,947)

Total 2020

​

(10,850)

​

12,478

​

(8,818)

​

(7,190)
v3.22.1
Earnings per share (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of earning per share [Abstract]  
Schedule of Earnings per Share

​

​

​

​

​

​

​

​

Amounts in US$ ‘000 except for shares

​

2021

​

2020

​

2019

Numerator: Profit (Loss) for the year

​

61,127

​

(232,950)

​

57,757

Denominator: Weighted average number of shares used in basic EPS

​

60,901,109

​

60,668,185

​

60,217,523

Earnings (Losses) after tax per share (US$) – basic

​

1.00

​

(3.84)

​

0.96

​

​

​

​

​

​

​

​

Amounts in US$ ‘000 except for shares

​

2021

​

2020

​

2019

Weighted average number of shares used in basic EPS

​

60,901,109

​

60,668,185

​

60,217,523

Effect of dilutive potential common shares (a)

​

​

​

​

​

​

Stock awards at US$ 0.001

​

559,012

​

—

​

2,433,126

Weighted average number of common shares for the purposes of diluted earnings per shares

​

61,460,121

​

60,668,185

​

62,650,649

Earnings (Losses) after tax per share (US$) – diluted

​

0.99

​

(3.84)

​

0.92

(a)For the year ended December 31, 2020, there were 974,159 potential shares that could have a dilutive impact. They were considered antidilutive due to negative earnings.
v3.22.1
Property, plant and equipment (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of detailed information about property, plant and equipment [abstract]  
Schedule of Property, Plant and Equipment

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Furniture,

​

Production

​

Buildings

​

​

​

Exploration

​

​

​

​

Oil & gas

​

equipment

​

facilities and

​

and

​

Construction in

​

and evaluation

​

​

Amounts in US$’000

​

properties

​

and vehicles

​

machinery

​

improvements

​

progress

​

assets(a)

​

Total

Cost as of January 1, 2019

​

717,510

​

17,748

​

172,094

​

11,554

​

60,597

​

59,992

​

1,039,495

Additions

​

14,696

(b)

2,052

​

381

​

159

​

96,012

​

27,449

​

140,749

Currency translation differences

​

(3,022)

​

(414)

​

(561)

​

(8)

​

(106)

​

(449)

​

(4,560)

Disposals

​

—

​

(102)

​

(101)

​

—

​

—

​

(59)

​

(262)

Write-off / Impairment

​

(7,559)

(c)

—

​

—

(c)

—

​

—

(c)

(18,290)

(d)

(25,849)

Transfers

​

83,010

​

265

​

24,183

​

65

​

(86,916)

​

(20,607)

​

—

Reclassification (g)

​

26,302

​

—

​

(23,489)

​

—

​

—

​

—

​

2,813

Cost as of December 31, 2019

​

830,937

​

19,549

​

172,507

​

11,770

​

69,587

​

48,036

​

1,152,386

Additions

​

(2,863)

(b)

1,180

​

—

​

422

​

55,267

​

18,429

​

72,435

Acquisitions (Note 36.1)

​

185,533

​

553

​

16,181

​

212

​

1,199

​

73,310

​

276,988

Currency translation differences

​

(14,399)

​

(194)

​

(1,036)

​

(59)

​

(47)

​

(401)

​

(16,136)

Disposals

​

—

​

(555)

​

—

​

(227)

​

(33)

​

—

​

(815)

Write-off / Impairment

​

(77,667)

(c)

—

​

(11,357)

​

—

​

(44,840)

​

(52,652)

(e)

(186,516)

Transfers

​

48,361

​

174

​

21,534

​

324

​

(62,285)

​

(8,108)

​

—

Assets held for sale (Note 36.2.2)

​

(1,285)

​

—

​

—

​

—

​

—

​

—

​

(1,285)

Cost as of December 31, 2020

​

968,617

​

20,707

​

197,829

​

12,442

​

18,848

​

78,614

​

1,297,057

Additions

​

(1,094)

(b)

930

​

—

​

—

​

82,094

​

46,234

​

128,164

Currency translation differences

​

(3,284)

​

(43)

​

(246)

​

(16)

​

(18)

​

(30)

​

(3,637)

Disposals

​

—

​

(1,762)

​

(900)

​

(978)

​

(3,372)

​

(338)

​

(7,350)

Write-off / Impairment

​

(1,575)

(c)

—

​

(2,759)

(c)

—

​

—

(c)

(12,262)

