A strategic pillar of GeoPark’s long term business plan is based on creatively initiating and developing growth opportunities – both organically on existing assets and by acquiring new economically-attractive projects. There is a strong competitive environment for new project acquisitions and GeoPark works to differentiate itself by insuring it has the foundation, capabilities and capital necessary to successfully acquire new high impact projects.
Latin America is the focus of GeoPark’s growth. Advantages of the region include: under-explored resource base; attractive regulatory environment; experienced and qualified people; supporting infrastructure and equipment; mínimum security concerns and an economic future dependent on the development of secure energy supplies.
In 2010, GeoPark formed a strategic partnership with LG International to jointly acquire and develop upstream oil and gas projects throughout Latin America. This alliance provides GeoPark with a long term financially-strong partner to facilitate and expand its access to acquisition opportunities. During 2011, the Company and LGI entered into agreements by which LGI acquired a 20% equity interest in GeoPark’s Chilean business for a total consideration of US$148 million plus certain funding obligations. LGI also acquired a 20% equity interest in GeoPark’s Colombian business. These agreements cement the strategic relationship between GeoPark and LGI and demonstrate the value of the business that GeoPark has built in Chile and Colombia.