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 (“Frontera” or the “Company”), today announced that, further to the disclosure in its financial statements for the year ended December 31, 2009, its operating subsidiary in Georgia, Frontera Eastern Georgia Limited (“FEGL”), has received a final award in the amount of US$1.4 million against ARAR, Inc. and certain related parties (“ARAR”) from an international arbitration panel of the International Centre for Dispute Resolution (the “ICDR”) seated in Houston, Texas.
The dispute arose out of the performance of a drilling contract between FEGL and ARAR, Inc. in 2007-08, and FEGL initiated arbitration before the ICDR in January 2008. The parties entered into a settlement agreement in December 2008 providing for ARAR to, among other things, make certain payments to FEGL during the period December 2008 to December 2009. In August 2009, ARAR ceased making payments as required under the settlement agreement, and FEGL applied to the arbitration panel for entry of an agreed award as provided by the settlement. Following a hearing in March 2010, the arbitration panel issued its award. Frontera intends to pursue payment of the full amount of the award and to vigorously enforce the award in any jurisdiction in which the assets of ARAR may be found.
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Strand Hanson Limited
James Harris / Paul Cocker / Liam Buswell
+44 (0)20 7409 3494
Arbuthnot Securities Limited
Andrew Fairclough / Henry Willcocks
+44 (0)20 7012 2000
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. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market – Symbol: FRR and via the Over-the-Counter Market, U.S.A. – OTCQX Symbol: FRTE. For more information, please visit www.fronteraresources.com.