GeoPark Ltd. (NYSE: GPRK) announced on Nov. 27 an agreement to acquire the LG International Corp. interest in GeoPark’s Colombian and Chilean operations and subsidiaries.

This acquisition will increase GeoPark’s equity interest to 100% in its Colombian and Chilean businesses, which consist of multiple hydrocarbon blocks and associated oil and gas production and reserves, including the Llanos 34 block (GeoPark operated, 45% working interest) in Colombia. This acquisition will also help streamline financial, tax, organizational, and cost structures.

The acquisition price includes a fixed payment of $81 million payable at closing, plus two equal installments of $15 million each, to be paid in June 2019 and June 2020, respectively. Additionally, three contingent payments of $5 million each could be payable over the next three years, subject to certain production thresholds being exceeded. Closing of this transaction is expected by November 28, 2018.

“LGI has been an exceptional strategic partner for GeoPark for over eight years and we are grateful for their support and guidance, which were instrumental in the early development of our regional portfolio of assets and our tremendous growth in recent years,” James F. Park, CEO of GeoPark, said.