(GeoPark, 27.Jun.2019) — GeoPark Limited announced the expansion of its portfolio in Colombia following the successful Agencia Nacional de Hidrocarburos (ANH) bid round in June 2019.
GeoPark was awarded the Llanos 86, Llanos 87 and Llanos 104 blocks in partnership with Hocol (a 100% subsidiary of Ecopetrol) and a right of first refusal for the acquisition of the VIM 22 block.
The acquired blocks represent significant and attractive, low-risk, high potential exploration acreage in the Llanos basin in proximity to GeoPark’s successful Llanos 34 block (GeoPark operated, 45% WI), and surrounded by multiple producing oil and gas fields, as well as existing infrastructure. GeoPark will be the operator with a 50% WI.
The Llanos 87 block is located adjacent to and on trend with the Llanos 34 block. The Llanos 86 and Llanos 104 blocks are contiguous areas (20 kilometers southeast of the Llanos 34 block), on trend with nearby producing oil fields. The three blocks cover an aggregate area of 679,292 acres (2,752 sq km) – eight times the size of the Llanos 34 block.
GeoPark and Hocol (a 100% subsidiary of Ecopetrol) have preliminarily identified multiple oil prospects and leads, resulting from their proven expertise in the Llanos basin, existing 3D seismic as well as other relevant data. Geoscience evaluation is ongoing and field operations are expected to start in late 2019 or early 2020.
The blocks were awarded to the GeoPark/Hocol (a 100% subsidiary of Ecopetrol) consortium as part of the ANH’s Permanent Process for the Assignment of Areas (“PPAA”) in Bogota, Colombia. Final contracts are expected to be signed in 3Q2019.
The winning bids consisted of commitments to register 550 square km of 3D seismic and to drill six exploration wells during the first exploration phase, with a firm investment commitment of $80-110 million ($40-55 million net to GeoPark) over the next three years, as follows:
As part of the ongoing PPAA bid round, GeoPark has a right of first refusal for the acquisition of a 100% WI in the VIM 22 block(412,172 gross acres)in the Magdalena basin, following the Company’s initial bid on June 4, 2019. Final decision by GeoPark on this block will beJuly 9,2019.
James F. Park, CEO of GeoPark, said: “Congratulations to our Colombian team for succeeding in acquiring this new high potential big acreage position-located right in our own prime and proven neighborhood. And, we are especially excited about our new venture with Hocol (a 100% subsidiary of Ecopetrol) and the opportunity to prove our ability to perform and build a long term successful partnership.”