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GeoPark Announces Acquisition of Frontera Energy's Colombian E&P Assets to Create Leading Independent E&P Platform Across Colombia and Argentina

GPRK
  • GeoPark Limited has entered a definitive agreement to acquire 100% of Frontera Petroleum International Holdings B.V., which holds oil and gas exploration and production assets exclusively in Colombia.
  • The transaction requires a cash purchase price of US$375 million at closing, subject to adjustments, plus a contingent payment of US$25 million upon achieving specific development milestones.
  • The deal excludes Frontera Energy Corporation's Canadian public listing, its infrastructure assets, and its exploration interests in Guyana.
  • Upon closing, GeoPark will assume Frontera Energy's US$310 million in unsecured notes maturing in 2028 and US$79 million in net outstanding debt from a prepayment facility.
  • The acquired portfolio consists of 17 upstream blocks in Colombia, including the Quifa field and Llanos Basin assets, alongside a water management facility and a palm oil plantation.
  • The transaction immediately adds approximately 99 million barrels of oil equivalent (mmboe) of 1P reserves and 147 mmboe of 2P reserves, more than doubling GeoPark's consolidated reserve base.
  • Pro forma production is expected to exceed 90,000 boepd by 2028, with estimated EBITDA of approximately US$950 million, effectively doubling GeoPark's standalone 2028 outlook.
  • Consolidated 2026 pro forma net leverage is expected to be approximately 2.0x EBITDA, with a path to deleveraging to approximately 1.4x by 2028 and below 1.0x thereafter.
  • Synergies from the combination are projected to reach a recurring annual run-rate of US$30 million to US$50 million by 2027, sustained for approximately six years.
  • The enterprise value of the acquired assets is approximately US$600 million, reflecting an EV/1P reserve multiple of roughly US$6.1 per boe and an EV/EBITDA multiple of approximately 2.0x for 2025 estimates.
  • GeoPark retains upside optionality including potential additions of up to 16 mmboe in reserves for the Quifa field and opportunities to unlock additional resources in the Cubiro block.
  • The transaction is funded through cash on hand and committed financing sources, including a US$500 million prepayment facility with Vitol, with no equity issuance contemplated.
  • The effective date of the transaction is January 1, 2026, pending regulatory approvals and customary closing conditions.