GeoPark Limited Announces Commencement of Consent Solicitations With Respect to Its 6.500% Senior Notes Due 2024 and Its 5.500% Senior Notes Due 2027

GeoPark Limited (NYSE: GPRK) (the “Company”) today announced that it is soliciting consents (the “Consent Solicitations”) from the holders of its (i) 6.500% Senior Notes due 2024 (the “2024 Notes”) and (ii) 5.500% Senior Notes due 2027 (the “2027 Notes” and together with the 2024 Notes, the “Notes”) for the adoption of certain proposed amendments (the “Proposed Amendments”) to the indentures governing the Notes (the “Indentures”) to address the impact of adverse market conditions and related drop in the price of crude oil during 2020 on the Company’s results, which in turn negatively impacted the restricted payments builder basket as currently in effect in both Indentures. In addition, each Consent Solicitation seeks to increase and reset the general restricted payments basket in the Indentures to provide the Company additional restricted payments capacity, which will give the Company additional financial flexibility that is aligned to its improved performance beginning in 2021. As previously disclosed, on May 26, 2022, we redeemed 2024 Notes in an aggregate principal amount of $45 million. We have also effected open market repurchases of the 2024 Notes in an aggregate principal amount of $37.9 million year to date. The aggregate outstanding principal amount of the 2024 Notes is $87.1 million and aggregate outstanding principal amount of the 2027 Notes is $500 million.

As of March 31, 2022, the Company had approximately $10.2 million capacity to make restricted payments under the consolidated net income builder basket and $8 million capacity to make restricted payments under the general restricted payments basket included in each of the Indentures. On a pro forma basis after giving effect to the Proposed Amendments as if they had been operative as of March 31, 2022, the Company’s aggregate capacity to make such restricted payments as of the same date would have been approximately $59.7 million under the builder basket and $60 million under the general restricted payments basket.

The Consent Solicitations are being made pursuant to a Consent Solicitation Statement, dated June 8, 2022 (as may be amended or supplemented from time to time, the “Consent Solicitation Statement”). Each Consent Solicitation was commenced today and will expire at 5:00 p.m., New York City time, on June 15, 2022, unless extended by the Company (each such date and time, as the same may be extended, is referred to as the “Expiration Time”). Only holders of the applicable Notes as of 5:00 p.m., New York City time, on June 8, 2022 (such date and time, including as such date and time may be changed by the Company, from time to time, the “Record Date”) are entitled to consent to the Proposed Amendments pursuant to the applicable Consent Solicitation.