Frontera Announces 2nd Quarter 2022 Results.

CALGARY, AB: Frontera Energy Corporation (TSX: FEC) ("Frontera"' or the "Company") released financial and operational results for the second quarter ended June 30, 2022 and announced updated 2022 capital and production guidance. All financial amounts in this news release are in United States dollars, unless otherwise stated.

Gabriel de Alba, Chairman of the Board of Directors, commented:

Frontera continued to perform ahead of plan, substantially delivering on its financial and operating objectives in the first six months of 2022, while extending its track record of ESG delivery and focusing on enhancing shareholder returns through its ongoing normal course issuer bid share buyback and the C$65 million substantial issuer bid. Subsequent to the quarter, Frontera announced a transaction with CGX that will increase the Company's working interest in the Corentyne block, offshore Guyana to 68% and secure funding of up to $130 million for the Joint Venture's second exploration well, Wei-1, which is anticipated to be spud in October in one of the most exciting exploration basins in the world.

In light of the Company's strong operational and financial performance in the first half of this year and the momentum the Company expects to carry into the second half of the year, Frontera is tightening its 2022 production guidance to 41,000-43,000 boe/d and increasing its operating EBITDA guidance to $675-$700 million as a result of an increase in assumed Brent prices at $100/bbl. The Company reiterates its cost guidance including production costs of $11.00-$12.00/boe and transportation costs of $10.00-$11.00/boe. Consistent with its increased working interest in the Corentyne block in Guyana, as previously announced on July 22, 2022, and reflective of the spending commitment at the Wei-1 exploration well, the Company anticipates increased total capital expenditures for the year of $435-$495 million. Frontera looks forward to advancing its exciting inventory of development and exploration opportunities in the second half of this year.

Orlando Cabrales, Chief Executive Officer, Frontera, commented:

"I am very pleased with Frontera's strong financial and operating results in the second quarter of 2022. The Company increased production by 1% to 41,586 boe/d including record production at CPE-6 block, improved its operating netback by 16% to $68.01/boe, increased its net sales realized price by 12% to $91.50/boe, grew its cash provided by operating activities by 114% to $246.6 million and generated $190.7 million in EBITDA. This is the fourth consecutive quarter of growth in these important metrics. The Company also unlocked opportunities within its portfolio with drilling successes during the quarter in Guyana at Kawa-1 and in Ecuador at Yin-1. Importantly, during the quarter, the Company released its 2021 Sustainability Report which details the Company's achievement of 98% of its 2021 ESG targets and outlines its 2022 ESG targets. Frontera has a healthy balance sheet with a sizable amount of cash on hand and low debt balances and we continue to manage operating costs during a time of rising inflationary pressures. Looking ahead to the second half of the year, the Company remains on track to optimize capital efficiency and free cash flow after development capex, while maintaining strong capital discipline and a targeted investment approach."

Executive Updates

Effective June 3, 2022, Mr. Rene Burgos Diaz was appointed as Chief Financial Officer ("CFO") of the Company replacing Mr. Alejandro Pineros. Mr. Burgos is a financial markets executive with over 20 years of experience in investment management, leveraged finance, restructuring and financial advisory expertise across multiple industries and geographies, specifically Latin America. Prior to his appointment as CFO, Rene served on Frontera's Board of Directors since December 2019.

Second Quarter 2022 Operational and Financial Summary

Q2 2022

Q1 2022

Q2 2021

Operational Results

Heavy crude oil production (1)

(bbl/d)

21,455

21,214

17,241

Light and medium crude oil production (1)

(bbl/d)

17,348

17,248

17,142

Total crude oil production

(bbl/d)

38,803

38,462

34,383

Conventional natural gas production (1)

(mcf/d)

10,374

9,530

5,164

Natural gas liquids (1)

(boe/d)

963

966

393

Total production (2)

(boe/d) (3)

41,586

41,100

35,682

Total inventory balance

(bbl)

1,423,695

1,434,111

969,028

Oil and gas sales, net of purchases (4)

($/boe)

103.34

90.42

64.54

Realized loss on risk management contracts (5)

($/boe)

(1.15)

(1.06)

(8.00)

Royalties (5)

($/boe)

(10.57)

(7.58)

(0.53)

Dilution costs (5)

($/boe)

(0.12)

(0.12)

(0.34)

Net sales realized price (4)

($/boe)

91.50

81.66

55.67

Production costs (5)

($/boe)

(12.65)

(13.48)

(11.72)

Transportation costs (5)

($/boe)

(10.84)

(9.74)

(11.15)

Operating netback (4)

($/boe)

68.01

58.44

32.80

Financial Results

Oil & gas sales, net of purchases (6)

($M)

312,910

229,569

200,581

Realized loss on risk management contracts

($M)

(3,476)

(2,682)

(24,877)

Royalties

($M)

(32,018)

(19,244)

(1,640)

Dilution costs

($M)

(376)

(298)

(1,056)

Net sales (6)

($M)

277,040

207,345

173,008

Net income (loss) (7)

($M)

13,484

102,228

(25,648)

Per share - basic

($)

0.14

1.08

(0.26)

Per share - diluted

($)

0.14

1.05

(0.26)

General and administrative

($M)

15,097

14,656

14,132

Operating EBITDA (6)

($M)

190,678

132,998

83,072

Cash provided by operating activities

($M)

246,615

114,980

87,391

Capital expenditures (6)

($M)

93,835

113,545

61,214

Cash and cash equivalents - unrestricted

($M)

295,098

257,373

358,325

Restricted cash short and long-term (8)

($M)

57,975

66,146

128,283

Total cash (8)

($M)

353,073

323,519

486,608

Total debt and lease liabilities (8)

($M)

535,454

558,281

565,238

Consolidated total indebtedness (excluding Unrestricted Subsidiaries) (9)

($M)

409,694

410,161

468,424

Net debt (excluding Unrestricted Subsidiaries) (9)

($M)

168,512

199,303

138,701

1. Reference to heavy crude oil, light and medium crude oil combined, natural gas liquids, or conventional natural gas production in the above table and elsewhere

   in this press release refer to the heavy crude oil, light and medium crude oil combined, natural gas liquids, and conventional natural gas, respectively, product types

   as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.

2. Represents working interest ("W.I.") production before royalties. Refer to the "Further Disclosures" section on page 27 of the Company's management's discussion

   and analysis dated August 9, 2022 (the "MD&A").

3. Boe has been expressed using the 5.7 to 1 Mcf/bbl conversion standard required by the Colombian Ministry of Mines & Energy. Refer to the "Further Disclosures -

   Boe Conversion" section on page 27 of the MD&A.

4. Non-IFRS ratio (equivalent to a "non-GAAP ratio", as defined in NI 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112"). Refer to the

   "Non-IFRS and Other Financial Measures'' section on page 16 of the MD&A.

5. Supplementary financial measure (as defined in NI 52-112). Refer to the "Non-IFRS and Other Financial Measures'' section on page 16 of the MD&A.

6. Non-IFRS financial measure (equivalent to a...