Parex Resources expands in Colombia with now-closed Frontera Energy deal
Key Highlights
- Parex Resources closed its acquisition of Frontera Energy’s Colombian assets.
- The acquisition adds 37,000 boe/d of production.
Parex Resources Inc. has added to its upstream position through a now-closed deal to acquire Frontera Energy Corp.'s oil and gas exploration and production assets in Colombia.
Through the deal, Parex acquired 100% of Frontera Petroleum International Holdings BV (Frontera E&P) for cash consideration of $500 million. Parex said the deal positions the largest independent oil and gas company in Colombia.
From Frontera, Parex adds 37,000 boe/d of low-decline assets to an "established scale of over 7.9 million acres of land and a sizable, long-life reserve base," the company said in a June 2 release.
An additional contingent payment of $25 million is payable upon the execution of a certain contract extension within 12 months, Parex said.
The addition of the new producing assets in Magdalena basin are expected to support Parex's second-half 2026 average production guidance of 82,000-91,000 boe/d.
With the deal now closed, Frontera has become a pure-play infrastructure company.