July 17, 2019

ENERGY
ALERT

ANH submits the final results for Permanent Bidding

Process’ first procedure
On February 5, 2019, Colombian National Hydrocarbon’s Agency (ANH, per its acronym in Spanish) launched the
Permanent Bidding Process (PPAA, per its acronym in Spanish) as part of the government’s strategy to increase investment
and production in the Oil & Gas sector.

In this regard, for PPAA’s first procedure, the ANH offered 18 onshore and 2 shallow water blocks with an overall surface of
1.8 million hectares for the development of hydrocarbon exploration and production activities.

Furthermore, on June 4, 2019 the ANH submitted the list with the initial bids delivered by 7 of the 22 authorized
companies for 11 out of the 20 blocks offered. Subsequently, on June 13, after the offers underwent the validation
process, the ANH determined the most favorable initial bids for these 11 blocks.

Notwithstanding the above, on June 26, the ANH received one counteroffer from Frontera Energy Colombia Corporation
(“Frontera”) for block VIM 22. In this regard, since the most favorable initial bidder (Geopark Colombia S.A.S), did not
outbid said counteroffer, Frontera was awarded the block.

For purposes of the remaining blocks, no counteroffers were received; hence, these were awarded to the authorized
companies that offered the most favorable initial bid.

Said the above, the following table summarizes the final results of the Permanent Bidding Process’ first procedure
submitted by ANH:

Permanent Bidding Process’ first procedure

Blocks Awarded (1)
Additional Exploratory Program
Government´s
Type of Awarded Points
No. Block Basin Participation in the
Block Bidder
Production (%)
Phase 1 Phase 2 Total

Guajira
1 GUA OFF 10 Offshore Ecopetrol S.A. 292.72 23.1 315.82 1%
Offshore

Gran Tierra
Llanos
2 LLA 85 Onshore Energy 10.824 - 10.824 2%
Orientales
Colombia LLC

Union
Temporal
HOCOL-GPRK-
LLA-86
Llanos
3 LLA 86 Onshore (Hocol S.A. 1,622.85 1,496.00 3,118.85 2%
Orientales
50% and
Geopark
Colombia
S.A.S)
 Permanent Bidding Process’ first procedure
Blocks Awarded (1)

Additional Exploratory Program

Points Government´s
Type of Awarded
No. Block Basin Participation in the
Block Bidder
Production (%)
Phase 1 Phase 2 Total

Union
Temporal
HOCOL-GPRK-
LLA-87
Llanos
4 LLA 87 Onshore (Hocol S.A. 1,952.94 1,944.00 3,896.94 3%
Orientales
50% and
Geopark
Colombia
S.A.S)

Frontera
Llanos Energy
5 LLA 99 Onshore 44 3.264 47.264 1%
Orientales Colombia
Corp.

Parex
Llanos
6 LLA 94 Onshore Resources 1,956.00 1,296.00 3,252.00 2%
Orientales
Colombia Ltd.

Union
Temporal
HOCOL-GPRK-
LLA-104
Llanos
7 LLA 104 Onshore (Hocol S.A. 1,166.10 848 2,014.10 2%
Orientales
50% and
Geopark
Colombia
S.A.S)

Frontera
Energy
Valle Inferior Colombia
8 VIM 22 Onshore 3000 2380.00  5380.00  1% 
del Magdalena Corp.
(submitted a
counteroffer)

Gran Tierra
Valle Medio del
9 VMM 24 Onshore Energy 1,009.28 150 1,159.28 1%
Magdalena
Colombia LLC

10 COR 9 Cordillera Onshore Hocol S.A. 1,119.45 1,114.00 2,233.45 2%

Parex
Valle Superior
11 VSM 25 Onshore Resources 1,664.00 1,114.00 2,778.00 1%
del Magdalena
Colombia Ltd.

Lastly, it is worth mentioning that as of July 11, 2019, the first 4 contracts of the Permanent Bidding Process’ first
procedure have been signed. In this regard, 3 of these contracts were awarded to the Strategic Alliance formed by Hocol S.A.
and Geopark Colombia S.A.S (blocks LLA 104, LLA 86 and LLA 87), and the remaining one to Hocol S.A. (block COR 9).

1. It is worth mentioning that the blocks offered but not awarded during the first procedure, may be offered in subsequent bidding procedures.
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