GeoPark Ltd., Bogota, Colombia, has signed deals to divest certain non-core, non-operated assets in Colombia and Brazil for total consideration of $20 million.
The sales are part of a plan to reduce costs that also includes an evaluation of strategic options for its assets in Ecuador and cost reduction and cost efficiency measures that the company expects will deliver annual savings of about $5-7 million. Initiatives include reductions in workforce and to consultants, contractors, and other administrative expenses, the company said in a release Mar. 31.
Colombia
On Mar. 14, GeoPark agreed to transfer its working interest in Llanos 32 Block, subject to regulatory approval, to its joint operation partner, Parex Resources, Calgary, for total consideration of $19 million, minus working capital adjustment of $3.7 million.
The Llanos 32 Block has net 1P PRMS reserves of 1.9 MMboe (92% oil), based on certification by DeGolyer and MacNaughton (D&M) at yearend 2024. Net production in 2024 averaged 490 boe/d.
As part of its full-year 2024 report Mar. 5, Parex noted plans to support second-half 2025 production growth, including a plan for a 5-gross-well drilling campaign in LLA-32 (87.5%) in this year’s second quarter. Parex drilled three successful wells at LLA-32 in 2024.
Brazil
GeoPark agreed Mar. 27 to sell its 10% working interest in Manati gas field in Brazil to an undisclosed buyer for $1 million. The deal includes a contingent payment tied to the field’s future cash flow or its potential conversion into a natural gas storage facility, the company said.
As part of the deal, GeoPark will transfer all associated obligations, including decommissioning liabilities. In September 2024, a restricted deposit of $12 million related to these obligations was recovered in cash and replaced with a bank guarantee.
Closing of the transaction is pending customary regulatory approvals and is expected to occur in this year’s third quarter.
Manati gas field has net 1P PRMS reserves of 1.0 MMboe (99% natural gas), based on certification by D&M at yearend 2024. Net production in 2024 averaged 222 boe/d.
