GeoPark Announces an Agreement to Acquire Colombia and Chile Oil and Gas Assets from LG International
November 27 2018 - 9:23AM
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 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 $81 million
payable at closing, plus two equal installments of $15 million
each, to be paid in June 2019 and June 2020, respectively.
Additionally, three contingent payments of $5 million each could be
payable over the next three years, subject to certain production
thresholds being exceeded. Closing of this transaction is expected
by November 28, 2018.
James F. Park, Chief Executive Officer of GeoPark, said: “LGI
has been an exceptional strategic partner for GeoPark for over
eight years and we are grateful for their support and guidance,
which were instrumental in the early development of our regional
portfolio of assets and our tremendous growth in recent years. We
have made many good friends in the LG organization and are
confident that our partnership will continue to grow and lead to
important new opportunities in the future. We are also pleased to
be able to increase our ownership in our key operating companies,
bringing more income to our bottom line.”
GeoPark can be visited online at www.geo-park.com.
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.
This press release contains certain oil and gas metrics,
including information per share, operating netback, reserve life
index, and others, which do not have standardized meanings or
standard methods of calculation and therefore such measures may not
be comparable to similar measures used by other companies. Such
metrics have been included herein to provide readers with
additional measures to evaluate the Company's performance; however,
such measures are not reliable indicators of the future performance
of the Company and future performance may not compare to the
performance in previous periods.
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 expected production growth and operating
and financial performance, operating netback per boe and capital
expenditures plan. 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.
Oil and gas production figures included in this release are
stated before the effect of royalties paid in kind, consumption and
losses. Annual production per day is obtained by dividing total
production for 365 days.
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version on businesswire.com: https://www.businesswire.com/news/home/20181127005547/en/
INVESTORS:Stacy Steimel – Shareholder Value
DirectorSantiago, ChileT: +562 2242 9600ssteimel@geo-park.comMiguel
Bello – Market Access DirectorSantiago, ChileT: +562 2242
9600mbello@geo-park.comMEDIA:Jared Levy – Sard Verbinnen
& CoNew York, USAT: +1 (212) 687-8080jlevy@sardverb.comKelsey
Markovich – Sard Verbinnen & CoNew York, USAT: +1 (212)
687-8080kmarkovich@sardverb.com
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