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M&A / Property

Parex Resources Announces Proposal to Acquire Frontera Energy's Colombian E&P Assets

By The Northwire Desk — AI Analysis Feb 23, 2026 · 07:00 PXT · 21.64 PAREX RESOURCES INC.
PXT · Price

Executive Summary

  • Parex Resources submitted an all‑cash acquisition proposal to Frontera Energy’s board to purchase Frontera’s entire Colombian upstream business for US$500 million plus debt assumption and a contingent US$25 million payment.
  • The offer includes a US$125 million premium over the terms of the previously announced acquisition agreement, positioning Parex’s bid as a “Superior Proposal.”
  • If completed, the transaction would create the largest independent Colombian‑focused energy company, delivering greater scale, enhanced capital efficiency, stronger free cash flow generation, and a more resilient platform for long‑term growth.

Key Details

  • Consideration: US$500 million in cash + assumption of Frontera’s existing debt; contingent additional payment of US$25 million under the same terms as the prior agreement.
  • Premium: US$125 million premium relative to the earlier acquisition agreement.
  • Strategic Rationale: Combines Parex’s portfolio with Frontera’s Colombian assets to achieve scale, improve capital efficiency, and boost free cash flow.
  • Expected Outcome: Creation of the largest independent oil & gas producer focused on Colombia; immediate value unlock for shareholders of both companies.
  • Leadership Quote: Imad Mohsen, President & CEO, emphasized that the all‑cash offer provides “immediate and greater value” and expects the Frontera Board to deem it a Superior Proposal.
  • Contact Information:
  • Mike Krutchen – SVP, Capital Markets & Corporate Planning (403‑517‑1733; [email protected])
  • Steven Eirich – Senior Investor Relations & Communications Advisor (587‑293‑3286; [email protected])

Notable Quotes

  • “Our all‑cash offer to acquire Frontera’s Colombian‑based upstream business provides immediate and greater value for Frontera and its shareholders… We look forward to further discussions with Frontera’s Board and Management team to finalize a transaction.” – Imad Mohsen, President & CEO, Parex Resources.
Read the original news release →

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