2020, a chance to be better and more resilient
We showed our best in 2020 and made the best decisions to maintain production levels and so continued to be a financially sound Company that grows in the long term and creates benefits for its stakeholders.
We are proud of our performance. In a year in which the hydrocarbon industry faced one of its greatest crises due to a historical fall in the price of oil, lower fuel demand and economic and social uncertainty caused by the public health emergency, at GeoPark we met and exceeded our operational and financial goals through the commitment and work of our people.
Despite the general decrease in oil and gas production in the countries we operate in and the industry slowdown leading to lower exploration and development of producing fields, at GeoPark we closed the year with an average daily production of over 40,000 barrels, breaking the record we set in 2019. We completed a 100% self-financed, efficient, risk-balanced work program that included drilling 22 exploration, and development wells, with an 87% success rate.
The combination of cost and investment reductions was over $290 million in the whole regional platform. We also strengthened our portfolio through the total incorporation of Amerisur’s assets and operations, and we improved our management structure by reorganizing based on the assets we have and not on the countries we operate in.
As a result of this financial and operational management, we were able to generate and preserve cash flow, and distribute dividends worth $4.9 million to our shareholders. Furthermore, within the framework of our share buyback program, throughout 2020 we bought 418,431 shares for a total value of $4 million.
Our financial strength was key in supporting suppliers and contractors in our value chain. We worked with them to help preserve their cash flow and their assets, helping them protect all their jobs and avoiding negative impacts on their local economies.
With a long-term business plan, the strong principles we established when we were founded and firm alignment between our stakeholders and our employees – who are all shareholders – we showed once again in 2020 the solidity of our model and gave clear evidence of our resilience and enduring value.