Geopark announces the sale of its 10% stake in Manati Field

(PN) GeoPark announced a reorganization of its portfolio, with repercussions on its operations in Brazil. The company revealed that it will sell certain “non-core” assets, as well as implement cost reduction initiatives to strengthen its position aiming at profitable, reliable and sustainable growth in the long term. One of the points of the reorganization involves the sale of the 10% stake in the Manati field, in the Camamu-Almada Basin, in the state of Bahia.

The company signed an agreement to sell its 10% non-operated stake in the field for a total value of US$ 1 million. The name of the buyer was not disclosed. The amount will be increased by working capital adjustments and a contingent payment linked to the future cash flow of the field or its possible conversion into a natural gas storage facility.

As part of the transaction, GeoPark will transfer all obligations associated with Manati, including decommissioning liabilities totaling US$12 million. GeoPark also completed the transfer of its non-operated interest in the Llanos 32 Block in Colombia to Parex Resources for a total consideration of US$19 million, less a working capital adjustment of US$3.7 million. GeoPark has already received the net proceeds from the transaction, subject to final settlement. The deal is still subject to regulatory approvals.

Together, these assets had 1P net reserves of 2.9 million barrels of oil equivalent at the end of 2024 (60% oil, 40% natural gas) and an average production of 712 barrels of oil equivalent per day. By 2025, these assets would represent approximately 1,500 barrels of oil equivalent per day in the company’s planning.

In addition, GeoPark is evaluating strategic options for its assets in Ecuador, as well as targeted cost reduction and efficiency measures, which are expected to generate annual savings of between US$5 and US$7 million in operating (OPEX) and administrative (G&A) costs. These initiatives include immediate adjustments to the cost structure, such as reductions in workforce, consulting, contracting and other administrative expenses.