GeoPark has agreed to acquire the upstream oil and gas assets in Colombia of Repsol Exploración and Repsol E&P (collectively, Repsol) in a deal worth around $530m.
In this connection the partiers have signed sale and purchase agreements (SPAs).
The acquisition is expected to expand GeoPark’s operational footprint in Colombia’s Llanos Basin, a key oil-producing region.
Under the terms of the agreement, GeoPark will acquire 100% ownership of Repsol Colombia O&G, which holds a 45% non-operated working interest in the CPO-9 Block, located in the Meta Department.
The CPO-9 Block is operated by Ecopetrol, which holds the remaining 55% working interest. Additionally, GeoPark will take over Repsol’s 25% stake in SierraCol Energy Arauca, which is linked to assets in the Llanos Norte region of the Arauca Department.
Combined, the assets produced approximately 16,000 barrels of oil equivalent per day (boepd) net to Repsol as of September 2024.
GeoPark stated that the acquisition aligns with its strategy to enhance production and cash flow while leveraging established assets with long-term growth potential.
The Colombian company outlined that the acquired portfolio offers opportunities for production and reserve additions with relatively low capital requirements. The assets include significant exploration potential, said the New York Stock Exchange (NYSE)-listed GeoPark.
The acquisition complements GeoPark’s recent investments in Argentina’s Vaca Muerta shale formation, adding further geographic and operational diversification to its portfolio. GeoPark has indicated that this diversification is intended to balance asset and play risks across Latin America.
The transaction remains contingent on customary regulatory approvals and the resolution of preemptive rights held by Repsol’s current partners. GeoPark noted that it cannot guarantee the transaction will be completed as planned.
Due to confidentiality obligations, the company stated that no further details would be disclosed until the transaction is either finalised or terminated.
In May 2024, GeoPark agreed to acquire a non-operated working interest in four unconventional blocks in Argentina’s Neuquén Basin from Phoenix Global Resources for $190m.
The deal includes 122,315 gross acres, with reserves of 25 million barrels of oil equivalent (mmboe) (1P), 49.5mmboe (2P), and 102.6mmboe (3P), certified by Degolyer & MacNaughton.
GeoPark will also fund $113m in exploration costs over two years, alongside $11m for midstream capacity and a $10m performance-based bonus. The transaction is expected to close by Q3 2024, pending regulatory approvals.
