Frontera to sell Colombian assets to Geopark for up to $400m

Frontera Energy has signed a definitive statement to merchantability Frontera Petroleum International Holdings, consisting of its Colombian exploration and accumulation (E&P) assets, to Geopark, with the equity valued astatine up to $400m.

The statement is being conducted done a program of statement nether the Business Corporations Act successful British Columbia, Canada.

The woody is expected to reason successful the 2nd fractional of 2026, taxable to shareholder and regulatory approvals.

It includes an contiguous outgo of $375m upon closing, with an further $25m contingent connected achieving definite improvement milestones.

Upon completion, Frontera plans to administer astir $370m to its shareholders, pending approval.

Frontera Board of Directors president Gabriel de Alba said: “The committee and absorption person focused connected maximising shareholder value, unlocking astir $1.1bn, including implicit $480m done dividends and buybacks.

“We person besides positioned the institution to unlock further worth done operational, strategical and indebtedness simplification initiatives. The transaction represents a important measurement and the culmination of this multi-year, shareholder-focused strategy to aboveground and monetise worth successful the E&P business.”

Geopark volition presume Frontera’s outstanding debts, including $310m successful unsecured notes owed successful 2028 and $80m from a prepayment installation with Chevron.

The transaction values Frontera's Colombian assets astatine astir $622m erstwhile considering some currency payments and assumed liabilities.

After the divestment, Frontera volition support its infrastructure operations, supported by its stakes successful ODL and Puerto Bahía, on with holdings successful Guyana and assorted different markets extracurricular Colombia.

The Puerto Bahia installation serves arsenic a cardinal operations hub, with projects nether mode to boost currency travel potential, including liquefied petroleum state (LPG) import facilities and a liquefied earthy state (LNG) regasification project.

Meanwhile, ODL is simply a cardinal midstream plus that transports a important information of Colombian lipid production.

These operations generated an estimated distributable currency travel of astir $77m successful 2025.

The institution stated that the equity acquisition terms is 25% higher than the 90-day volume-weighted mean terms and 18% supra the existent stock price.

Frontera CEO Orlando Cabrales said: “Following an exhaustive reappraisal of the company's alternatives, we judge this transaction crystallises worth for shareholders astatine an charismatic premium for our Colombian E&P assets, converting vulnerability to lipid prices into cash, and retaining upside done a stand-alone Infrastructure Business.