GeoPark enters Venezuela via Bare Block deal, Gilinski to take control

GeoPark Limited (NYSE: GPRK) announced it will enter Venezuela through the acquisition of a stake in the Bare Block, a heavy oil asset in the Orinoco Heavy Oil Belt, under a 25-year Production Participation Contract with PDVSA Petróleo S.A.

The transaction is structured as a share issuance to Grupo Gilinski, which led the origination of the contract. GeoPark will issue 42.1 million shares at US$12.22 per share to a Grupo Gilinski entity, representing a 26% premium to the company's 30-day volume-weighted average price of US$9.67. Upon completion, Grupo Gilinski is expected to hold approximately 56.3% of GeoPark's outstanding shares, becoming the controlling shareholder. An adjustment mechanism could increase that stake to approximately 58.4%.

Grupo Gilinski is also expected to launch a tender offer at US$12.22 per share with a total size of US$100 million, providing a liquidity option for existing shareholders.

The Bare Block currently produces approximately 11,000 barrels of oil per day from roughly 1,100 existing wells, with approximately 15.7 billion barrels of original oil in place. GeoPark holds a 65% net working interest and will fund 100% of capital expenditures under approved work programs. The redevelopment plan contemplates cumulative net production of approximately 400 million barrels for GeoPark.

GeoPark projects Bare Block gross production of 18,000–20,000 barrels per day in 2027, rising to 44,000–56,000 barrels per day by 2029–2030. Combined with its existing Colombia and Argentina operations, the company projects total production of 75,000–85,000 boepd by 2030.

GeoPark reported approximately US$310 million in cash on hand and access to roughly US$700 million in total liquidity and committed financing sources.

The CPP effective date remains subject to regulatory approvals and sanctions-related compliance, with an estimated maximum period of 120 days. BTG Pactual served as financial advisor and delivered a fairness opinion; PwC served as tax advisor; and Cleary Gottlieb and Baker McKenzie served as legal counsel to GeoPark.

Felipe Bayon, GeoPark's chief executive, said the Bare Block "offers massive scale, existing infrastructure, production history, and material redevelopment potential in one of the world's largest hydrocarbon basins."

You May Also Be Interested In

• Trump says U.S. and Denmark reached permanent security deal over Greenland
• Dianthus Therapeutics (DNTH) files mixed shelf
• Kite Realty Group Trust files for 12M share offering by selling stockholders