Frontera Energy Corporation has formalised the agreement to sell its 50% interest in the Perico and Espejo oil blocks located in Ecuador. The transaction amount totals $7.8mn (EUR7.2mn), subject to working capital and other customary adjustments, with the effective date set as January 1, 2025.
Transaction terms and regulatory conditions
The agreement includes an additional contingent payment of $750,000 (EUR692,000), which will be paid to Frontera Energy Corporation once the cumulative gross production of the Perico block reaches two million barrels from January 1, 2025. Completion of the transaction remains subject to obtaining the necessary regulatory approvals, notably from the Ministry of Energy of Ecuador, and satisfaction of standard closing conditions. The company expects the sale to be finalised by the second quarter of 2026 at the latest.
In July 2025, the net production from these assets averaged around 1,000 barrels of oil equivalent per day (boed), illustrating the moderate operational significance of these blocks within Frontera Energy Corporation’s overall portfolio.
Strategic refocus objective
This transaction aligns with Frontera Energy Corporation’s stated intention to prioritise value creation over production volumes, while consolidating its activities in Colombia. According to the company, this refocus aims to optimise the performance of assets deemed to have a higher impact on future growth.
Management indicated that other strategic options, such as a possible separation of certain infrastructure activities or additional portfolio transactions, may be considered to increase shareholder value. Operations in Ecuador represented a limited share of the group’s total production.
The conditional payment added to the transaction reflects a move towards progressive resource valuation, dependent on the future operational performance of the Perico block.
