GeoPark Limited, a Colombian oil and gas producer and operator, has recently returned to Argentina after leaving the country in 2021 to focus on non-conventional energy businesses. The company has sealed a purchase agreement for over US$300 million with Phoenix Global Resources, a Swiss subsidiary of Mercuria Energy Trading, which counts businessman José Luis Manzano among its shareholders. The transaction involves acquiring a 45% share in two exploration producers in Vaca Muerta, as well as a 50% share in two other exploration producers.
The assets acquired by GeoPark are located in Río Negro, in the Neuquén Basin, and are situated one hour from the city of Neuquén and near service centers. Currently, they produce over 28,000 gross barrels of oil equivalent per day. Phoenix Global Resources will continue as the operator of the blocks, and the acquisition is expected to increase GeoPark’s production by 5,500 to 6,500 net boepd in 2024, pending the closing date of the transaction.
GeoPark expects gross production output for the year to range between 13,500 and 14,000 boepd, with plans to develop approximately 150 drilling sites in the Mata Mora Norte block to reach 40,000 gross boepd by 2028. The company will pay US$190 million for a total of 122,315 gross acres and finance 100% of exploratory commitments up to US$113 million within two years.
The completion of the acquisition is expected before the end of the third quarter of the year subject to regulatory approvals. This deal adds to GeoPark’s asset portfolio which includes operations in Brazil and Ecuador in addition to Colombia. The company views Vaca Muerta formation as an opportunity for growth and contribution to Argentina’s oil production highlighting its potential for expansion.
