GeoPark has entered into an agreement with Pluspetrol to acquire a 100% operated working interest (“WI”) in the Loma Jarillosa Este and Puesto Silva Oeste blocks that target black oil in the Vaca Muerta formation in Neuquen Province, Argentina. 

Concurrently, GeoPark and the Government of Neuquen Province have signed two “Actas Acuerdo” (Deeds of Agreement) that establishes the parties’ commitment to the deal and outline the terms and conditions under which the concessions will be transferred. The Deeds of Agreement include the issuance of a new unconventional exploitation license for the Puesto Silva Oeste Block that requires GeoPark to transfer a 5% WI to Gas y Petróleo del Neuquen S.A. (“GyP”), therefore resulting in a 95% operated WI in that block.

This acquisition delivers on GeoPark’s declared strategic intent to establish a position in Vaca Muerta, a growing, world-class, proven unconventional oil and gas play. As an accredited unconventional operator, GeoPark will be positioned to actively contribute to the basin’s operational ecosystem, while pursuing growth opportunities and efficiency initiatives. In addition, the acquisition provides:

• Scale and Longevity: Over 12,300 gross acres in the Vaca Muerta black oil window, with an estimated recoverable resource of over 60 million[1] gross barrels of oil, under concession for more than 30 years. Current production of 1,700–2,000 boepd (95% oil and 5% gas) in the acquired blocks increases GeoPark’s proforma production on a consolidated basis to approximately 30,000 boepd in 2025, with an estimated reserve life index of 7 years for 1P reserves and over 10 years for 2P reserves
• Growth Trajectory: Clear line of sight to achieving plateau production of approximately 20,000 boepd by year-end 2028. The acquired blocks hold estimated 2P reserves of 25.8 mmboe and estimated 2C contingent resources of 44.2 mmboe, providing significant additional upside
• Value Accretion: Incremental pro-forma Adjusted EBITDA[2] of $12–14 million in full-year 2025. At expected plateau production the assets are estimated to contribute $300–350 million of gross Adjusted EBITDA (at $70/bbl Brent oil price)
• The transaction is expected to close before year-end 2025, following the issuance of the Neuquen Province Decree ratifying the Deeds of Agreement. GeoPark will continue to work jointly with its counterparties to progress the transaction effectively and inform the market on further developments as they become available.

Felipe Bayon, Chief Executive Officer of GeoPark, said: 
“Today’s agreement marks a defining milestone for GeoPark, transforming the Company by adding immediate production, increased reserves, and significant long-term value. It also demonstrates the commitment to drive sustainable long-term growth and value through both organic developments and strategic acquisitions. The Loma Jarillosa Este and Puesto Silva Oeste blocks establish a compelling entry position into one of the world’s most prolific unconventional plays and we are grateful that the Government of Neuquen Province has entrusted us with the development and operation of these assets. We see it as a unique opportunity to apply and continue to build our distinct capabilities to unlock value for decades to come. Looking ahead, we are confident that the execution of our strategic plan, leveraging the enduring foundation we have built in Colombia and the distinctive portfolio depth provided by today’s acquisition, positions GeoPark as a stronger and more resilient company.”

HIGHLIGHTS

Key Deal Terms

• Payment: GeoPark will pay $115 million[3] at closing[4], funded with available cash, with a security deposit of $22.7 million on the date Pluspetrol and GeoPark entered into the agreement. The agreed price represents a valuation of approximately $9,550 per acre 

Concession Details:   

• Loma Jarillosa Este Block: Transfer of Pluspetrol’s concession (6,054 acres), with an exploitation license valid until 2057
• Puesto Silva Oeste Block: Transfer of Pluspetrol’s concession (6,301 acres) and the award of a new exploitation license valid for 35 years, including transportation authorization. As part of the new license terms, GeoPark will transfer a 5% WI to GyP. GeoPark remains operator with a 95% WI and will carry GyP’s portion of the capital and expenditures on a fully recoverable basis with up to 100% of GyP’s share of production. This recoverable carry will be reflected in GeoPark’s working interest, increasing it from 95 to 100 percent during the carry period
• Effective Date: January 1, 2025

Growing Production and Reserves with a Clear Potential Upside 

• Production: Currently producing 1,700–2,000 boepd (95% oil, 5% gas)  
• Expected growth: Production projected to reach approximately 20,000 boepd by year-end 2028 
• Development plan: Potential for 50–55 additional wells across 15 pads, unlocking more than 60 mmboe gross recoverable volumes
• Estimated reserves: Access to 11.4 mmboe of 1P net reserves, 25.8 mmboe of 2P net reserves, and 45.3 mmboe of 3P net reserves
• 2025 pro forma impact: On a consolidated basis, the acquisition positions GeoPark at approximately 30,000 boepd, with an estimated reserve life index of 7 years for 1P reserves and over 10 years for 2P reserves

Value Accretive with Immediate Cash Generation and Long-Term Value

• Incremental pro-forma net Adjusted EBITDA[2] of $12–14 million in full-year 2025
• At expected peak production of approximately 20,000 boepd gross in 2028, the assets are expected to contribute $300–350 million of gross Adjusted EBITDA (at $70/bbl Brent oil price)
• The development plan requires $500-600 million of gross investment through 2028. Peak net debt-to-EBITDA ratio is 2.0-2.5x in 2026, before rapidly deleveraging to below 1.0x as plateau Adjusted EBITDA is achieved

Facilities and Infrastructure

• Current production is processed with a battery that can handle up to 6,000 bopd at the Loma Jarillosa Este Block. GeoPark plans to develop the two blocks as a hub, with a new central processing facility to be built at the Puesto Silva Oeste Block with an expected capacity of approximately 20,000 bopd and a pipeline connecting the two blocks. Construction of this infrastructure is projected to start in 2026 and be online in time to support the anticipated plateau production 

[1] GeoPark’s estimate. 
[2] The Company is unable to present a quantitative reconciliation of full-year 2025 Adjusted EBITDA which is a forward looking non-GAAP measure, because the Company cannot reliably predict certain of the necessary components, such as write-off of unsuccessful exploration efforts or impairment loss on non-financial assets, etc.

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