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GeoPark Acquires Ecuador-Based Espejo, Perico Blocks
Thursday 14 March 2019

14 March 2019 - Chile-based oil and gas exploration company GeoPark Ltd. (NYSE: GPRK), with operations and growth platforms in Colombia, Peru, Argentina, Brazil and Chile, has acquired Espejo and Perico blocks in the Oriente basin in northeastern Ecuador to enter into Ecuador, the company said.

The blocks were awarded to the GeoPark and Frontera consortium (50% GeoPark, 50% Frontera) in the form of production sharing contracts in the Intracampos Bid Round carried out on March 12, 2019 in Quito, Ecuador.

The winning bid consisted of committing a minimum investment programme of carrying out 55 sq km of 3D seismic in the Espejo block and drilling four exploration wells in each block, with a total estimated investment commitment of USD 60m (USD 30m net to GeoPark) over the next four years.

The Espejo and Perico blocks are low-risk exploration blocks located in Sucumbíos Province in the north-eastern part of Ecuador, in the Oriente basin.

The Espejo block covers an area of 15,650 acres (63 sq km) and the Perico block covers an area of 17,700 acres (72 sq km).

Both blocks are covered with 3D seismic and are adjacent to multiple discoveries, producing fields and existing infrastructure.

The Oriente basin is one of the most prolific petroleum systems in Latin America, currently producing more than 500,000 bopd.

It has access to infrastructure, with spare capacity, and a well-developed service industry.

GeoPark said its entry into Ecuador gives GeoPark an exciting new platform in the country with the third largest reserves in Latin America and further advances a key long-term growth strategy tying together the common petroleum system of southern Colombia, Ecuador and northern Peru.
Date Published: 14/03/2019
Target: Espejo and Perico blocks in the Oriente basin in northeastern Ecuador
Country: Ecuador
Sector: Petroleum/Natural Gas/Coal
Type: JV
Status: Closed
Buyer: GeoPark
Terms of the deal were not disclosed