GeoPark to Acquire LG International’s Oil and Gas Assets in Colombia and Chile
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GeoPark Limited has entered into an agreement to acquire the LG International Corporation (LGI) interest in GeoPark’s Colombian and Chilean operations and subsidiaries.
This acquisition will increase GeoPark’s equity interest to 100 percent in its Colombian and Chilean businesses, which consist of multiple hydrocarbon blocks and associated oil and gas production and reserves, including the Llanos 34 block (GeoPark operated, 45 percent WI) in Colombia. This acquisition will also help streamline financial, tax, organizational, and cost structures.
The acquisition price includes a fixed payment of $81 million payable at closing, plus two equal installments of $15 million each, to be paid in June 2019 and June 2020, respectively. Additionally, three contingent payments of $5 million each could be payable over the next three years, subject to certain production thresholds being exceeded. Closing of this transaction is expected by November 28, 2018.
“LGI has been an exceptional strategic partner for GeoPark for over eight years and we are grateful for their support and guidance, which were instrumental in the early development of our regional portfolio of assets and our tremendous growth in recent years. We have made many good friends in the LG organization and are confident that our partnership will continue to grow and lead to important new opportunities in the future. We are also pleased to be able to increase our ownership in our key operating companies, bringing more income to our bottom line,” said James F. Park, chief executive officer of GeoPark.
About GeoPark
GeoPark is a leading independent Latin oil and gas explorer, operator and consolidator with oil and gas assets and growth platforms in Chile, Colombia, Brazil, Peru and Argentina.
To stop by GeoPark’s website, CLICK HERE
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