GeoPark Limited (GeoPark), an independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Peru, Argentina, Brazil and Chile, announced an agreement to acquire the LG International Corporation (LGI) interest in GeoPark’s Colombian and Chilean operations and subsidiaries. This acquisition will increase GeoPark’s equity interest to 100% in its Colombian and Chilean businesses, which consist of multiple hydrocarbon blocks and associated oil and gas production and reserves, including the Llanos 34 block (GeoPark operated, 45% WI) in Colombia.
This acquisition will also help streamline financial, tax, organizational, and cost structures. The acquisition price includes a fixed payment of USD 81M payable at closing, plus two equal instalments of USD 15M each, to be paid in June 2019 and June 2020, respectively. Additionally, three contingent payments of USD 5M each could be payable over the next three years, subject to certain production thresholds being exceeded.