GeoPark Ltd. submitted a binding offer to purchase a non-operated working interest in unconventional blocks in Argentina's Neuquen Basin’s Vaca Muerta Formation from an undisclosed seller.
GeoPark said it agreed to pay $200 million for the interests, plus an additional carry of between $110 million to $120 million (gross) over two years that are related to certain exploration activities, GeoPark said in an April 11 press release. At closing, the acquisition will add more than 5,000 boe/d of net production to GeoPark.
The offer has been accepted by the seller, which is working with GeoPark on an exclusive basis towards executing definitive agreements in the coming weeks, GeoPark said. Subject to those agreements, the transaction would close in third-quarter 2024.
GeoPark expects to fund the acquisition with available cash on hand and credit facilities as well as new financing. After the acquisition, GeoPark expects its net debt to adjusted EBITDA ratio to remain below 1.1x.
The planned acquisition is in line with GeoPark’s ongoing strategy to expand across Latin America, the company said.
Recommended Reading
Petrobras Sending Nearly Half of Oil Exports to China
2024-04-30 - Conflict in the Middle East has enabled Brazil’s state-owned Petrobras to change the flow of its oil exports, with China being the primary beneficiary, followed by Europe.
Equinor Says EQT Asset Swap Upgrades International Portfolio
2024-04-30 - Equinor CFO Torgrim Reitan says the company’s recent U.S. asset swap with EQT Corp. was an example of the European company “high-grading” its international E&P portfolio.
E&P Highlights: April 29, 2024
2024-04-29 - Here’s a roundup of the latest E&P headlines, including a new contract award and drilling technology.
Kosmos Energy’s RBL Increased, Maturity Date Extended
2024-04-29 - Kosmos Energy’s reserve-based lending facility’s size has been increased by about 8% to $1.35 billion from $1.25 billion, with current commitments of approximately $1.2 billion.
Barnett & Beyond: Marathon, Oxy, Peers Testing Deeper Permian Zones
2024-04-29 - Marathon Oil, Occidental, Continental Resources and others are reaching under the Permian’s popular benches for new drilling locations. Analysts think there are areas of the basin where the Permian’s deeper zones can compete for capital.