#Canada #Calgary #investment strategy #Frontera Energy #Substantial Issuer Bid

Frontera Energy Completes Substantial Issuer Bid

Calgary, Alberta – Frontera Energy Corporation (TSX: FEC), a prominent player in the oil and gas industry, has announced the successful completion of its latest substantial issuer bid (SIB) on January 28, 2025. The company has managed to acquire 3,500,000 of its outstanding common shares at a purchase price of CAD 12.00 per share, leading to a total payout of CAD 42 million. This transaction is part of Frontera's ongoing commitment to enhance shareholder value.

In a statement, Gabriel de Alba, Chairman of Frontera's Board, expressed satisfaction with the high shareholder acceptance level during this buyback initiative. He noted that this move builds upon the company's previous successful SIB conducted in October 2024, which had seen a remarkable average participation of 90.5% from shareholders. In total, Frontera has returned CAD 83 million (approximately USD 60 million) to its investors since the last buyback.

The shares acquired by Frontera account for approximately 4.33% of the total shares outstanding as of January 24, 2025. Once the purchased shares are canceled, the number of issued and outstanding shares will reduce to about 77.29 million. The recent bid has garnered a total of 73,083,094 shares that were validly tendered, indicating a strong market interest. Given that the offer was oversubscribed, the shares will be repurchased on a pro-rata basis, meaning shareholders will have approximately 4.79% of their tendered shares purchased by the company.

Frontera plans to facilitate the payment for the taken shares via Computershare Investor Services Inc., the appointed depositary for this offer. Shareholders who did not see their shares bought back will have those shares returned promptly.

To address potential tax implications for shareholders participating in this offer, Frontera has estimated the paid-up capital per share to be around CAD 14.93 as of January 24, 2025. Shareholders disposing of their shares through this offer may not receive a taxable dividend, allowing them to proceed with greater financial clarity. However, shareholders are encouraged to consult their tax advisors regarding the specifics of their individual situations.

The detailed terms and conditions of this issuer bid were outlined in the offer to purchase and issuer bid circular dated December 19, 2024, available for review on SEDAR+.

About Frontera Energy

Frontera Energy Corporation is a publicly traded Canadian company involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas across South America. With interests in 22 exploration and production blocks and significant infrastructure investments in Colombia, Ecuador, and Guyana, Frontera is dedicated to generating value for its shareholders while adhering to social and environmental responsibilities.

For additional details and updates on Frontera Energy's operations and initiatives, follow their social media channels or subscribe to their newsletter directly on the company website.