Canadian public company Frontera Energy has reached an agreement to sell its 50% working interest in the Perico and Espejo blocks in Ecuador for a cash consideration of $7.8m (C$10.74m).

The transaction aligns with the company's strategic focus on value maximisation and will support its Colombian upstream operations.

The total consideration includes additional contingent payments of $750,000, subject to the Perico block achieving a cumulative production milestone of two million barrels from 1 January 2025.

The closing of this transaction is contingent on customary conditions, encompassing regulatory approvals from Ecuador's Ministry of Energy.

The Perico and Espejo blocks were contributing average net oil production of around 1,000 barrels of oil equivalent per day (boepd) as of July 2025.

This divestment is part of Frontera Energy's broader strategy to prioritise high-impact projects and enhance value.

Frontera Energy is known for the development, exploration and sale of oil and natural gas in South America.

The company's portfolio includes interests in 22 exploration and production blocks across Ecuador, Colombia and Guyana, as well as investments in pipeline and port facilities in Colombia.

In addition to the divestment, Frontera is exploring strategic opportunities to further increase the value of its common shares.

This may involve considering separation and other strategic transactions related to its infrastructure business.

The transaction is scheduled for completion by the second quarter of 2026.

In December 2023, Frontera Energy and CGX Energy unveiled their search for potential partners to establish the Corentyne block offshore Guyana.