February 25, 2026 [Offshore Technology]- Parex Resources is planning to acquire the Colombian upstream business of Canada-based Frontera Energy for $500m (C$685.05m) in an all-cash consideration, along with assuming existing debt.

The proposed deal also includes a contingent payment of $25m under terms similar to those in a previously announced agreement. This proposal offers a $125m premium over the current acquisition agreement.

Parex, a Colombian independent oil and gas company, aims to make strategic investments that enhance its portfolio and support its growth strategy centred on Colombia.

The company said that its current collaboration with Frontera at the VIM-1 block provides it with a clear understanding of the latter’s assets and workforce.

Parex said that merging the portfolios of the two businesses would establish the largest independent energy enterprise focused on Colombia. Furthermore, the combination will offer increased scale, improved capital efficiency, better free cash flow generation and a more robust foundation for sustained growth, it said.

Parex president and CEO Imad Mohsen said: “Our all-cash offer to acquire Frontera’s Colombian-based upstream business provides immediate and greater value for Frontera and its shareholders.

“Based on the premium offered, we expect that the Frontera Board will conclude that our Proposal will be a ‘Superior Proposal’ as defined by the previously announced acquisition agreement. We look forward to further discussions with Frontera’s board and management team to finalise a transaction.”

Frontera also confirmed the receipt of the unsolicited proposal from Parex, noting that these are the same assets it had already agreed to sell to GeoPark under an agreement signed in January 2026.

It signed a definitive agreement to sell Frontera Petroleum International Holdings, which includes its Colombian exploration and production assets, to GeoPark. That transaction values the equity at up to $400m (1.48tn pesos).

In line with its fiduciary duties, Frontera’s Board of Directors is thoroughly evaluating the proposal from Parex, with guidance from its legal and financial advisers.

The board continues to endorse the GeoPark transaction to its shareholders at this time.

The company stated: “Frontera will continue to advance the transaction under the GeoPark Arrangement Agreement to sell to GeoPark the Frontera exploration and production (E&P) assets, which was announced on January 30, 2026. At this time, the Frontera Board continues to recommend the GeoPark transaction to its shareholders.”

GeoPark, an independent energy company with operations across Latin America, responded to Parex’s involvement by reiterating its commitment to its current strategic plans.

Despite previous interest from Parex in GeoPark itself, which included a $9 per share offer that was rebuffed, the latter has continued to advance its growth strategy through acquisitions and operational developments.