Canadian oil and gas producer Frontera Energy Corp. announced Friday that it will sell its Colombian operations to independent energy company GeoPark Ltd., in a transaction valued at $622 million, marking a strategic pivot for both firms.
The deal was structured with the guidance of four prominent law firms and signals a major shift in the Colombian energy sector.
Deal Terms and Payments
Under the agreement, GeoPark will pay $400 million for Frontera’s assets, including $375 million at closing and an additional $25 million contingent upon reaching certain development milestones, according to Frontera’s Friday statement.
The sale covers all of Frontera’s Colombian upstream operations, including oil and gas exploration and production assets, a reverse osmosis water treatment facility, and a palm oil plantation. GeoPark’s statement detailed that the transaction encompasses 17 upstream blocks in Colombia.
GeoPark Eyes Growth and Dominance
“Today’s announcement marks an important milestone in GeoPark’s growth trajectory,” said GeoPark CEO Felipe Bayon. “After extensive discussions with Frontera Energy over the past year, we are pleased to have reached an agreement that adds Frontera’s Colombian assets to our portfolio, positioning GeoPark as the largest private operator in Colombia and creating a stronger and more resilient platform.”
Bayon emphasized that the acquisition strengthens GeoPark’s scale, production, reserves, and cash flow, while also supporting its ongoing growth in Argentina’s Vaca Muerta region.
