GeoPark agrees to acquire Repsol upstream oil and gas assets in Colombia

GeoPark (GPRK) announced earlier that the company has signed Sale and Purchase Agreements with Repsol (REPYY) Exploracion S.A. and Repsol E&P S.A.R.L to acquire Repsol upstream oil and gas assets in Colombia. “The potential acquisition would incorporate high-quality assets located in the prolific Llanos Basin, one of Colombia’s most productive oil regions where GeoPark already has a successful oil-finding track record and is a well-established operator both above and below ground. The agreements include the acquisition of 100% of Repsol Colombia O&G Limited, which owns a 45% non-operated working interest in the CPO-9 Block in Meta Department – operated by Ecopetrol (EC) with a 55% WI – and Repsol’s 25% interest in SierraCol Energy Arauca LLC in Arauca Department. Together, these assets produced approximately 16,000 boepd net1 to Repsol as of September 2024,” the company stated. The consideration for the potential acquisition at full scope is approximately $530M, funded through a combination of cash resources and debt, including a non-recourse amortizing debt facility of up to $345M, led and arranged by Macquarie Bank Limited, underscoring the security and strong cash generation profile of the assets. “The debt facility is paired up with a robust hedging strategy that underpins debt service and provides price downside protection. The transaction is subject to the fulfillment of certain conditions precedent and customary regulatory approvals, including the waiver or non-execution of the preemptive rights by Repsol’s current partners. Hence, no assurances can be given about the transaction’s final scope and/or that it will ultimately be completed. Due to confidentiality terms in the agreement, GeoPark is not able to provide further information to the market on this acquisition until the transaction is effectively closed, or terminated, as the case may be,” the company added.