Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR; OTCQX Market, U.S.A. – Symbol: FRTE), an independent oil and gas exploration and production company, today announced its final results for the year ended 31 December 2007, in accordance with the requirements for companies listed on OTCQX and the covenants relating to its 10% convertible notes due 2012.
2007 Financial Highlights
- Results for the year ended 31 December 2007 reflect a net loss of $19.7 million, or $0.28 per share on a fully diluted basis, in line with the early stage nature of the company’s asset portfolio and expenditures required to evaluate the company’s undeveloped fields and exploration opportunities.
- Working capital position of $46 million at year-end 2007.
- Liquidity of and access to shares within U.S. capital markets enhanced through quotation of the shares on U.S. over-the-counter services.
2007 Operational Highlights
- Taribani Field Unit – Successfully launched Zone 9 development program through re-completion and new drilling operations at Dino #2 and T-#45 well locations.
- Basin Edge Play Unit – Commenced extensive exploration drilling campaign at the “C” Prospect.
- Mirzaani Field Area Production Unit – Continued profitable production, with revenues totaling approximately $1.9 million for 2007.
- Mirzaani Field Area Exploration Unit – Advanced efforts to farm out the Mirzaani Deep Prospect in order to accelerate drilling of this large prospect situated beneath the existing Mirzaani Field.
- Block 12 Area Wide Development Unit – Evolved Frontera’s extensive inventory of undrilled prospects and undeveloped fields in anticipation of mid-term and long-term value creation opportunities.
The company expects to issue a complete review of its 2007 financial results and operations prior to its annual meeting of stockholders on May 22, 2007, and to continue to issue news releases in the ordinary course of business in the interim as events warrant. Additional disclosure and financial information about the company, including the audited financial statements of the company as of December 31, 2007, can be found at www.fronteraresources.com.
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Brunswick Group LLP
Patrick Handley / Mark Antelme
London: +44 207 4045959
Notes to Editors:
1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A. – based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets around the world. Frontera has operated in Georgia since 1997 where it holds a 100 percent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas from a 5,060 square kilometer area in eastern Georgia known as Block 12. For more information, please see www.fronteraresources.com.
2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions, potential drilling schedule, well results and ventures discussed in this release, as well as reserves, future drilling, development and production. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: future exploration and development results; availability and performance of needed equipment and personnel; seismic data; evaluation of logs and cores from wells drilled; fluctuations in oil and gas prices; weather conditions; general economic conditions; and the political situation in Georgia and neighboring countries. There is no assurance that Frontera’s expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.