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 results for the quarterly period ended 30 June 2008.
2008 Q2 Financial Highlights
- Revenues from crude oil sales for the quarter ending 30 June, 2008 were $2.9 million, an increase of $2.3 million from $0.6 million during the same period last year. Revenues for the first six months of 2008 were $1.1 million higher than in 2007.
- Results for the quarter ended 30 June 2008 reflect a net loss of $5.5 million, or $0.08 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.
- Strong working capital position to continue planned investment programs.
2008 Q2 Operational Highlights
- Taribani Field Unit – Increased production from continuation of Zone 9 development program. A rig is currently being mobilized within Block 12 to commence drilling the next Zone 9 well, Taribani South #1, in early September.
- Shallow Fields Production Unit – Achieved a 30% increase in oil production through an aggressive new drilling campaign across the Unit that is ongoing. Drilling campaigns within the Mirzaani, Mtsare Khevi, Nazarlebi and Patara Shiraki fields have resulted in continued profitable production and Q2 oil revenues of $2.6 million.
- Basin Edge Play Unit – Continued exploration effort at “C” Prospect with reprocessing of 3D seismic survey to incorporate drilling results to date. Early results confirm large size and up-dip potential associated with this giant prospect. Efforts continue to secure a new rig for continuation of Lloyd #1 well operations.
- Mirzaani Field Area Exploration Unit – Continued efforts to farm out the Mirzaani Deep Prospect in order to accelerate drilling of this large prospect situated beneath the currently producing 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.
Additional background, details and updates of the company’s ongoing progress can be found at www.fronteraresources.com.
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Brunswick Group LLP
Patrick Handley / Camilla Gore
London: +44 207 4045959
+44 20 7425 8000
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.