Parex proposes $500m acquisition of Frontera’s Colombian assets

Parex Resources is readying to get the Colombian upstream concern of Canada-based Frontera Energy for $500m (C$685.05m) successful an all-cash consideration, on with assuming existing debt.

The projected woody besides includes a contingent outgo of $25m nether presumption akin to those successful a antecedently announced agreement. This connection offers a $125m premium implicit the existent acquisition agreement.

Parex, a Colombian autarkic lipid and state company, aims to marque strategical investments that heighten its portfolio and enactment its maturation strategy centred connected Colombia.

The institution said that its existent collaboration with Frontera astatine the VIM-1 artifact provides it with a wide knowing of the latter's assets and workforce.

Parex said that merging the portfolios of the 2 businesses would found the largest autarkic vigor endeavor focused connected Colombia. Furthermore, the operation volition connection accrued scale, improved superior efficiency, amended escaped currency travel procreation and a much robust instauration for sustained growth, it said.

Parex president and CEO Imad Mohsen said: “Our all-cash connection to get Frontera’s Colombian-based upstream concern provides contiguous and greater worth for Frontera and its shareholders.

“Based connected the premium offered, we expect that the Frontera Board volition reason that our Proposal volition beryllium a 'Superior Proposal' arsenic defined by the antecedently announced acquisition agreement. We look guardant to further discussions with Frontera’s committee and absorption squad to finalise a transaction.”

Frontera besides confirmed the receipt of the unsolicited connection from Parex, noting that these are the aforesaid assets it had already agreed to merchantability to GeoPark nether an statement signed successful January 2026.

It signed a definitive statement to merchantability Frontera Petroleum International Holdings, which includes its Colombian exploration and accumulation assets, to GeoPark. That transaction values the equity astatine up to $400m (1.48tn pesos).

In enactment with its fiduciary duties, Frontera’s Board of Directors is thoroughly evaluating the connection from Parex, with guidance from its ineligible and fiscal advisers.

The committee continues to endorse the GeoPark transaction to its shareholders astatine this time.

The institution stated: “Frontera volition proceed to beforehand the transaction nether the GeoPark Arrangement Agreement to merchantability to GeoPark the Frontera exploration and accumulation (E&P) assets, which was announced connected January 30, 2026. At this time, the Frontera Board continues to urge the GeoPark transaction to its shareholders.”

GeoPark, an autarkic vigor institution with operations crossed Latin America, responded to Parex’s engagement by reiterating its committedness to its existent strategical plans.