(WO) — In a strategic deal, GeoPark has signed an asset purchase agreement with Phoenix Global Resources, a subsidiary of Mercuria Energy Trading, to acquire non-operated working interests (WI) in four adjacent unconventional blocks in the Neuquén basin.
These blocks include a 45% WI in each of the Mata Mora Norte producing block and Mata Mora Sur exploration block, both located in Neuquén Province, and a 50% WI in each of the Confluencia Norte and Confluencia Sur exploration blocks, situated in Rio Negro Province.
This acquisition holds several key highlights:
- GeoPark’s strategic fit within the Vaca Muerta shale formation, boasting an estimated 16 billion bbl of oil and 300+ Tcf of unconventional gas resources, aligns with its vision for sustainable value creation.
- The acquired blocks, located in the oil-rich Vaca Muerta formation in the Neuquen basin, present immediate access to rapidly growing production profiles and reserves.
- GeoPark anticipates an increase in its 2024 production by an estimated 5,500-6,500 net boepd following the closing of the transaction.
- The transaction is expected to provide access to 25 MMboe of 1P net reserves, 49.5 MMboe of 2P net reserves, and 102.6 MMboe of 3P net reserves, contributing to GeoPark’s long-term reserves growth strategy.
Andrés Ocampo, Chief Executive Officer of GeoPark, expressed enthusiasm about the deal, highlighting its transformative nature and the immediate value-accretive benefits it brings to GeoPark’s production and reserves growth. This strategic collaboration with PGR, a proven operator in Vaca Muerta, underscores GeoPark’s commitment to expanding its presence in Latin America’s energy landscape.
The transaction, valued at $190 million, includes upfront consideration, exploratory commitments, acquisition of midstream capacity, and a bonus contingent on exploration results. It is expected to close before the end of the third quarter of 2024, pending regulatory approvals.
This acquisition marks a significant step for GeoPark as it continues to strengthen its position as a leading player in Latin America’s oil and gas sector.
