Backgrounder: Frontera Energy/ Catalyst Capital Group Inc. in Colombia

“For every tree you plant, you guarantee water for three people.” Frontera Energy has been linked to 56 oil incidents in Colombia over the past 7 years. Photo by PBI-Canada; San Luis de Palenque, July 1, 2022.

Simply Wall St notes: “Every investor in Frontera Energy Corporation (TSE:FEC) should be aware of the most powerful shareholder groups.”

Their article adds: “Our data shows that The Catalyst Capital Group Inc. is the largest shareholder with 40% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.2% and 2.8% of the stock.”

And it highlights: “To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.”

The Catalyst Group

The Catalyst Capital Group Inc. website notes: “Catalyst is a Canadian private equity investment firm founded in June 2002.” Their Portfolio webpage also confirms their current holdings include Frontera Energy.

Their website also confirms that: “Gabriel de Alba is a Managing Director and Partner of The Catalyst Capital Group Inc.” And the Frontera Energy website indicates that de Alba is the Chairman of the Board of Frontera Energy.

Gabriel de Alba

Controversies

In March 2021, the Associated Press reported: “Toronto’s Catalyst Capital Group Inc. agreed to pay up to US$11-million to an Israeli private investigation company in an arrangement that led to a sting designed to discredit an Ontario judge, according to court documents.”

That article adds: “Black Cube, based in Tel Aviv, is composed of former members of the Israeli Defence Forces and the Mossad, Israel’s national intelligence agency. Its operatives were hired as subcontractors by a security company called Tamara Global, which Catalyst itself had hired in the summer of 2017 as it prepared to appeal a court decision issued by Justice Frank Newbould of the Ontario Superior Court, according to the documents.”

Frontera Energy in Colombia

Concerns have also been raised about Frontera Energy in Colombia.

Eight social leaders from the community of San Luis de Palenque who had been protesting Frontera Energy were arrested in a pre-dawn raid on November 27, 2018, involving a Black Hawk military helicopter landing on their farmyards.

That lead UN Special Rapporteur Michel Forst to express his concern in his report to the UN Human Rights Council about “the apparent connection between Frontera Energy, the army’s 16th brigade and the Attorney General’s Support Office in this criminalization.”

Frontera Energy in Toronto

Frontera Energy has its head office in Calgary (2000, 222 – 3 Avenue SW) and its Investor Relations office in Toronto (333 Bay Street – 1100). The Catalyst Group also has its office in Toronto (181 Bay Street Suite 4700).

The last in-person shareholders meeting for Frontera took place on May 29, 2019 at “the offices of McMillan LLP, in the Rowell Room, Brookfield Place, Suite 4400, 181 Bay Street” in Toronto. Their last shareholders meeting, held as “a virtual-only format via live audio webcast”, took place on May 18, 2022.