GeoPark agreed in January to acquire Frontera’s Colombian oil and gas assets for $375 million, but Parex Resources later submitted a superior $500 million proposal that activated a contractual matching period. After reevaluating the revised terms, the board concluded that raising its offer would conflict with its capital allocation principles and long-term value objectives.

Under the deal’s terms, GeoPark will receive the return of $75 million held in escrow plus interest and collect a $25 million break-up fee, bolstering its cash position. These funds enhance the company’s flexibility to pursue alternative investments without altering its investment strategies.

GeoPark remains focused on optimizing production at its Llanos 34 block, where recent certification increased 2P original oil in place by 22%, and expects continued free cash flow from its Colombian portfolio. In Argentina, the company plans to accelerate drilling in the Neuquén Basin’s Vaca Muerta, targeting about 20,000 boepd and $300–350 million in gross adjusted EBITDA by 2028 at $70 Brent.