Frontera Energy has entered into an agreement to acquire the 35% working interest ("WI") in Colombia's El Dificil block held by PCR Investments S.A., a wholly owned subsidiary of Petroquímica Comodoro Rivadavia S.A. ("PCR") for a total aggregate cash consideration of approximately US$13 million. The PCR transaction is expected to close in the second half of 2022 and is subject to customary closing conditions and approval of the transaction by the Agencia Nacional de Hidrocarburos.

Frontera also announced today that the Company has now closed its previously announced acquisition of 100% of the issued and outstanding shares in Petroleos Sud Americanos S.A. ("PetroSud"), acquiring PetroSud's 65% working interest in El Dificil block and 100% interests in Entrerrios and Rio Meta blocks. Upon completion of the transaction with PCR, Frontera will hold a 100% working interest in El Dificil block.

Frontera anticipates its acquisition of PetroSud's assets and PCR's interest in El Dificil for a total consideration of approximately $40 million, including the assumption of $18 million in PetroSud debt, will generate approximately US$12-$15 million of annual EBITDA, which may grow as additional synergies are realized including potentially commercializing recent gas discoveries in VIM-1 block in a very competitive market.

The Company's 100% working interest in El Dificil block combined with its acquisition of PetroSud's interests in Entrerrios and Rio Meta Blocks is expected to add approximately 1,800 boe/d of total production (1,300 boe/d through the PetroSud acquisition beginning in January 2022 and 500 boe/d when the transaction with PCR closes). The production mix consists of approximately 7.7 mmcf/d of conventional natural gas, 120 bbl/d of natural gas liquids, 260 bbl/d of heavy oil and 60 bbl/d of light and medium crude oil. Production costs associated with the acquired assets are expected to be $7.50-$8.50/boe. The Company anticipates increasing El Dificil production to 2,000 - 3,000 boe/d between 2022 and 2024. Additionally, the Company expects to increase organic production in the Lower Magdalena Valley in 2022 as it continues to ramp up production at VIM-1 block and surrounding areas.

Frontera's acquisition of 100% interest in El Dificil block supports the Company's strategy to increase gas production, lowers carbon emissions and includes strategically located, high quality gas facilities.

According to recent analysis by Welligence Energy Analytics, Frontera is one of the top three largest acreage holders in the Lower Magdalena Valley.

About El Dificil Block:

• Located in an emerging core area approximately 75 kilometres from the Company's interests in La Creciente, VIM-22 and VIM-1 blocks.
• No exploration commitments.
• Producing gas fields connected to existing distribution infrastructure.
• Immediate opportunities to increase production.
• Conventional natural gas assets further balance production profile.
• Possible synergies could be realized due to the close proximity to Frontera's light oil assets.

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