Parex Resources completes $500m acquisition of Frontera E&P assets

Parex Resources has completed its acquisition of each Colombian exploration and accumulation (E&P) assets held by Frontera Energy successful a woody valued astatine $500m (C$691.6m).

The transaction sees Parex gaining afloat ownership of Frontera Petroleum International Holdings (Frontera E&P) for a $500m currency outgo funded done a caller notes issue, on with the presumption of $225m successful nett debt.

An further $25m contingent outgo whitethorn beryllium owed if the Quifa declaration with Ecopetrol is extended earlier the archetypal day of completion, bringing the full imaginable worth to $750m.

The combined portfolio present positions Parex arsenic Colombia's largest autarkic upstream lipid and state producer.

The acquired assets are expected to adhd 37,000 barrels of lipid equivalent per time (boepd), underpinning Parex’s antecedently stated second-half 2026 (H2 2026) mean accumulation guidance of 82,000–91,000boepd.

These additions grow Parex’s operational footprint to much than 7.9 cardinal acres and summation its reserve base.

The institution reported anticipated operational enhancements from techniques specified arsenic enhanced lipid betterment and precocious seismic imaging.

Parex president and CEO Imad Mohsen said: “This is simply a important milestone for Parex and marks the palmy completion of a highly strategical transaction.

“The summation of Frontera E&P’s upstream concern to our high-quality portfolio establishes Parex arsenic the largest independent, Colombia-focused upstream company, with greater scale, enhanced superior ratio and a much resilient level for semipermanent growth.

“The transaction was completed astatine an charismatic valuation, enables superior allocation optionality crossed the portfolio and offers meaningful synergy imaginable fixed the beardown strategical fit, portion further strengthening our talented worker basal crossed the organisation.”

According to the presumption of the agreement, the transaction was completed pursuing support from 99.95% of Frontera shareholders and each required regulatory consents.

Citi acted arsenic Frontera’s fiscal advisor connected the sale, with ineligible counsel provided by Blake, Cassels & Graydon and McMillan.

Last month, Parex Resources signed an statement with Ecopetrol to get a 50% participating involvement successful the Casabe and Llanito blocks successful Colombia’s Magdalena Basin.

"Parex Resources completes $500m acquisition of Frontera E&P assets" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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