(WO) – Frontera Vitality mentioned it has acquired a binding provide from Parex Assets to accumulate the corporate’s upstream oil and gasoline belongings in Colombia, figuring out that the proposal constitutes a “superior proposal” to its beforehand introduced settlement to promote the identical belongings to GeoPark.
Underneath the Parex provide, the corporate would purchase Frontera’s Colombian exploration and manufacturing enterprise for $500 million in money at closing, plus a possible $25 million contingent cost tied to growth milestones inside 12 months after completion. The provide additionally contains the belief of Frontera’s excellent debt obligations, together with $310 million in unsecured notes due in 2028 and $80 million beneath a prepayment facility with Chevron Merchandise Firm.
Frontera mentioned the transaction construction proposed by Parex is essentially per the beforehand introduced association with GeoPark, except for the revised consideration. The provide additionally assumes cost of a $25 million break payment ought to Frontera terminate the GeoPark settlement.
GeoPark has now entered a five-business-day “matching interval,” throughout which it has the suitable to amend the phrases of its current settlement to match or exceed the Parex proposal. Frontera mentioned its board has not modified its suggestion concerning the GeoPark transaction and can proceed to guage developments as required beneath the phrases of the settlement.
Picture: Parex Assets.
