GeoPark, a leading independent energy company with over 20 years of successful operations across Latin America, has announced divestments of certain non-core assets and cost reduction initiatives to better position the Company for profitable, dependable and sustainable long-term growth.
In line with its commitment to disciplined capital allocation, the Company will divest the non-core, non-operated Llanos 32 Block in Colombia and Manati gas field in Brazil for an aggregate total consideration of $20 million[1] (net of $12 million liabilities related to decommissioning or retirement obligations, with respect to the Manati gas field). Combined, these assets had aggregate net 1P PRMS reserves of 2.9 mmboe (60% oil, 40% natural gas) at 2024 year-end and an average production of 712 boepd in 2024. Together, the assets represented approximately 1,500 boepd in the 2025 plan, with an associated adjusted EBITDA[2] of $10-13 million at $70-80/bbl Brent.
Furthermore, GeoPark is evaluating strategic options for its assets in Ecuador.
In addition to the timely monetization of the above non-core assets, GeoPark is currently implementing targeted cost reduction and cost efficiency measures that the Company expects will deliver annual savings of approximately $5-7 million in OPEX/G&A costs. These initiatives include immediate adjustments to structure costs, including reductions in our workforce and to consultants, contractors, and other administrative expenses.
The above measures aim to focus activity and capital allocation on high-impact, high materiality assets, in alignment with GeoPark’s North Star growth strategy.
Further details on the divestments of the Llanos 32 Block and in the Manati gas field are provided in the annex below.
ANNEX
Llanos 32 Block (Colombia)
On March 14, 2025, GeoPark agreed to transfer, subject to regulatory approval, its non-operated working interest in the Llanos 32 Block in Colombia to its joint operation partner, Parex Resources, for a total consideration of $19 million, minus working capital adjustment of $3.7 million. GeoPark has received the net proceeds from the transaction, which are subject to final settlement.
The Llanos 32 Block has net 1P PRMS reserves of 1.9 mmboe (92% oil), based on certification by DeGolyer and MacNaughton (D&M) at 2024 year-end[3]. Net production during 2024 averaged 490 boepd.
Manati Gas Field (Brazil)
On March 27, 2025, GeoPark signed an agreement to sell its 10% non-operated working interest in the Manati gas field in Brazil for a total consideration of $1 million, plus working capital adjustments and a contingent payment tied to the field’s future cash flow or its potential conversion into a natural gas storage facility. As part of this transaction, GeoPark will transfer all associated obligations, including decommissioning liabilities. In September 2024, a restricted deposit of $12 million related to these obligations was recovered in cash and replaced with a bank guarantee.
Closing of the transaction is pending customary regulatory approvals and is expected to occur during 3Q2025.
The Manati gas field has net 1P PRMS reserves of 1.0 mmboe (99% natural gas), based on certification by D&M at 2024 year-end. Net production during 2024 averaged 222 boepd.
[1] Before working capital adjustments and contingent payments.
[2] The Company is unable to present a quantitative reconciliation of the Adjusted EBITDA ratio which is a forward-looking non-GAAP measure, because the Company cannot reliably predict certain of its necessary components, such as is the case of Adjusted EBITDA, write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc.
[3] The 2024 reserves volumes will be officially reported to the ANH on April 1, 2025.
Source: GeoPark
