An anonymous director reports

FRONTERA ANNOUNCES INITIATION OF NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted Frontera Energy Corp.'s notice to initiate a normal course issuer bid for its common shares.

Pursuant to the NCIB, Frontera may purchase up to 3,949,454 common shares during the 12-month period commencing Nov. 21, 2023, and ending Nov. 20, 2024, representing approximately 10 per cent of the company's public float (as calculated in accordance with the TSX rules) as at Nov. 8, 2023. As at Nov. 8, 2023, there were 85,431,716 common shares issued and outstanding, of which 39,494,549 constitute the public float, calculated in accordance with the rules of the TSX. There are no persons acting jointly or in concert with the company in respect of the NCIB.

The average daily trading volume of the common shares was 63,190 common shares over the period between May 1, 2023, and Oct. 31, 2023. Consequently, daily purchases through the facilities of the TSX will be limited to 15,797 common shares, other than block purchase exceptions.

Frontera believes that, from time to time, the market price of its common shares may not fully reflect the underlying value of its business, future prospects and financial position. In such circumstances, Frontera may purchase for cancellation outstanding common shares, thereby benefiting all shareholders by increasing the underlying value of the remaining common shares.

In connection with its NCIB, Frontera has entered into an automatic share purchase plan with its designated broker, BMO Nesbitt Burns Inc., to facilitate the purchase of common shares under the NCIB. The plan allows for purchases by the company of its common shares at any time, including, without limitation, when the company would ordinarily not be permitted to make purchases due to regulatory restriction or self-imposed blackout periods. Purchases will be made by BMO based upon the parameters prescribed by the TSX and the terms of the parties' written agreement. The plan has been precleared by the TSX and will be implemented at the time the NCIB commences.

Purchases subject to the NCIB will be carried out pursuant to open market transactions through the facilities of the TSX or alternative Canadian trading systems, if eligible, by BMO on behalf of Frontera in accordance with the plan and applicable regulatory requirements. The price to be paid by Frontera for any common share will be the market price at the time of acquisition, plus brokerage fees, or such other price as the TSX may permit. All common shares purchased by Frontera under the NCIB will be returned to treasury and cancelled.

The company's indenture, dated as of June 21, 2021, pursuant to which $400-million (U.S.) aggregate principal amount of 7.875 per cent senior notes of the company due 2028 were issued, imposes certain restrictions on the company's ability to repurchase its common shares. However, based on other provisions of the indenture, the company is not currently restricted from completing the purchases under the NCIB.

Under its normal course issuer bid that expired on March 16, 2023, Frontera was authorized to repurchase for cancellation 4,787,976 common shares and Frontera purchased for cancellation 4,270,100 common shares between March 17, 2022, and March 16, 2023, at a volume weighted average price of $12.45 (Canadian) per share. Purchases were carried out pursuant to open market transactions through the facilities of the TSX or alternative Canadian trading systems, by BMO, on behalf of the corporation in accordance with an automatic share purchase plan and applicable regulatory requirements.

About Frontera Energy Corp.

Frontera Energy 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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