Sep. 3 at 8:43 PM
GeoPark announced a transformative agreement to enter Venezuela by acquiring a 65% net interest in the Bare Block, a large heavy-oil producing asset in the Orinoco Oil Belt. GeoPark will operate the block under a 25-year Production Sharing Contract with PDVSA. The asset currently produces around 11,000 barrels per day from 1,100 wells and has original oil in place of approximately 15.7 billion barrels, with potential production estimated at up to 95,000 barrels per day through long-term redevelopment.
The all-stock transaction will see GeoPark issue 42.1 million new shares to Grupo Gilinski at
$12.22 per share, increasing Gilinski's stake to approximately 56.3% and making the Colombian conglomerate the company's controlling shareholder. GeoPark said it has roughly
$700 million in available liquidity, including about
$310 million in cash, to support the redevelopment of the Venezuelan asset while continuing operations in Colombia and Vaca Muerta in Argentina.
$GPRK