OilVoice - GeoPark Announces Placing to Raise US$ 11.7 Million

GeoPark Announces Placing to Raise US$ 11.7 Million

Monday, May 18, 2009

GeoPark Holdings Limited, the Latin American oil and gas exploration and production company with producing properties in Chile and Argentina (AIM: GPK), announce that 3,437,000 new ordinary shares of US$0.001 each (the ”Placing Shares") have been placed at a price of 225 pence or 341 cents per share (the ”Placing Price”). The Placing is conditional, inter alia, on admission to trading on the AIM market of the London Stock Exchange plc, which is expected to occur on Wednesday 20 May 2009. The Placing represents 10 per cent. of the current issued share capital of the Company.

The Placing Shares will rank pari passu in all respects with the Company's existing ordinary shares.

The Placing Price represents a premium of 1.8 per cent. to the average middle market closing quotation of the ordinary shares of the Company for the ten business days up to and including 14 May 2009 and a discount of 13.5 per cent. to the closing middle market quotation of the ordinary shares of the Company on 14 May 2009, the latest date prior to the announcement.

The gross proceeds of the Placing which amount to approximately US$11.7 million will allow GeoPark to grow and expand its portfolio while increasing oil and gas production and reserves through drilling a programme of new wells in the Fell Block in Chile.

GEOPARK is projecting to invest between US$25 - 35 million in 2009 in Chile and Argentina with the expectation of approximately doubling total annual oil and gas production.

The Placing Shares have been placed with UK institutional investors, Chilean institutional investors, the International Finance Corporation (”IFC”) of the World Bank, certain directors of GEOPARK and certain other investors.

Commenting on the Placing, Gerald E. O’Shaughnessy, Chairman of GEOPARK, said: “We are pleased with the strong demand generated by this issue which was substantially oversubscribed and which underscores the confidence that our shareholders have in our results, business plan and growth strategy. This issue will further strengthen our balance sheet and support our 2009 investment programme to continue increasing oil and gas production and reserves.”