GeoPark Announces New Acquisition and Country Entry into Ecuador
March 13 2019 - 6:00AM
Business Wire
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent Latin American oil and gas explorer, operator
and consolidator with operations and growth platforms in Colombia,
Peru, Argentina, Brazil and Chile, today announced its entry into
Ecuador through the acquisition of the Espejo and Perico
blocks.
The Espejo and Perico blocks are attractive, low-risk
exploration blocks located in Sucumbíos Province in the
north-eastern part of Ecuador, in the Oriente basin. The Espejo
block covers an area of 15,650 acres (63 sq km) and the Perico
block covers an area of 17,700 acres (72 sq km). Both blocks are
covered with 3D seismic and are adjacent to multiple discoveries,
producing fields and existing infrastructure.
From existing 3D seismic and other relevant data, more than five
multilayer, ready-to-drill light oil prospects and leads have been
identified. Ongoing geoscience evaluation and field operations are
expected to start in late 2019 or early 2020.
The Oriente basin is one of the most prolific petroleum systems
in Latin America, currently producing more than 500,000 bopd. It
has access to infrastructure, with spare capacity, and a
well-developed service industry.
The blocks were awarded to the GeoPark and Frontera consortium
(50% GeoPark, 50% Frontera) in the form of production sharing
contracts in the Intracampos Bid Round carried out on March 12,
2019 in Quito, Ecuador.
The winning bid consisted of committing a minimum investment
program of carrying out 55 sq km of 3D seismic in the Espejo block
and drilling four exploration wells in each block, with a total
estimated investment commitment of $60 million ($30 million net to
GeoPark) over the next four years. GeoPark and Frontera will have a
70-78% contractor share at approximately $60-70 Brent. The final
award is contingent upon regulatory approvals and the execution of
the contracts, expected for 2Q2019.
James F. Park, CEO of GeoPark, said: “Congratulations to the
GeoPark team for again patiently, selectively, and successfully
expanding our unique Latin America asset base with the acquisition
of these new low-cost, low-risk, high potential blocks attractively
positioned in the neighborhood of some prolific oil fields. Our
entry into Ecuador gives GeoPark an exciting new platform in the
country with the third largest reserves in Latin America and
further advances one of our key long-term growth strategies tying
together the common petroleum system of southern Colombia, Ecuador
and northern Peru.”
NOTICE
Additional information about GeoPark can be found in the
“Investor Support” section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentage figures included in this press
release have not in all cases been calculated on the basis of such
rounded figures, but on the basis of such amounts prior to
rounding. For this reason, certain percentage amounts in this press
release may vary from those obtained by performing the same
calculations using the figures in the financial statements. In
addition, certain other amounts that appear in this press release
may not sum due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING
INFORMATION
This press release contains statements that constitute
forward-looking statements. Many of the forward-looking statements
contained in this press release can be identified by the use of
forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’
‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’
‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in
this press release include, but are not limited to, statements
regarding the intent, belief or current expectations, regarding
various matters, including the timing of, and entry into, the
contracts relating to the winning bid, expected growth for GeoPark
and Latin America’s under-developed hydrocarbon potential.
Forward-looking statements are based on management’s beliefs and
assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties,
and actual results may differ materially from those expressed or
implied in the forward-looking statements due to various
factors.
Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update
them in light of new information or future developments or to
release publicly any revisions to these statements in order to
reflect later events or circumstances, or to reflect the occurrence
of unanticipated events. For a discussion of the risks facing the
Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange
Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20190313005237/en/
INVESTORS:Stacy Steimel – Shareholder Value
DirectorSantiago, ChileT: +562 2242 9600ssteimel@geo-park.com
Miguel Bello – Market Access DirectorSantiago, ChileT: +562 2242
9600mbello@geo-park.com
MEDIA:Jared Levy – Sard Verbinnen & CoNew York, USAT:
+1 (212) 687-8080jlevy@sardverb.com
Kelsey Markovich – Sard Verbinnen & CoNew York, USAT: +1
(212) 687-8080kmarkovich@sardverb.com
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