What's Happening?
GeoPark Limited has acquired two operated blocks in Argentina's Vaca Muerta shale from Pluspetrol S.A., marking a strategic expansion for the company. The acquisition includes a 100% operated working interest in the Loma Jarillosa Este block and a 95% interest in the Puesto Silva Oeste block, with the remaining 5% transferred to Gas y Petróleo del Neuquén. The blocks cover over 12,300 acres in the shale play's black oil window, with current production between 1,700 and 2,000 boed. GeoPark plans to increase production to 20,000 boed by 2028 through a development plan involving up to 55 wells.
Why It's Important?
GeoPark's entry into Vaca Muerta represents a significant strategic move, enhancing its presence in one of the world's top unconventional oil plays. The acquisition provides GeoPark with immediate production, reserves, and long-term value, positioning the company for growth in the Latin American energy market. The development plan aims to capitalize on the prolific shale play's potential, contributing to GeoPark's production capacity and resource base.
What's Next?
GeoPark plans to construct a new central processing facility with a capacity of 20,000 bopd to support future production volumes. The acquisition, funded from cash on hand, is expected to close by the end of 2025, pending government approvals. GeoPark's strategic focus on expanding its operations in Vaca Muerta aligns with its broader goals of increasing production and reserves in Latin America.
Beyond the Headlines
GeoPark's expansion into Vaca Muerta highlights the growing interest in unconventional oil plays and the potential for significant resource development in Argentina. The acquisition underscores the importance of strategic partnerships and investments in enhancing production capabilities and resource management. GeoPark's focus on long-term value creation reflects broader industry trends towards sustainable growth and resource optimization.
