GeoPark Ltd has signed an settlement to buy the manufacturing Loma Jarillosa Este and Puesto Silva Oeste blocks within the Vaca Muerta formation in Argentina’s Neuquen Province from Pluspetrol SA for $115 million.
Concurrently Bogota-based GeoPark penned two agreements with the provincial authorities that “embrace the issuance of a brand new unconventional exploitation license for the Puesto Silva Oeste Block that requires GeoPark to switch a 5 % working curiosity (WI) to Gasoline y Petroleo del Neuquen SA (GyP), due to this fact leading to a 95 % operated WI in that block”, GeoPark mentioned in an announcement on its web site.
Anticipated to be accomplished by year-end, the transaction with Buenos Aires-based Pluspetrol will enhance GeoPark’s proforma manufacturing by 1,700-2,000 barrels of oil equal per day (boepd) – 95 % oil and 5 % gasoline – to 30,000 boepd, the assertion mentioned.
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“Present manufacturing is processed with a battery that may deal with as much as 6,000 bopd on the Loma Jarillosa Este Block”, the assertion mentioned. “GeoPark plans to develop the 2 blocks as a hub, with a brand new central processing facility to be constructed on the Puesto Silva Oeste Block with an anticipated capability of roughly 20,000 bopd and a pipeline connecting the 2 blocks. Development of this infrastructure is projected to start out in 2026 and be on-line in time to assist the anticipated plateau manufacturing”.
GeoPark eyes “50-55 extra wells throughout 15 pads, unlocking greater than 60 MMboe gross recoverable volumes”.
Loma Jarillosa Este and Puesto Silva Oeste maintain estimated confirmed and possible reserves of 25.8 million barrels of oil equal (MMboe) and estimated 2C contingent assets of 44.2 MMboe, GeoPark mentioned.
The Loma Jarillosa Este aspect of the transaction entails the switch of Pluspetrol’s concession of 6,054 acres, with an exploitation license legitimate till 2057.
The Puesto Silva Oeste portion of the transaction entails the switch of Pluspetrol’s 6,301-acre concession and the award of a brand new exploration license legitimate for 35 years.
“As a part of the brand new license phrases, GeoPark will switch a 5 % WI to GyP. GeoPark stays operator with a 95 % WI and can carry GyP’s portion of the capital and expenditures on a totally recoverable foundation with as much as one hundred pc of GyP’s share of manufacturing. This recoverable carry will probably be mirrored in GeoPark’s working curiosity, rising it from 95 to one hundred pc through the carry interval”, it mentioned.
GeoPark chief govt Felipe Bayon mentioned, “The Loma Jarillosa Este and Puesto Silva Oeste blocks set up a compelling entry place into one of many world’s most prolific unconventional performs and we’re grateful that the federal government of Neuquen Province has entrusted us with the event and operation of those belongings”.
GeoPark expects incremental pro-forma adjusted EBITDA of $12-14 million for 2025 on account of the acquisitions.
“The event plan requires $500-600 million of gross funding by 2028”, GeoPark mentioned.
“Peak internet debt-to-EBITDA ratio is 2.0-2.5x in 2026, earlier than quickly deleveraging to beneath 1.0x as plateau adjusted EBITDA is achieved”.
The acquisition worth values the belongings at $9,550 per acre, in accordance with the assertion.
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