Frontera Energy: Parex bid superior to previous Geopark bid

Toronto-listed Frontera?Corporation, said in a late Thursday statement that, after consulting with independent financial advisers and legal counsel, it has determined that the 'binding' offer received from Parex Resources Inc. for its Colombian Upstream Operations is superior to another bid received previously from Geopark.

Frontera said that Calgary-based Parex would acquire the same assets of Geopark for $500 million in cash, which included the assumption of debts and a contingent?payment?of $25 millions.

Geopark will receive a "Purchaser's Break Fee" of $25 million from Frontera if the previous deal between the two companies falls through. The statement also said that Geopark was informed about the superior offer determination, and had five business days to accept it. If it so chooses, Geopark has until March 12 to amend its contract.

At this time, it is impossible to guarantee that the Parex Offer would result in a deal or that any transaction contemplated by that offer will be carried out. Frontera's Board of Directors is continuing to follow its fiduciary duty and the terms of the GeoPark Agreement, according to the Frontera website.

GeoPark announced in January that it had reached a definitive deal to purchase all Frontera Energy oil and gas exploration and production assets located in Colombia. The price was $375 million.

Frontera is one of Colombia's largest private producers. Its portfolio includes 17 exploration and production blocks, which include the Quifa and Cubiro fields. At the end of last year's third quarter, the company reported an?average annual output of 38.934 barrels equivalent to oil per day. Reporting by Marianna Pararaga and Julia Symmes Cobb

(source: Reuters)