Geopark rockets on another Colombian deal

The Colombian spending spree of Latin America focused oil company Geopark has continued, with the group snapping up a private company that controls two exploration and production blocks in the country.

The purchase of Hupecol Cuerva for a net $75m gives Geopark access to two 100% owned blocks.

"La Cuerva" is currently producing around 2,000 barrels of oil per day (bopd) and has reserves estimated by GeoPark to be circa 8 million barrels.

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"Llanos 62", located next to La Cuerva, is an exploration block, with no proved oil or gas production or reserves to date, and is currently undergoing a 3D seismic survey.

GeoPark says it will fund the transaction from existing cash resources.

In the 12 months to 31 December 2011, Hupecol generated revenues of around $68 million, and net income of approximately $21 million.

The market likes the move, GeoPark had risen 10.5% by 11:27. Since January the stock has gained 33%.

BS