FRONTERA ENERGY CORPORATION ANNOUNCES NEW $120 MILLION PREPAYMENT AND COMMERCIAL AGREEMENT WITH CHEVRON
Rhea-AI Summary
Frontera Energy (OTCQX: FECCF) announced a $120 million prepayment and commercial agreement with Chevron Products Company dated December 29, 2025.
The Colombian subsidiary will receive an $80 million initial advance and may request an additional $40 million within six months. Frontera commits to deliver a portion of its crude production to Chevron for two years. Prepayments are discounted at SOFR + 4.25% per annum, with repayment starting after a six-month grace period. Net proceeds will be used to manage working capital and improve liquidity. The Agreement replaces an existing prepayment arrangement expiring end of January 2026.
Positive
- $80 million initial liquidity advance
- Optional additional $40 million available within six months
- Net proceeds earmarked to improve working capital
Negative
- Prepayment cost discounted at SOFR + 4.25% p.a.
- Commitment to deliver portion of crude for two years
- Repayment obligation begins after a six-month grace period
News Market Reaction
On the day this news was published, FECCF gained 1.12%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Under the prepayment and commercial agreement (the "Agreement"), the Company will receive an initial advance of
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 strategic investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets which consists of interests in 20 exploration and production blocks in Colombia and Guyana, and in pipeline and port facilities in Colombia. Frontera's common shares are listed for trading in the Toronto Stock Exchange under the ticker symbol "FEC." The Company is committed to conducting business safely and in a socially and environmentally responsible manner.
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Advisories:
Cautionary Note Concerning Forward-Looking Statements
This news release contains forward-looking information within the meaning of Canadian securities laws. Forward-looking information relates to activities, events or developments that Frontera believes, expects or anticipates will or may occur in the future. All information other than historical facts is forward-looking information. Forward-looking information reflects the current expectations, assumptions and beliefs of Frontera based on information currently available to them and considers the experience of the Company and its perception of historical trends. Although Frontera believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be placed on such information. In particular, this news release includes forward-looking information relating to the timing and amount of future payments to be received by the Company under the Agreement, the repayment of such amounts, and the use of proceeds from the prepayments received by the company.
Forward-looking information is subject to a number of assumptions, risks and uncertainties that may cause the actual results of the Company to differ materially from those expressed or implied by the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Actual results may differ from the forward-looking statements in this news release if the prepayments to be received by the Company or the repayment of such amounts are not to made at the times anticipated, or if the proceeds received by the company under the Agreement are not used as described herein. In Addition, the annual information form of Frontera for the year ended December 31, 2024, and other documents of Frontera filed from time to time with securities regulatory authorities describe the risks, uncertainties, material assumptions and other factors that could influence actual results, and such factors are incorporated herein by reference. Copies of these documents are available without charge by referring to Frontera's profile on SEDAR+ at www.sedarplus.ca. All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Frontera disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise.
View original content:https://www.prnewswire.com/news-releases/frontera-energy-corporation-announces-new-120-million-prepayment-and-commercial-agreement-with-chevron-302650144.html
SOURCE Frontera Energy Corporation
FAQ
What is the value of the Frontera prepayment agreement with Chevron (FECCF) dated December 29, 2025?
How will the Frontera (FECCF) prepayment be priced and repaid?
What obligations does Frontera (FECCF) have under the Chevron commercial agreement?
How will Frontera (FECCF) use net proceeds from the Chevron agreement?
Does the Chevron agreement replace any existing arrangement for Frontera (FECCF)?
