What's Happening?
GeoPark has finalized its acquisition of a 100% operated working interest in the Loma Jarillosa Este and Puesto Silva Oeste blocks from Pluspetrol S.A. in Argentina's Vaca Muerta formation. The Government of Neuquén Province has issued decrees formalizing
the transaction, granting all necessary governmental and regulatory approvals. As part of the deal, GeoPark transferred a 5% working interest in the Puesto Silva Oeste block to Gas y Petróleo del Neuquén S.A. (GyP), which will join as a strategic partner. The transaction, valued at approximately $115 million, allows GeoPark to expand its operations in one of South America's most active unconventional oil regions.
Why It's Important?
This acquisition marks a significant expansion for GeoPark in the Vaca Muerta formation, a region known for attracting international investment due to its rich oil reserves. By securing operatorship, GeoPark strengthens its position in the South American oil market, potentially increasing its production and reserves. The involvement of local partner GyP underscores the importance of strategic alliances in navigating regional markets. This move could enhance GeoPark's competitive edge and operational capabilities, contributing to its long-term growth strategy.
What's Next?
GeoPark's teams are set to begin operational work on the newly acquired blocks. The company aims to leverage its operational and financial expertise to develop these assets efficiently. The partnership with GyP may facilitate smoother operations and local integration. As GeoPark progresses, it will likely focus on optimizing production and exploring further investment opportunities in the region.
