GeoPark Seals $530 Million Colombian Oil & Gas Asset Acquisition Deal With Repsol

Geopark Ltd (NYSE:GPRK) shares are trading higher premarket on Friday. The company disclosed that it has signed Sale and Purchase Agreements with Repsol Exploración S.A. and Repsol E&P S.A.R.L to acquire Repsol’s upstream oil and gas assets in Colombia.

The total consideration for the potential acquisition is approximately $530 million, which will be funded through a mix of cash resources and debt.

This includes a non-recourse amortizing debt facility of up to $345 million, led and arranged by Macquarie Bank Limited, highlighting the assets’ secure and strong cash generation profile.

The acquisition includes assets in Colombia’s Llanos Basin. It covers 100% of Repsol Colombia O&G Limited, holding a 45% stake in the CPO-9 Block (operated by Ecopetrol), and a 25% interest in SierraCol Energy Arauca LLC.

Combined production from these assets was approximately 16,000 boepd net to Repsol as of September 2024.

This acquisition aligns with GeoPark’s “North Star” growth strategy, providing access to valuable, competitively advantaged assets in proven basins.

The transaction is contingent on the satisfaction of certain conditions and customary regulatory approvals, including the waiver or non-execution of preemptive rights by Repsol’s current partners.

GeoPark had a cash balance of $123.4 million at the end of September.

Price Action: GPRK shares are up 2.20% at $9.29 premarket at the last check Friday.

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