Brazilian regulator ANP has given its final approval to GeoPark for the acquisition of stake in the Manati offshore field in Brazil.
GeoPark Limited has announced that the Brazilian National Petroleum, Natural Gas and Biofuels Agency approved in its Board meeting held on March 26 the replacement of the parental guarantee of Panoro Energy ASA with the parental guarantee of GeoPark, and the transfer of the quotas of Rio das Contas Produtora de Petroleo Ltda. from Panoro Energy do Brasil Ltda. to GeoPark Brasil Exploracao e Producao de Petroleo e Gas Ltda.
The closing of the acquisition is expected to occur within the following days, after the payment mechanisms and transfer of quotas are completed.
On May 15, 2013, GeoPark announced the execution of a quota purchase agreement with Panoro Energy do Brasil Ltda to acquire Rio das Contas Produtora de Petroleo Ltda, which holds a ten percent interest in the BCAM-40 block and includes the Manati Field in the Camamu-Almada basin. The agreed purchase price is US$140 million and GeoPark will receive the net cash proceeds from all production attributable to Rio das Contas since May 1, 2013.
GeoPark has entered into a 5 year credit facility agreement with Itau BBA International plc for US$70.5 million to finance 50% of the purchase price.
“The Manati Field acquisition, together with the nine blocks awarded to GeoPark by the ANP in Rounds 11 and 12, provide a solid risk-balanced entry platform into Brazil and confirm our commitment to developing a long term upstream oil and gas business in this high potential hydrocarbon country. Our new Brazil assets also represent an important component of our overall Latin American growth strategy which includes our expanding platforms in Colombia and Chile,” commented James F. Park, CEO of GeoPark.
The Manati Field is operated by Petrobras (35% working interest), the Brazilian national company, largest oil and gas operator in Brazil and internationally-respected offshore operator. Other partners in the block include Queiroz Galvao Exploracao e Producao (45% working interest) and Brasoil Manati Exploracao Petrolifera S.A. (10% working interest). The Manati Field (100%) is currently producing approximately 212 mmcfpd of gas (37,740 boepd).