GeoPark’s $530 Million Acquisition of Repsol’s Colombian Assets

GeoPark Limited is set to acquire upstream oil and gas assets in Colombia from Repsol for approximately $530 million. The deal involves high-quality assets in the Llanos Basin, which are expected to produce around 16,000 barrels of oil equivalent per day. This acquisition aligns with GeoPark’s growth strategy and complements its recent entry into the Vaca Muerta play in Argentina. The transaction is subject to regulatory approvals and conditions precedent.

GeoPark Limited, a prominent Latin American oil and gas entity, has announced its acquisition of upstream oil and gas assets in Colombia from Repsol for approximately $530 million. This strategic acquisition, formalized through sale and purchase agreements with Repsol Exploración S.A. and Repsol E&P S.A.R.L., is set to enhance GeoPark’s presence in Colombia’s Llanos Basin, recognized for its robust oil production capability. The deal entails acquiring Repsol Colombia O&G Limited, which possesses a 45 percent non-operated working interest in the CPO-9 Block and Repsol’s 25 percent stake in SierraCol Energy Arauca LLC.

The acquisition encompasses assets yielding around 16,000 barrels of oil equivalent per day (boepd) as reported in September. Finance for this transaction will be obtained through both current cash resources and debt arrangements, including a non-recourse amortizing debt facility valued at up to $345 million. This strategic move aligns with GeoPark’s growth objectives, allowing the company to better diversify and secure access to premium oil and gas assets across Latin America, enhancing both immediate and sustained production as well as exploration prospects.

Furthermore, the acquisition complements GeoPark’s recent activity in the Argentine Vaca Muerta play, providing financial stability and greater risk diversification well into the future. The success from the earlier completed unconventional wells in the Confluencia Norte Block in Rio Negro accentuates GeoPark’s operational capabilities, reinforcing its strategy of growth through valuable assets in proven basins. This transaction awaits fulfillment of specific conditions and regulatory approvals, including consent from Repsol’s existing partners regarding preemptive rights.

The acquisition of Repsol’s Colombian assets by GeoPark is set against a backdrop of expanding oil and gas operations within the region, particularly in the Llanos Basin—one of Colombia’s highest-producing petroleum areas. GeoPark, known for its successful oil exploration and production, aims to leverage its operational experience and historical track record to enhance its footprint in Colombia. This acquisition also reflects GeoPark’s broader strategy to diversify risks and stabilize its portfolio through high-producing assets, mirroring its recent forays into other prolific areas like the Vaca Muerta in Argentina.

In summary, GeoPark’s acquisition of Repsol’s assets in Colombia represents a significant strategic move aimed at enhancing its operational presence in a key oil-producing region. With an expected asset production of approximately 16,000 boepd and a combination of cash and debt financing, this transaction aligns with the company’s growth strategies. The deal also facilitates further diversification of its asset portfolio, reinforcing GeoPark’s commitment to establishing a sustainable and profitable oil and gas enterprise across Latin America.

Original Source: www.rigzone.com