Frontera Energy Share Repurchase Tender Oversubscribed

Frontera Energy Corporation, a Canadian oil and gas company listed on the Toronto Stock Exchange under the symbol FEC, has announced preliminary results of its substantial issuer bid, which concluded on January 24, 2025. The company offered to repurchase up to $42 million CAD of its common shares for $12.00 CAD per share.

According to initial calculations by Computershare Investor Services Inc., the depositary for the offer, approximately 73.18 million shares were validly tendered and not withdrawn, leading to an oversubscription. Consequently, Frontera expects to repurchase 3.5 million shares, representing about 4.33% of its outstanding shares as of January 23, 2025. Shareholders who tendered their shares will have approximately 4.78% of their tendered shares purchased by the company. Following the cancellation of these shares, Frontera anticipates having approximately 77.29 million shares issued and outstanding.

The final number of shares to be purchased, and the exact proration factor, are subject to verification by the depositary. Frontera plans to issue a press release detailing the final results upon completing this process. The terms will make payment for the shares accepted for purchase of the offer and applicable law, while shares tendered but not purchased will be returned to shareholders.

The terms and conditions of the offer are outlined in the offer to purchase and issuer bid circular dated December 19, 2024, available on SEDAR+. Frontera also intends to recommence purchases of shares under a new normal course issuer bid following the announcement of its fourth-quarter and year-end results.

Frontera Energy Corporation operates in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, with interests in 22 exploration and production blocks in Colombia, Ecuador, and Guyana, as well as pipeline and port facilities in Colombia.

Headline Image: Frontera Energy’s oil operations in Quifa, Colombia. Photo Credit: Frontera Energy.