20th Jan 2014 11:22
LONDON (Alliance News) - Frontera Resources Corporation Monday said it has successfully completed an equity fund raising initiative of GBP910,000.
The oil and exploration and production company, with operations in Georgia, said the fund raising, along with a USD5 million loan agreement the company announced on December 31, will be used to support new operations during the first half of 2014 designed to increase oil production at the company's Taribani Field and Mirzaani Field, and support the ongoing development of the Mtsare Khevi gas complex.
The company said the cash was raised through a subscription by YA Global Master SPV Ltd of 122.8 million shares in the company.
Frontera said that a portion of the funds will be used to conduct a new workover and fracking campaign on existing wells at the taribani and Mirzaani fields to increase overall oil production by roughly 300 barrels of oil per day.
The company said equipment for the fracking has been mobilised and the process is expected to commence in early April.
Frontera Resources shares were down 2.2% to 0.788 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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