Frontera cuts 2020 capex 60%, streamlines executive team

March 23, 2020

Frontera Energy Corp. will cut its 2020 capital expenditures by 60% to $130-150 million and streamline the executive team as part of cost saving initiatives.

OGJ editors

Frontera Energy Corp. will cut its 2020 capital expenditures by 60% to $130-150 million from $325-375 million and streamline the executive team as part of cost saving initiatives in response to the lower oil price environment caused by excess global supply and the COVID-19 pandemic.

David Dyck is stepping down as chief financial officer, effective Mar. 31. On Apr. 1, Alejandro Piñeros, who serves as corporate vice-president of strategy and planning, will become chief financial officer.

Expenditures will be primarily focused on development and maintenance activities in the company's core assets of Quifa SW, CPE-6 and its light and medium oil business unit in Colombia.

Revised average annual production in 2020 is expected to be 55,000 to 60,000 boe/d, a decrease of 8% compared to 2020 guidance. The company has shut-in a number of wells that are not economic to operate at current prices.

The company is also actively working to reduce production, transportation, and G&A costs. Further information will be provided as the financial goals are achieved.