Tranquilo and Otway UJVs

completed

GeoPark Holdings Limited (“GeoPark”), a junior E&P company with producing assets in both Argentina and Chile, listed on the AIM market of the London Stock Exchange. GeoPark’s core assets are located on both sides of the Argentine-Chilean border in the Austral basin of the Magallanes and Antarctica Chilena region in southern Chile. The region contains almost all of the limited Chilean oil and gas reserves. GeoPark has invited IFC to consider an equity investment as unincorporated joint venture (“UJV”) partner for a 15% working interest in the Otway and Tranquilo exploration blocks, located in the Austral basin, in close proximity to GeoPark’s Fell Block. The Project will be carried out through UJVs governed by Joint Operating Agreements among the UJV partners and IFC. Current participation in the two exploration blocks, Tranquilo and Otway, is as follows: Tranquilo Block: GeoPark Magallanes (30%), Pluspetrol Corporation of Argentina (30%), IPR Energy of USA (20%), and Manas Petroleum of Switzerland (20%); Otway Block: GeoPark Chile (33.6%), Wintershall of Germany (33.6%), Pluspetrol (20%), and Methanex Corporation of Canada (12.8%). GeoPark Magallanes Limitada, GeoPark’s wholly owned subsidiary is the operator of both blocks. Historically, the Blocks have tested and produced gas; however, currently there is no oil or gas production (except for a small gas field, Tranquilo, located in the northern part of the Tranquilo Block and operated by the state-owned company, ENAP). No reserves have been independently appraised in the Blocks. Phase I of the Project (three years) entails further appraisal of the Blocks which will include 2D/ 3D seismic programs and eight exploration wells. Phase II (two years) may involve further development and additional exploration within the Blocks.