GeoPark Ltd. has expanded its portfolio in Colombia following a successful Agencia Nacional de Hidrocarburos (ANH) bid round and an agreement with Parex Resources.
As part of the second cycle of ANH's Permanent Process for the Assignment of Areas (PPAA) in Colombia, GeoPark was awarded the Llanos 123 and Llanos 124 blocks in partnership with Ecopetrol subsidiary Hocol. Final contracts are expected to be signed this month or early in 2020.
In addition, GeoPark and Parex executed an agreement in which GeoPark will assume, subject to ANH approval, a 50% working interest in the Llanos 94 block in exchange for funding its 50% pro-rata share of existing commitments, with no carry.
In November, GeoPark reported a deal to acquire Colombian operator Amerisur Resources PLC, which is expected to close in January 2020 (OGJ Online, Nov. 15, 2019). As part of the PPAA, Amerisur was awarded the PUT-36 block.
Llanos basin
Llanos 123 and Llanos 124 blocks lie near GeoPark's Llanos 34 block (operator, 45%) and are surrounded by multiple producing oil and gas fields and existing infrastructure. GeoPark will serve as operator with 50%. Hocol will hold the other 50%.
GeoPark has a net commitment of $7.5-10 million in the 88,310 gross acre block which includes reprocessing existing 3D seismic and drilling two gross exploration wells during the first exploration phase over the next 3 years. In the 27,643-gross acre Llanos 124, GeoPark’s net commitment is $12.5-$15 million for existing 3D seismic reprocessing and three gross exploration wells over the next 3 years.
The 88,175-gross acre Llanos 94 block is on trend with GeoPark's Llanos 34 block and adjacent to the ONGC Videsh-operated CPO-5 block (ONGC Videsh 70%, Amerisur 30%). Its $15-17.5 million net commitment includes acquiring 50 sq km and reprocessing existing 3D seismic plus the drilling of three exploration wells during over the next 3 years.
GeoPark and its partners have preliminarily identified multiple oil prospects and leads in these blocks, resulting from existing 3D seismic as well as other relevant data. Geoscience evaluation is ongoing and field operations are expected to start in 2020.
With the addition of new blocks this year and following the acquisition of Amerisur, GeoPark will expands its acreage around its Llanos 34 block by 1.4 million gross acres.
Putumayo basin
The PUT-36 block in the Putumayo basin is adjacent to the Amerisur-operated Mecaya block (Amerisur 50%, Oxy 50%) and the Amerisur-operated PUT-9 block (Amerisur 50%, Oxy 50%) and near the producing Amerisur-operated Platanillo block (Amerisur 100%), as well as other exploration acreage held by Amerisur.
GeoPark’s $25-30 million net commitment includes reprocessing existing 3D seismic and drilling two gross exploration wells during the first exploration phase over the next 3 years.
With the addition of the new block and following the closing of the acquisition of Amerisur, GeoPark will expand its position of more than two million gross acres in the basin.
