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
Energy Transition in Motion (Week of March 1, 2024)
2024-03-01 - Here is a look at some of this week’s renewable energy news, including Chevron’s plans for a solar-to-hydrogen facility in California.
Energy Transition in Motion (Week of May 17, 2024)
2024-05-17 - Here is a look at some of this week’s renewable energy news, including more moves by the U.S. to strengthen and protect the U.S. solar panel manufacturing sector from China.
Energy Transition in Motion (Week of March 8, 2024)
2024-03-08 - Here is a look at some of this week’s renewable energy news, including a record-setting 2023 for U.S. solar.
Energy Transition in Motion (Week of April 19, 2024)
2024-04-19 - Here is a look at some of this week’s renewable energy news, including the latest on global solar sector funding and M&A.
Could Concentrated Solar Power Be an Energy Storage Gamechanger?
2024-03-27 - Vast Energy CEO Craig Wood shares insight on concentrated solar power and its role in energy storage and green fuels.