Frontera Energy announces $120M prepayment, agreement with Chevron

Frontera Energy (FECCF) announced that the Company’s Colombian subsidiary has entered into a $120M prepayment and commercial agreement with Chevron Products Company (CVX). Under the prepayment and commercial agreement, the Company will receive an initial advance of $80 million and commit to deliver a portion of its crude oil production for a period of two years to Chevron. The Company may request an additional $40 million advance for up to 6 months on a fully committed basis. Under the Agreement, the prepayment amounts will be subject to a financial discount calculated at the Secured Overnight Financing Rate, SOFR, plus 4.25% per annum. Repayment of the prepayment amounts will commence following a six-month grace period. Net proceeds from the Agreement will be used to manage working capital flows and enhance the Company’s liquidity position. The Agreement will replace an existing prepayment agreement which expires at the end of January 2026.