• Capital program focused on two key areas: Colombia And Ecuador upstream business, Guyana exploration and infrastructure
• 40,000-43,000 BOE/D Full Year Production, ~10% increase at the midpoint compared to 2021 estimated average production of ~37,800 BOE/D
• $575 - $625 million operating EBITDA at $90/BBL Brent, demonstrating upside to higher oil prices
• Frontera intends to renew its NCIB To permit purchases up to 10% of its outstanding float over the next year

Frontera Energy has announced its full year 2022 capital and production guidance and provides an update on its normal course issuer bid ('NCIB').

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."

Reserves

Frontera Energy additionally announced the results of its annual independent reserves assessment conducted by DeGolyer and MacNaughton ('D&M').

Orlando Cabrales, Chief Executive Officer, commented:
"Frontera delivered solid reserves results in 2021. The Company replaced 157% of net 1P reserves and 105% of net 2P reserves, and extended our net 1P reserves life index to 8.7 years and our net 2P reserves life index to 13.3 years. We also increased net 2P natural gas and associated natural gas liquids reserves by 105% to 19.1 MMboe, further diversifying Frontera's future production mix. The net present value (10% discount) on December 31, 2021 of the Company's 2P reserves increased by 61% to $3.036 billion before tax and $2.248 billion after tax due in part to higher Brent prices year over year and greater operational and development cost stability."

2021 Reserves Report Highlights:

For the year ended December 31, 2021, Frontera:

• Added 13.1 MMboe of 2P net reserves, slightly increasing the Company's 2P net reserves to 167.0 MMboe, compared to 166.4 MMboe at December 31, 2020. The Company's 167 MMboe of net 2P reserves consist of 62% heavy crude oil, 27% light and medium crude oil and 7% conventional natural gas and 4% natural gas liquids.
• Achieved a 1P net Reserves Replacement Ratio of 157% and a net 2P Reserve Replacement Ratio of 105%.
• Extended 1P reserves life index to 8.7 years compared to 6.4 years at December 31, 2020.
• Extended 2P reserves life index to 13.3 years compared to 10.3 years at December 31, 2020.
• Added 7.8 MMboe of 3P net reserves, for a total of 217.1 MMboe at December 31, 2021, slightly lower compared to 221.8 MMboe at December 31, 2020.
• Achieved a three-year average finding and development ('F&D') cost of $8.50/boe on a 2P basis ($3.38/boe in 2020) with upstream reserves-based capital expenditures of $187 million ($101 million in 2020), not including changes in future development costs ("FDC"). 1P F&D cost three-year average was $9.80/boe in 2021 compared to $7.38/boe in 2020.
• Increased 2P reserves on a gross working interest basis before royalties by 2% to 178.2 MMboe compared to 174.0 MMboe at December 31, 2020. Delivered 3P reserves on a gross working interest basis before royalties of 229.8 MMboe compared to 230.4 MMboe at December 31, 2020.
• The Net Present Value ('NPV') for the net 2P reserves, discounted at 10% before tax, is $3.036 billion at December 31, 2021, compared to $1.888 billion at December 31, 2020. The increase in NPV for the 2P reserves is primarily due to higher commodity prices at December 31, 2020 and improved development and operational cost stability.

KeyFacts Energy: Frontera Energy Colombia country profile