#Canada #Calgary #TSX #Normal Course Issuer Bid #Frontera Energy

Frontera Energy Corporation Launches Normal Course Issuer Bid

Frontera Energy Corporation, listed on the Toronto Stock Exchange under the ticker symbol $FEC, has recently shared exciting news about its plans to initiate a Normal Course Issuer Bid (NCIB). Following the confirmation from the TSX, Frontera can proceed with the purchase of up to 3,502,962 common shares over the next 12 months, beginning on July 18, 2025. This action is expected to represent approximately 5% of the total outstanding shares of the company, which amount to 70,059,243 as of July 15, 2025.

The decision to launch this issuer bid comes on the heels of an assessment that the market price of Frontera's common shares may not reflect the intrinsic value of the company and its promising strategic prospects. By repurchasing shares, Frontera aims to boost the value of remaining shares, benefiting all shareholders involved.

Frontera has outlined that the average daily trading volume of its shares between January 1 and June 30, 2025, was approximately 48,188 common shares. As a result, daily purchases during the NCIB period will be capped at around 12,047 shares, except in cases of block purchase exceptions. This strategic maneuver is designed to be conducted carefully while adhering to the TSX’s regulatory requirements, ensuring transparency and compliance.

The details surrounding the share repurchase plan indicate that Frontera has put in place an automatic share purchase plan in conjunction with BMO Nesbitt Burns Inc., its designated broker. This plan will facilitate share purchases at any time, even during regulatory blackouts, enabling Frontera to adjust its buying strategy in relation to market conditions effectively. The shares intended for cancellation will be returned to the treasury, increasing the total value for remaining shareholders post-repurchase.

Despite having certain restrictions imposed by its existing indenture concerning repurchases of its common shares, Frontera clarifies that the terms do not preclude basing its purchases on the current NCIB. This flexibility confirms the company's commitment to enhancing shareholder value amidst regulatory guidelines.

Previously, during the NCIB that expired on November 20, 2024, Frontera was authorized to buy back a total of 3,949,454 common shares and successfully repurchased 1,552,100 shares at an average price of CAD 8.33. This past initiative laid the groundwork for the current NCIB, which reflects Frontera’s robust approach to managing its capital structure and shareholder interests.

The company operates primarily in South America, handling various aspects, including the exploration, development, production, and sale of oil and natural gas, with interests well-distributed across Colombia, Ecuador, and Guyana. Frontera’s diversified portfolio includes 22 exploration and production blocks and robust pipeline and port facilities in Colombia.

Frontera Energy remains committed to conducting business in a socially and environmentally responsible manner. As it initiates this issuer bid, it underlines its intent to not just maintain but to also improve the value it provides to its stakeholders amid a constantly evolving energy landscape. With proactive strategies like the NCIB, Frontera is positioning itself for continued growth and stability in the competitive oil and gas sector.

Intrigued investors or interested parties can subscribe to Frontera's news releases via email to stay updated on their latest developments. As the energy market continues to fluctuate, the implementation of this NCIB could be a significant step forward for Frontera, showcasing its resilience and strategic foresight in pursuing shareholder interests.