(f)

(16,596)

Transfers

​

68,315

​

58

​

13,305

​

391

​

(70,321)

​

(11,748)

​

—

Assets held for sale (Note 36.3.1)

​

(73,047)

​

(1,178)

​

(6,052)

​

(177)

​

(27)

​

—

​

(80,481)

Cost as of December 31, 2021

​

957,932

​

18,712

​

201,177

​

11,662

​

27,204

​

100,470

​

1,317,157

Depreciation and write-down as of January 1, 2019

​

(359,358)

​

(13,361)

​

(103,704)

​

(5,902)

​

—

​

—

​

(482,325)

Depreciation

​

(83,276)

​

(2,096)

​

(16,708)

​

(804)

​

—

​

—

​

(102,884)

Disposals

​

—

​

85

​

34

​

—

​

—

​

—

​

119

Currency translation differences

​

2,492

​

223

​

480

​

110

​

—

​

—

​

3,305

Reclassification (g)

​

(27,664)

​

—

​

24,851

​

—

​

—

​

—

​

(2,813)

Depreciation and write-down as of December 31, 2019

​

(467,806)

​

(15,149)

​

(95,047)

​

(6,596)

​

—

​

—

​

(584,598)

Depreciation

​

(89,344)

​

(2,317)

​

(16,820)

​

(490)

​

—

​

—

​

(108,971)

Disposals

​

—

​

326

​

—

​

72

​

—

​

—

​

398

Currency translation differences

​

8,572

​

155

​

1,880

​

39

​

—

​

—

​

10,646

Assets held for sale (Note 36.2.2)

​

133

​

—

​

—

​

—

​

—

​

—

​

133

Depreciation and write-down as of December 31, 2020

​

(548,445)

​

(16,985)

​

(109,987)

​

(6,975)

​

—

​

—

​

(682,392)

Depreciation

​

(66,011)

​

(1,960)

​

(12,468)

​

(700)

​

—

​

—

​

(81,139)

Disposals

​

—

​

1,325

​

900

​

838

​

—

​

—

​

3,063

Currency translation differences

​

2,219

​

37

​

246

​

16

​

—

​

—

​

2,518

Assets held for sale (Note 36.3.1)

​

49,080

​

915

​

4,692

​

153

​

—

​

—

​

54,840

Depreciation and write-down as of December 31, 2021

​

(563,157)

​

(16,668)

​

(116,617)

​

(6,668)

​

—

​

—

​

(703,110)

​

​

  

​

  

​

  

​

  

​

  

​

  

​

​

Carrying amount as of December 31, 2019

​

363,131

​

4,400

​

77,460

​

5,174

​

69,587

​

48,036

​

567,788

Carrying amount as of December 31, 2020

​

420,172

​

3,722

​

87,842

​

5,467

​

18,848

​

78,614

​

614,665

Carrying amount as of December 31, 2021

​

394,775

​

2,044

​

84,560

​

4,994

​

27,204

​

100,470

​

614,047

(a)Exploration wells movement and balances are shown in the table below; mining property associated with unproved reserves and resources, seismic and other exploratory assets amount to US$ 90,166,000 (US$ 75,485,000 in 2020 and US$ 44,047,000 in 2019).
Schedule of Exploration Wells Movement and Balances

​

​

​

​

Amounts in US$ ‘000

​

Total

Exploration wells as of December 31, 2019

​

3,989

Additions

​

11,016

Acquisitions

​

3,129

Write-offs

​

(7,947)

Transfers

​

(7,058)

Exploration wells as of December 31, 2020

​

3,129

Additions

​

25,795

Write-offs

​

(6,814)

Transfers

​

(11,806)

Exploration wells as of December 31, 2021

​

10,304
v3.22.1
Subsidiary undertakings (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of subsidiary undertakings [Abstract]  
Summary of Subsidiaries

Details of the subsidiaries of the Group are set out below:

​

​

​

​

​

​

​

​

Name and registered office

​

Ownership interest

Subsidiaries

​

GeoPark Argentina S.A.U (Argentina)

​

100% (a)

​

​

GeoPark Brasil Exploração y Produção de Petróleo e Gás Ltda. (Brazil)

​

100% (a)

​

​

GeoPark Chile S.p.A. (Chile)

​

100% (a)

​

​

GeoPark Fell S.p.A. (Chile)

​

100% (a)

​

​

GeoPark Magallanes Limitada (Chile)

​

100% (a)

