GeoPark announces divestments of non-core assets in Colombia and Brazil

GeoPark, an vigor institution operating successful Latin America, has announced the divestment of non-core assets and the implementation of outgo ratio initiatives.

The institution aims to streamline operations and absorption connected sustainable semipermanent maturation done the divestments.

It is divesting its non-core Llanos 32 Block successful Colombia and the Manati state tract successful Brazil for a full information of $20m.

This $20m magnitude features nett of $12m successful liabilities associated with decommissioning oregon status obligations for the Manati state field.

Together, these assets had aggregate nett 1P PRMS (Petroleum Resources Management System) reserves of 2.9 cardinal barrels of lipid equivalent (mboe), comprising 60% lipid and 40% earthy gas, by the extremity of 2024 and an mean accumulation of 712 barrels of lipid equivalent per time (boepd) past year.

These assets represented astir 1,500boepd successful this year’s plan, with an associated adjusted EBITDA (earnings earlier interest, taxes, depreciation and amortisation) of $10–13m astatine $70–80 per tube (bbl) Brent.

Last month, GeoPark agreed to transfer, pending regulatory approval, its non-operated moving involvement successful the Llanos 32 Block to its associated cognition partner, Parex Resources. The full information for this transaction is $19m, without moving superior accommodation of $3.7m.

GeoPark has already received the nett proceeds from the deal, which are pending last settlement.

Towards the extremity of past month, GeoPark entered into an statement to divest its 10% non-operated moving involvement successful the Manati state tract successful Brazil for a full of $1m, on with adjustments for moving superior and a contingent outgo linked to the field's aboriginal currency travel oregon its imaginable conversion into a earthy state retention facility.

Under this transaction, GeoPark volition besides transportation each related obligations including decommissioning liabilities.

Last year, successful September, a restricted deposit of $12m associated with these obligations was recovered successful currency and subsequently replaced with a slope guarantee.

Completion of the woody is taxable to customary regulatory approvals and expected during the 3rd 4th of 2025.

The state tract had nett 1P PRMS reserves of 1mboe, with 99% being earthy gas, astatine the extremity of 2024. Net accumulation from the tract averaged 222boepd successful 2024.

Meanwhile, GeoPark is looking astatine strategical options for its assets successful Ecuador.

GeoPark is besides actively pursuing targeted outgo simplification and ratio measures, which are expected to output yearly savings of astir $5–7m successful operational and wide and administrative expenses. These initiatives impact contiguous structural adjustments including workforce reductions arsenic good arsenic cuts to consultants, contractors and assorted administrative costs.