Latin American oil and gasoline agency GeoPark Restricted is buying upstream oil and gasoline property in Colombia from Repsol.
GeoPark mentioned in a information launch that it has signed sale and buy agreements (SPAs) with Repsol Exploración S.A. and Repsol E&P S.A.R.L.
The acquisition would incorporate high-quality property positioned within the prolific Llanos Basin, considered one of Colombia’s most efficient oil areas the place GeoPark has “a profitable oil-finding monitor file and is a well-established operator each above and under floor,” the corporate mentioned.
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The agreements embody the acquisition of one hundred pc of Repsol Colombia O&G Restricted, which owns a forty five % non-operated working curiosity within the CPO-9 Block in Meta Division, operated by Ecopetrol with a 55 % curiosity.
GeoPark mentioned the agreements additionally embody Repsol’s 25 % curiosity in SierraCol Vitality Arauca LLC (Llanos Norte).
In whole, the property produced roughly 16,000 barrels of oil equal per day (boepd) internet to Repsol as of September.
The consideration for the acquisition is roughly $530 million, funded by means of a mix of money assets and debt, together with a non-recourse amortizing debt facility of as much as $345 million, based on the discharge.
GeoPark famous that the acquisition is aligned with its progress technique, by “securing worth accretive entry to huge competitively advantaged property, in huge performs, and massive confirmed basins to construct and ship a extremely worthwhile, reliable, and sustainable oil and gasoline portfolio throughout Latin America”.
The Repsol portfolio in Colombia would offer rapid and long-term manufacturing, reserves, and cashflow, with low capital funding depth, important low-risk progress potential and exploration upside, GeoPark additional acknowledged.
The acquisition strategically enhances its current entry into the Vaca Muerta play in Argentina, “enabling sturdy asset, play and nation danger diversification properly into the subsequent decade,” it mentioned.
The transaction is topic to the success of sure situations precedent and customary regulatory approvals, together with the waiver or non-execution of the preemptive rights by Repsol’s present companions, based on the discharge.
Earlier within the month, GeoPark began manufacturing on the Confluencia Norte Block in Rio Negro, Argentina. The corporate has a 50 % non-operated working curiosity within the asset.
The Confluencia Norte Block not too long ago accomplished its first pad of three unconventional wells, which started manufacturing in mid-October. The event confirms the presence of the Vaca Muerta formation on the westernmost fringe of the block, GeoPark mentioned in an earlier information launch.
The pad features a vertical pilot properly, drilled particularly for knowledge acquisition, together with three horizontal wells reaching a complete measured depth of 20,669 toes (6,300 meters).
GeoPark mentioned {that a} excessive depth fracturing program was executed throughout 135 levels, leading to a present gross manufacturing charge of 4,000 barrels of oil per day (bopd) in the course of the ongoing flowback and properly testing section, with manufacturing at the moment being transported to and marketed by means of The Mata Mora Norte Block facility.
The wells are nonetheless cleansing up and are anticipated to succeed in their peak manufacturing inside 90 days of the manufacturing begin, highlighting the block’s wealthy petrophysical properties, that are similar to these discovered within the Mata Mora Norte Block, during which GeoPark owns a non-operated 45 % working curiosity.
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