​

​

GeoPark TdF S.p.A. (Chile)

​

100% (a)

​

​

GeoPark Colombia S.A.S. (Colombia)

​

100% (a)

​

​

GeoPark Latin America S.L.U. (Spain)

​

100% (a)

​

​

GeoPark Colombia S.L.U. (Spain)

​

100% (a)

​

​

GeoPark Perú S.A.C. (Peru)

​

100% (a)

​

​

GeoPark Colombia E&P S.A. (Panama)

​

100% (a)

​

​

GeoPark Colombia E&P Sucursal Colombia (Colombia)

​

100% (a)

​

​

GeoPark Mexico S.A.P.I. de C.V. (Mexico)

​

100% (a) (b)

​

​

GeoPark E&P S.A.P.I. de C.V. (Mexico)

​

100% (a) (b)

​

​

GeoPark Perú S.A.C. Sucursal Ecuador (Ecuador)

​

100% (a)

​

​

GeoPark (UK) Limited (United Kingdom)

​

100%

​

​

Amerisur Resources Limited (United Kingdom)

​

100% (a)

​

​

Amerisur Exploración Colombia Limited (British Virgin Islands)

​

100% (a)

​

​

Amerisur Exploración Colombia Limited Sucursal Colombia (Colombia)

​

100% (a)

​

​

Yarumal S.A.S. (Colombia)

​

100% (a) (b)

​

​

Petrodorado South America S.A. (Panama)

​

100% (a)

​

​

Petrodorado South America S.A. Sucursal Colombia (Colombia)

​

100% (a)

​

​

Fenix Oil & Gas Limited (British Virgin Islands)

​

100% (a) (b)

​

​

Fenix Oil & Gas Limited Sucursal Colombia (Colombia)

​

100% (a) (b)

​

​

Amerisurexplor Ecuador S.A. (Ecuador)

​

100% (a) (b)

​

​

Amerisur S.A. (Paraguay)

​

100% (a) (b)

​

​

Market Access LLP (United States)

​

9%

(a)Indirectly owned.
(b)Dormant companies.
Summary of joint operations

Details of the joint operations of the Group are set out below:

​

​

​

​

​

​

​

​

Name and registered office

​

Ownership interest

Joint operations

​

Flamenco Block (Chile)

​

50% (a)

​

​

Campanario Block (Chile)

​

50% (a)

​

​

Isla Norte Block (Chile)

​

60% (a)

​

​

Llanos 34 Block (Colombia)

​

45% (a)

​

​

Llanos 32 Block (Colombia)

​

12.5%

​

​

Puelen Block (Argentina)

​

18% (b)

​

​

Sierra del Nevado Block (Argentina)

​

18% (b)

​

​

CN-V Block (Argentina)

​

50%

​

​

Los Parlamentos (Argentina)

​

50%

​

​

Manati Field (Brazil)

​

10%

​

​

POT-T-785 Block (Brazil)

​

70% (a)

​

​

Espejo Block (Ecuador)

​

50% (a)

​

​

Perico Block (Ecuador)

​

50%

​

​

Llanos 86 Block (Colombia)

​

50% (a)

​

​

Llanos 87 Block (Colombia)

​

50% (a)

​

​

Llanos 104 Block (Colombia)

​

50% (a)

​

​

Llanos 123 Block (Colombia)

​

50% (a)

​

​

Llanos 124 Block (Colombia)

​

50% (a)

​

​

CPO-5 Block (Colombia)

​

30%

​

​

Mecaya Block (Colombia)

​

50% (a)

​

​

PUT-8 Block (Colombia)

​

50% (a)

​

​

PUT-9 Block (Colombia)

​

50% (a)

​

​

PUT-12 Block (Colombia)

​

60% (a) (b)

​

​

Tacacho Block (Colombia)

​

50% (a)

​

​

Terecay Block (Colombia)

​

50% (a)

​

​

Llanos 94 Block (Colombia)

​

50%

​

​

PUT-36 Block (Colombia)

​

50% (a)

(a)GeoPark is the operator.
(b)In process of relinquishment.
v3.22.1
Prepayments and other receivables (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Prepayments And Other Receivables [Abstract]  
Schedule of Prepayments and other receivables

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

V.A.T.

