GeoPark Shares Rise on Venezuela Entry and Gilinski Control Deal

GeoPark Ltd. (NYSE:GPRK) shares rose 4% on Thursday following a dual announcement of its strategic entry into Venezuela and a change of control transaction that establishes Grupo Gilinski as its new majority shareholder. The Latin American energy firm is acquiring a heavy oil asset in the Orinoco Heavy Oil Belt, a move intended to significantly scale its production and reserves.

Gilinski to Take Majority Control

Under the terms of the agreement, Grupo Gilinski will become GeoPark’s controlling shareholder, holding approximately 56.3% of outstanding shares upon closing. GeoPark will issue 42.1 million new shares to the investment group at a price of $12.22 per share.

This price represents a 26% premium to the company's 30-day volume-weighted average price of $9.67. The transaction also includes a $100 million tender offer at the same $12.22 per share price, providing a liquidity option for existing shareholders.

Strategic Entry into Venezuela

GeoPark will acquire the Bare Block asset through a 25-year Production Participation Contract with Venezuela's state-owned PDVSA Petróleo S.A. The company will operate the asset with a 65% net working interest and will fund 100% of the capital expenditures, supported by approximately $700 million of available liquidity.

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The Bare Block is a significant asset with substantial long-term potential:

• Original Oil in Place: ~15.7 billion barrels
• Current Production: ~11,000 barrels of oil per day (bopd)
• Peak Production Potential: 85,000-95,000 bopd

Financial Outlook and Projections

The transaction is expected to transform GeoPark's financial and production profile. The company projects its total production will reach 75,000-85,000 barrels of oil equivalent per day by 2030, roughly 2.7 times its current output. Proforma adjusted EBITDA is forecast to be $380-$460 million in 2027, rising to between $925 million and $1.3 billion by 2029-2030.

GeoPark CEO Felipe Bayon stated the asset "offers massive scale, existing infrastructure, production history, and material redevelopment potential in one of the world’s largest hydrocarbon basins." The transaction remains subject to regulatory approvals and sanctions-related compliance, with an expected closing period of up to 120 days. BTG Pactual served as financial advisor to GeoPark for the deal.