GeoPark Provides Update on Proposed Acquisition of Repsol Exploration and Production Assets in Colombia

Rhea-AI Summary

GeoPark (NYSE: GPRK) announced that its previously planned acquisition of Repsol's assets in Colombia will not proceed. The cancellation comes after Repsol's partner in SierraCol Energy Arauca exercised its preemptive rights to acquire 25% of Repsol's interest in the Llanos Norte project in Arauca Department, Colombia.

The original transaction, announced on November 29, 2024, included Repsol's 45% working interest in the CPO-9 block and its 25% interest in SierraCol Energy Arauca Despite this development, GeoPark states it remains committed to pursuing disciplined growth opportunities while leveraging its operational expertise to generate long-term value for stakeholders.

Positive

• None.

Negative

• Termination of planned acquisition of Repsol's Colombian assets
• Loss of opportunity to acquire 45% working interest in CPO-9 block
• Failed expansion attempt in Colombian operations

Insights

M&A Specialist

The termination of GeoPark's proposed acquisition of Repsol's Colombian assets represents a significant setback in the company's expansion strategy. The deal's collapse, triggered by SierraCol Energy Arauca 's partner exercising preemptive rights, prevents GeoPark from acquiring both the 45% working interest in CPO-9 block and the 25% interest in Llanos Norte. This development impacts GeoPark's near-term growth prospects in Colombia, where operational scale and asset diversification are important for maintaining competitive advantages.

The failed transaction affects GeoPark's market position, as the assets would have enhanced their Colombian portfolio and potentially boosted production volumes. For a company with a market cap of $563.6 million, missing out on strategic assets in a core market could limit their ability to achieve economies of scale and optimize operational efficiency. The market will likely reassess GeoPark's growth trajectory and ability to execute on M&A opportunities, potentially impacting investor sentiment in the short term.

Energy Market Analyst

The dissolution of this acquisition deal has broader implications for the Latin American energy sector. The exercise of preemptive rights by existing partners demonstrates the competitive nature of Colombian oil assets and the complex dynamics of partnership agreements in the region. For retail investors, this development signals that GeoPark's growth strategy may need to pivot toward alternative opportunities, potentially affecting the company's valuation metrics and growth prospects.

Think of this like a game of musical chairs - GeoPark thought they had secured a seat (the assets), but an existing player had priority rights to claim it first. This outcome might force GeoPark to explore other avenues for growth, possibly at less favorable terms or in different regions, which could impact their operational efficiency and cost structure. The company's ability to identify and secure alternative growth opportunities will be important for maintaining investor confidence and supporting the stock's performance.

BOGOTA, Colombia--(BUSINESS WIRE)-- GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent energy company with over 20 years of successful operations across Latin America, announced today that Repsol’s partner in SierraCol Energy Arauca LLC has exercised its preemptive rights under the terms of the LLC Agreement to acquire 25% of Repsol’s interest in SierraCol Energy Arauca LLC (“Llanos Norte”) in Arauca Department, Colombia.

As a result of the exercise of these preemptive rights, GeoPark and Repsol have mutually agreed not to proceed with the transaction previously announced on November 29, 2024, which included Repsol’s 45% working interest in the CPO-9 block and its 25% interest in SierraCol Energy Arauca LLC.

GeoPark remains committed to pursuing disciplined growth opportunities, leveraging its proven track record and extensive operational expertise to generate long-term value for all stakeholders.

NOTICE

Additional information about GeoPark can be found in the “Invest with Us” section on the website at www.geo-park.com.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This press release contains statements that constitute forward-looking statements. Many of the forward-looking statements contained in this press release can be identified by the use of forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’ ‘‘estimate’’ and ‘‘potential,’’ among others.

Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, pursuing disciplined growth opportunities and generating long-term value for all stakeholders. Forward-looking statements are based on management’s beliefs and assumptions, and on information currently available to the management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors.

Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update them in light of new information or future developments or to release publicly any revisions to these statements in order to reflect later events or circumstances, or to reflect the occurrence of unanticipated events. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see filings with the U.S. Securities and Exchange Commission (SEC).

View source version on businesswire.com: https://www.businesswire.com/news/home/20250114865322/en/

INVESTORS:

Maria Catalina Escobar

Shareholder Value and Capital Markets Director

mescobar@geo-park.com

Miguel Bello

Investor Relations Officer

mbello@geo-park.com

Maria Alejandra Velez

Investor Relations Leader

mvelez@geo-park.com

MEDIA:

Communications Department

communications@geo-park.com

Source: GeoPark Limited

FAQ

Why did GeoPark's acquisition of Repsol's Colombian assets fall through?

The acquisition was cancelled because Repsol's partner in SierraCol Energy Arauca exercised its preemptive rights to acquire 25% of Repsol's interest in the Llanos Norte project.

What assets were included in GeoPark's cancelled Repsol acquisition?

The cancelled acquisition included Repsol's 45% working interest in the CPO-9 block and its 25% interest in SierraCol Energy Arauca in Colombia.

When was the original GeoPark-Repsol deal announced?

The original transaction was announced on November 29, 2024.

What is GeoPark's strategy following the cancelled Repsol acquisition?

GeoPark states it remains committed to pursuing disciplined growth opportunities while leveraging its operational expertise to generate long-term value for stakeholders.