GeoPark acquires new block in Argentina’s Neuquen basin

GeoPark and integrated energy company YPF have acquired the Los Parlamentos block in the Neuquen basin in Argentina.

Located in the Mendoza Province, the new block covers an area of 366,000 acres with seismic coverage (100km² of 3D and 800km² of 2D seismic), near other producing fields.

YPF secured the block through a bidding round last month.

Under the terms of the partnership deal, GeoPark will acquire a 50% non-operating working interest (WI) in Los Parlamentos.

In exchange, the company is required to fund its 50% stake of one exploration well and additional 3D seismic coverage.

Over the next three years, GeoPark needs to invest $6m.

GeoPark CEO James Park said: “We are very pleased to have the opportunity to partner and work with YPF in Argentina and to be adding more high-potential, valuable acres in the Neuquen basin, where our team knows the rocks and has a great track record of finding oil and gas.

“This type of low-cost, bolt-on acquisition in a prolific hydrocarbon basin, in partnership with the national oil company, exactly fits GeoPark’s playbook and demonstrates the growing strength, reach and benefits of our regional Latin American platform.”

The acquisition of interest in Los Parlamentos will allow the company to expand its footprint in the Neuquen basin.

GeoPark intends to explore conventional and unconventional exploration potential within the Grupo Neuquen and Loncoche formations.

The company has seven blocks in the Neuquen basin, totalling more than two million acres.

Geoscience evaluation is currently in progress and the company expects to commence field operations later this year or early next year.

The partnership agreement between the parties is conditional upon customary regulatory approvals.