Calgary-based Parex Resources has submitted a $500 million cash offer to acquire Frontera Energy's Colombian upstream business, challenging an existing $400 million agreement with GeoPark. The bid includes debt assumption and a $25 million contingent payment, representing a $125 million premium over the current deal.

Catalyst Capital Group and Gramercy Funds Management, which together hold 53% of Frontera's shares, had previously agreed to support the GeoPark transaction announced in January. Parex claims its proposal would create the largest independent Colombian-focused energy company by acquiring Frontera Petroleum International Holdings. The company emphasized its deep experience in Colombia's oil and gas sector.

Catalyst has maintained an investment in Frontera since 2016, backing the GeoPark deal that would see the Chilean company acquire Frontera's Colombian operations. Parex's unsolicited bid now forces Frontera's board to evaluate whether the higher offer provides better value for shareholders. The outcome could significantly impact Colombia's energy landscape and reshape competition among independent operators in the region.