GeoPark’s 2P reserves jump 38% on Vaca Muerta acquisition

BOGOTA - Latin American energy company GeoPark Limited (NYSE:GPRK) reported a significant increase in its oil and gas reserves, with 2P (proven plus probable) reserves rising 38% year-over-year to 121 million barrels of oil equivalent (mmboe) as of December 31, 2025. The company, currently valued at $393 million by market capitalization, has maintained strong financial health with an Altman Z-Score of 6.3 as of the last twelve months.

The company’s 2P reserve life index increased 80% to 12.7 years, according to an independent assessment by DeGolyer and MacNaughton Corp. under PRMS methodology. The reserve growth was primarily driven by GeoPark’s acquisition in Argentina’s Vaca Muerta formation, which now represents 30% of the company’s total reserves. InvestingPro data shows GeoPark maintains impressive gross profit margins of 73.5%, highlighting its operational efficiency despite facing revenue challenges in recent quarters.

GeoPark reported a 2P reserve replacement ratio of 430%, with net additions from acquisitions contributing 31.2 mmboe after accounting for asset divestments. The company’s 1P (proven) reserves totaled 69 mmboe with a reserve life index of 7.2 years.

The company assumed operational control of the Loma Jarillosa Este and Puesto Silva Oeste blocks in Vaca Muerta in October 2025. The Loma Jarillosa Este Block is currently producing 1,860 boepd from six wells, with GeoPark implementing optimization measures including rod pump installations in three wells.

In Colombia, excluding divestments, 2P reserves increased by approximately 2.6 mmboe, driven by technical revisions in the CPO-5 and Llanos 123 blocks, including new discoveries in the Currucutú and Toritos fields.

The company reported a 2025 finding, development, and acquisition cost of $4.3 per boe on a 2P basis. GeoPark’s 2P NPV10 (net present value after tax discounted at 10%) was $1.3 billion, with a net debt-adjusted value of $15.8 per share. This valuation contrasts with GeoPark’s current trading price of $7.60, suggesting the stock may be undervalued according to InvestingPro’s Fair Value assessment. The company trades at an EV/EBITDA ratio of just 2.7 and a P/E ratio of 11.87, while maintaining a current ratio of 2.63, indicating its liquid assets comfortably exceed short-term obligations.

GeoPark plans to begin a new drilling program in Vaca Muerta in the second half of 2026, targeting production of 20,000 boepd by 2028.

The reserve information was provided in a company press release statement.

In other recent news, GeoPark Ltd reported a strong third-quarter performance for 2025, surpassing analysts’ expectations. The company announced earnings per share of $0.31, significantly higher than the projected $0.13, representing a 138.46% surprise. Revenue also exceeded forecasts, reaching $125.1 million compared to the anticipated $112.37 million, marking an 11.33% surprise. In addition to these robust financial results, S&P Global Ratings revised GeoPark’s outlook to stable from negative. This revision followed the company’s strategic acquisition of two blocks in Argentina’s Vaca Muerta formation. The acquisition of Loma Jarillosa Este and Puesto Silva Oeste blocks from Pluspetrol is expected to bolster GeoPark’s production growth, countering anticipated declines in its Colombian operations. The newly acquired blocks are situated in a key oil region within one of Latin America’s leading unconventional oil and gas basins.

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