Colombian billionaire converts Venezuelan oil contract into majority stake in GeoPark
Jaime Gilinski transferred a 25‑year Bare oil‑field contract in Venezuela to GeoPark Ltd. in exchange for newly issued shares valued at about $514‑$515 million, giving him a controlling interest. GeoPark will issue 42.1 million shares at $12.22 each and will hold a 65% net working interest, while PDVSA retains the balance. The deal must satisfy contract conditions within 120 days or be cancelled. GeoPark plans to lift production from roughly 11,000 barrels per day to 95,000 barrels per day.
Why it matters
The share issuance will dilute existing shareholders but could boost GeoPark’s cash flow if production targets are met, according to the company’s filing. Analysts note that the transaction hinges on meeting the 120‑day conditions, after which Gilinski may purchase up to $100 million of stock from other holders.
Key facts
- 1GeoPark will issue 42.1 million shares priced at $12.22 each, totaling around $514 million. finance.yahoo.com
- 2Gilinski previously invested $107 million in March, acquiring about 20% of GeoPark’s common shares. finance.yahoo.com
- 3GeoPark must meet contract conditions within 120 days for the transaction to take effect. finance.yahoo.com
- 4GeoPark will hold a 65% net working interest in the Bare field, with PDVSA retaining the remaining 35%. zerohedge.com
- 5Production is expected to rise from approximately 11,000 barrels per day to 95,000 barrels per day. finance.yahoo.com
- 6GeoPark’s stock closed at $11.45 on Thursday, up 3.8%. finance.yahoo.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.