FRONTERA ENERGY CORPORATION ANNOUNCES NEW $120 MILLION PREPAYMENT AND COMMERCIAL AGREEMENT WITH CHEVRON

Executive Summary

• Frontera Energy’s Colombian subsidiary entered a $120 million pre‑payment and commercial agreement with Chevron Products Company.
• The agreement provides an initial $80 million advance, with the option to draw an additional $40 million for up to six months, in exchange for delivering a portion of crude oil production over two years.
• Net proceeds will be used to manage working capital and strengthen liquidity; the deal replaces a pre‑payment facility that expires January 2026.

Key Details

• Agreement Value: $120 million total (initial $80 M advance + optional $40 M).
• Advance Structure:
• Initial cash receipt of $80 million upon execution.
• Optional additional draw of up to $40 million available for a six‑month period, fully committed.
• Delivery Commitment: Frontera will supply a portion of its crude oil output to Chevron for a two‑year term.
• Financial Discount Rate: Pre‑payment amounts accrue interest at SOFR + 4.25% per annum.
• Repayment Terms: Grace period of six months; repayment begins thereafter according to the schedule set out in the agreement.
• Use of Proceeds: To fund working‑capital needs and enhance overall liquidity position.
• Replacement Clause: The new agreement supersedes an existing pre‑payment arrangement that expires at the end of January 2026.

Notable Quotes

(No direct quotes were provided in the release.)