Geopark Adds to Argentine Acreage

New York-listed GeoPark has expanded further in the Neuquen basin in Argentina, buying the Los Parlamentos block in partnership with domestic producer YPF, it said June 11, describing the acquisition as "an attractive, high-potential block." It covers about 366,000 acres (1,480 sq km) with seismic coverage – 100 km² of 3-D and 800 km² of 2-D seismic – near other producing fields.

The block was awarded to YPF in the Mendoza bidding round on May 31, 2018. In accordance with the partnership agreement between YPF and GeoPark, and subject to customary regulatory approvals, GeoPark will receive a 50% non-operating working interest in exchange for funding half of one exploration well and additional 3D seismic. GeoPark’s total financial commitment is about $6mn over the next three years.

GeoPark already owns seven blocks covering over 2mn acres in the prolific Neuquen basin, with significant conventional and unconventional exploration potential within the Grupo Neuquen and Loncoche formations. Geoscience evaluation is ongoing and field operations are expected to start-up in late 2018 or early 2019.

Geopark said its team "knows the rocks and has a great track-record of finding oil and gas. This type of low-cost, bolt-on acquisition in a prolific hydrocarbon basin – in partnership with the national oil company – exactly fits GeoPark’s playbook and demonstrates the growing strength, reach and benefits of our regional Latin American platform.” YPF is the biggest oil and gas producer in Argentina.