Key Points
GeoPark Vaca Muerta operations entered a new phase this week as the NYSE-listed oil company started drilling its first well in the Loma Jarillosa Este block in Neuquén province, Argentina. The campaign marks the beginning of an $80–$100 million investment program for 2026 alone, with the company targeting a fourfold production increase by year-end, The Rio Times, the Latin American financial news outlet, reports.
GeoPark Vaca Muerta Production Targets
The company’s Argentine output currently sits at approximately 1,500 barrels of oil per day. The 2026 plan calls for completing a pad of five horizontal wells in Loma Jarillosa Este — including fracking, installation of artificial lift systems, and upgrading surface facilities to handle the new volumes. By December, GeoPark expects to reach 5,000–6,000 barrels per day.
The medium-term ambition is even larger. GeoPark’s development roadmap envisions 50 to 55 wells across 15 pads by 2028, when production should reach 20,000 barrels per day — ten times the current rate. At that level, Argentina would surpass Colombia as the company’s largest producing country and restore total output to roughly 48,000 barrels equivalent per day.
Gilinski’s Money Arrives Just in Time
The drilling start comes just weeks after Colombian billionaire Jaime Gilinski invested $107 million for a 20% stake in GeoPark, with the option to increase his holding to 32%. The capital injection strengthens the balance sheet at precisely the moment when Vaca Muerta development demands heavy upfront spending.
GeoPark mobilized over 30 contractor firms through 40 commercial agreements for this campaign, creating immediate economic impact across Neuquén’s oilfield services sector. The company has established a local office with approximately 30 employees, 90% of whom are regional professionals with shale experience.
In a gesture toward community investment, GeoPark joined the Gregorio Álvarez scholarship program with a $250,000 contribution. Provincial authorities described the company’s engagement with local regulators as instrumental in meeting the aggressive drilling timeline.
From Stand-Alone Wells to Factory Drilling
The operational strategy follows a deliberate progression. The current phase focuses on three stand-alone wells in the second quarter, designed to refine GeoPark’s understanding of the rock and optimize completion techniques. By the fourth quarter of 2026, the company plans to transition to “factory drilling” — serial, standardized well construction that drives down per-well costs.
CEO Felipe Bayón, who previously led Ecopetrol’s entry into the Permian Basin in Texas — scaling a joint venture with Occidental Petroleum from zero to 150,000 barrels per day — sees Vaca Muerta as a comparable opportunity. The formation’s economics work at a Brent price of $60–$70, with lifting costs expected to fall below $12 per barrel by 2028.
Why This Matters for Latin American Energy
GeoPark’s pivot illustrates a broader trend: Colombian capital and expertise flowing into Argentina’s shale sector because Colombia’s own oil industry offers limited growth. GeoPark’s Colombian production fell 32% between 2019 and 2025, while Argentina’s Vaca Muerta continues attracting billions from international operators.
JP Morgan raised its price target on GeoPark shares from $8.50 to $11, citing the Vaca Muerta expansion as the primary catalyst. With total investment projected to reach $1 billion by 2030, the drilling campaign that began this week is the first tangible step in what could become one of the most consequential bets by an independent Latin American oil company.