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Frontera accepts Parex’s $525 million offer for its Colombian oil and gas assets

Frontera Energy has accepted a $525m offer from Canada's Parex Resources to purchase its Colombian exploration and production assets on Tuesday, beating out a competing bid from GeoPark.

The amount is more than Parex's previous offer on February 23, which was $500 million. It covers 17 exploration and production block in Colombia including the Quifa field and the Cubiro Block.

*?Parex stated that the combined portfolios would create the largest independent energy company focused on Colombia.

*?GeoPark refused?Monday? to increase its $325-million offer. It will receive its $75 million deposit, plus interest, and a $25,000,000 termination payment.

Frontera, Colombia's largest private producer, is included in the Parex offer with a contingent payment of $25 million.

Parex will assume the outstanding bonds of Frontera for 2028, totaling $310 million. $80 million is covered by a prepay line from Chevron Products Company.

Frontera, a Toronto-listed company, said it plans to sign definitive agreements with GeoPark and with?Parex. The agreement is expected to be completed on Tuesday. (Reporting from Nelson Bocanegra, Bogota. Editing by Sarah Morland.)

(source: Reuters)