GeoPark Holdings Obtains Two Colombia-Focused E&Ps

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Description

Acquired 2 private companies with interests in 8 blocks covering 131,000 gross acres in Llanos, Magdalena & Catatumbo basins in Colombia, gaining 800 net BOE/d, 2 MMBOE 2P.

GeoPark Holdings Ltd., Hamilton, Bermuda, (London: GPK) has acquired privately-held, Colombia-based Winchester Oil and Gas SA and La Luna Oil Co. Ltd. SA for US$30 million in cash.

The deal includes interests in eight blocks (ranging from 75% to 5%) in the Llanos, Magdalena and Catatumbo basins in Colombia, covering an area of approximately 131,000 gross acres. The Winchester and Luna licensed operators of two of the blocks.

Production is approximately 1,230 gross barrels of oil per day (800 barrels net) from two blocks. Proved and probable reserves are approximately 2 million net barrels. The properties feature unrisked exploration oil resources of 20- to 25 million barrels net, according to GeoPark.

There is an active and ongoing exploration drilling program with 10 wells planned for 2012. The deal also includes associations and joint ventures with principal Colombian operators.

GeoPark chief executive James F. Park says, “The acquisition of Winchester Luna is an important first step for GeoPark into Colombia and into a region with exciting growth and consolidation opportunities. A position in Colombia, with its big subsurface oil and gas potential and its inviting political and regulatory environment, is key to building a successful Latin American oil and gas project portfolio.”

He adds, “We believe the Winchester Luna asset mix and its active current drilling program provide the opportunity for GeoPark to grow and add value through both the drill bit and additional acquisitions in the short and intermediate term. We believe the Colombian assets are also an excellent complement to our successful and growing Chile portfolio.”

GeoPark currently operates nine blocks in Chile and Argentina (approximately 4 million gross acres) with current oil and gas production of approximately 9,200 barrels of oil equivalent per day.