GeoPark Inks New Offtake Agreement With Vitol For The Llanos 34 Block In Colombia
Portfolio Pulse from Benzinga Newsdesk
GeoPark has signed a new offtake agreement with Vitol for the Llanos 34 block in Colombia, securing up to $500 million in prepaid future oil sales. This funding, available until June 30, 2025, enhances GeoPark's financial flexibility, with repayment options through future oil deliveries or prepayment without penalty. The interest cost is tied to the SOFR risk-free rate plus a 3.75% annual margin.
May 10, 2024 | 7:03 am
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GeoPark's new offtake agreement with Vitol for the Llanos 34 block in Colombia provides significant financial flexibility and access to up to $500 million in funding. This enhances GeoPark's liquidity and operational capabilities.
The agreement with Vitol provides GeoPark with a substantial financial boost, offering immediate access to funding which can be increased to $500 million. This financial flexibility is crucial for GeoPark's operations and growth, potentially leading to a positive short-term impact on its stock price.
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