Frontera’s $56 Million Sale of Petroelectrica de los Llanos
Nov 9, 2017
Brigard & Urrutia and DLA Piper Martínez Beltrán advised on transaction
Frontera Energy Corporation (TSX: FEC) (“Frontera” or the “Company”) announces today that it has entered into an agreement to sell its interest in Petroelectrica de los Llanos (“PEL”) to an affiliate of Eléctricas de Medellín – Ingeniería y S.A.S (“EDEMSA”). Consideration for the sale will be $56 million in cash, of which $50 million will be used as the first payment to the International Finance Corporation and related parties (the “IFC Parties”), in connection with the purchase of the IFC Parties’ common shares in Pacific Midstream Limited (“PML”) (the “IFC Transaction”). Further details on the IFC Transaction can be found in the Company’s press release dated October 16, 2017. PEL owns a 260-kilometre power transmission line with 192 MW of authorized electricity demand which supplies power to the Rubiales and Quifa oil fields and the Oleoducto de los Llanos (“ODL”) pipeline. The disposition of PEL is not expected to result in any material change to the power consumption costs for the Company at Quifa or for the ODL. The sale of PEL represents another non-core asset disposition for Frontera. Within the past 12 months, Frontera’s disposition of non-core assets has resulted in ~$148 million of cash proceeds, a reduction in exploration or environmental commitments of ~$147 million and the elimination of ~$52 million in stand-by letters of credit commitments. Frontera is a Canadian public company and a leading explorer and producer of crude oil and natural gas, with operations focused in Latin America. The Company has a diversified portfolio of assets with interests in more than 25 exploration and production blocks in Colombia and Peru. Brigard & Urrutia advised Frontera Energy Corporation and Pacific Midstream LTD. with Jaime Robledo (Picture) Jeison Larrota and Natalia Gutiérrez de Larrauri. DLA Piper Martínez Beltrán advised Transportadora Eléctrica Del Oriente S.A.S. – Eléctricas De Medellín-Ingeniería y Servicios S.A.S. with Camilo Martínez, Andrés Afanador and Sebastián Celis.