GeoPark Expands in Colombia With Strategic Repsol Acquisition

Core Viewpoint - GeoPark Limited (GPRK) has announced an agreement to acquire upstream oil and gas assets from Repsol in Colombia, which aligns with its growth strategy and aims to enhance its production and cash flow [1][5]. Group 1: Acquisition Details - GPRK is set to acquire Repsol Colombia O&G Limited, which holds a 45% working interest in the CPO-9 Block and a 25% working interest in SierraCol Energy Arauca LLC [3]. - The CPO-9 Block, operated by Ecopetrol S.A., produced approximately 16,000 barrels of oil equivalent per day for Repsol as of September 2024 [3]. Group 2: Strategic Alignment - The acquisition supports GPRK's "North Star" strategy, focusing on high-valued assets in the Llanos Basin to create a profitable and sustainable portfolio across Latin America [5]. - This new portfolio is expected to increase GPRK's production levels, reserves, and cash flow while requiring low capital investment [5]. Group 3: Financial Structure - The total deal value is $530 million, which will be financed through cash and a $345 million non-recourse debt facility arranged by Macquarie Bank Limited [6]. - A strong hedging strategy is in place to ensure price protection and reliable debt servicing for the acquisition [6].