Frontera Energy Corporation Announces Second Substantial Issuer Bid

Offer Results in a CAD$0.52 Per Share Distribution or 6.7% Yield

At Frontera’s Share Price Prior to the Offer’s Announcement

Assuming full and pro-rata shareholder participation, over US$83 million is expected to be returned to shareholders in 2024, including successful completion of the offer. Additional dividends, share buybacks, bond buybacks, or other investor initiatives may be considered in the future.

CALGARY, AB – Dec. 16, 2024 – Frontera Energy Corporation (TSX: FEC) (“Frontera” or the “Company”) announces that its board of directors (the “Board”) has approved the commencement of a second substantial issuer bid (the “Offer”). The Company will offer to purchase up to 3,500,000 shares for cancellation at a purchase price of CAD$12.00 per share, for an aggregate purchase price not exceeding CAD$42,000,000 (equivalent to US$30,000,000). The Offer is expected to commence on December 19, 2024, and remain open for acceptance until 5:00 p.m.

The decision to launch a second substantial issuer bid demonstrates Frontera’s commitment to delivering value to its shareholders. By offering to purchase shares at a premium price, the Company aims to enhance shareholder returns and strengthen investor confidence in Frontera’s future prospects.

How Will This Affect Me?

If you are a shareholder of Frontera Energy Corporation, the second substantial issuer bid could result in a significant distribution of funds to you. By participating in the offer, you have the opportunity to sell your shares at a favorable price and potentially realize a substantial return on your investment.

How Will This Affect the World?

The second substantial issuer bid by Frontera Energy Corporation may have broader implications for the business world. By returning over US$83 million to shareholders and considering additional investor initiatives, Frontera is setting a positive example for corporate governance and shareholder value maximization. This move may influence other companies to prioritize shareholder returns and adopt similar strategies to drive long-term growth and sustainability.

Conclusion

In conclusion, Frontera Energy Corporation’s announcement of a second substantial issuer bid is a strategic move to deliver value to its shareholders and enhance long-term investor confidence. By offering a premium price for shares and returning significant funds to shareholders, Frontera is demonstrating its commitment to creating value and driving sustainable growth. The impact of this decision may extend beyond the company itself, setting a precedent for shareholder-focused initiatives in the broader business landscape.