Mr. Orlando Cabrales reports

FRONTERA ANNOUNCES SECOND QUARTER 2023 RESULTS

Frontera Energy Corp. has released financial and operational results for the first quarter ended June 30, 2023. All financial amounts in this news release are in U.S. dollars unless otherwise stated.

Gabriel de Alba, chairman of the board of directors, commented: "Frontera continues to efficiently execute on its financial, operating and strategic plan for its three core businesses. In the company's Colombia and Ecuador upstream onshore business, production, costs, operating [earnings before interest, taxes, depreciation and amortization], and [capital expenditures] are within 2023 guidance ranges at $80-per-barrel average Brent prices for the year.

"In its potentially transformational Guyana exploration business, Frontera and CGX Energy, its joint venture partner, discovered 210 feet of hydrocarbon-bearing sands in the Santonian horizon and 77 feet of net light oil and sweet medium crude pay in the Campanian and Maastrichtian horizons at the Wei-1 well, offshore Guyana.

"In its stand-alone and growing Colombia mid-stream business, the company generated quarterly adjusted mid-stream EBITDA of $30.4-million, an increase of 8 per cent over the prior quarter. Subsequent to the quarter, Puerto Bahia entered into an agreement with Ecopetrol's subsidiary, Refineria de Cartagena SAS, to connect Frontera's Puerto Bahia liquids terminal to the Cartagena refinery. The connection builds on the momentum from Puerto Bahia's growing liquids terminal volumes and successful refinancing earlier this year as the company further strengthens its stand-alone mid-stream business."

Orlando Cabrales, chief executive officer, Frontera, commented: "Frontera demonstrated positive second quarter results. We increased average daily production by 1 per cent to 42,049 [barrels of oil equivalent per day] for the quarter as we successfully brought back on-line production after the road blockades that occurred during the first quarter and increased water-handling capacity at Quifa and CPE-6, where production improved 8.4 per cent. We also grew natural gas liquids production by 41 per cent to 1,823 boe/d through increased gas reinjection at VIM-1. Subsequent to the quarter, we achieved daily record production at CPE-6 of 6,177 [barrels per day].

"Our total cash position including restricted cash as of the second quarter increased to $214-million while we deployed approximately $155-million in capital spending primarily to drill 19 development wells at Quifa, CPE-6 and Cubiro, improve flow lines, build a storage tank and other facilities to double water-handing capacity at CPE-6, drill two exploration wells in Colombia, and complete Wei-1 exploration drilling activities. We continue to pro-actively manage our inventories in Colombia, selling approximately 20 per cent of total inventories under an improved differentials environment. Lastly, the company remains vigilant on costs. With a stronger Colombian peso year to date affecting our domestic costs, we have hedged 40 per cent of our Colombian-peso-denominated cost base to help protect our bottom line.

"Importantly, during the quarter, we released our annual sustainability report, highlighting investments in 218 projects benefiting more than 73,100 people in Colombia, Ecuador and Peru, and our success in offsetting 52 per cent of our greenhouse gas emissions, reducing water consumption at our operations by 15 per cent, and achieving the best health and safety performance in Frontera's history."

Second quarter 2023 financial results conference call

A conference call for investors and analysts will be held on Friday, Aug. 11, 2023, at 11 a.m. Eastern Time. Participants will include Mr. de Alba, Mr. Cabrales, Rene Burgos, chief financial officer, and other members of the senior management team.

Analysts and investors are invited to participate using the following dial-in numbers.

Participant number (toll-free North America):  1-888-664-6383

Participant number (toll-free Colombia):  01-800-518-4036

Participant number (international):  1-416-764-8650

Conference ID:  29912947

An audio webcast will be available at the company's website.

A replay of the conference call will be available until 11:59 p.m. Eastern Time on Aug. 18, 2023.

Encore toll-free dial-in number:  1-888-390-0541

International dial-in number:  1-416-764-8677

Encore ID:  912947

About Frontera Energy Corp.

Frontera is a Canadian public company involved in the exploration, development, production, transportation, storage and sale of oil and natural gas in South America, including related investments in both upstream and mid-stream facilities. The company has a diversified portfolio of assets with interests in 27 exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in Colombia. Frontera is committed to conducting business safely and in a socially, environmentally and ethically responsible manner.

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