FRONTERA RESOURCES CORPORATION
Result of General Meeting
The Company is pleased to announce that, at the General Meeting held earlier today, all resolutions were duly passed.
Subsequently, the subscription for 350,000,000 new ordinary shares (“Subscription Shares”) raising gross proceeds of £2.8 million (approximately US$4.3 million), as announced on 6 May 2015, has been approved. Application has been made for admission of the Subscription Shares to trading on AIM, which is expected to occur on 26 May 2015.
As previously announced, the funds raised will be used to accelerate the Company’s operations at its Mtsare Khevi Gas Complex and Taribani Field assets, situated within its portfolio in the country of Georgia.
Specifically, funds raised will support new drilling and workover programs, investments in gas sales infrastructure and related technical studies associated with work outlined in the Company’s recent announcements dated 20 April 2015 and 5 May 2015.
Overall, as previously announced, this work is expected to result in increased production and associated revenues from these areas such that the Company expects to exit 2015 with targeted gas production rates of approximately 7 million cubic feet per day and targeted net oil production rates of approximately 1,000 bbls per day.
Steve C. Nicandros, Chairman and Chief Executive Officer commented: “With our recent announcement on 20 April of independent confirmation of our company’s extensive historical work to identify significant natural gas resources in Georgia, we look forward to continuing to meaningfully invest in advancing this effort. We are pleased to be able to continue to grow our Company’s ability to expand its capital programs and look forward to the planned results that these investments will bring.”
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Avi Robinson / Jo Turner
+44 (0) 20 7148 7900
Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0) 207 710 9610
+44 (0) 20 7466 5000
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 in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market – Symbol: FRR. For more information, please visit www.fronteraresources.com.
2. The Mtstare Khevi Gas Complex is an area of approximately 140 square kilometres and encompasses gas reservoir targets found between 300 metres and 5,000 metres in depth. Based on Frontera’s internal estimates, analysis has revealed significant gas potential throughout this area of up to approximately 11 TCF of gas-in-place and up to approximately 9 TCF of recoverable gas resources. An April 2015 report by the independent consulting firm of Netherland, Sewell & Associates confirms prospective resources of as much as 8.29 TCF of gas-in-place for the Mtsare Khevi Gas Complex, with as much as 6.15 TCF of recoverable prospective resources.
3. The Taribani Field Complex is an area that encompasses approximately 1,400 square kilometres and includes the discovered yet undeveloped Taribani, Kila Kupra, Bayda and Iori fields within Block 12. Internal preliminary analysis suggests that there could be as much as 18 billion barrels of oil in place throughout this complex. Ongoing work continues to study and assess the viability of this analysis and larger scale development potential. Situated within the Taribani Field Complex, the Taribani Field’s oil potential consists of 788 million barrels of original oil in place (“OOIP”) at depths between 2,000 meters and 3,300 meters, independently assessed by Netherland, Sewell & Associates (“NSA”) in 2005. In addition, Frontera estimates gas-in-place resources associated with deeper horizons at the Taribani Field to be as much as approximately 9 tcf from reservoir targets found between 3,400 metres and 5,000 metres in depth. An April 2015 report by NSA confirms prospective resources of as much as 4.62 TCF of gas-in-place associated with deeper gas bearing sands at the Taribani Field, with as much as 3.23 TCF of recoverable prospective resources from horizons situated between 3,400 meters and 5,400 meters in depth.
4. Information on Resource Estimates: The contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Gerard Bono, Frontera’s Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved the statements in this announcement.
5. 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.