Frontera Energy has provided an update on the previously-announced unsolicited, non-binding proposal made by Parex Resources to acquire all of Frontera's upstream Colombian exploration and production business, being the same assets that Frontera has agreed to sell to a subsidiary of GeoPark under the previously announced arrangement agreement between Frontera and GeoPark dated January 29, 2026. Since receipt of the non-binding proposal, consistent with its fiduciary responsibilities, the Frontera Board of Directors, in consultation with its outside legal counsel and independent financial advisors, has carefully reviewed and considered the Parex non-binding proposal and has had ongoing discussions and negotiations with Parex, including providing it with certain non-public information regarding Frontera pursuant to a confidentiality agreement.
Today, Frontera received a binding proposal from Parex to acquire the equity interest of the Frontera E&P Assets for $525 million, and is currently awaiting confirmation of certain terms.
As a result, the Frontera Board of Directors, in consultation with outside legal counsel and its independent financial advisors, has determined that the Parex Binding Proposal at this time does not constitute a 'Superior Proposal', as defined under the GeoPark Arrangement Agreement.
The GeoPark Arrangement Agreement remains in full force and effect, and the Frontera Board of Directors continues to recommend the GeoPark arrangement to the Frontera shareholders and that Frontera shareholders vote in favor of the resolution to approve the GeoPark arrangement at the upcoming special meeting of Frontera shareholders to be held on April 10, 2026.
Source: Frontrra Resources
