GeoPark secures $530 million acquisition of Repsol assets in Colombia
- GeoPark has signed agreements to acquire Repsol's upstream oil and gas assets in Colombia, including a 45% interest in the CPO-9 Block.
- The total consideration for the acquisition is approximately $530 million, financed through cash and a debt facility.
- The acquisition aligns with GeoPark's growth strategy, providing immediate and long-term benefits in production and cash flow.
In recent weeks, GeoPark Limited, a prominent independent energy company operational in Latin America, has taken a significant step in its growth strategy by entering into agreements to acquire upstream oil and gas assets from Repsol in Colombia. The assets to be acquired are situated in the Llanos Basin, one of the country's most productive oil regions, which GeoPark has successfully operated in for over two decades. The agreement involves the purchase of 100% of Repsol Colombia O&G Limited and a 25% interest in SierraCol Energy Arauca LLC. As of September 2024, these holdings had a combined production of approximately 16,000 barrels of oil equivalent per day. This acquisition serves as a key part of GeoPark's strategic plan, referred to as 'North Star,' focusing on growth through the acquisition of valuable, competitively positioned assets in established oil fields. The deal is valued at around $530 million and will be funded through a mix of cash resources and debt aimed at providing immediate cash flow and production at low capital intensity. To manage financial risk, GeoPark will engage a non-recourse amortizing debt facility organized by Macquarie Bank Limited, totaling up to $345 million, which includes a hedging strategy to protect against price fluctuations. Regulatory approvals and conditions from Repsol's partners will determine the finalization and scope of the transaction. If all conditions are met, this acquisition could bolster GeoPark's production metrics significantly while diversifying its portfolio further in South America, particularly following its recent activities in the Vaca Muerta region of Argentina.