GeoPark (GPRK) Acquires Frontera Energy’s Assets in Colombia

GeoPark Limited (NYSE:GPRK) is simply a Latin American lipid and state explorer, operator, and consolidator with assets and maturation platforms successful Colombia, Argentina, and Brazil.

GeoPark Limited (NYSE:GPRK) announced connected January 29 that it has signed a woody to get Frontera Energy’s lipid and state exploration and accumulation assets successful Colombia. The woody is valued astatine $375 cardinal successful currency and an further $25 cardinal outgo contingent connected the accomplishment of definite improvement milestones. According to Geopark, the transaction volition materially heighten its scale, reserve base, and cash-flow generation, portion besides reinforcing its capableness to money disciplined maturation done the cycle.

GeoPark Limited (NYSE:GPRK) expects the acquisition to instantly adhd 147 cardinal barrels of lipid equivalent (mmboe) to its proven and probable (2P) reserves and 99 mmboe to its proven reserves. Moreover, it is expected to rise the company’s pro forma accumulation to implicit 90,000 boepd and its EBITDA to astir $950 cardinal by 2028. This is efficaciously treble from Geopark’s antecedently announced 2028 standalone outlook of 44,000–46,000 boepd and EBITDA of $490–520 million. Additionally, the operation is projected to present synergies reaching a recurring yearly run-rate of $30-50 cardinal by 2027.

Felipe Bayon, CEO of GeoPark Limited (NYSE:GPRK), commented:

“Today’s announcement marks an important milestone successful GeoPark’s maturation trajectory. After extended discussions with Frontera Energy implicit the past year, we are pleased to person reached an statement that adds Frontera’s Colombian assets to our portfolio, positioning GeoPark arsenic the largest backstage relation successful Colombia and creating a stronger and much resilient level with greater scale, longer accumulation plateaus and improved cash-flow durability, portion continuing to money our maturation successful Vaca Muerta. Beyond the fiscal and accumulation metrics, this transaction enables a full-field improvement attack successful assets specified arsenic Quifa and the broader Llanos portfolio, allowing america to widen plateau production, seizure synergies and reinvest efficiently. This volition enactment sustained production, reserves extortion and accrued concern enactment that benefits the regions wherever we run done jobs, royalties and taxes.”

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