Parex Resources has announced the successful closing of its previously announced acquisition of all the Colombian exploration and production assets of Frontera Energy Corporation. Pursuant to the transaction, Parex acquired 100% of Frontera Petroleum International Holdings B.V. ('Frontera E&P') for cash consideration of US$500 million, funded with the proceeds from Parex’s recent issuance of senior unsecured notes, and the assumption of net debt. An additional contingent payment of US$25 million is payable upon the execution of a certain contract extension within 12 months.

Imad Mohsen, President & Chief Executive Officer, commented: 'This is a significant milestone for Parex and marks the successful completion of a highly strategic transaction. The addition of Frontera E&P’s upstream business to our high-quality portfolio establishes Parex as the largest independent, Colombia-focused upstream company, with greater scale, enhanced capital efficiency, and a more resilient platform for long-term growth. The transaction was completed at an attractive valuation, enables capital allocation optionality across the portfolio, and offers meaningful synergy potential given the strong strategic fit, while further strengthening our talented employee base across the organization.'

Daniel Ferreiro, President & Country Manager, commented: 'We are approaching this integration with a clear focus on safety, operational continuity, and people. The experience and expertise of the employees joining Parex, together with the strength of our existing team, will be instrumental in realizing the full value of this transaction. We remain committed to fostering strong relationships with communities, partners, and stakeholders as we move forward together.'

Key Highlights

With an effective Transaction date of January 1, 2026, free funds flow generated by Frontera E&P prior to today’s close would reduce net consideration paid.

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Source: Parex Resources