CALGARY,
AB, Jan. 28, 2025 /PRNewswire/ - Frontera
Energy Corporation (TSX: FEC) ("Frontera" or the
"Company") announces that the Company has taken up and paid
for 3,500,000 of its outstanding common shares (the
"Shares") at a price of $12.00
per Share (the "Purchase Price") under its additional
substantial issuer bid pursuant to which the Company offered to
purchase from shareholders for cancellation up to $42 million (equivalent to US$30 million) of Shares (the "Offer").
All dollar amounts are in Canadian dollars unless otherwise
specified.
Gabriel de Alba, Frontera's
Chairman of the Board commented:
"We are very pleased with the high level of acceptance from
our shareholders and the positive outcome of the Offer which builds
on our successful October 2024 SIB.
With the completion of this Offer, the Company has returned
$83 million (US$60 million) to investors since October 2024, with an average of 90.5%
shareholder participation.
Frontera continues to deliver on its commitment to generate
value to shareholders and anticipates initiating share repurchases
under a normal course issuer bid following fourth quarter and year
end results. The Company will continue to take further actions to
unlock value for its shareholders for 2025 and beyond."
The Shares taken up and paid for by the Company represent
approximately 4.33% of the total number of Frontera's issued and
outstanding Shares as of January 24,
2025. The aggregate Purchase Price is equal to $42,000,000. After the cancellation of the Shares
taken up and paid for by the Company, Frontera anticipates that
77.29 million Shares will be issued and outstanding.
73,083,094 Shares were validly tendered and not withdrawn. Since
the Offer was oversubscribed, the tendered Shares will be purchased
on a pro rata basis. Shareholders who tendered will have
approximately 4.79% of their tendered Shares purchased by the
Company.
Payment for Shares taken up by the Company under the Offer will
be effected by Computershare Investor Services Inc., the depositary
for the Offer, on or about January 28,
2025, in accordance with the Offer and applicable law. Any
Shares not taken up, including such Shares not taken up as a result
of proration or as a result of being invalidly tendered, will be
returned to shareholders as soon as practicable.
To assist shareholders in determining the tax consequences of
the Offer, Frontera estimates that based on the estimated paid-up
capital of $14.93 per Share at
January 24, 2025, shareholders who
disposed of Shares pursuant to the Offer may not be deemed to
receive a taxable dividend.
Shareholders should consult with their own tax advisors with
respect to the income tax consequences of the disposition of their
Shares under the Offer.
The terms and conditions of the Offer are described in the offer
to purchase and issuer bid circular dated December 19, 2024, letter of transmittal and
notice of guaranteed delivery, copies of which were filed and are
available without charge on SEDAR+ at www.sedarplus.ca
This news release is for informational purposes only and does
not constitute an offer to buy or the solicitation of an offer to
sell Shares.
About Frontera
Frontera Energy Corporation is a Canadian public company
involved in the exploration, development, production,
transportation, storage and sale of oil and natural gas in
South America, including related
investments in both upstream and midstream facilities. The Company
has a diversified portfolio of assets with interests in 22
exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in
Colombia. Frontera is committed to conducting business safely
and in a socially, environmentally and ethically responsible
manner.
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Social Media
Follow Frontera Energy social media channels at the following
links:
Twitter: https://twitter.com/fronteraenergy?lang=en
Facebook: https://es-la.facebook.com/FronteraEnergy/
LinkedIn: https://co.linkedin.com/company/frontera-energy-corp.
Forward-Looking Statements
This news release contains forward-looking information or
forward-looking statements (collectively, "forward-looking
statements") within the meaning of applicable securities laws,
including statements as to the timing of payment for the Shares
taken up under the Offer, the number of Shares issued and
outstanding after the cancellation of the Shares taken up and paid
for by the Company, the return of Shares not purchased under the
Offer and whether shareholders who disposed of Shares pursuant to
the Offer may not be deemed to receive a taxable dividend. Any such
forward-looking statements are based on information currently
available to us and are based on assumptions and analyses made by
us in light of our experience and our perception of historical
trends and current market and other conditions. Readers should also
refer to the risk factors set forth in the Company's annual
information form and management's discussion and analysis for the
year ended December 31, 2023, each
dated March 7, 2024, and the
Company's management's discussion and analysis for the three and
nine months ended September 30, 2024,
available on SEDAR+ at www.sedarplus.ca. There can be no assurance
that the plans, intentions or expectations upon which
forward-looking statements are based will be realized. Actual
results may differ, and the difference may be material and adverse
to the Company and its shareholders.
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SOURCE Frontera Energy Corporation