GeoPark to Acquire Frontera Energy's Colombian E&P Assets in $622 Million Deal

GeoPark Expands Footprint with Frontera Energy Acquisition

GeoPark Limited, a leading Latin American oil and gas exploration and production (E&P) company, has announced a definitive agreement to acquire Frontera Energy Corporation's entire Colombian upstream oil and gas exploration and production business. The transaction, valued at an enterprise value of up to $622 million, is poised to significantly enhance GeoPark's operational scale and market position in the region.

The acquisition, which has an effective date of January 1, 2026, is expected to close in the second half of 2026, pending regulatory approvals and the approval of Frontera Energy shareholders.

Transaction Details and Financials

Under the terms of the agreement, GeoPark will acquire 100% of Frontera Petroleum International Holdings, which encompasses Frontera's Colombian E&P assets. The equity purchase price is set at up to $400 million, comprising an upfront cash payment of $375 million upon closing and an additional $25 million contingent payment tied to the achievement of specific development milestones.

In addition to the cash component, GeoPark will assume approximately $310 million of Frontera's outstanding 2028 unsecured notes and around $79 million in outstanding prepayment facilities. This combination of cash and assumed liabilities brings the total implied enterprise value of the acquired assets to approximately $600 million to $622 million. The acquisition will be funded through GeoPark's existing cash reserves and committed financing, with no equity issuance planned.

Notably, the transaction excludes Frontera Energy's infrastructure assets, its exploration interests in Guyana, and certain other non-Colombian assets. Following the divestment, Frontera Energy is expected to transition into a focused infrastructure company, retaining assets such as ODL and Puerto Bahia.

Strategic Rationale and Asset Integration

This strategic acquisition is anticipated to significantly bolster GeoPark's presence in Latin America, particularly in Colombia and Argentina. It is expected to establish GeoPark as the largest private oil producer in Colombia and create a leading independent E&P platform across both countries.

The acquired portfolio includes 17 blocks located in the prolific Llanos and Lower Magdalena basins of Colombia. Key assets include the Quifa field, along with the CPE-6, Guatiquia, and Cubiro blocks, which are expected to consolidate GeoPark's core Llanos operating hub. The deal also provides GeoPark with increased exposure to gas and condensate through the VIM-1 and El Dificil blocks.

GeoPark projects that the acquisition will immediately add 148 million barrels of oil equivalent (MMboe) to its proven and probable (2P) reserves and 99 MMboe to its proven reserves. Post-transaction, GeoPark's pro forma production is expected to exceed 92,000 barrels of oil equivalent per day (boepd) by 2028, with an estimated EBITDA of approximately $950 million, effectively doubling its previously announced 2028 standalone outlook.

Future Outlook

The integration of Frontera's assets is expected to drive operational efficiencies, enhance cash flow generation, and support GeoPark's long-term growth strategy. The company aims to leverage its operational experience and local relationships in Colombia to ensure a smooth integration and sustainable development of the acquired assets.