FRONTERA ANNOUNCES RESULTS OF SPECIAL SHAREHOLDER MEETING

• Event: Shareholders voted overwhelmingly (99.95% For) to approve the plan of arrangement for Parex Resources Inc. to acquire Frontera's Colombian upstream business.
• Transaction Terms Confirmed: Acquisition price remains US$500 million payable at closing plus a potential US$25 million contingent payment based on milestones.
• Capital Return: Shareholders approved a reduction of capital account by up to C$647 million (approx. US$470 million) derived from net cash proceeds.
• Timeline: Final court hearing scheduled for May 4, 2026; closing anticipated in Q2 2026.
• Strategic Pivot: Upon completion, Frontera transitions to a standalone infrastructure company focused on the Oleoducto de los Llanos Orientales (ODL) pipeline and Puerto Bahía port assets.

• Expectation vs. Reality: The vote result was highly anticipated given the 53.8% support agreements secured prior to the meeting (NewsId 86919). The 99.95% approval rate confirms minimal shareholder dissent, removing a key execution risk.
• Price Impact: The stock price has already rallied significantly from ~$6.00 in January 2026 to ~$14.70 in April 2026, pricing in the successful completion of this transaction. This news confirms the timeline but does not introduce new valuation upside beyond the agreed terms.
• Risk Reduction: The approval eliminates shareholder litigation risk regarding the arrangement, leaving only regulatory and final court order conditions (due May 4).
• Strategic Shift: Validates management's strategy to monetize upstream assets at a premium while retaining infrastructure cash flows ($77 million distributable cash flow in 2025 per NewsId 91709).

• Company Profile: Frontera Energy Corporation operates as an integrated energy company transitioning from upstream exploration to midstream infrastructure.
• Flagship Project (Upstream - Divesting): Colombian E&P assets including Quifa, CPE-6, and VIM blocks. Production averaged 38,332 boe/d in Q4 2025 (NewsId 91709). These assets are being sold to Parex Resources.
• Flagship Project (Infrastructure - Retained):
  • ODL Pipeline: 35% equity interest in Oleoducto de los Llanos Orientales crude oil pipeline. Transported 241,734 bbl/d in Q4 2025.
  • Puerto Bahía: 99.97% equity in port operations. Handled 40,548 bbl/d liquids in Q4 2025.
• Future Focus: Post-transaction, the company will focus on infrastructure growth, including an LNG regasification project with Ecopetrol targeting capacity scaling to ≥300 MMcfd by 2029 (NewsId 91709).