Core Viewpoint - GeoPark Limited has publicly commented on Parex Resources Inc.'s decision to halt discussions regarding a potential acquisition, emphasizing that the initial offer of $9.00 per share significantly undervalues the company and its recent asset enhancements [1][2][4]. Background and Engagement with Parex - On October 29, 2025, GeoPark's Board unanimously rejected Parex's unsolicited proposal to acquire the company for $9.00 per share, which was deemed to undervalue GeoPark, especially following its transformative transaction in Vaca Muerta [2][4]. - A Special Committee was formed to evaluate any potential revised offers from Parex and to explore other value-maximizing alternatives, with access granted to extensive technical and financial information [3][4]. Reserves and Growth Potential - GeoPark's 2025 reserves report indicates a 38% year-over-year increase in total 2P reserves to 121 million barrels of oil equivalent (mmboe), with reserve replacement ratios exceeding 100% [4]. - The company reported a 48% increase in 2P reserves compared to the 82 mmboe available at the time of Parex's original offer, highlighting significant growth potential [4]. - Additional risked reserves of approximately 18 mmboe are pending certification, further enhancing GeoPark's production outlook [4]. Strategic Outlook - GeoPark anticipates that Adjusted EBITDA will more than double by 2028, supported by increased cash flow and a diversified asset base [8]. - The company remains open to considering offers that appropriately value its assets, while focusing on operational strengths and financial discipline [8]. Engagement with Parex - Parex expressed interest primarily in GeoPark's Colombian assets, citing limited familiarity with unconventional resource development in Argentina, which may affect the valuation in any revised proposal [5]. - Following Parex's indication that it would not increase its offer, GeoPark's Board opened direct communication with Parex to encourage reconsideration of the original proposal [6][7].

Core Viewpoint - Parex Resources Inc. has decided to halt discussions regarding the acquisition of GeoPark Limited due to a lack of agreement on the perceived value of GeoPark shares compared to Parex's acquisition proposal of US$9.00 per share [2][5]. Company Overview - Parex Resources Inc. is one of the largest independent oil and gas companies in Colombia, focusing on sustainable and conventional production. The company is headquartered in Calgary, Canada, with an operating office in Bogotá, Colombia, and its shares trade on the Toronto Stock Exchange under the symbol PXT [3]. Timeline of Events - On November 2, 2025, GeoPark's CEO indicated readiness to engage in discussions with Parex regarding a potential transaction [5]. - A non-disclosure agreement was executed between Parex and GeoPark from November 4 to November 13, 2025 [5]. - GeoPark provided Parex access to a virtual data room on November 14, 2025, and shared select information [5]. - On December 1, 2025, Parex and GeoPark representatives met in person in Bogotá to discuss their views on value [5]. - On December 8, 2025, GeoPark reaffirmed its unwillingness to negotiate within the parameters of Parex's September Proposal, leading Parex to halt further discussions [5].

Core Insights - Parex Resources Inc. and Ecopetrol S.A. have established a full strategic alliance for the Llanos Foothills exploration program, marking a significant commitment to gas development in Colombia [1][3] - The partnership aims to leverage shared expertise and modern technology to enhance natural gas production and attract foreign investment [4] - Parex plans to release its 2026 guidance on January 19, 2026, indicating ongoing operational momentum and production performance [1][12] Production Update - Average production in November 2025 was 50,300 boe/d, with a year-to-date average of 44,550 boe/d for 2025, aligning with the company's annual production guidance [10][11] - Production was primarily driven by new wells at LLA-32 and LLA-74, which have shown strong initial rates [10] Exploration Developments - The Llanos Foothills exploration program is recognized for its world-class exploration potential, with Parex and Ecopetrol reinforcing their joint position [5] - The Farallones exploration prospect has received all regulatory approvals, and initial work is underway [7][9] - Parex has finalized the Niscota agreement, enhancing its position in the Llanos Foothills and securing the Floreña Huron exploration prospect [8][9]

