GeoPark Holdings Ltd. has acquired Winchester Oil & Gas SA and La Luna Oil
Co. Ltd., private exploration and production companies operating in Colombia, for $30 million cash adjusted for working capital.
The agreement also provides for certain contingent payments from production revenues as a result of successful future exploration.
GeoPark said it is acquiring the Winchester and 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.
The acquisition of Winchester-Luna provides GeoPark with 5-75% interests in eight blocks totaling 131,000 gross acres in the Llanos, Magdalena, and Catatumbo basins. GeoPark will operate two of the blocks. It plans to spend $20-30 million and drill 10 wells in Colombia in 2012.
The blocks produce 800 b/d net (1,230 b/d gross) from a net 2 million b/d of net proved and probable reserves and contain a mix of low-risk development potential and attractive exploration upside.
GeoPark operates nine blocks totaling 4 million gross acres in Chile and Argentina that produce 9,200 b/d of oil equivalent. GeoPark’s 2012 work program of $100-120 million in Chile includes drilling 17-20 wells and shooting 600 sq km of 3D and 147 line-km of 2D seismic surveys.