GeoPark Holdings Ltd. has made a second acquisition in Colombia with the $75 million purchase of Hupecol Cuerva LLC, a private explorer that holds two Llanos basin blocks.
The La Cuerva and Llanos 62 blocks total 90,000 acres and are operated with 100% working interests, GeoPark said.
La Cuerva is producing 2,000 b/d of oil from 8 million bbl of proved and probable reserves by GeoPark’s estimate. Two independent reserve evaluators estimated the proved and probable oil reserves attributable to the block at 16 million bbl and 10.8 million bbl in March and October 2011, respectively.
Llanos 62, adjacent to La Cuerva, is an exploratory block on which a 110 sq km 3D seismic survey is in progress. Its transfer to GeoPark is subject to regulatory approval.
The Hupecol assets generated $68 million in revenues and $21 million in net income in the 12 months ended Dec. 31, 2011. GeoPark will fund the acquisition from existing cash.
GeoPark in February 2012 acquired the Winchester Oil & Gas and La Luna Companies. The combined acquisitions give GeoPark 5-100% interests in 10 blocks, four operated, totaling 220,000 acres in the Llanos, Magdalena, and Catatumbo basins. GeoPark plans to drill 18-22 exploratory and development wells in Colombia this year.