(WO) - Frontera Energy said it has received a binding offer from Parex Resources to acquire the company’s upstream oil and gas assets in Colombia, determining that the proposal constitutes a “superior proposal” to its previously announced agreement to sell the same assets to GeoPark.

Under the Parex offer, the company would acquire Frontera’s Colombian exploration and production business for $500 million in cash at closing, plus a potential $25 million contingent payment tied to development milestones within 12 months after completion. The offer also includes the assumption of Frontera’s outstanding debt obligations, including $310 million in unsecured notes due in 2028 and $80 million under a prepayment facility with Chevron Products Company.

Frontera said the transaction structure proposed by Parex is largely consistent with the previously announced arrangement with GeoPark, aside from the revised consideration. The offer also assumes payment of a $25 million break fee should Frontera terminate the GeoPark agreement.

GeoPark has now entered a five-business-day “matching period,” during which it has the right to amend the terms of its existing agreement to match or exceed the Parex proposal. Frontera said its board has not changed its recommendation regarding the GeoPark transaction and will continue to evaluate developments as required under the terms of the agreement.

Image: Parex Resources.