GeoPark Ltd has signed an agreement to purchase the producing Loma Jarillosa Este and Puesto Silva Oeste blocks in the Vaca Muerta formation in Argentina’s Neuquen Province from Pluspetrol SA for $115 million.
Concurrently Bogota-based GeoPark penned two agreements with the provincial government that “include the issuance of a new unconventional exploitation license for the Puesto Silva Oeste Block that requires GeoPark to transfer a five percent working interest (WI) to Gas y Petroleo del Neuquen SA (GyP), therefore resulting in a 95 percent operated WI in that block”, GeoPark said in a statement on its website.
Expected to be completed by year-end, the transaction with Buenos Aires-based Pluspetrol will increase GeoPark’s proforma production by 1,700-2,000 barrels of oil equivalent per day (boepd) – 95 percent oil and five percent gas – to 30,000 boepd, the statement said.
“Current production is processed with a battery that can handle up to 6,000 bopd at the Loma Jarillosa Este Block”, the statement said. “GeoPark plans to develop the two blocks as a hub, with a new central processing facility to be built at the Puesto Silva Oeste Block with an expected capacity of approximately 20,000 bopd and a pipeline connecting the two blocks. Construction of this infrastructure is projected to start in 2026 and be online in time to support the anticipated plateau production”.
GeoPark eyes “50-55 additional wells across 15 pads, unlocking more than 60 MMboe gross recoverable volumes”.
Loma Jarillosa Este and Puesto Silva Oeste hold estimated proven and probable reserves of 25.8 million barrels of oil equivalent (MMboe) and estimated 2C contingent resources of 44.2 MMboe, GeoPark said.
The Loma Jarillosa Este side of the transaction involves the transfer of Pluspetrol’s concession of 6,054 acres, with an exploitation license valid until 2057.
The Puesto Silva Oeste portion of the transaction involves the transfer of Pluspetrol’s 6,301-acre concession and the award of a new exploration license valid for 35 years.
“As part of the new license terms, GeoPark will transfer a five percent WI to GyP. GeoPark remains operator with a 95 percent WI and will carry GyP’s portion of the capital and expenditures on a fully recoverable basis with up to 100 percent of GyP’s share of production. This recoverable carry will be reflected in GeoPark’s working interest, increasing it from 95 to 100 percent during the carry period”, it said.
GeoPark chief executive Felipe Bayon said, “The Loma Jarillosa Este and Puesto Silva Oeste blocks establish a compelling entry position into one of the world’s most prolific unconventional plays and we are grateful that the government of Neuquen Province has entrusted us with the development and operation of these assets”.
GeoPark expects incremental pro-forma adjusted EBITDA of $12-14 million for 2025 as a result of the acquisitions.
“The development plan requires $500-600 million of gross investment through 2028”, GeoPark said.
“Peak net debt-to-EBITDA ratio is 2.0-2.5x in 2026, before rapidly deleveraging to below 1.0x as plateau adjusted EBITDA is achieved”.
The purchase price values the assets at $9,550 per acre, according to the statement.
To contact the author, email jov.onsat@rigzone.com
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