Frontera Energy to Sell Ecuadorian Assets for $7.8M

Frontera Energy is divesting its 50% stake in the Perico and Espejo blocks in Ecuador for a total cash consideration of $7.8 million. The assets averaged net oil production of approximately 1,000 boed in July 2025. The divestment is part of Frontera's strategy to focus on its core assets.

Frontera Energy Corporation (TSX: FEC) has announced the divestment of its 50% working interest in the Perico and Espejo blocks in Ecuador. The total cash consideration for the blocks amounts to $7.8 million, subject to working capital and other customary adjustments as of January 1, 2025 [1]. This transaction is part of Frontera's strategy to focus on its core assets, specifically its higher-impact Colombian upstream operations [1].

The Perico and Espejo blocks averaged net oil production of approximately 1,000 barrels of oil equivalent per day (boed) in July 2025. The divestment includes an additional contingent consideration of $750,000, payable to Frontera upon the Perico block achieving cumulative gross production of two million barrels as from January 1, 2025 [1]. The closing of the transaction is expected to occur by the second quarter of 2026, subject to regulatory approvals and other customary closing conditions [1].

Gran Tierra Energy Inc. (NYSE American: GTE, TSX: GTE, LSE: GTE) has agreed to acquire the remaining 50% stake in the blocks for a total purchase price of $15.55 million, including an additional contingent consideration of $1.5 million upon the Perico block achieving cumulative gross production of two million barrels [3]. The acquisition is expected to close no earlier than the fourth quarter of 2025 [3].

This divestment aligns with Frontera's goal to maximize shareholder value by focusing on its core assets. The company will continue to explore strategic initiatives and transactions to enhance the value of its common shares [1].

References:
[1] https://www.prnewswire.com/news-releases/frontera-energy-corporation-announce-divestment-of-non-core-assets-in-ecuador-302522624.html
[3] https://www.grantierra.com/news/gran-tierra-energy-acquires-strategic-assets-in-ecuadors-oriente-basin/