Parex Resources Makes Rival Bid for Frontera Energy's Colombia Assets

By Robb M. Stewart

Parex Resources has pitched a $500 million-plus bid for Frontera Energy's oil-and-gas exploration and production assets in Colombia, topping GeoPark's agreed deal for the upstream business.

Canada's Parex, already one of the biggest independent oil-and-gas companies in Colombia, said Monday it submitted a proposal to Frontera's board to buy the operations for $500 million in cash, plus the assumption of debt and an additional contingent payment of $25 million.

Parex President and Chief Executive Imad Mohsen said the offer provides immediate and greater value for Frontera and its shareholders, providing a roughly $125 million premium to the agreement Frontera reached with GeoPark.

GeoPark in late January said it was buying Frontera Petroleum International Holdings for $375 million in cash and a $25 million contingent payment payable based on certain development milestones being reached. With that deal, Frontera had pledged to hand out about $370 million to its shareholders.

Calgary, Alberta-based Parex said that if its rival offer is successful it would unlock significant value for shareholders at both companies and be a great win for Colombia. Mohsen said he looked forward to discussions with Frontera's board and management team to finalize a transaction.

Frontera's exit from its Colombian upstream business would leave it focused on energy-infrastructure assets infrastructure assets in South America, including a 35% stake in the Oleoducto de los Llanos Orientales crude-oil pipeline and majority-owned Sociedad Portuaria Puerto Bahia, as well as exploration interests in Guyana.

The deal with GeoPark, which needs approval from two-thirds of Frontera shareholders, would see the independent energy company assume all of Frontera's obligations under $310 million in outstanding 2028 unsecured notes and $80 million under a prepayment facility with Chevron.

Frontera's Colombian subsidiary late last year reached a financing deal with Chevron in exchange for future oil deliveries, including an initial advance of $80 million and right to request an additional $40 million.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

February 23, 2026 08:13 ET (13:13 GMT)