Frontera Energy Corporation has agreed to sell its Colombian oil and gas business to GeoPark Limited in a deal valued at up to US$400 million in equity, plus the assumption of debt, creating a larger independent exploration and production player in Latin America.
Under a definitive agreement, GeoPark will acquire Frontera Petroleum International Holdings B.V., which consists solely of oil and gas exploration and production assets in Colombia. The equity value of the deal is up to US$400 million, including US$375 million payable at closing and a contingent payment of US$25 million tied to the achievement of certain development milestones.
The transaction is set to create a leading regional independent E&P platform across Colombia and Argentina, significantly increasing GeoPark’s scale, reserve base and cash-flow generation.
As part of the deal, GeoPark will assume Frontera Energy’s US$310 million unsecured notes, which are set to mature in 2028. GeoPark will also take on US$79 million of net outstanding obligations under a prepayment facility. Taken together, the transaction implies an enterprise value of about US$600 million for the acquired assets.
The acquisition covers 17 upstream blocks in Colombia. The portfolio is described as a strong strategic fit with GeoPark’s existing assets, combining producing fields with exploration prospects across two key basins.
In the Lower Magdalena Basin, the deal gives GeoPark additional exposure to light oil and natural gas, anchored by the VIM‑1 block, a growing condensate and gas asset with a long contract life. GeoPark expects this to strengthen its commodity mix, cash-flow resilience and gas exposure at what it sees as a favorable point in the market cycle.
In the Llanos Basin, GeoPark will consolidate its core operating hub by adding large, long‑life assets, including the Quifa field and the CPE‑6, Guatiquia and Cubiro blocks. These assets create a more integrated corridor with greater scale, better use of existing infrastructure, and improved operating efficiency.
Beyond upstream assets, the transaction also includes Frontera Energy’s integrated water management and environmental project. That comprises the SAARA (formerly Agrocascada) reverse osmosis water treatment facility and the ProAgrollanos palm oil plantation, which is irrigated using water from SAARA.
“After extensive discussions with Frontera Energy over the past year, we are pleased to have reached an agreement that adds Frontera’s Colombian assets to our portfolio, positioning GeoPark as the largest private operator in Colombia and creating a stronger and more resilient platform with greater scale, longer production plateaus and improved cash-flow durability, while continuing to fund our growth in Vaca Muerta,” GeoPark CEO Felipe Bayon said in a press release. “Beyond the financial and production metrics, this transaction enables a full-field development approach in assets such as Quifa and the broader Llanos portfolio, allowing us to extend plateau production, capture synergies and reinvest efficiently. This will support sustained production, reserves protection and increased investment activity that benefits the regions where we operate through jobs, royalties and taxes.”
"Following an exhaustive review of the company's alternatives, we believe this transaction crystallizes value for shareholders at an attractive premium for our Colombian E&P assets, converting exposure to oil prices into cash, and retaining upside through a standalone infrastructure business,” said Frontera CEO Orlando Cabrales. “The additional Infrastructure Business upside will come from our interest in ODL and Puerto Bahía as the backbone of our post‑transaction Frontera.”
Bennett Jones LLP, Cleary Gottlieb Steen & Hamilton LLP, and CMS Rodríguez-Azuero are serving as legal counsel to GeoPark, with BTG Pactual as the exclusive M&A financial advisor. Blake Cassels & Graydon LLP is serving as legal counsel to Frontera, with Citi as financial advisor. BMO Nesbitt Burns Inc. was retained to provide a fairness opinion to the Frontera Board of Directors.
The deal is expected to close in the second half of 2026, subject to customary closing conditions.
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