Core Insights - Parex Resources Inc. reported strong financial and operational results for Q3 2025, with a regular dividend declared for Q4 2025 of C$0.385 per share [1][16][6] Financial Performance - The company generated funds flow from operations (FFO) of $105 million, equating to $1.09 per share, and realized a net income of $50 million or $0.52 per share basic [6][7][11] - Average oil and natural gas production was 43,953 boe/d, a 3% increase compared to the previous quarter [6][7] - Operating netback was reported at $34.71/boe, supported by favorable oil price differentials and lower current tax [6][7] - Capital expenditures for the quarter totaled $80 million, primarily focused on activities at LLA-32, LLA-74, LLA-34, and Capachos [6][7] Production and Operational Highlights - October 2025 average production reached 49,300 boe/d, indicating a steady increase in production momentum [6][13] - The company expects to exceed its FY 2025 average production guidance of 43,000 to 47,000 boe/d [11][12] - Production at LLA-32 has ramped up significantly, exceeding three times previous levels, with current production rates over 12,000 boe/d [6][14] - Near-field exploration success at LLA-74 has resulted in a 75% success rate in 2025, with five producing wells [6][14] Future Outlook - The company plans to bring onstream four to six production-adding wells in Q4 2025, alongside drilling the VIM-1 exploration well [14][19] - Management anticipates being at the higher end of the capital expenditure range of $285 to $315 million for 2025, driven by successful follow-up drilling [12][11] - The Guapo-1 exploration well on the VIM-1 block has been spud, targeting gas and condensate, with preliminary results expected by year-end 2025 [19][6]

Core Viewpoint - GeoPark Limited has rejected an unsolicited acquisition proposal from Parex Resources Inc. for $9.00 per share, indicating the Board's confidence in the company's value and future prospects [1]. Company Summary - GeoPark Limited is a leading independent energy company with over 20 years of successful operations in Latin America [1]. - The proposal from Parex Resources was received on September 4, 2025, prior to GeoPark's announcement of its transactions [1]. Board Decision - The Board of Directors of GeoPark reviewed the acquisition proposal and unanimously decided to reject it [1].

Core Viewpoint - Parex Resources Inc. has proposed to acquire GeoPark for US$9.00 per share in cash, representing a significant premium to GeoPark's current share price, but the GeoPark Board has rejected the proposal without constructive engagement [1][3][5]. Proposal Details - The proposed acquisition price of US$9.00 per share represents a 44% premium to GeoPark's share price at the time of the proposal [5][11]. - Parex has acquired an 11.8% ownership stake in GeoPark, allowing it to call a special shareholder meeting [2][3]. - The total value of GeoPark, including net debt, is approximately US$940 million, which exceeds the value of GeoPark's Colombian proved plus probable reserves based on its 2024 year-end reserves disclosure [5][6]. Strategic Context - Parex argues that its all-cash proposal offers immediate and compelling value to GeoPark shareholders, allowing them to avoid risks associated with GeoPark's recent investment in Argentina [1][3]. - The GeoPark Board's rejection of the proposal is seen as part of a pattern of failing to engage constructively with Parex [3][6]. Timeline of Events - December 2021: Parex submitted a previous proposal to acquire GeoPark, which was rejected [6]. - September 4, 2025: Parex submitted the current proposal for US$9.00 per share [6]. - October 15, 2025: GeoPark's CEO informed Parex that the proposal was rejected [6]. - October 29, 2025: Parex acquired an 11.8% stake in GeoPark [1][6]. Financial Position - Parex is in a strong financial position and plans to fund the acquisition through existing cash and other financing sources [13][14]. - The transaction is not subject to approval by Parex shareholders, and the definitive agreement will not include a financing condition [14][15]. Engagement and Advisory - Parex remains willing to engage with GeoPark to finalize the transaction and has retained Scotiabank as its financial advisor along with several legal counsels [8].

Core Viewpoint - Parex Resources Inc. has proposed to acquire GeoPark for US$9.00 per share in cash, representing a significant premium to GeoPark's current share price, but the GeoPark Board has rejected the proposal without constructive engagement [1][3][5]. Summary by Sections Proposal Details - The proposed acquisition price of US$9.00 per share represents a 44% premium to GeoPark's share price at the time of the proposal [5][12]. - Parex has acquired an 11.8% ownership stake in GeoPark, allowing it to call a special shareholder meeting [2][3]. - The total value of GeoPark, including net debt, is approximately US$940 million, which exceeds the value of GeoPark's Colombian proved plus probable reserves based on 2024 disclosures [5][6]. Company Statements - The CEO of Parex stated that the rejection of the proposal denies GeoPark shareholders the opportunity to receive cash at a significant premium and criticized GeoPark's decision to pursue a capital-intensive investment in Argentina [3][8]. - Parex remains willing to engage with GeoPark to finalize the transaction and hopes the GeoPark Board will reconsider its position [2][8]. Historical Context - Parex previously submitted a proposal in December 2021, which was rejected by GeoPark, and has since attempted to engage with GeoPark multiple times regarding its recent proposal [6][8]. - Key dates include the initial proposal submission on September 4, 2025, and the acquisition of the 11.8% stake on October 29, 2025, after GeoPark's Board rejected the proposal [6][8]. Financial and Legal Advisory - Parex has retained Scotiabank as its financial advisor and several law firms for legal counsel, indicating a serious commitment to the proposed acquisition [8].

