Colombia-based independent GeoPark has acquired the 100% operated working interest held by Pluspetrol in two blocks in the Vaca Muerta shale formation in Argentina for USD 115 million, GeoPark announced on Thursday.
The deal encompasses the Loma Jarillosa Este and Puesto Silva Oeste blocks, whose concessions run until 2057 and 2060, respectively. The blocks are estimated to hold joint 2P reserves of 25.8 million boe and are currently producing between 1,700-2,000 boepd, of which 95% is oil.
The transfer of the concessions requires that GeoPark be issued a new unconventional exploration license for the Puesto Silva Oeste Block and sign over a 5% interest in it to Gas y Petróleo del Neuquen, resulting in an effective ownership by GeoPark of 95%.
GeoPark’s development plan includes a potential 50-55 additional wells across 15 pads at an estimated required investment of USD 500 million-600 million through 2028. The development is expected to yield peak gross production of approximately 20,000 boepd by the end of the investment cycle.
The company plans to develop the blocks as a hub and will build a new processing facility at Puesto Silva Oeste with a capacity of around 20,000 bopd and a pipeline connection to Loma Jarillosa Este. Construction is due to begin in 2026.
Source: Theenergyyear.com