Parex Resources has completed its acquisition of all Colombian exploration and production (E&P) assets held by Frontera Energy in a deal valued at $500m (C$691.6m).
The transaction sees Parex gaining full ownership of Frontera Petroleum International Holdings (Frontera E&P) for a $500m cash payment funded through a recent notes issue, along with the assumption of $225m in net debt.
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An additional $25m contingent payment may be due if the Quifa contract with Ecopetrol is extended before the first anniversary of completion, bringing the total potential value to $750m.
The combined portfolio now positions Parex as Colombia’s largest independent upstream oil and gas producer.
The acquired assets are expected to add 37,000 barrels of oil equivalent per day (boepd), underpinning Parex’s previously stated second-half 2026 (H2 2026) average production guidance of 82,000–91,000boepd.
These additions expand Parex’s operational footprint to more than 7.9 million acres and increase its reserve base.
The company reported anticipated operational enhancements from techniques such as enhanced oil recovery and advanced seismic imaging.
Parex president and CEO Imad Mohsen said: “This is a significant milestone for Parex and marks the successful completion of a highly strategic transaction.
“The addition of Frontera E&P’s upstream business to our high-quality portfolio establishes Parex as the largest independent, Colombia-focused upstream company, with greater scale, enhanced capital efficiency and a more resilient platform for long-term growth.
“The transaction was completed at an attractive valuation, enables capital allocation optionality across the portfolio and offers meaningful synergy potential given the strong strategic fit, while further strengthening our talented employee base across the organisation.”
According to the terms of the agreement, the transaction was completed following approval from 99.95% of Frontera shareholders and all required regulatory consents.
Citi acted as Frontera’s financial adviser on the sale, with legal counsel provided by Blake, Cassels & Graydon and McMillan.
Last month, Parex Resources signed an agreement with Ecopetrol to acquire a 50% participating stake in the Casabe and Llanito blocks in Colombia’s Magdalena Basin.