Core Viewpoint - Parex Resources Inc. has announced a production update for Q3 2025, with an expected average production of 44,000 barrels of oil equivalent per day (boe/d), supported by strong asset performance and exploration results [1][7]. Production Update - For the three months ended September 30, 2025, the production breakdown is as follows: - Block LLA-34: 20,800 boe/d - Southern Llanos: 16,950 boe/d - Northern Llanos: 2,750 boe/d - Magdalena Basin: 2,100 boe/d - Natural Gas Production: 1,400 mcf/d - Average Production: 44,000 boe/d [3][7]. - Monthly production for July and August 2025 was 44,400 boe/d and 43,500 boe/d respectively, leading to an average of 44,050 boe/d for the quarter [4][7]. Future Expectations - The company anticipates bringing onstream four to six production-adding wells across LLA-32, Capachos, and Putumayo by the end of 2025, which is expected to support Q4 2025 production and set a strong entry into 2026 [7][12]. - Current field production has increased by over 40% since the tuck-in acquisition at LLA-32, with recent exploration success contributing to an increase in average production to approximately 46,500 boe/d [7][12]. Company Overview - Parex Resources Inc. is one of the largest independent oil and gas companies in Colombia, focusing on sustainable and conventional production. The company is headquartered in Calgary, Canada, with an operating office in Bogotá, Colombia [6]. - Parex shares are traded on the Toronto Stock Exchange under the symbol PXT [6].

Core Insights - Parex Resources Inc. reported strong financial and operational results for Q2 2025, with a funds flow from operations of $105 million and a declared dividend of C$0.385 per share for Q3 2025 [1][7][15] - The company anticipates a steady increase in production through the end of the year, driven by successful near-field exploration results and ongoing development drilling [2][11] Financial Performance - For Q2 2025, Parex generated funds flow from operations of $105 million, equating to $1.08 per share, and realized a net income of $49 million or $0.50 per share [7][8] - Average oil and natural gas production was reported at 42,542 boe/d, with July 2025 average production at 44,450 boe/d [7][11] - The company incurred capital expenditures of $89 million, primarily from activities at LLA-32, LLA-34, and LLA-74 [7][8] Operational Highlights - Parex successfully delivered three near-field exploration wells in H1 2025, contributing approximately 2,500 bbl/d to current production [7][16] - The company is progressing with a five-well development program at LLA-32 and plans to initiate a two-well development campaign in Capachos in Q3 2025 [11][16] - The company has also completed an in-fill drilling campaign at LLA-34, with initial production results exceeding expectations [16] Capital Management - The company declared a regular dividend of C$0.385 per share for Q3 2025, which is annualized to C$1.54 per share [15] - Parex has repurchased approximately 1.1 million shares under its normal course issuer bids, totaling around $11 million [17] Corporate Guidance - The 2025 corporate guidance remains unchanged, with an average production target of 43,000 to 47,000 boe/d and capital expenditure guidance of $285 to $315 million [11][12] - The company forecasts an effective tax rate of 5-10% for FY 2025 based on current netback structures [7][12] ESG and Sustainability - Parex published its 11th annual sustainability report, integrating the Task Force on Climate-Related Financial Disclosures (TCFD) for the fourth consecutive year [18]

Core Viewpoint - Parex Resources Inc. has announced a production update and plans to release its Q2 2025 financial and operating results on July 30, 2025 [1] Production Update - Estimated average production for Q2 2025 was 42,550 barrels of oil equivalent per day (boe/d) [6] - Monthly average production for June 2025 was approximately 43,950 boe/d, showing growth supported by positive exploration results and the successful startup of a horizontal well at LLA-74 in the Southern Llanos [6] - Breakdown of production by region for Q2 2025 includes: - Block LLA-34: 21,500 boe/d - Southern Llanos: 13,800 boe/d - Northern Llanos: 4,000 boe/d - Magdalena Basin: 2,250 boe/d - Natural Gas Production: 1,000 boe/d [3] Monthly Production Breakdown - Monthly average production figures are as follows: - April 2025: 41,350 boe/d - May 2025: 42,300 boe/d - June 2025: 43,950 boe/d [4] Product Type Disclosure - For the three months ended June 30, 2025, the product type breakdown was: - Light & Medium Crude Oil: 10,662 barrels per day (bbl/d) - Heavy Crude Oil: 30,899 bbl/d - Conventional Natural Gas: 5,941 thousand cubic feet per day (mcf/d) [7] Upcoming Events - Parex will host a conference call and webcast on July 30, 2025, at 9:30 am MT (11:30 am ET) to discuss its Q2 2025 results [5]