Frontera announces 2022 capital and production guidance

Frontera Energy release

CALGARY, AB, Feb. 16, 2022 /CNW/ - Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company") announced its full year 2022 capital and production guidance, provided an update on its normal course issuer bid ("NCIB") and provided notice of its year end 2021 financial results and conference call. All values in this news release and the Company's financial disclosures are in United States dollars, unless otherwise noted.

Gabriel de Alba, Chairman of the Board of Directors, commented:

"Frontera's 2022 capital program optimizes both capital efficiency and free cash flow after development capex in 2022 and beyond, builds on the significant progress the Company made in 2021 against its objectives and maintains a disciplined approach to spending in the face of increasing inflationary pressures. Frontera anticipates generating operating EBITDA of $375-$425 million at $70/bbl Brent prices, $475-$525 million at $80/bbl Brent prices and $575-$625 million at $90/bbl Brent prices, demonstrating upside to higher oil prices. Additionally, Frontera will continue to enhance shareholder returns through its current NCIB, which the Company intends to renew when it expires in March, to permit purchases of up to 10% of its outstanding float over the next year."

Orlando Cabrales, Chief Executive Officer (CEO), Frontera, commented:

"Frontera's 2022 capital program is self-funded at $70/bbl Brent prices and is focused on two key areas. First, we anticipate spending $225-$255 million in our Colombia and Ecuador upstream business to deliver full year production of 40,000-43,000 boe/d, a 10% year-over-year increase at the midpoint. We will capitalize on the sweet spots of our portfolio by investing in development facilities at VIM-1, drilling opportunities at the recently acquired PetroSud assets, development drilling at Quifa, exploration activities and maintenance and production integrity activities across our portfolio. This activity is also expected to create a platform for future growth in 2023 and beyond. 

Second, Frontera and CGX anticipate spending $110-$130 million on Guyana exploration primarily to drill Wei-1, our second high impact exploration well in the most exciting offshore basin in the world. CGX anticipates spending a further $5-$10 million on Guyana infrastructure to advance the Berbice Deepwater Port Project.

Importantly, as part of Frontera's ESG strategy, the Company will invest in its first photovoltaic plant to generate electricity for CPE-6 and reduce the Company's energy usage, costs and carbon emissions. Despite increasing industry-wide inflationary pressures, Frontera remains focused on maintaining its competitive cost structure with production and transportation costs remaining relatively unchanged year over year."

The full release is available here.