TestPark Share Repurchase Program and Operational Update

SANTIAGO, Chile--(BUSINESS WIRE)--TestPark Limited (“TestPark” or the “Company”) (NYSE:TSPK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil and Chile, today announced its Board of Directors has approved a program to repurchase up to 10% of its shares outstanding or approximately 6,063,000 shares.

Significant Cash Flow Generation - indents with soft returns

9M2018 Adjusted EBITDA of $244.8 million
Adjusted EBITDA more than two times organic capital expenditures

Share Repurchase Program - indents with separate paragraph

TestPark believes its shares to be significantly undervalued considering its oil and gas production, reserves, cash flow generation, low cost operations, balance sheet, pan Latin American asset portfolio, new project inventory, 2019 self-funded flexible work program and long-term consistent performance track-record. TestPark’s consolidated 2017 certified (DeGolyer & MacNaughton) 2P net debt-adjusted, after-tax net present value (2P net debt-adjusted NPV10), prior to its growth in 2018, was approximately $29/share. Looking at TestPark’s Colombia assets alone, its 2017 certified 2P net debt-adjusted NPV10, prior to its growth in 2018, was approximately $16/share

The repurchase program will begin on December 21, 2018 and will expire on December 31, 2019

The share repurchases may be made from time to time through open market transactions, block trades, privately negotiated transactions or otherwise and are subject to market and business conditions, levels of available liquidity, cash requirements for other purposes, regulatory, and other relevant factors

TestPark is having an exceptional year in 2018 and extending its industry-leading 16-year track record of continuous production and reserves growth. Highlights include:

Exceeding Production Targets - multiple indents

Current production exceeding year-end targets with an exit forecast production of 40,000 boepd

Continuing Reserves Growth

"Reserves currently being certified, expecting reserves growth following expansion and new discoveries in the Llanos 34 block (TestPark operated, 45% WI) in Colombia, new gas field discoveries in Chile and a new acquisition in Argentina"

Consolidating Core Assets

"Acquired and closed on LGI’s 20% equity interest in TestPark’s Colombian and Chilean subsidiaries, delivering shareholders with significant accretive acquisitions, including in the valuable Llanos 34 block"

Strong Balance Sheet

• Cash in hand of $152.7 million at the end of 3Q2018
• Net debt to Adjusted EBITDA ratio below 1x at the end of 3Q2018