Oilman Jim's Letter - 12 April 2024

GeoPark (GPRK G6O.F) announced it has submitted a binding offer to acquire a non-operated working interest in unconventional blocks in the Neuquen Basin in Argentina. The offer has been accepted by the seller and the parties are working on an exclusive basis towards execution of definitive agreements. The potential acquisition is said to be consistent with the company’s strategy of continued expansion in the leading proven oil and gas basins in Latin America. Upon closing, the assets would immediately contribute more than 5,000 net barrels of oil equivalent per day of production. The agreed acquisition price is around US$200 million, plus an additional carry of US$110 - 120 million gross over a two year period, associated to certain exploration activities. GeoPark intends to fund the acquisition through a combination of cash on hand, available credit facilities and new financing. The company expects to sign definitive documentation within the coming weeks, in which case closing of the transaction would occur in the third quarter of 2024.

Central Petroleum (CTP.AX CNPTF C9J.F) announced a further Northern Territory update. The company and its Mereenie joint venture partners have entered into an as-available supply agreement with Power and Water Corporation for the supply of up to 8.6 Petajoules of gas (2.1 Petajoules net to Central) to the end of 2024. Per Leon Devaney, Central’s Managing Director and Chief Executive Officer, “the Northern Territory gas market is changing, and I believe production from the Amadeus Basin will play a key role as the Northern Territory’s only onshore source of domestic production. We are seeking additional customers and firm gas transportation so that we can increase production from our existing fields in the Amadeus Basin through new production wells.”

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