FRONTERA ENERGY CORPORATION ANNOUNCES EARLY TENDER DATE RESULTS AND EXTENSION OF THE EARLY TENDER DATE AND CONSENT DEADLINE OF THE TENDER OFFER AND CONSENT SOLICITATION FOR ITS OUTSTANDING 7.875% SENI

Frontera Energy Corporation has extended the Early Tender Date and Consent Deadline for its previously announced offer to purchase notes and solicit consents, as the Requisite Consents to the Proposed Amendments have not yet been received. Holders who tender at or prior to the extended deadline will be eligible to receive the Total Consideration, including the Early Tender and Consent Payment, with settlement expected to occur on the Final Settlement Date, contingent upon satisfaction or waiver of conditions set forth in the Offer to Purchase. Citigroup Global Markets Inc. and Itau BBA USA Securities, Inc. are acting as dealer managers for the Offer and solicitation agents for the Solicitation.

Analysis

Frontera Energy Corporation (FEC) has extended its Early Tender Date and Consent Deadline for an existing offer to purchase notes and solicit consents, a decision prompted by the failure to secure the Requisite Consents for Proposed Amendments to these notes by the original deadline. Despite this setback in obtaining consents, noteholders who tender their notes by the newly extended deadline will remain eligible to receive the Total Consideration, which includes an Early Tender and Consent Payment along with accrued and unpaid interest, provided the offer is consummated. Significantly, the financing condition for this transaction has been satisfied, which is a positive development. However, the consummation of the offer and the solicitation remains contingent upon the satisfaction or waiver of other conditions specified in the Offer to Purchase, which have not yet been fully met. Frontera Energy retains the right, in its sole discretion, to amend or terminate the offer and solicitation. Withdrawal rights for tendered notes and provided consents have expired, meaning participants cannot retract their submissions. This situation, managed by dealer managers Citigroup Global Markets Inc. and Itau BBA USA Securities, Inc., reflects an ongoing effort by the South American oil and gas producer to manage its debt profile. The overall sentiment is mixed (-0.15), indicating uncertainty regarding the successful completion and acceptance of the proposed amendments despite the extended timeline.

Key Decisions for Investors

• Noteholders considering the extended offer should evaluate the attractiveness of the Total Consideration against the risk that the offer may not be completed if all conditions are not met or waived, especially since tendered notes cannot be withdrawn.
• Equity investors in Frontera Energy (FEC) should closely monitor the progress of this tender offer and consent solicitation, as its outcome will impact the company's debt structure, financial flexibility, and potentially its credit standing.
• Given that the Requisite Consents were not initially obtained, investors should watch for further communications from the company regarding the level of participation and the satisfaction of remaining conditions before the new deadline, as this will indicate the likelihood of the offer's success.