GeoPark expands presence in Argentina

GeoPark has acquired 100% operating interests in three blocks from Pluspetrol in Argentina’s Neuquén Basin.

According to reports from local media on Wednesday, GeoPark paid USD 52 million for the Aguada Baguales, El Porvenir and Puesto Touquet blocks, together spanning nearly 555 square kilometres. The deal is expected to close in Q1 2018.

“We are very pleased to acquire these attractive blocks – with a full mix of production, reserves and upside – in the heart of the Neuquén Basin, one of the most prolific hydrocarbons basins in Latin America and where our team has a proven history of exploration success and operating experience,” said the company’s CEO James F. Park, in a company statement.

GeoPark reports that the assets together produce about 2,700 boepd, 70% of which is light oil, and contain 2P reserves estimated at 12 million-14 million boe, with the company’s own estimates indicating 3P reserves of 18 million-20 million boe. Additionally, the company said that the acreage contains “low-risk self-funding development and exploration opportunities to increase production.”

The blocks come with existing infrastructure, including pipelines and production, treatment and storage facilities.

GeoPark is already present in three other blocks in the Neuquén Basin. In August, the company and partner Wintershall discovered oil in the CN-V block.