GeoPark enters Venezuela under 25-year deal, Colombia's Gilinski takes control
GPRK•GeoPark completed its entry into Venezuela through a 25-year production participation contract, while Grupo Gilinski became its controlling shareholder with a 56.3% stake. The stake could rise to 58.4% if transaction milestones are met.
1. Venezuela contract
GeoPark said it completed its entry into Venezuela through a 25-year production participation contract covering the Bare Block, where it will act as operator. It acquired Grupo Gilinski's remaining 95% interest in the block's holding company by issuing about 42.1 million new shares to the conglomerate.
2. Deal terms
Grupo Gilinski now owns about 56.3% of GeoPark, potentially rising to about 58.4% if certain milestones are met. GeoPark will fund 100% of capital expenditure under approved work programs and hold a 65% net participating interest; it plans to take operational control before the end of 2026 and begin financially consolidating the asset then.
3. Tender offer and board
Grupo Gilinski must launch a tender offer within 90 days to acquire shares it does not already own at $12.22 per share, for aggregate consideration of up to $100 million. It is entitled to nominate at least five directors as long as it owns at least 50% of GeoPark's outstanding shares.
