GeoPark Announces Exclusive Binding Agreement to Acquire Repsol Exploration and Production Assets in Colombia
29 Noviembre 2024 - 1:05AM
Business Wire
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent energy company with over 20 years of successful
operations across Latin America, announced today that the Company
has signed Sale and Purchase Agreements (SPAs) with Repsol
Exploración S.A. and Repsol E&P S.A.R.L (collectively,
“Repsol”) to acquire Repsol upstream oil and gas assets in
Colombia.
The potential acquisition would incorporate high-quality assets
located in the prolific Llanos Basin, one of Colombia’s most
productive oil regions where GeoPark already has a successful
oil-finding track record and is a well-established operator both
above and below ground. The agreements include the acquisition of
100% of Repsol Colombia O&G Limited, which owns a 45%
non-operated working interest in the CPO-9 Block in Meta Department
(operated by Ecopetrol with a 55% WI), and Repsol’s 25% interest in
SierraCol Energy Arauca LLC (“Llanos Norte”) in Arauca Department.
Together, these assets produced approximately 16,000 boepd net1 to
Repsol as of September 2024.
This acquisition firmly fits within GeoPark’s growth strategy –
“North Star”- 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. This opportunity also strategically complements GeoPark’s
recent entry into the Vaca Muerta play in Argentina, enabling
robust asset, play and country risk diversification well into the
next decade.
The consideration for the potential acquisition at full scope 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, led and arranged by Macquarie Bank
Limited, underscoring the security and strong cash generation
profile of the assets. The debt facility is paired up with a robust
hedging strategy that underpins debt service and provides price
downside protection.
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. Hence, no assurances can be given about the
transaction’s final scope and/or that it will ultimately be
completed. Due to confidentiality terms in the agreement, GeoPark
is not able to provide further information to the market on this
acquisition until the transaction is effectively closed, or
terminated, as the case may be.
_________________________ 1 Production at Repsol’s working
interest before royalties and economic rights.
NOTICE
Additional information about GeoPark can be found in the “Invest
with Us” section on the website at www.geo-park.com.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION
This press release contains statements that constitute
forward-looking statements. Many of the forward-looking statements
contained in this press release can be identified by the use of
forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’
‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’
‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in
this press release include, but are not limited to, statements
regarding the intent, belief or current expectations, regarding
various matters, including, expected production, reserves and the
closing of the acquisition. Forward-looking statements are based on
management’s beliefs and assumptions, and on information currently
available to the management. Such statements are subject to risks
and uncertainties, and actual results may differ materially from
those expressed or implied in the forward-looking statements due to
various factors.
Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update
them in light of new information or future developments or to
release publicly any revisions to these statements in order to
reflect later events or circumstances, or to reflect the occurrence
of unanticipated events. For a discussion of the risks facing the
Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange
Commission (SEC).
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version on businesswire.com: https://www.businesswire.com/news/home/20241128264650/en/
INVESTORS:
Maria Catalina Escobar Shareholder Value and Capital
Markets Director mescobar@geo-park.com
Miguel Bello Investor Relations Officer
mbello@geo-park.com
Maria Alejandra Velez Investor Relations Leader
mvelez@geo-park.com
MEDIA:
Communications Department communications@geo-park.com
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