GeoPark divesting non-core assets in Colombia, Brazil

BOGOTA, April 1, 2025 – GeoPark will divest certain non-core assets in Colombia and Brazil, the company said on Tuesday.

The company also said it would implement cost-reduction initiatives to enhance its long-term growth strategy.

Assets to be divested include non-operated interests in the Llanos 32 Block in Colombia and the Manati gasfield in Brazil for a total consideration of USD 20 million.

“These assets had combined net 1P PRMS reserves of 2.9 million boe (60% oil, 40% natural gas) at the end of 2024 and averaged production of 712 boepd during that year,” the company said.

In the 2025 plan, they represented approximately 1,500 boepd with an associated adjusted EBITDA of USD 10 million-13 million at Brent prices of USD 70-80 per barrel.

GeoPark is also evaluating strategic options for its assets in Ecuador.

Additionally, the company is implementing targeted cost reduction measures expected to yield annual savings of approximately USD 5 million-7 million in operating and general administrative expenses.

“These initiatives include adjustments to structural costs, such as reductions in workforce, consultants, contractors and other administrative expenses,” the company said.

The Llanos 32 Block divestment involves transferring GeoPark’s non-operated working interest to joint operation partner Parex Resources for USD 19 million, adjusted for USD 3.7 million in working capital.

The Manati gasfield sale includes GeoPark’s 10% non-operated working interest for USD 1 million, plus working capital adjustments and a contingent payment tied to future cash flow or potential conversion into a natural gas storage facility.

Closing of this transaction is pending regulatory approvals and is expected in Q3 2025.

Photo courtesy of GeoPark

Read our latest insights on: