06:26 AM EDT, 09/05/2024 (MT Newswires) -- Frontera Energy ( FECCF ) overnight Wednesday approved a substantial issuer bid that will see the company offer to purchase up to 3.4 million shares for cancellation at a price of $12.00 each, for an aggregate purchase price not exceeding $40.5 million (equivalent to US$30 million).

A statement noted the offer is expected to commence on September 11 and remain open for acceptance until 5:00 p.m. Eastern time on October 17, unless extended, varied, or withdrawn by the company.

Frontera said it plans to fund the share repurchases through available cash on hand. Shareholders can elect to receive payment in either Canadian or United States dollars.

The company added it has identified the offer as "an attractive and efficient means to return capital to shareholders". Upon successful completion of the offer, the company will have returned over US$52 million of capital to its stakeholders this year, including US$11.7 million in declared dividends, US$7.7 million of share repurchases and US$3.5 million in buybacks of its 2028 unsecured notes.

The shares closed Wednesday up $0.09, or 1.2%, at $7.55.