US EditionParex Resources Enters into a Definitive Agreement to Acquire Frontera Energy's Colombian E&P Assets
Parex aims to boost production and net asset value by acquiring Frontera’s Colombian assets, pending court and shareholder approvals, to enhance free funds flow and leverage metrics.
- On Tuesday, March 10, 2026, Frontera Energy Corporation announced it will sell its Colombian exploration and production assets to Parex Resources Inc. for up to $525 million in an all-equity transaction.
- Parex submitted a superior proposal offering a 31% premium over Frontera's existing GeoPark Limited arrangement, prompting Frontera to terminate that deal and pay a $25 million purchaser break fee.
- The transaction comprises $500 million payable at closing plus a $25 million contingent payment; Parex will assume $310 million in senior notes and $80 million in debt, resulting in a firm value of approximately $750 million.
- Following closing, Frontera expects to distribute approximately $470 million to shareholders while pivoting to focus on infrastructure assets, including its 35% interest in the Oleoducto de los Llanos Orientales pipeline and its 99.97% stake in Sociedad Portuaria Puerto Bahia.
- Closing is anticipated in the second quarter of 2026, subject to shareholder approval at a special meeting and authorization from the British Columbia Supreme Court, with no financing conditions attached.
12 Articles
12 Articles
FRONTERA ANNOUNCES DEFINITIVE AGREEMENT WITH PAREX TO DIVEST ITS COLOMBIAN E&P ASSETS PORTFOLIO FOR A FIRM VALUE OF APPROXIMATELY $750 MILLION, INCLUDING $525 MILLION EQUITY CONSIDERATION
/PRNewswire/ - Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company") announces it has entered into a definitive arrangement agreement with Parex...
Parex Resources Enters into a Definitive Agreement to Acquire Frontera Energy's Colombian E&P Assets
CALGARY, Alberta, March 10, 2026 (GLOBE NEWSWIRE) -- Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT) is pleased to announce that it has entered into a definitive agreement (the "Arrangement Agreement") with Frontera Energy Corporation ("Frontera") (TSX:FEC), whereby Parex will acquire 100% of Frontera Petroleum International Holdings B.V. ("Frontera E&P"), which holds all of Frontera's exploration and production assets in Colombia, for…
Simcoe.com
Parex Resources Enters into a Definitive Agreement to Acquire Frontera Energy’s Colombian E&P Assets
CALGARY, Alberta, March 10, 2026 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) is pleased to announce that it has entered into a definitive agreement (the "Arrangement Agreement") with Frontera Energy Corporation (“Frontera”) (TSX: FEC), whereby…
Frontera To Sell Colombian Upstream Portfolio To Parex For $750 Million
Frontera Energy (TSX: FEC) has again entered into a definitive agreement to divest its entire Colombian upstream portfolio. The deal, which sees the company transitioning toward a specialized infrastructure model, involves the sale of its Colombian exploration and production assets to Parex Resources (TSX: PXT) for an implied value of $750 million, and comes after […]
Imad Mohsen, president and CEO of Parex. Image: artphotostudio through Freepik/Parex Frontera Energy accepted Parex’s $525 million offer for it to acquire its oil production and exploitation businesses in Colombia. With this decision, Parex takes over the business and takes out of the race another company that went for them, GeoPark. This marks a new context for the oil industry in Colombia, since after the transaction, Parex would keep around 8…
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