Parex Resources Enters into a Definitive Agreement to Acquire Frontera Energy’s Colombian E&P Assets

2026-03-11 - 00:13

(1) As at December 31, 2025; the Transaction also includes the SAARA reverse osmosis water treatment facility and the ProAgrollanos palm oil plantation. (2) Based on Frontera E&P’s estimated January 2026 average production of 37,100 boe/d (light & medium crude oil: ~8,798 bbl/d, heavy crude oil: ~25,805 bbl/d, conventional natural gas: 4,197 mcf/d, and natural gas liquids: ~1,761 boe/d); rounded for presentation purposes; source: National Hydrocarbons Agency of the Republic of Colombia (ANH). (3) Enterprise value per flowing boe/d based on Company forecast 2026E 37,000 boe/d average production and enterprise value estimated as US$725 million. (4) Enterprise value per flowing boe/d based on 2026E 47,000 boe/d average production and enterprise value equaling US$1.6 billion market capitalization (based on March 9, 2026 closing share price) and US$33 million bank debt, less cash of US$112 million. (5) Frontera reserves: Frontera reserves information contained in the independent reserves report prepared by DeGolyer and MacNaughton Corp ("D&M") dated March 10, 2025, with an effective date of December 31, 2024; see “Reserves Advisory.” (6) Parex reserves: Parex reserves information contained in the independent reserves report prepared by GLJ Ltd. ("GLJ") dated March 3, 2026, with an effective date of December 31, 2025; see “Reserves Advisory.” (7) Enterprise value for Frontera estimated as US$725 million and Parex as US$1.6 billion. (8) Based on current Parex’s FY 2026 production guidance of 45,000 to 49,000 boe/d and Parex’s 2026E estimate for Frontera E&Ps production of approximately 37,000 boe/d. (9) Pro forma calculations are based on a constant US$70/bbl Brent oil price with no synergies assumed. (10) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.” (11) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.” (12) Supplementary financial measure. See “Non-GAAP and Other Financial Measures Advisory.” (13) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.” Read More