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. These blocks are located in the Vaca Muerta formation within Argentina's Neuquén basin, a region known
for its rich oil reserves. 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 act as a strategic partner in the asset's development. The total consideration for the transaction is approximately $115 million. GeoPark's teams are already mobilized to commence operational work on these blocks.
Why It's Important?
This acquisition marks a significant expansion of GeoPark's operations in one of South America's most active unconventional oil regions. The Vaca Muerta formation continues to attract international investment due to its potential for large-scale oil production. By securing operatorship of these blocks, GeoPark strengthens its position in the region, potentially increasing its production and reserves. This move aligns with GeoPark's strategy of disciplined investment and partnership with local stakeholders, which could enhance its long-term commitment to Argentina's energy sector. The involvement of GyP as a strategic partner also underscores the collaborative approach to developing these assets, which may lead to more efficient and sustainable operations.
What's Next?
GeoPark is set to begin operational activities on the newly acquired blocks, with a focus on delivering on its commitments to develop these assets. The company aims to apply its operational and financial expertise, along with environmental stewardship and social responsibility, to maximize the potential of these oil reserves. The successful development of these blocks could lead to increased production capacity and further investment opportunities in the region. Stakeholders, including the Government of Neuquén Province and GyP, will likely monitor the progress closely, as the outcomes could influence future energy projects and partnerships in Argentina.
