GeoPark Renews Offtake Agreement With Vitol in Colombia

Core Viewpoint - GeoPark Limited has renewed its offtake and prepayment agreement with Vitol, extending the collaboration in the Llanos basin in Colombia until December 31, 2028, which is expected to enhance financial flexibility and operational efficiency [1][2][6]. Offtake Agreement - The new offtake agreement allows GeoPark to sell 100% of its crude oil production from the Llanos 34, Llanos 123, and CPO-5 blocks, extending the agreement from June 2027 to December 31, 2028 [2]. - The renewed terms are expected to restore GeoPark's weighted-average netbacks to single-digit levels, comparable to 2020 benchmarks, and improve portfolio realizations by approximately US$0.33 per barrel [3]. Prepayment Facility - The prepayment facility from Vitol provides up to $500 million, including a firm $330 million committed availability and an option for an additional $170 million [4]. - The interest cost for drawn amounts is based on a one-month term SOFR risk-free rate plus a margin of 3.50% per annum, currently equivalent to approximately 7.15–7.25% [5]. Financial Flexibility - The renewed prepayment facility enhances GeoPark's financial flexibility and resilience, supporting the execution of the company's strategic plans for the 2026–2028 period and beyond [6]. - The funds committed by Vitol will be available until June 30, 2027, subject to certain conditions [5].