Frontera Energy Unveils Preliminary Outcomes of Major Share Repurchase Program

Frontera Energy Corporation, listed under TSX under the ticker symbol FEC, has recently shared the initial results of its substantial issuer bid. This strategic move involves a compelling offer to buy back common shares worth up to CAD 42 million (approximately USD 30 million) at a set price of CAD 12.00 per share. The bid, designed to enhance shareholder value, was open until January 24, 2025.

Overview of the Issuer Bid

The details revealed indicate that Frontera received an impressive response to its issuer bid. As per preliminary calculations by Computershare Investor Services Inc., the designated depositary, it is expected that Frontera will acquire approximately 3.5 million shares. This amount represents about 4.33% of the company's total outstanding shares as of January 23, 2025. Once the shares are canceled post-acquisition, the company anticipates having around 77.29 million shares remaining in circulation.

Details of the Response

In total, approximately 73,178,094 shares were validly submitted under the bidding process and not withdrawn, showcasing a robust interest from shareholders. Interestingly, since the offer was oversubscribed, purchases will occur on a pro-rata basis. This means that investors who tendered shares should expect that around 4.78% of their submissions will be accepted and purchased by the company.

The numbers provided regarding the shares to be purchased and the 'proration factor' remain preliminary. They are subject to confirmation and anticipate all shares tendered via a guaranteed delivery notice being delivered during the specified trading-day settlement period. After shares are taken up, a separate press release will be issued to share the finalized results, including any updates to the proration factor.

Next Steps for Shareholders

Upon the acquisition of the validly tendered shares, payment will be expedited according to the conditions set forth in the issuer bid. Following the conclusion of this process, the depositary will return all shares that were tendered but ultimately not purchased. Frontera has also indicated plans to reinstate share purchases under a new normal course issuer bid post-announcement of their fourth quarter and year-end results.

Frontera, a Canadian public company, is dedicated to the entire chain of oil and natural gas operations in South America, demonstrated through its diverse portfolio across Colombia, Ecuador, and Guyana. The company emphasizes safe, responsible, and ethical business practices in all its operations.

About Frontera Energy

Frontera Energy Corporation is engaged in various segments of the oil and gas industry, including exploration, development, and production of resources. With a commitment to sustainability and social responsibility, the company operates 22 exploration and production blocks alongside pipeline and port facilities in Colombia. Interested parties can stay updated through Frontera's social media channels and their dedicated news release subscriptions via their website.

Conclusion

This substantial issuer bid reflects Frontera Energy's commitment to enhancing shareholder value amidst market dynamics. As shareholders await final results and payments, the company's strategic initiatives showcase its potential for growth and stability in the energy sector.