AIM-listed GeoPark has acquired a $37.5 million (£23.5 million) loan facility from Banco Itau to finance the acquisition and development of a new project in Columbia.

According to a statement, the facility will have a maturity of five years, with interest being charged at market rates. The loan is secured against 100 per cent of the capital of GeoPark Llanos.

In July, GeoPark announced several discoveries at blocks in the same region, which chief executive James Park said took steps towards ‘de-risking’ its Colombian assets by converting exploration potential into new oil production and reserves.

The company also operates in Argentina and Chile and holds interests in 19 hydrocarbon blocks and 3.9 million gross acres under license across Latin America.

James Park, CEO of GeoPark, comments, ‘We are pleased with the success of this financing, which will further support our intended rapid growth in Colombia and also to begin an important long term partnership with Banco Itau BBA – a key financial force in Latin America.’