FRONTERA ANNOUNCES 2021 YEAR END RESERVES /* Style Definitions */ span.prnews_span { font-size:8pt; font-family:"Arial"; color:black; } a.prnews_a { color:blue; } li.prnews_li { font-size:8pt; font-family:"Arial"; color:black; } p.prnews_p { font-size:0.62em; font-family:"Arial"; color:black; margin:0in; } .prngen6{ PADDING-RIGHT:0.83em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen27{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: RIGHT; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt; BORDER-LEFT:black 1pt } .prngen9{ PADDING-RIGHT:0.83em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; BORDER-RIGHT:black 1pt; BORDER-BOTTOM:black 1pt solid; BORDER-LEFT:black 1pt } .prngen7{ PADDING-RIGHT:0.17em; PADDING-LEFT:0.17em; VERTICAL-ALIGN: BOTTOM; TEXT-ALIGN: CENTER; BORDER-TOP:black 1pt; 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All dollar amounts in this news release and the Company's financial disclosures are in United States dollars, unless otherwise noted. All of the Company's booked reserves for the year ended December 31, 2021 are located in Colombia and Ecuador . 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. See the Net Present Value After Tax summary table below for more information. About The Reserves Evaluation For the year ended December 31, 2021 , the Company's reserves were evaluated by D&M, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter) (" COGEH ") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities (" NI 51-101 ") and are based on the Company's 2021 year-end estimated reserves as evaluated by D&M in their report dated February 9, 2022 , with an effective date of December 31, 2021 (the " Reserves Report ").  D&M is an independent qualified reserves evaluator as defined in NI 51-101. Additional reserves information as required under NI 51-101 will be included in the Company's statement of reserves data and other oil and gas information on Form 51-101F1, which is expected to be filed on SEDAR on March 2, 2022 . See " Advisory Note Regarding Oil and Gas Information " section in the " Advisories ", at the end of this news release. Reserves data related to the El Dificil, Rio Meta and Entrerrios assets acquired by Frontera upon its acquisition of 100% of the common shares of Petroleos Sud Americanos S.A. (" PetroSud ") on December 30, 2021 , have been included in the Reserves Report. The Reserves Report also includes results from the Company's Jandaya-1 exploration well in the Perico block, in Ecuador (Frontera 50% W.I., operator). Numbers in tables may not add due to rounding differences. 2021 Year-End D&M Certified Gross Reserves Volumes (1) Reserves Category December 31, 2021 MBoe (2) December 31, 2020 MBoe (2) Percentage Change 2021 versus 2020 Proved Developed Producing (PDP) 31,778 27,301 16% Proved Developed Not Producing (PDNP) 10,461 10,015 4% Proved Undeveloped (PUD) 76,045 70,685 8% Total Proved (1P) 118,284 108,001 10% Probable 59,957 66,017 (9)% Total Proved Plus Probable (2P) 178,241 174,018 2% Possible (3) 51,559 56,378 (9)% Total Proved Plus Probable Plus Possible (3P) 229,799 230,396 0% (1) Gross reserves represent Frontera's W.I. before royalties. (2) See "Boe Conversion" section in the "Advisories", at the end of this press release. (3) Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. 