GeoPark, a leading independent energy company with more than 20 years of successful operations across Latin America, has been awarded the Corralera Noreste Block ('Corralera NE') in the Neuquén Basin, Argentina, further expanding its position in Vaca Muerta and strengthening its long-term growth platform in the country.
Corralera NE was awarded through a public bidding round (Ronda 1/2026) launched by Neuquén Province’s energy company Gas y Petróleo del Neuquén (“GyP”) under the Plan Exploratorio Neuquén - the largest Vaca Muerta acreage offering in nearly a decade - in which 15 blocks were offered and 20 offers were received from 10 companies. GeoPark’s offer for Corralera NE ranked highest under the tender’s award formula.
GeoPark and GyP will proceed with the execution of the applicable joint venture agreement, which will be submitted for approval by the Executive Branch of the Province of Neuquén in accordance with the terms of the bidding round.
Expanding Into a Growing New Vaca Muerta Hub
Corralera NE is strategically located in the northern hub of Vaca Muerta, near Rincón de los Sauces, an emerging development area with growing unconventional activity and with existing infrastructure availability. The award provides GeoPark with access to approximately 26,900 gross acres – some 24,200 acres net to GeoPark – for a total committed cost (including entry bonus) of approximately $95 million, or approximately $3,900 per net acre.
The award represents a natural extension of GeoPark’s Argentina strategy and provides a potential long-term continuation of the Company’s growth platform in the country, complementing its existing assets Loma Jarillosa Este and Puesto Silva Oeste.
Nearby operations run by other companies, currently producing approximately 80,000 barrels of oil per day in aggregate, provide relevant technical analogues and support the potential for multiple productive landing zones.
Bid Terms
Under the terms of its winning offer, GeoPark will pay a one-time access bonus of $60.5 million to the Province of Neuquén and has committed a work program consisting of the drilling and fracking of 2 horizontal wells, each with 2,000 meters of horizontal section and 30 frack stages, to be carried out during the initial four-year exploration period.
GeoPark will hold a 90% working interest ('WI') and will act as operator of the block. GyP will hold the remaining 10% WI, fully carried by GeoPark and recoverable through up to 80% of GyP’s share of future production.
Under the terms of the bidding process and the applicable joint venture agreement, Corralera NE carries a 12% royalty, and provides for a first exploration period of four years, with an optional second period of an additional four years. Upon declaration of a commercial discovery and compliance with the applicable requirements, a 35-year unconventional exploitation concession shall be granted.
GeoPark expects to fund the initial bonus and subsequent commitments with existing cash and committed liquidity sources, with no change to the Company’s capital allocation priorities.
Key Highlights
- Acreage: Approximately 26,900 gross acres, ~24,200 acres net to GeoPark’s 90% WI
- Material resource potential: ~200 mmboe of unrisked gross resource potential (based on 2 landing zones), with additional upside of 2 more landings, based on GeoPark’s current technical assessment and subject to successful de- risking and technical performance
- Potential production scale: Approximately 40,000–50,000 boepd (based on 2 landing zones) of potential gross peak production, subject to successful de-risking, appraisal and development
- Strategic location: Northern Vaca Muerta, near Rincón de los Sauces and adjacent to an expanding unconventional development area
- Clear decision gates: Further appraisal and full-field development remain subject to technical performance and GeoPark’s investment criteria.
- Financial flexibility: Initial committed activities expected to be funded with available cash
The Company plans to advance Corralera NE through a phased de-risking and appraisal program before committing material development capital. The initial program comprises two horizontal wells followed by an extended testing period focused on establishing well productivity and resource quality. Any subsequent appraisal or development investment will be subject to technical results, project economics and GeoPark’s capital allocation criteria.
GeoPark will provide further information on the block and its planned de-risking and appraisal activities following the execution of the joint venture agreement and completion of the applicable provincial approval process.
Executive Commentary
Felipe Bayon, Chief Executive Officer of GeoPark, said: 'Corralera NE adds a material long-term upside to our Argentina portfolio and expands GeoPark’s position in Vaca Muerta. We will approach it with the same capital discipline we apply across our portfolio: first addressing the key subsurface uncertainties through a focused appraisal program, and then requiring each additional phase to earn the next dollar of capital through technical performance and attractive economics. This phased approach gives us exposure to significant potential upside while maintaining financial flexibility and protecting long-term returns. We thank GyP and the Province of Neuquén for conducting this process and look forward to continuing to work together to responsibly develop the province’s energy resources.'
Source: GeoPark
