GeoPark Limited announced on May 14, 2025, that Phoenix Global Resources, the counterparty to its agreement to acquire a non-operated working interest in four unconventional blocks in Vaca Muerta, Argentina, decided to withdraw from the agreement. As a result, this previously announced acquisition will not proceed. The agreement included an outside date of May 13, 2025, after which either party had the right to terminate the transaction.
This cancellation represents a significant setback for GeoPark's strategic expansion plans in the Vaca Muerta basin. The company had aimed to diversify its portfolio and leverage the potential of this prolific unconventional play. The termination impacts GeoPark's anticipated production and reserve growth from these specific assets.
For investors, this development is very negative as it removes a key growth catalyst and introduces uncertainty regarding GeoPark's Vaca Muerta strategy. The inability to complete the acquisition after a year of effort reflects challenges in navigating regulatory approvals and partnership dynamics.
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