Frontera Announces 2011 Annual Results
FRONTERA RESOURCES CORPORATION
Houston, Texas, U.S.A. – 29 June 2012
FRONTERA ANNOUNCES 2011 ANNUAL RESULTS
Frontera Resources Corporation (London Stock Exchange, AIM Market, FRR), the oil and gas exploration and production company with assets in the country of Georgia, today announced its audited final results for the year ended 31 December 2011 and provided an update of operations within its Block 12 license in the country of Georgia.
– Frontera redomiciled the corporation and was admitted to AIM on August 2, 2011. Simultaneously, it concluded an equity financing package that provided the company with up to £26.8 million (US$43.5 million) for Frontera’s planned programs and strengthened its balance sheet by the conversion of US$112.6m of debt. Related to this restructuring, results for the year ended 31 December 2011 reflect a net loss of $119.9 million, or $0.13 per share on a fully-diluted basis. This is primarily attributable to a $101.7 million onetime inducement expense and other onetime costs related to the company’s 2011 restructuring.
– Revenues from crude oil sales for 2011 totaled $7.4 million.
– Building on the 2011 restructuring, the Company continues to make good progress in the planned development of its portfolio. In this context, operations continue in line with the Company’s May 21, 2012 announcement.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
“2011 was a truly transformative year for Frontera as the company was able to successfully simplify its balance sheet, add new capital for our ongoing work programs and build a new foundation that is the basis for our current progress. We look forward to advancing our initiatives during the remainder of this year with an objective of achieving profitability from the significant potential that our programs hold.”
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Nominated Adviser and Joint Broker:
+44 (0) 20 7220 0500
Old Park Lane Capital Plc
Michael Parnes / Luca Tenuta
+44 (0)20 7493 8188
Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0)20 7710 9610
Tim Thompson / Helen Chan
+44 (0)20 7466 5000
Notes to Editors:
About Frontera Resources Corporation
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 currently operates in the country of Georgia 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. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market – Symbol: FRR. For more information, please visit www.fronteraresources.com.
2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company’s ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera’s financial reports, which are available at www.fronteraresources.com. 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.