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Frontera Energy to Acquire PCR Investments' Stake in Colombia's El Dificil Block.

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Vincent

MANews-(C)2009-2022

Canada-based oil and gas company Frontera Energy Corp. (TSX: FEC) has entered into an agreement to acquire the 35% working interest in Colombia's El Dificil block held by PCR Investments S.A., a wholly owned subsidiary of PetroquÃ-mica Comodoro Rivadavia S.A. for a total aggregate cash consideration of approximately USD 13m, the company said.

The PCR transaction is expected to close in the second half of 2022 and is subject to customary closing conditions and approval of the transaction by the Agencia Nacional de Hidrocarburos.

Frontera also announced TODAY that the company has now closed its previously announced acquisition of 100% of the issued and outstanding shares in Petroleos Sud Americanos S.A., acquiring PetroSud's 65% working interest in El Dificil block and 100% interests in Entrerrios and Rio Meta blocks. Upon completion of the transaction with PCR, Frontera will hold a 100% working interest in El Dificil block.

Frontera anticipates its acquisition of PetroSud's assets and PCR's interest in El Dificil for a total consideration of approximately USD 40m, including the assumption of USD 18m in PetroSud debt, will generate approximately USD 12-USD 15m of annual EBITDA, which may grow as additional synergies are realized including potentially commercializing recent gas discoveries in VIM-1 block in a very competitive market.

The company's 100% working interest in El Dificil block combined with its acquisition of PetroSud's interests in Entrerrios...

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