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
TotalEnergies Eyes Suriname FID by Year-end 2024
2024-04-29 - France’s TotalEnergies and U.S. partner APA Corp. look to place their long lead orders ahead of a final investment decision related to their joint development offshore Suriname in Block 58.
Diamondback Stockholders All in for $26B Endeavor Deal
2024-04-29 - Diamondback Energy shareholders have approved the $26 billion merger with Endeavor Energy Resources.
ProPetro to Provide eFrac Services to Exxon’s Permian Operations
2024-04-29 - ProPetro has entered a three-year agreement to provide electric hydraulic fracturing services for Exxon Mobil’s operations in the Permian Basin.
Keeping it Simple: Antero Stays on Profitable Course in 1Q
2024-04-28 - Bucking trend, Antero Resources posted a slight increase in natural gas production as other companies curtailed production.
Oil and Gas Chain Reaction: E&P M&A Begets OFS Consolidation
2024-04-26 - Record-breaking E&P consolidation is rippling into oilfield services, with much more M&A on the way.