GeoPark acquires UK-based oil and gas explorer for $314m

Latin American oil and gas (O&G) exploration firm GeoPark has completed the acquisition of the UK-based O&G producer and explorer Amerisur Resources.

Initially announced last November, the deal is valued at £242m ($314m) at an offer price of 19.21p for each share.

GeoPark noted that the transaction is being funded through the issuance of $350m 5.5% senior notes, which are due in 2027.

With the completion of this acquisition, GeoPark will incorporate Amerisur’s 13 production, development and exploration blocks in Colombia, which include 12 operated blocks in the Putumayo Basin and the non-operated CPO-5 block in the Llanos Basin.

The deal also adds the Oleoducto Binacional Amerisur export oil pipeline to GeoPark’s portfolio.

Entry into the Putumayo basin will enable GeoPark to access an under-explored high-potential hydrocarbon basin.

The acquisition of the oil and gas explorer will also enables GeoPark to leverage partnerships with Oxy (operator of the CPO-5 block) and Indian oil company ONGC, who is the operator of the CPO-5 block.

As of last September, Amerisur had 6,865bopd of net light oil production.

GeoPark CEO James F Park said: “Through this transaction, GeoPark continues delivering on our 17-year vision of creating from scratch, patiently and responsibly, the leading oil and gas independent across Latin America.

“The acquisition of Amerisur brings a wagon full of short, medium and long-term benefits, including light oil production, proven reserves, low break-even cash flow, low-risk development opportunities, significant exploration resources, new strategic acreage, carried exploration drilling, a cross-border pipeline, new industry partnerships and attractive operating and commercial synergies.”

In September 2019, GeoPark expanded its portfolio with the addition of four new exploration blocks in Brazil’s Reconcavo and Potiguar hydrocarbon basins.