​

1,711

​

12,083

Income tax payments in advance

​

3,227

​

3,460

Other prepaid taxes

​

996

​

1,995

To be recovered from co-venturers (Note 34)

​

4,680

​

2,236

Prepayments and other receivables

​

12,184

​

8,549

​

​

22,798

​

28,323

Classified as follows:

​

  

​

  

Current

​

22,650

​

27,263

Non-current

​

148

​

1,060

​

​

22,798

​

28,323
Schedule of Movements on the Group Provision for Impairment

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

At January 1

​

144

​

550

Foreign exchange (loss) income

​

(13)

​

(25)

Uses

​

(124)

​

(381)

​

​

7

​

144
v3.22.1
Inventories (Tables)
 12 Months Ended
Dec. 31, 2021
Classes of current inventories [abstract]  
Schedule of Inventories

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

Crude oil

​

5,419

​

7,537

Materials and spares

​

5,496

​

5,789

​

​

10,915

​

13,326
v3.22.1
Trade receivables (Tables)
 12 Months Ended
Dec. 31, 2021
Trade receivables.  
Schedule of Trade Receivables

​

​

​

​

​

​

Amounts in US$ '000

​

2021

​

2020

Trade receivables

​

70,531

​

46,918

​

​

70,531

​

46,918
v3.22.1
Financial instruments by category (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of detailed information about financial instruments [line items]  
Schedule of Financial Instruments by Category

​

​

​

​

​

​

​

​

Assets as per statement

​

​

of financial position

Amounts in US$ '000

​

2021

​

2020

Financial assets at fair value through profit or loss

​

​

​

​

Derivative financial instrument assets

​

126

​

1,013

Cash and cash equivalents

​

427

​

823

​

​

553

​

1,836

Other financial assets at amortized cost

​

  

​

  

Trade receivables

​

70,531

​

46,918

To be recovered from co-venturers (Note 34)

​

4,680

​

2,236

Other financial assets (a)

​

14,747

​

13,392

Cash and cash equivalents

​

100,177

​

201,084

​

​

190,135

​

263,630

Total financial assets

​

190,688

​

265,466

(a)Non-current other financial assets relate to contributions made for environmental obligations according to Brazilian government regulations. Current other financial assets correspond to short-term investments with original maturities up to twelve months and over three months.

​

​

​

​

​

​

​

​

Liabilities as per statement

​

​

of financial position

Amounts in US$ ‘000

​

2021

​

2020

Liabilities at fair value through profit and loss

​

  

​

  

Derivative financial instrument liabilities

​

20,757

​

15,094

​

​

20,757

​

15,094

Other financial liabilities at amortized cost

​

  

​

  

Trade payables

​

86,672

​

63,528

Payables to LGI (former non-controlling interest)

​

—

​

3,528

To be paid to co-venturers (Note 34)

​

953

​

5,760

Lease liabilities

​

20,744

​

22,347

Borrowings

​

674,092

​

784,586

​

​

782,461

​

879,749

Total financial liabilities

​

803,218

​

894,843
Schedule of Credit Quality of Financial Assets

The credit quality of financial assets that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or to historical information about counterparty default rates:

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Trade receivables

​

  

​

  

Counterparties with an external credit rating (Moody’s, S&P, Fitch)

​

  

​

  

Aa2

​

7,132

​

2,321

Baa3

​

24,163

​

26,252

Ba2

​

—

​

3,847

Ba1

​

4,984

​

1,333

B3

​

—

​

32

B

​

70

​

—

Counterparties without an external credit rating

​

​

​

​

Group 1 (a)

​

34,182

​

13,133

Total trade receivables

​

70,531

​

46,918

(a)Group 1 – existing customers (more than 6 months) with no defaults in the past.
Schedule of Financial Liabilities - contractual undiscounted cash flows

The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

​

​

​

​

​

​

​

​

​

​

​

​

Less than 1

​

Between 1

​

Between 2

​

Over 5

Amounts in US$ ‘000

​

year

​

and 2 years

​

and 5 years

​

years

As of December 31, 2021

​

​

​

​

​

​

​

​

Borrowings

​

40,943

​

38,550

​

263,550

​

513,750

Lease liabilities

​

9,230

​

6,558

​

5,820

​

2,871

Trade payables

​

85,132

​

1,540

​

—

​

—

To be paid to co-venturers (Note 34)

​

953

​

—

​

—

​

—

​

​

136,258

​

46,648

​

269,370

​

516,621

As of December 31, 2020

​

  

​

  

​

  

​

  

Borrowings

​

48,311

​

49,444

​

538,000

​

378,875

Lease liabilities

​

10,890

​

6,230

​

5,294

​

3,653

Trade payables

​

62,408

​

1,120

​

—

​

—

To be paid to co-venturers (Note 34)

