GeoPark Completes Acquisition of 95% Equity Interest in the Holding Company of Venezuela's Bare Oilfield

en.Wedoany.com Reported - On November 2, Latin American oil and gas producer GeoPark completed the acquisition of the remaining 95% equity interest in the holding company of the Bare oilfield production participation contract in Venezuela, and the 25-year oilfield production participation contract (CPP) officially took effect. GeoPark has obtained final approval of the development and commercialization plan, completed the signing of ancillary agreements with PDVSA Petróleo, a subsidiary of Venezuela's state-owned oil company PDVSA, and obtained all authorizations required for the contract to take effect. The company will hold a 65% net participation interest as the oilfield operator and bear 100% of the capital expenditure under the approved work program.

The equity acquisition was completed through a share exchange. GeoPark issued 42,135,900 ordinary shares to Panamerican Energy Holdings, a subsidiary of Colombia's Gilinski Group, as consideration for the acquisition of the remaining 95% interest in the CPP holding company, with no cash payment. Upon completion of the transaction, the Gilinski Group holds approximately 56.3% of GeoPark's issued ordinary shares and has become the company's controlling shareholder.

Under the transaction agreement, the Gilinski Group may also receive up to 5,421,600 additional GeoPark ordinary shares upon satisfaction of agreed conditions, which would increase its shareholding to approximately 58.4%. The deadline for fulfillment of the relevant conditions has been extended to December 1, 2026. The Gilinski Group is also required, within 90 days after the closing of the transaction, to launch a tender offer for shares at US$12.22 per share, with a total cap of US$100 million.

The operational takeover of the Bare oilfield is underway, and GeoPark plans to complete the takeover by the end of 2026. The company has currently assessed approximately 300 to 400 wells planned for recommissioning, with the first phase including stabilizing existing production, restoring shut-in wells, performing workover operations and repairing existing production infrastructure.