- Recorded a Net Loss of $11.3 Million
- Generated Operating EBITDA of $91.9 Million
- Delivered 41,586 Boe/d Q1 Average Daily Production, 41,800 Boe/d YTD Average Daily Production, 42,500 Boe/d March and April 2023 Average Daily Production
- Generated $16.9 Million of Income and Adjusted Midstream EBITDA of $28.2 Million From Standalone and Growing Midstream Business
- Drilled Wei-1 Well to 19,142 Feet (5,834 Metres) Measured Depth,Encountered Oil-Bearing Intervals
- Repurchased 461,200 Common Shares for $4.2 Million Through NCIB
- Recognized as One of the Most Ethical Companies in the Worldfor a Third Consecutive Year by Ethisphere
Frontera Energy has reported financial and operational results for the first quarter ended March 31, 2023. All financial amounts in this news release are in United States dollars unless otherwise stated.
Gabriel de Alba, Chairman of the Board of Directors, commented:
'Frontera's first quarter results were in-line with its 2023 capital and production guidance. The Company delivered average daily production of 41,586 boe/d, generated $91.9 million of operating EBITDA, and invested $131.5 million in capital expenditures.
Consistent with its strategic priorities, the Company successfully refinanced Puerto Bahía's existing legacy project finance debt via a new $120 million loan facility with a group of lenders led by Macquarie Capital, which extended the tenor of the borrowings and provided for up to $30 million in additional funding to pursue strategic investment opportunities within its Midstream business. With the refinancing complete, Frontera's standalone midstream business is fully capitalized with funding to grow. Subsequent to the quarter, the Company designated Frontera Energy Guyana Holding Ltd. and Frontera Energy Guyana Corp. as unrestricted subsidiaries and released Frontera Energy Guyana Corp. as a note guarantor for its senior bonds due 2028. The designation is a positive forward step as the Company nears the completion of its exploration obligations in Guyana and supports ongoing capital discipline.
The Company remains focused on aligning its Upstream, Midstream, and Guyana core businesses to achieve the Company's strategic priorities and unlock shareholder value.'
Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:
'I'm pleased with Frontera's first quarter operational and financial results. Despite community blockades in early February which temporarily shut-in production at our Quifa and CPE-6 operations, the Company's first quarter production was largely in-line with last quarter. YTD, we are delivering average daily production of approximately 41,800 boe/d and in March and April we averaged 42,500 boe/d. This is due to better than expected performance from our new Cajua wells where current gross average heavy oil production is 4,860 bopd, higher VIM-1 liquids and NGL production, better performance at CPE-6, Coralillo 1 and 3 wells, as well as the Tapiti-1 well.
The Company continues to focus on managing costs across the business. Frontera's field breakeven of approximately $34 - $38/boe ensures operational resilience even in volatile market conditions and under varying oil price scenarios.
We expect improved profitability throughout the rest of the year as we advance our development portfolio in Colombia and Ecuador, increase Quifa and CPE-6 water-handling infrastructure and facilities as we lay the foundation for the Company's path to grow production to 50,000 boe/d, leverage our advantaged transportation and logistics structure to maximize realized prices and mature our self-sustaining and growing midstream business.
During the quarter, Frontera and its Joint Venture partner spud the Wei-1 well and we are currently at 19,142 feet. We have encountered oil-bearing intervals so far and are currently drilling ahead to our planned total depth.
Importantly, during the quarter, Frontera was recognized for a third consecutive year by Ethisphere as one of the World's Most Ethical Companies in 2023. The Company was added to the 2023 Bloomberg Gender-Equality Index, achieved ISO certification in Ecuador and was recognized by Friendly Biz for our LGBT+ friendly workplace.'
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Source: Frontera Energy
