GeoPark Expands in Colombia With Strategic Repsol Acquisition

GeoPark Limited GPRK recently announced its accord with Repsol Exploración S.A. and Repsol E&P S.A.R.L to acquire Repsol, S.A.’s REPYY upstream oil and gas assets in Colombia.An Insight Into GPRK’s Sale and Purchase AgreementAs a leading energy company in Latin America, GPRK’s prospective accord is to purchase some high-quality assets in one of the most productive oil regions of Colombia called the Llanos Basin. In this region, GPRK has a track record of successfully discovering oil and is also a deep-rooted operator of above- and below-ground operations.GPRK, carrying a Zacks Rank #4 (Sell) at present,would acquire Repsol Colombia O&G Limited, which holds a 45% working interest in the CPO-9 Block in the Meta Department and would also acquire a 25% working interest of Repsol in SierraCol Energy Arauca LLC. The operator of the CPO-9 Block is Ecopetrol S.A. EC, which holds the remaining 55% working interest in that block. As of September 2024, these assets produced about 16,000 barrels of oil equivalent per day for Repsol.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.GPRK’s Acquisition to Align With Its “North Star” StrategyThe acquisition aligns firmly with the company’s growth strategy, “North Star,” which targets high-valued and advantaged assets in the Llanos Basin and aims to deliver a highly profitable and sustainable portfolio across Latin America. The new portfolio would boost the company’s production levels, reserves and cash flow while maintaining a low capital investment. The acquisition also complements the company’s recent expansion into Argentina's Vaca Muerta play, enabling its risk diversification strategy.GPRK’s Financial Structure to Support the DealThe $530 million deal is planned to be financed through cash and a $345 million non-recourse debt facility arranged by Macquarie Bank Limited. This financing is supported by a strong hedging strategy that ensures price protection and reliable debt servicing.Since the deal is subject to regulatory approvals and certain conditions, its completion is not assured by the company.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecopetrol S.A. (EC): Free Stock Analysis Report Repsol SA (REPYY): Free Stock Analysis Report Geopark Ltd (GPRK): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks