GeoPark has announced its intention to acquire a non-operated stake in unconventional blocks within Neuquen Basin, Argentina.

The Latin American oil and gas producer has submitted a binding offer, which has been accepted by the undisclosed seller. The two parties are now working exclusively towards finalising definitive agreements.

GeoPark said the acquisition aligns with its strategy to expand in Latin America’s oil and gas basins.

The acquisition is expected to contribute more than 5,000 net barrels of oil equivalent per day to GeoPark’s production upon closing.

The acquisition price is set at approximately $200m, with an additional carry of $110–120m over two years for specific exploration activities.

GeoPark plans to fund this acquisition through a combination of cash on hand, available credit facilities and new financing.

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The company anticipates that its net debt to adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) ratio will not exceed 1.1x following the transaction.

Definitive documentation is expected to be signed in the coming weeks, with the transaction’s closure projected for the third quarter of 2024.

GeoPark, however, has noted that there can be no assurance that the transaction will be completed, citing potential regulatory or other impediments.

In February 2024, Reuters reported that ExxonMobil was considering offers for its oil and gas assets in Argentina’s Vaca Muerta shale region.

According to a Bloomberg report, the assets considered for sale by ExxonMobil were estimated to be worth around $1bn.

At that time, a source was quoted by Reuters as saying: “The process began in August, it continues to advance and the offers are being evaluated.

“At the beginning of February they presented binding offers. There is no time or due date to provide a response to say how the operation continues. They are being evaluated by the shareholders.”