GeoPark has signed an agreement to acquire the LG International’s stake in Geo Park ’s Colombian and Chilean operations and subsidiaries.
Image: GeoPark to acquire Colombia and Chile oil and gas assets from LG International. Photo courtesy of rawpixel on Unsplash.
This acquisition will increase GeoPark’s equity interest to 100% in its Colombian and Chilean businesses, which consist of multiple hydrocarbon blocks and associated oil and gas production and reserves, including the Llanos 34 block (GeoPark operated, 45% WI) in Colombia. This acquisition will also help streamline financial, tax, organizational, and cost structures.
The acquisition price includes a fixed payment of $ 81 million payable at closing, plus two equal installments of $15 million each, to be paid in June 2019 and June 2020, respectively. Additionally, three contingent payments of $5 million each could be payable over the next three years, subject to certain production thresholds being exceeded. Closing of this transaction is expected by November 28, 2018.
GeoPark chief executive officer James Park said: “LG I has been an exceptional strategic partner for GeoPark for over eight years and we are grateful for their support and guidance, which were instrumental in the early development of our regional portfolio of assets and our tremendous growth in recent years.
“We have made many good friends in the LG organization and are confident that our partnership will continue to grow and lead to important n ew opportunities in the future. We are also pleased to be able to increase our ownership in our key operating companies, bringing more income to our bottom line. ”
Source: Company Press Release