GeoPark Ltd (NYSE:GPRK) saw its shares climb about 4% on Thursday following the announcement that Grupo Gilinski will become its controlling shareholder. The transaction will issue roughly 42.1 million new shares to Grupo Gilinski, resulting in a 56.3% ownership stake once closed.
The shares are being priced at $12.22 each, a 26% premium to GeoPark’s 30‑day volume‑weighted average price of $9.67. A concurrent $100 million tender offer at the same price provides a liquidity option for existing shareholders.
Under the deal, GeoPark will enter a 25‑year Production Participation Contract with PDVSA Petróleo S.A. in the Orinoco Heavy Oil Belt. The basin holds an estimated 15.7 billion barrels of oil in place, with current output of about 11,000 barrels per day. GeoPark projects peak production of 85,000‑95,000 barrels per day and a sustained plateau of 55,000‑62,000 barrels per day for more than a decade, operating with a 65% net working interest and funding 100% of capital expenditures. The company has roughly $700 million of liquidity to support development.
Management expects production to rise to 75,000‑85,000 barrels of oil equivalent per day by 2030, roughly 2.7 times current levels. Pro‑forma adjusted EBITDA is projected at $380‑$460 million for 2027 and $925 million‑$1.3 billion for 2029‑30.
The transaction remains subject to regulatory approvals and sanctions‑related compliance, with a maximum review period of 120 days. BTG Pactual acted as financial advisor to GeoPark and issued a fairness opinion on the deal.
