Parex Resources' $500 Million Bid Tops Geopark Offer for Frontera's Colombian Assets

Frontera Energy Corporation, listed in Toronto, revealed on Thursday that it had received a binding offer from Calgary-based Parex Resources Inc. to purchase its Colombian upstream operations, deeming it superior to a prior bid from Geopark.

The offer from Parex involves a $500 million cash deal, including debt assumption and a contingent payment of $25 million. Should Geopark's initial $375 million deal not proceed, a $25 million break fee would be paid to Frontera. Geopark has been informed of Parex's superior proposal and has until March 12 to modify its offer.

Despite receiving Parex's offer, Frontera stated there is no certainty the transaction will be completed. The Geopark Agreement remains in effect, and Frontera's Board continues to act within its fiduciary duties. With a robust portfolio, Frontera is a major private oil producer in Colombia.