GeoPark Ltd. has agreed to acquire LG International Corp.’s interest in its Colombian and Chilean operations and subsidiaries, bringing GeoPark’s equity interest in the assets to 100%.
The businesses consist of multiple hydrocarbon blocks and associated oil and gas production and reserves, including the Llanos 34 block (GeoPark operated, 45%) in Colombia (OGJ Online, Sept. 8, 2017).
The acquisition price includes a fixed payment of $81 million at closing, plus two installments of $15 million to be paid in June 2019 and June 2020. Three contingent payments of $5 million each could be payable over the next 3 years, subject to certain production thresholds being exceeded. Closing is expected by Nov. 28.