Financial Diary – Santiago
GeoPark sealed an agreement with the Chilean company Servicom, which is dedicated to oil & gas drilling services, for the sale of its operations in Chile – in the Magallanes region – for US$4 million, including its participation in the Fell, Isla Norte, Flamenco and Campanario blocks.
In the update of its operations for the fourth quarter of 2023 -published this Wednesday on its website-, GeoPark indicates that it will not continue reporting Chilean production after the divestment closes.
In the document, which mentions the divestment of non-core operations in Chile, it is stated that, in 2023, GeoPark’s operations in Chile have produced 1,720 boepd (87% natural gas). Adjusted Ebitda from operations in Chile for the first nine months of last year totaled US$3.6 million.
Also I know points out that GeoPark’s consolidated average production guide for 2024 of 37,000-40,000 does not consider the divestment of Chile and currently includes that country’s average production in 2024, estimated at 1,000-1,300 boepd.
The company adds that it will update this production guide after the closing of the transaction, although its adjusted Ebitda and free cash flow guidance, published on November 8, 2023, is expectedis not modified by this divestment.
In updating its operations for the fourth quarter of 2023, It is detailed that average net production in Chile decreased 28% to 1,641 boepd in the fourth quarter of 2023 compared to 2,291 boepd in the fourth quarter of 2022as a result of natural reservoir deterioration and limited drilling activities.
The production mix was 79% natural gas and 21% light oil in the fourth quarter of 2023 and fourth quarter of 2022.
GeoPark presents itself on its website as a Latin American oil and gas exploration, operation and consolidation company, with assets and growth platforms in Colombia, Ecuador, Brazil and Chile.
It stands out that GeoPark is the only private producer that successfully produces oil and gas in Chile. And that in 2018 they discovered the Jauke gas field in the Fell block, which is part of the large Dicky geological structure and “has the potential for multiple development drilling opportunities”.
The Montt Pérez-Cotapos law firm advised Servicom Chile SPA; and Aylwin Abogados to GeoPark.