LG International Corporation (LGI), the Korean conglomerate, and GeoPark Holdings Limited report that LGI has joined GeoPark’s operations in Colombia through the acquisition of a 20% interest in GeoPark Colombia S.A., a company that holds GeoPark’s Colombian assets (GeoPark Colombia) and which includes interests in 10 hydrocarbon blocks.

In addition, GeoPark and LGI are pleased to announce their agreement to extend, in March 2013, their strategic alliance to build a portfolio of upstream oil and gas assets throughout Latin America through 2015. This partnership, formed in 2010 and which now includes joint projects in Chile and Colombia with interests in 16 exploration, development and production blocks, is currently targeting new project acquisitions in Brazil, Colombia, Peru, Argentina and Chile.

The transaction by which LGI has acquired a 20% interest in GeoPark Colombia (the “Transaction”) provides that LGI pay US$20.1 million in cash, being its proportion of the purchase price of the Colombian assets (acquired by GeoPark in February and March 2012), adjusted for working capital, reimbursement of transaction expenses, contribution of net additional capital invested by GeoPark into the Colombian business during 2012 and pro-rata assumption of existing debt and any future investment obligations. In addition, the Transaction includes an incremental equity provision through which GeoPark can earn back additional equity participation in GeoPark Colombia (up to 12%), depending on the success of the Colombian operations.

Tags: Geopark Holdings Ltd., LG International Corporation