09:07 AM EST, 12/29/2025 (MT Newswires) -- Frontera Energy ( FECCF ) on Monday said that its Colombian subsidiary entered into a $120 million prepayment and commercial agreement with Chevron Products Company.

Under the agreement, Frontera will receive an initial advance of $80 million and commit to deliver a portion of its crude oil production for a period of two years to Chevron.

Frontera said it may request an additional $40 million advance for up to 6 months on a fully committed basis.

Under the agreement, the prepayment amounts will be subject to a financial discount calculated at the Secured Overnight Financing Rate (SOFR) plus 4.25% per annum.

Repayment of the prepayment amounts will begin following a six-month grace period.

Net proceeds from the agreement will be used to manage working capital flows and enhance the company's liquidity position.

The company said that the agreement will replace an existing prepayment agreement which expires at the end of January 2026.