November 23, 2020 – GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a leading independent Latin American oil and gas explorer, operator and consolidator with operations and growth platforms in Colombia, Ecuador, Chile, Brazil and Argentina today announced that its Board of Directors has approved an agreement to sell its 10% non-operated working interest (“WI”) in the Manati gas field in Brazil to Gas Bridge S.A. (“Gas Bridge”).
The total consideration of the transaction amounts to R$144.4 million (approximately $27 million[1]), including a fixed payment of R$124.4 million plus an earn-out of R$20.0 million, which is subject to obtaining certain regulatory approvals.
The transaction was agreed with an effective date of December 31, 2020 and is subject to certain conditions, including the acquisition by Gas Bridge of the remaining 90% WI and operatorship of the Manati gas field. Two other non-operating partners in the Manati gas field consortium with a combined 55% WI have already announced their respective agreements to sell their WI to Gas Bridge. Subject to the agreement by the remainder of the consortium and regulatory approvals, closing of the transaction would occur in 4Q2021.
The Manati Gas field has net proven and probable PRMS reserves of approximately 3 million barrels of oil equivalent, based on December 2019 DeGolyer and MacNaughton’s certification, and adjusted by production during the nine month period ended September 30, 2020 of 1,127 boepd.
