GeoPark Limited , the Latin American oil and gas explorer, operator and consolidator with operations and production in Chile, Colombia, Brazil and Argentina (AIM: GPK), has now formally signed the following exploration licenses with the Brazilian National Petroleum, National Gas and Biofuels Agency (“ANP”) as part of the Brazilian Licensing Round 11:
In the Reconcavo Basin in the State of Bahia:
· Block REC-T 85
· Block REC-T 94
In the Potiguar Basin in the State of Rio Grande do Norte:
· Block POT-T 664
· Block POT-T 665
· Block POT-T 619
· Block POT-T 620
· Block POT-T 663
Regarding its winning bids on the seven blocks, GeoPark has committed to invest a minimum of US$15.3 million (including bonus and work program commitment) during the next three years which will constitute the exploratory period. The new blocks cover an area of approximately 54,850 acres.
In May 2013, GeoPark also agreed to acquire Rio das Contas from Panoro Energy ASA, which holds a 10% working interest in the shallow offshore Manati Field, the largest non-associated gas field in Brazil. This acquisition is subject to the approval of the ANP, among other regulatory authorities, and it is expected to complete by the end of 2013.
Commenting, James F. Park, CEO of GeoPark, said: “Completion of the acquisition of these seven new blocks represents a further step forward in GeoPark’s growth plans and long term strategic entry into Brazil. These exploration blocks, together with our pending production acquisition of an interest in the Manati field, create a risk-balanced business platform to participate in the significant Brazilian hydrocarbon market.”
Press Release, September 19, 2013; Image: Spectrum