By Kelly Cloonan
GeoPark declined to raise its offer to buy Frontera Energy's upstream Colombian exploration and production business.
The company's decision comes after Frontera said last week it determined that an acquisition offer from Parex Resources was superior to the agreement it had entered with GeoPark in January.
GeoPark said it determined that raising its offer would be inconsistent with its goals and would likely reduce its resilience when oil prices are low. The company said it will continue to evaluate opportunities that align with its strategy.
"At the revised terms, increasing our offer would not represent the best use of capital relative to the opportunities within our existing portfolio and pipeline," GeoPark's Chief Executive Felipe Bayon said.
Parex's unsolicited offer proposed to buy all of Frontera's upstream Colombian exploration and production business for $500 million in cash payable upon closing, plus $25 million contingent on certain milestones within 12 months of closing.
Parex's offer also assumes all of Frontera's obligations under the $310 million aggregate principal amount of outstanding unsecured notes and the $80 million outstanding under Frontera's previously announced prepayment facility with Chevron Products, as well as the $25 million fee Frontera would owe GeoPark if it broke its agreement deal.
GeoPark's agreement, meanwhile, valued the same assets at up to $400 million in equity, including $375 million payable upon closing and a $25 million payment contingent on achievement of certain milestones.
Under the terms of its agreement with Frontera, GeoPark will receive the return of $75 million previously placed in escrow plus interest and will be entitled to a $25 million breakup fee, the company said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
March 09, 2026 19:30 ET (23:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.