(GeoPark, 23.Nov.2020) — GeoPark Limited announced its Board of Directors has approved an agreement to sell its 10% non-operated working interest in the Manati gas field in Brazil to Gas Bridge S.A.
The total consideration of the transaction amounts to R$144.4mn (approximately $27mn1), including a fixed payment of R$124.4mn plus an earn-out of R$20mn, which is subject to obtaining certain regulatory approvals.
The transaction was agreed with an effective date of 31 December 2020 and is subject to certain conditions, including the acquisition by Gas Bridge of the remaining 90% WI and operatorship of the Manati gas field. Two other non-operating partners in the Manati gas field consortium with a combined 55% WI have already announced their respective agreements to sell their WI to Gas Bridge. Subject to the agreement by the remainder of the consortium and regulatory approvals, closing of the transaction would occur in 4Q:21.
The Manati Gas field has net proven and probable PRMS reserves of approximately 3 million barrels of oil equivalent, based on December 2019 DeGolyer and MacNaughton’s certification, and adjusted by production during the nine month period ended 30 September of 1,127 boepd.