Upon completion, Grupo Gilinski is expected to own approximately 56.3% of GeoPark. An adjustment mechanism could increase this stake to about 58.4% if specific contractual conditions for the Bare project improve before the deal closes. The agreement also includes a US$100 million tender offer at US$12.22 per share, allowing existing GeoPark shareholders the option to sell their holdings for cash. The new shares are being issued at a 26% premium to GeoPark’s 30-day volume-weighted average price of US$9.67.
The deal grants GeoPark the rights to operate and finance the approved development program for the Bare block under a 25-year Production Participation Contract with PDVSA Petróleo. Grupo Gilinski’s influence in Venezuela was instrumental in securing this framework. By issuing shares rather than paying cash, GeoPark preserves capital for its broader operational and development plans. The transaction was approved by GeoPark’s board following an independent valuation and fairness opinion process, with three directors appointed by Grupo Gilinski recusing themselves from the vote.
Bare is a significant heavy oil field containing approximately 15.7 billion barrels of original oil in place. The block has produced more than 700 million barrels during its operating history and currently produces about 11,000 barrels per day on a gross basis. GeoPark expects its redevelopment program to significantly boost output, targeting gross production of 18,000 barrels per day in 2027, rising to 31,000 barrels per day in 2028 and reaching 44,000 barrels per day in 2029–2030. On a net basis, attributable to GeoPark, the company projects production of 8,000 barrels per day in 2027, 20,000 barrels per day in 2028, and 28,000 barrels per day in 2029–2030.
The redevelopment plan aims to increase the field’s recovery factor to 8–9%, up from an estimated 4–5% currently. GeoPark will hold a 65% net working interest and finance 100% of capital expenditures under the approved work programs, with the right to commercialize the hydrocarbons. The company anticipates cumulative net production of approximately 400 million barrels from the Bare block under the contract terms.
This acquisition expands GeoPark’s operational footprint to Venezuela, complementing its existing assets in Colombia and Argentina. The addition of the Bare block is expected to help increase the company’s total production to 75,000 barrels of oil equivalent per day by 2030, alongside growth from its operations in the Vaca Muerta formation in Argentina. The relationship between the two entities began in March when an affiliate of Grupo Gilinski invested approximately US$107 million in newly issued GeoPark shares, securing an initial 20% stake that made it the company’s largest shareholder.
The transaction remains subject to applicable regulatory approvals, authorizations, and sanctions-related compliance requirements. GeoPark estimates that the approval process could take up to 120 days. Until these conditions are met, the deal is not finalized. GeoPark will retain a majority-independent board and continue its listing on the New York Stock Exchange.
