GeoPark Ltd. (NYSE: GPRK) has expanded in the Neuquen basin in Argentina with the acquisition of Los Parlamentos block in partnership with YPF SA , the company said on June 11.
Los Parlamentos is an attractive, high-potential block located in the Mendoza Province and covers an area of approximately 366,000 acres (1,480 sq km) with seismic coverage (100 sq km of 3-D and 800 sq km of 2-D seismic), near other producing fields.
The block was awarded to YPF in the Mendoza bidding round on May 31, 2018. In accordance with the partnership agreement between YPF and GeoPark, and subject to customary regulatory approvals, GeoPark will receive a 50% non-operating working interest in Los Parlamentos block in exchange for a commitment to fund its 50% working interest of one exploration well and additional 3-D seismic. GeoPark’s total financial commitment is approximately $6 million over the next three years.
Los Parlamentos expands GeoPark’s seven block, over 2 million acre platform in the prolific Neuquen basin, with significant conventional and unconventional exploration potential within the Grupo Neuquen and Loncoche formations. Geoscience evaluation is ongoing and field operations are expected to start-up in late 2018 or early 2019.
YPF is the largest oil and gas producer in Argentina, with participating interests in more than 100 development concessions and more than 20 exploration permits in the most attractive basins in Argentina.
“We are very pleased to have the opportunity to partner and work with YPF in Argentina and to be adding more high-potential, valuable acres in the Neuquen basin, where our team knows the rocks and has a great track-record of finding oil and gas,” James F. Park, CEO of GeoPark, said.
“This type of low-cost, bolt-on acquisition in a prolific hydrocarbon basin - in partnership with the national oil company - exactly fits GeoPark’s playbook and demonstrates the growing strength, reach and benefits of our regional Latin American platform.”