GeoPark Signs New Offtake Agreement With Vitol for the Llanos 34 Block in Colombia
10 Maggio 2024 - 2:48AM
Business Wire
Improved Price Realizations & up to $500
Million Funding
GeoPark Limited (“GeoPark” or the “Company”) (NYSE: GPRK), a
leading independent Latin American oil and gas explorer, operator
and consolidator, today announces the execution of an offtake and
prepayment agreement with Vitol, one of the world’s leading energy
and commodity companies.
The offtake agreement provides for GeoPark to sell and deliver
to Vitol a minimum of 20,000 bopd of production from the Llanos 34
Block (GeoPark operated, 45% WI). The agreement improves GeoPark’s
price realizations by 15 cents (USD) per barrel vs the current
agreement, or by 60 cents (USD) per barrel vs the average price
realizations from January 2021 to date. The offtake agreement will
start on July 1, 2024, for a minimum of 20 months and up to 36
months.
As part of this transaction, GeoPark will obtain immediate
access to committed funding from Vitol for up to $300 million, with
an option to increase by another $200 million for a total of $500
million, in prepaid future oil sales over the period of the offtake
contract. Funds committed by Vitol will be made available until
June 30, 2025, subject to certain conditions. Amounts drawn on this
prepayment facility can be repaid through future oil deliveries or
prepaid at any time without penalty. The interest cost is based on
a SOFR risk-free rate plus a margin of 3.75% per annum.
The improved commercial performance and access to competitive
and flexible financing secured by this transaction provides GeoPark
with immediate value and optionality for future growth.
Vitol is one of the world’s leading energy and commodity
companies with a history of over 55 years and strong presence and
operations in Colombia and Latin America.
NOTICE
Additional information about GeoPark can be found in the “Invest
with Us” section on the website at www.geo-park.com.
Rounding amounts and percentages: Certain amounts and
percentages included in this press release have been rounded for
ease of presentation. Percentages included in this press release
have not in all cases been calculated on the basis of such rounded
amounts, but on the basis of such amounts prior to rounding. For
this reason, certain percentages in this press release may vary
from those obtained by performing the same calculations on the
basis of the amounts in the financial statements. Similarly,
certain other amounts included in this press release may not sum
due to rounding.
CAUTIONARY STATEMENTS RELEVANT TO
FORWARD-LOOKING INFORMATION
This press release contains statements that constitute
forward-looking statements. Many of the forward-looking statements
contained in this press release can be identified by the use of
forward-looking words such as ‘‘anticipate,’’ ‘‘believe,’’
‘‘could,’’ ‘‘expect,’’ ‘‘should,’’ ‘‘plan,’’ ‘‘intend,’’ ‘‘will,’’
‘‘estimate’’ and ‘‘potential,’’ among others.
Forward-looking statements that appear in a number of places in
this press release include, but are not limited to, statements
regarding the intent, belief or current expectations, regarding
various matters, including the availability of committed funding.
Forward-looking statements are based on management’s beliefs and
assumptions, and on information currently available to the
management. Such statements are subject to risks and uncertainties,
and actual results may differ materially from those expressed or
implied in the forward-looking statements due to various
factors.
Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update
them in light of new information or future developments or to
release publicly any revisions to these statements in order to
reflect later events or circumstances, or to reflect the occurrence
of unanticipated events. For a discussion of the risks facing the
Company which could affect whether these forward-looking statements
are realized, see filings with the U.S. Securities and Exchange
Commission (SEC).
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version on businesswire.com: https://www.businesswire.com/news/home/20240509086120/en/
INVESTORS: Stacy Steimel Shareholder Value Director T:
+562 2242 9600 ssteimel@geo-park.com Miguel Bello Market Access
Director T: +562 2242 9600 mbello@geo-park.com Diego Gully Capital
Markets Director T: +55 21 99636 9658 dgully@geo-park.com
MEDIA: Communications Department
communications@geo-park.com
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