This acquisition firmly fits within GeoPark’s growth strategy. The Repsol portfolio in Colombia would provide immediate and long-term production, reserves and cashflow, with low capital investment intensity, significant low-risk growth potential and exploration upside. This opportunity also strategically complements GeoPark’s recent entry into the Vaca Muerta play in Argentina, enabling robust asset, play and country risk diversification well into the next decade.
The consideration for the potential acquisition at full scope is approximately $530 million, funded through a combination of cash resources and debt, including a non-recourse amortizing debt facility of up to $345 million, 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.
