BOGOTA - GeoPark Limited (NYSE: NYSE:GPRK), an independent energy company operating in Latin America with a market capitalization of $451 million and an impressive 75% gross profit margin, announced today that its planned acquisition of a 45% interest in the CPO-9 block in Colombia will not proceed. This follows the decision by Ecopetrol, the current operator of the block, to exercise its preemptive rights to acquire Repsol (OTC:REPYY) Colombia O&G Limited’s stake, as per the Joint Operating Agreement terms.
The CPO-9 block, which is a part of Colombia’s hydrocarbon-rich region, was initially set to change hands from Repsol to GeoPark, as per a transaction announced on November 29, 2024. However, Ecopetrol’s move to preempt the sale has altered the course of the acquisition.
While the CPO-9 acquisition has been halted, the potential for GeoPark to acquire Repsol’s 25% interest in SierraCol Energy Arauca LLC in the Arauca Department remains open. According to InvestingPro data, the company maintains strong financial health with a healthy dividend yield of 6.67%, suggesting capacity for strategic acquisitions. The partners in this venture still have the opportunity to exercise their preemptive rights, and GeoPark will provide updates on this process as it evolves.
GeoPark has been a significant player in Latin America’s energy sector for over two decades, and its interest in expanding its operations through acquisitions reflects the company’s ongoing strategy to enhance its portfolio in the region.
This development is part of the dynamic nature of the energy industry, where strategic partnerships and agreements frequently influence asset ownership and operational control. GeoPark’s experience in the region positions it to navigate these changes and seek alternative opportunities.
The company’s forward-looking statements indicate a continued focus on expected production and reserves, despite the current setback in the acquisition process. GeoPark maintains its commitment to keeping stakeholders informed about future developments.
Investors and interested parties can find additional information about GeoPark on the company’s website. This report is based on a press release statement from GeoPark Limited.
In other recent news, oil and gas producers Parex Resources and Geopark face a potential tax hike, as the Colombian government considers raising taxes on these industries to balance its budget, according to an announcement by Jefferies. Analyst Alejandro Anibal Demichelis of Jefferies noted that the tax proposal could increase the existing surcharge tax by 200 to 500 basis points, with the actual rate contingent on the price of oil. With the current prices of Brent crude oil, companies like EcoPetrol, Geopark, and Parex could see a 5% rise in their tax obligations.
On the earnings front, Geopark reported mixed Q3 results, with a 16% decline in net revenue to $159 million, primarily due to lower oil prices and production. However, the company achieved a net profit of $25 million, surpassing the previous year’s results, and saw a significant improvement in cash flow, with cash reserves rising to $140 million.
In other company developments, Parex disclosed that it had entered into a farm-in agreement with EcoPetrol, while its production in November and December was affected by unplanned downtime due to ongoing social protests. These are among the recent developments that investors should keep an eye on as they assess the future prospects of both companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.