CALGARY, AB, March 10, 2026 /CNW/ - Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company") announces it has entered into a definitive arrangement agreement with Parex Resources Inc. (TSX: PXT) ("Parex") (the "Parex Arrangement Agreement"), pursuant to which Parex will acquire Frontera's upstream Colombian exploration and production business (the "Frontera E&P Assets") for an equity consideration of up to $525 million (the "Parex Arrangement" or the "Transaction"), including $500 million payable upon closing and a $25 million contingent payment payable upon execution of the contractual amendment, or other binding agreement, extending the term of the Quifa Association Contract within 12 months, subject to customary closing adjustments. Parex will also assume all of Frontera's obligations under its $310 million 2028 Senior Unsecured Notes and $80 million Chevron prepayment facility, resulting in a firm value of approximately $750 million. All financial amounts in this news release and in the Company's financial disclosures are in United States dollars, unless otherwise stated.
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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
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