GeoPark Ltd. has declined an unsolicited acquisition offer from Canada’s Parex Resources valued at about US$940 million, arguing that the proposal undervalued both the company’s current portfolio and its future growth potential.
The decision comes shortly following GeoPark's entry into Argentina’s Vaca Muerta shale formation.
GeoPark recently closed on its purchase of Loma Jarillosa Este and Puesto Silva Oeste blocks in Neuquén basin, marking its official debut as an unconventional asset operator in Argentina. The blocks currently produce about 2,000 boe/d and have a development plan targeting 20,000 boe/d by 2028, supported by the drilling of 50-55 wells.
The project also includes construction of a central processing facility with capacity for 20,000 b/d and a pipeline connection between the blocks.
Market analysts interpreted GeoPark's decline of Parex's offer as a signal that it intends to remain independent and capture the value of its ongoing expansion rather than merge under conditions it views as premature or strategically limited.
Vaca Muerta accounts for more than 60% of Argentina's oil and gas output and drove a US$5.7-billion energy trade surplus in 2024.
