GeoPark rejects Frontera's offer to increase the price of its Colombian oil and gas assets

Energy firm GeoPark decided on Monday not to increase its 'offer' for the Colombian oil and gas assets of Frontera Energy after Frontera considered a competing offer by Parex Resources as "superior."

GeoPark announced in January a definitive deal to acquire Frontera's oil & gas exploration and production assets for $375m.

Toronto-listed Frontera said last week that the board and advisers of its company determined that the offer from Calgary-based Parex constituted a "superior proposal."

The Parex offer was first announced in February and is valued at $500,000,000 in cash. This includes the assumption of debts as well as a contingent payment for $25,000,000.

Parex said that the combination would create the largest independent Colombian energy company. Both firms are already partners in Colombia’s VIM-1 Block.

Frontera is one of Colombia's largest private producers and holds 17 exploration and production block, including the Quifa and Cubiro field. The company produced an average of 38,934 barrels per day of oil equivalent at the end of last year's third quarter. (Reporting from Devika Nair, Bengaluru; Writing by Natalia Siniawski and Editing by Brendan O'Boyle).

(source: Reuters)