CALGARY,
AB, Oct. 22, 2024 /CNW/ - Frontera Energy
Corporation (TSX: FEC) ("Frontera" or the "Company")
announces that the Company has taken up and paid for 3,375,000 of
its outstanding common shares (the "Shares") at a price of
$12.00 per Share (the "Purchase
Price") under its substantial issuer bid pursuant to which the
Company offered to purchase from shareholders for cancellation up
to $40.5 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 pleased with the high level of participation from our
shareholders and the overall results of the Offer. Frontera remains
focused on its commitment to generate value to shareholders, having
returned approximately US$52 million
in capital over the last 12 months.
The Company shall continue to take actions to unlock value
for its shareholders for the remainder of 2024 and beyond,
including recommencing share repurchases under its NCIB following
the announcement of third quarter 2024 results and potential
additional SIBs."
The Shares taken up and paid for by the Company represent
approximately 4.01% of the total number of Frontera's issued and
outstanding Shares as of October 17,
2024. The aggregate Purchase Price is equal to $40,500,000. After the cancellation of the Shares
taken up and paid for by the Company, Frontera anticipates that
80.78 million Shares will be issued and outstanding.
77,565,602 Shares were validly tendered and not withdrawn.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 4.35% 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 October 25,
2024, 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 $14.80 per Share on
October 17, 2024, 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 September 11, 2024, letter of transmittal,
amended letter of transmittal, notice of guaranteed delivery,
amended notice of guaranteed delivery and notice of variation dated
September 27, 2024, 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 six months ended
June 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