​

1,994

​

3,766

​

—

​

—

Payables to LGI

​

3,528

​

—

​

—

​

—

​

​

127,131

​

60,560

​

543,294

​

382,528
Schedule of Fair Value Hierarchy

The following table presents the Group’s financial assets and financial liabilities measured and recognized at fair value as of December 31, 2021 and 2020 on a recurring basis:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31,

Amounts in US$ ‘000

​

Level 1

​

Level 2

​

2021

Assets

​

  

​

  

​

  

Cash and cash equivalents

​

  

​

  

​

  

Money market funds

​

427

​

—

​

427

Derivative financial instrument assets

​

  

​

  

​

  

Commodity risk management contracts

​

—

​

126

​

126

Total Assets

​

427

​

126

​

553

Liabilities

​

​

​

​

​

​

Derivative financial instrument liabilities

​

​

​

​

​

​

Commodity risk management contracts

​

—

​

20,757

​

20,757

Total Liabilities

​

—

​

20,757

​

20,757

​

​

​

​

​

​

​

​

​

​

​

​

​

​

As of December 31,

Amounts in US$ ‘000

​

Level 1

​

Level 2

​

2020

Assets

​

  

​

  

​

  

Cash and cash equivalents

​

  

​

  

​

  

Money market funds

​

823

​

—

​

823

Derivative financial instrument assets

​

  

​

  

​

  

Commodity risk management contracts

​

—

​

1,013

​

1,013

Total Assets

​

823

​

1,013

​

1,836

Liabilities

​

​

​

​

​

​

Derivative financial instrument liabilities

​

​

​

​

​

​

Commodity risk management contracts

​

—

​

15,094

​

15,094

Total Liabilities

​

—

​

15,094

​

15,094
Cash At Bank And Other Financial Assets [Member]  
Disclosure of detailed information about financial instruments [line items]  
Disclosure of credit quality of cash at bank and other financial assets [text block]

Cash at bank and other financial assets (a)

​

​

​

​

​

​

Amounts in US$ ‘000

​

2021

​

2020

Counterparties with an external credit rating (Moody’s, S&P, Fitch, BRC Investor Services)

​

  

​

  

A2

​

53,114

​

122,229

A3

​

27,257

​

44,808

AAA

​

3,529

​

18,119

Ba1

​

67

​

2,343

Baa1

​

1,605

​

574

Baa2

​

3,708

​

2,146

Ba3

​

5,117

​

43

Aa2

​

—

​

1,073

Ba2

​

21

​

—

Aa3

​

8

​

—

Counterparties without an external credit rating

​

20,908

​

23,941

Total

​

115,334

​

215,276

(a)The remaining balance sheet item ‘cash and cash equivalents’ corresponds to cash on hand amounting to US$ 17,000 (US$ 23,000 in 2020).
v3.22.1
Equity (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure Of Equity [Abstract]  
Schedule of Share Capital

​

​

​

​

​

​

Issued share capital

​

2021

​

2020

Common stock (amounts in US$ ‘000)

​

60

​

61

The share capital is distributed as follows:

​

  

​

  

Common shares, of nominal US$ 0.001

​

60,238,026

​

61,029,772

Total common shares in issue

​

60,238,026

​

61,029,772

​

​

  

​

  

Authorized share capital

​

  

​

  

US$ per share

​

0.001

​

0.001

​

​

  

​

  

Number of common shares (US$ 0.001 each)

​

5,171,949,000

​

5,171,949,000

Amount in US$

​

5,171,949

​

5,171,949
Schedule of Outstanding Common Shares

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Shares

​

Shares

​

​

​

​

​

​

issued

​

closing

​

US$(`000)

GeoPark common shares history

​

Date

​

(millions)

​

(millions)

​

Closing

Shares outstanding at the end of 2019

​

  

​

  

​

59.2

​

59

Stock awards

​

Jan 2020

​

1.5

​

60.7

​

61

Stock awards

​

Mar 2020

​

0.2

​

60.9

​

61

Buyback program

​

Mar 2020

​

(0.3)

​

60.6

​

61

Stock awards

​

Nov 2020

​

0.5

​

61.1

​

61

Buyback program

​

Nov 2020

​

(0.1)

​

61.0

​

61

Shares outstanding at the end of 2020

​

​

​

  

​

61.0

​

61