GeoPark Limited said its 25-year Production Participation Contract for the Bare Block in Venezuela is now effective, after approval of the block’s development plan, completion of agreements with PDVSA Petróleo and receipt of all required authorizations, well inside the 120-day period the contract allowed. GeoPark will act as operator, fund 100 percent of capital spending under approved work programs and hold a 65 percent net participating interest, with direct commercialization rights. The company said 300 to 400 reactivation wells have been assessed and that it expects to complete operational takeover before the end of 2026.
Closing was paid entirely in shares. GeoPark issued 42,135,872 common shares to Panamerican Energy Holdings, a Grupo Gilinski entity, for the remaining 95 percent of the contract holding company, which lifts Gilinski to about 56.3 percent of GeoPark and makes it the controlling shareholder. Gilinski is required to launch a tender offer within 90 days for shares it does not already hold, at $12.22 a share and up to $100 million in total.