2021 Year-End D&M Certified Net Reserves Volumes (1) Reserves Category December 31, 2021 Mboe (2) December 31, 2020 Mboe (2) Percentage Change 2021 versus 2020 Proved Developed Producing (PDP) 29,640 25,955 14% Proved Developed Not Producing (PDNP) 9,483 9,395 1% Proved Undeveloped (PUD) 70,224 66,845 5% Total Proved (1P) 109,346 102,195 7% Probable 57,670 64,203 (10)% Total Proved Plus Probable (2P) 167,016 166,399 0% Possible (3) 50,055 55,420 (10)% Total Proved Plus Probable Plus Possible (3P) 217,071 221,818 (2)% (1) Net reserves represent Frontera's W.I. after royalties. (2) See "Boe Conversion" section in the "Advisories", at the end of this press release. (3) Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. The following tables provide a summary of the Company's oil and natural gas reserves based on forecast prices and costs effective December 31, 2021 , as applied in the Reserves Report. The Company's net reserves after royalties at December 31, 2021 , incorporate all applicable royalties under Colombia and Ecuador fiscal legislations based on forecast pricing and production rates evaluated in the Reserves Report, including any additional participation interest related to the price of oil applicable to certain Colombian and Ecuadorian blocks, as at year-end 2021. 2021 Year-End D&M Certified Reserves Volumes by Product Type and Country (6) Reserves at December 31, 2021 (MMboe) (1)(5) Country Field Proved (1P) Probable Proved plus Probable (2P) Hydrocarbon Type Gross Net Gross Net Gross Net Colombia Quifa SW field 48.3 42.2 6.0 5.2 54.3 47.3 Heavy crude oil Other heavy oil blocks (2) 35.1 33.8 22.1 21.7 57.1 55.4 Heavy crude oil Light/medium oil blocks (3) 25.8 24.5 20.1 19.3 46.0 43.8 Light and medium crude oil Natural gas blocks (4) 6.5 6.5 5.8 5.8 12.4 12.4 Conventional natural gas Natural gas blocks (4) 1.6 1.6 5.1 5.1 6.7 6.7 Natural gas liquids Sub-Total 117.4 108.6 59.1 57.0 176.5 165.6 Oil and natural gas Ecuador Perico block 0.9 0.8 0.8 0.7 1.8 1.4 Light and medium crude oil Total Dec. 31, 2021 118.3 109.3 60.0 57.7 178.2 167.0 Oil and natural gas Total Dec. 31, 2020 108.0 102.2 66.0 64.2 174.0 166.4 Difference 10.3 7.2 (6.1) (6.5) 4.2 0.6 2021 Production 13.7 12.5 Total Reserves Incorporated 17.9 13.1 (1) See "Boe Conversion" section in the "Advisories", at the end of this press release. (2) Includes Cajua and Jaspe fields in Quifa Block and Sabanero and CPE-6 blocks. (3) Includes Cubiro, Cravoviejo, Canaguaro, Guatiquia, Casimena, Corcel, Neiva, Cachicamo and other producing blocks. (4) Includes VIM-1, El Difícil and La Creciente Blocks. (5) Gross refers to Frontera's W.I. before royalties. Net refers to Frontera's W.I. after royalties. (6) All of the Company's booked reserves are located in Colombia and Ecuador. 2021 2P Reserves Reconciliation Oil Equivalent Gross 2P Reserves (MMboe) (1)(2) Oil Equivalent Net 2P Reserves (MMboe) (1)(2) December 31, 2020 174.0 166.4 Net Additions (3) 5.6 5.0 Economic and Technical Revisions 6.1 2.1 Acquisitions/Dispositions 6.1 6.1 Production (4) 13.7 12.5 December 31, 2021 178.2 167.0 (1) See "Boe Conversion" section in the "Advisories", at the end of this press release. (2) Gross refers to Frontera's W.I. before royalties. Net refers to Frontera's W.I. after royalties. (3) Includes discovery of Jandaya field (Perico Block in Ecuador), extensions and improved recoveries (including improved recoveries of Coralillo and Copa fields (Guatiquia and Cubiro blocks in Colombia). (4) Production represents the production for the twelve-month period ended December 31, 2021 for assets with associated reserves. Production associated with exploration and evaluation assets are included in production volumes for financial reporting purposes. Five Year Crude Oil Price Forecast - D&M Reserves Reports (1) (US$/bbl) 2022 2023 2024 2025 2026 Brent Oil Price Forecast 2020 52.85 56.04 57.87 59.00 60.15 Brent Oil Price Forecast 2021 75.33 71.46 69.62 71.01 72.44 (1) The Reserves Report and the December 31, 2020 reserves report used the average Brent projected price of three major international independent auditors: GLJ Petroleum Consultants, McDaniel and Associates Consultants and Sproule Consultants. The 2020 price forecast reflects prices used in the Company's December 31, 2020 reserves report and the 2021 price forecast reflects prices used in the Reserves Report. Reserve Life Index ("RLI") (1) (US$/bbl) December 31, 2020 (2) December 31, 2021 (3) Total Proved (1P) 6.4 years