(GeoPark, 16.Jan.2020) — GeoPark Limited closed the previously announced acquisition of Amerisur Resources Plc.
GeoPark acquired the entire issued share capital of Amerisur for a total cash consideration of approximately $314 million (approximately £242 million at an offer price of 19.21 pence per share). The Company is funding the transaction through the issuance of $350 million 5.5% senior notes due 2027, to be used for the Amerisur acquisition and for general corporate purposes.
Amerisur is a cashflow positive, growing business with low operating costs and a strong balance sheet with no debt, and a cash position of $36 million as of September 30, 2019. The Amerisur acquisition incorporates 13 production, development and exploration blocks in Colombia, including 12 operated blocks in the Putumayo basin and the non-operated CPO-5 block in the Llanos basin, the Oleoducto Binacional Amerisur (an export oil pipeline from Colombia to Ecuador), and valuable partnerships with Oxy and ONGC (the national oil company of India and operator of the CPO-5 block).
Key metrics of Amerisur include net light oil production of 6,865 bopd (September 2019), net proven reserves of 15.0 million barrels, net proven and probable reserves of 21.8 million barrels (certified by McDaniel & Associates as of end-July 2019) and net unrisked exploration resources of 289 million to 566 million barrels (mean to high-end, estimated by McDaniel & Associates).
James F. Park, Chief Executive Officer of GeoPark, commented: “Through this transaction, GeoPark continues delivering on our 17-year vision of creating from scratch, patiently and responsibly, the leading oil and gas independent across Latin America. The acquisition of Amerisur brings a wagon full of short, medium and long-term benefits – including light oil production, proven reserves, low breakeven cash flow, low-risk development opportunities, significant exploration resources, new strategic acreage, carried exploration drilling, a cross border pipeline, new industry partnerships and attractive operating and commercial synergies. Our team is prepared and hitting the ground running today to begin working on this exciting new opportunity.”