GeoPark (GPRK) said Thursday it entered into an agreement to acquire a 100% operated stake in the oil-targeting Loma Jarillosa Este and Puesto Silva Oeste blocks in the Vaca Muerta formation located in Neuquen province, Argentina, from private energy firm Pluspetrol.

Under the agreement, GeoPark said it will pay $115 million upon closing, which will be funded by its available cash. The transaction is expected to close before the end of the year and has an effective date of Jan. 1.

Under agreements signed with the Neuquen government, a new exploitation license will be issued for the Puesto Silva Oeste block that requires GeoPark to transfer a 5% stake to Gas y Petroleo del Neuquen, resulting in a 95% operated stake in that block, the company said.

The assets currently produce 1,700 to 2,000 barrels of oil equivalent per day, consisting of 95% oil and 5% gas, with the potential to achieve plateau production of approximately 20,000 barrels of oil equivalent per day by the end of 2028, GeoPark said.

Shares were up 8.5% in recent Thursday premarket activity.