GeoPark said in a news release that it has signed sale and purchase agreements (SPAs) with Repsol Exploración S.A. and Repsol E&P S.A.R.L.
The acquisition would incorporate high-quality assets located in the prolific Llanos Basin, one of Colombia’s most productive oil regions where GeoPark has “a successful oil-finding track record and is a well-established operator both above and below ground,” the company said.
The agreements include the acquisition of 100 percent of Repsol Colombia O&G Limited, which owns a 45 percent non-operated working interest in the CPO-9 Block in Meta Department, operated by Ecopetrol with a 55 percent interest.
GeoPark said the agreements also include Repsol’s 25 percent interest in SierraCol Energy Arauca LLC (Llanos Norte).
In total, the assets produced approximately 16,000 barrels of oil equivalent per day (boepd) net to Repsol as of September.
The consideration for the acquisition is approximately $530 million, funded through a combination of cash resources and debt, including a non-recourse amortizing debt facility of up to $345 million, according to the release.
GeoPark noted that the acquisition is aligned with its growth strategy, by “securing value accretive access to big competitively advantaged assets, in big plays, and big proven basins to build and deliver a highly profitable, dependable, and sustainable oil and gas portfolio across Latin America”.
The Repsol portfolio in Colombia would provide immediate and long-term production, reserves, and cashflow, with low capital investment intensity, significant low-risk growth potential and exploration upside, GeoPark further stated.
The acquisition strategically complements its recent entry into the Vaca Muerta play in Argentina, “enabling robust asset, play and country risk diversification well into the next decade,” it said.
The transaction is subject to the fulfillment of certain conditions precedent and customary regulatory approvals, including the waiver or non-execution of the preemptive rights by Repsol’s current partners, according to the release.
Earlier in the month, GeoPark started production at the Confluencia Norte Block in Rio Negro, Argentina. The company has a 50 percent non-operated working interest in the asset.
The Confluencia Norte Block recently completed its first pad of three unconventional wells, which began production in mid-October. The development confirms the presence of the Vaca Muerta formation at the westernmost edge of the block, GeoPark said in an earlier news release.
The pad includes a vertical pilot well, drilled specifically for data acquisition, along with three horizontal wells reaching a total measured depth of 20,669 feet (6,300 meters).
GeoPark said that a high intensity fracturing program was executed across 135 stages, resulting in a current gross production rate of 4,000 barrels of oil per day (bopd) during the ongoing flowback and well testing phase, with production currently being transported to and marketed through The Mata Mora Norte Block facility.
The wells are still cleaning up and are expected to reach their peak production within 90 days of the production start, highlighting the block’s rich petrophysical properties, which are comparable to those found in the Mata Mora Norte Block, in which GeoPark owns a non-operated 45 percent working interest.
