Latin America-focused oil and gas group GeoPark Holdings has acquired two exploration and production companies for a total of $30m in cash, adjusted for working capital.
GeoPark, which currently operates nine blocks in Chile and Argentina with oil and gas production of around 9,200 barrels of oil equivalent per day (boepd), will move into the Colombia region by snapping up Winchester Oil and Gas and La Luna Oil.
"A position in Colombia, with its big subsurface oil and gas potential and its inviting political and regulatory environment, is key to building a successful Latin American oil and gas project portfolio," said Chief Executive Officer James F. Park.
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The deals give GeoPark interests in eight blocks - two of which it will become the licensed operator - covering an area of around 131,000 gross acres. Current oil production is 1,230 barrels per day from two blocks.
"GeoPark is acquiring the Winchester Luna assets to form a nucleus around which it plans to build a meaningful long-term business in Colombia and to complement its expanding upstream business in Chile and Argentina," GeoPark said.
The acquisition will be funded entirely from existing cash resources. The agreement also provides certain contingent payments from production revenues as a result of successful future exploration.
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