Parex Wins Bidding War Against GeoPark for Frontera Energy's Oil Assets in Colombia
Frontera Energy reported that it accepted a superior offer from Canadian Parex Resources for US$525 million to acquire its exploration and production assets in Colombia.
TL;DR
- Frontera Energy accepted Parex Resources' offer of US$525 million for its Colombian exploration and production assets.
- Parex's offer surpasses previous proposals from both Parex itself and GeoPark.
- Frontera will terminate existing agreements with GeoPark to proceed with the transaction with Parex.
- The acquired portfolio consists of 17 exploration and production blocks in Colombia, including the Quifa field and Cubiro block.
- The deal structure includes a US$25 million contingent payment and the assumption of US$310 million in unsecured bonds and US$80 million under a prepaid line with Chevron Products Company.
- Parex states the combination will create the largest independent energy company focused on Colombia.