GeoPark Ltd. said on Nov. 23 that its board of directors has approved an agreement to sell its 10% non-operated working interest in the Manati gas field in Brazil to Gas Bridge SA.
The total consideration of the transaction amounts to R$144.4 million (about US$27 million), including a fixed payment of R$124.4 million plus an earn-out of R$20.0 million, which is subject to obtaining certain regulatory approvals.
The transaction becomes effective Dec. 31, 2020, and is subject to certain conditions, including the acquisition by Gas Bridge of the remaining 90% working interest and operatorship of the Manati gas field.
Two other non-operating partners in the Manati gas field consortium with a combined 55% working interest have already announced their respective agreements to sell their stakes to Gas Bridge. Subject to the agreement by the remainder of the consortium and regulatory approvals, closing of the transaction would occur in fourth-quarter 2021.
The Manati Gas field has net proven and probable reserves of about 3 million barrels of oil equivalent (boe), based on December 2019 DeGolyer and MacNaughton’s certification, and adjusted by production during the nine-month period ended Sept. 30 of 1,127 boe/d.
Recommended Reading
US Natgas Hits Two-month Low on Ample Output, Mild Weather
2023-11-27 - U.S. natural gas futures fell to a two-month low on Nov. 27, weighed down by record output while mild weather limited heating demand.
Brent Crude Oil Closes Below $80 Ahead of OPEC+ Meeting
2023-11-27 - Prices tumbled midweek when OPEC+ postponed to Nov. 30 a ministerial meeting to iron out differences on production targets for African producers.
The Romance of Oil and Gas
2023-11-27 - As Hart Energy commemorates its 50th anniversary in the December issue of Oil and Gas Investor, Hart looks back on what truly drives the oil industry—the romance and thrill of the business.
Low Demand, Falling Oil Prices Weigh on Thanksgiving Gasoline Costs
2023-11-22 - Tens of millions of Americans are expected to hit the roads this Thanksgiving. But they’ll be paying less at the pump than they did a year ago, according to Energy Information Administration figures.