Gas Bridge Acquires GeoPark’s 10% Stake in Brazil's Manati Field
Brazilian energy player Gas Bridge SA has entered into an agreement with NYSE-listed GeoPark Ltd. to acquire its 10% interest in the Manati field (BCAM-40 concession) located in the Camamu-Almada basin, offshore Brazil.
Under the terms of the agreement, Gas Bridge will acquire GeoPark’s entire interest in the field, for a total purchase price of BRL144.4 million (approximately US$26.8 million), comprised of a fixed tranche of BRL124.4 million, and an earn-out of BRL20 million related to future field-related regulatory approvals.
The deal marks the third such transaction by Gas Bridge aimed at acquiring other partners’ stakes in the Manati field. In August this year, the company had signed an agreement with Enauta Participações SA to acquire an initial 45% interest in the field, for a total purchase price of BRL560 million.
Following this, in the first week of November, Gas Bridge had also entered into an agreement with Brazilian independent E&P company Petro Rio SA to acquire its 10% non-operated interest in the field, for a total purchase price of BRL144.4 million. The completion of both transactions remain subject to customary closing conditions.
In May this year, state-owned Petrobras, which owns a 35% operated interest in the Manati field, had engaged JP Morgan as its financial advisor to help market its interest.
The Manati field covers an area of approximately 76 sq. km located within the BCAM-40 concession in the Camamu-Almada basin, situated in shallow waters approximately 10 km off the coast of Bahia State. The field includes six producing wells and one fixed platform (PMNT‐1) and holds total proved and probable (2P) reserves of approximately 17.3 billion cubic feet of gas equivalent (Bcfe) as of December 31st, 2019, of which approximately 98% is gas. Production associated with the field was approximately 8.8 million cubic feet of gas equivalent per day (MMcf/d) during Q3-2020.
Rio-based Gas Bridge is backed by the Lorentzen Group, and is engaged in the production, development, refining, storage, marketing, transportation, and trading of natural gas in Brazil.
The transaction is subject to various conditions precedent, including the success of Gas Bridge in acquiring the 90% operated interest in the field, and is expected to be completed in Q4-2021.