GeoPark Holdings Ltd. acquired Winchester Oil and Gas S.A. and La Luna Oil Co. Ltd. S.A., collectively Winchester Luna, privately-held exploration and production companies operating in Colombia, for a $30 million cash consideration.
The agreement also provides for certain contingent payments from production revenues as a result of successful future exploration.
GeoPark is acquiring the Winchester Luna assets to form a nucleus around which it plans to build a long-term business in Colombia. GeoPark currently operates nine blocks in Chile and Argentina (approximately four million gross acres) with current oil and gas production of approximately 9,200 barrels of oil equivalent per day.
GeoPark's 2012 work program of $100 million to $120 million in Chile includes the drilling of 17-20 wells and the carrying out of 232 sq km (600 sq km) of 3D and 91 miles (147 km) of 2D seismic surveys.