GeoPark will not increase bid for Frontera energy assets

GeoPark Limited has decided against increasing its offer for the oil and gas assets of Frontera Energy Corporation in Colombia, following a superior bid from a competitor. The board of Frontera determined that a proposal from Calgary-based Parex Resources Inc., which is headquartered in Canada, represented a better valuation for the company. GeoPark had previously entered a definitive agreement in January to acquire Frontera's exploration and production portfolio for $375 million. However, the Parex offer, valued at $500 million in cash, includes the assumption of debt and a contingent payment of $25 million. Parex noted that the acquisition would create the largest independent energy company focused on the Colombian market. The two firms are currently partners in the VIM-1 block. Frontera remains a major private producer with 17 blocks, including the Quifa and Cubiro fields, and reported production of 38,934 barrels of oil equivalent per day at the end of the third quarter last year.