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Colombia's GeoPark Acquires Stake in Venezuela's Bare Field

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Independent energy producer GeoPark (GPRK) has agreed to enter Venezuela's Orinoco Heavy Oil Belt through a transformational brownfield redevelopment deal for the Bare block, spearheaded by Grupo Gilinski, the company said on Thursday.

Led by Grupo Gilinski, the transaction secures a 25-year Production Participation Contract under which GeoPark will act as operator with a 65% net working interest and fund 100% of capital expenditures, it stated.

The brownfield asset currently produces about 11,000 bopd from roughly 1,100 wells, with historical cumulative production exceeding 700 million barrels and a peak potential of 85,000 to 95,000 bopd.

GeoPark's redevelopment plan aims to raise the field recovery factor from 4-5% to 8-9%, targeting cumulative net production of about 400 million barrels and driving overall company output to 75,000-85,000 boepd by 2030.

Financed through equity to protect GeoPark's liquidity profile which stands at about $700 million including $310 million in cash the transaction involves issuing 42.1 million shares to a member entity of Grupo Gilinski at $12.22 per share, according to the statement.

Upon completion, Grupo Gilinski will acquire a controlling stake of about 56.3% in GeoPark, it added.

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