2nd Jan 2014 13:14
LONDON (Alliance News) - Frontera Resources Corp Thursday said it is moving towards financing and development goals in 2014 and has entered a lending facility.
The oil and exploration and production company, with operations in Georgia, said it has entered into a lending facility with YA Global Master SPV Ltd, which has the potential to provide up to USD5 million to support its upcoming work programmes.
The company said, under the terms of the agreement, it has advanced an initial instalment of USD1.5 million to support ongoing operations.
Frontera said it has continued to make progress towards completing the installation of gas sales infrastructure at the Mtsare Khevi Gas Complex.
The company said testing and final regulatory approval of the 14 kilometre system will continue into January but is nearly complete ahead of commencing gas sales.
Frontera said the infrastructure will allow the production from currently shut-in gas wells allowing possible production of roughly two million cubic feet per day of gas.
The company also said an independent assessment of the Mtstare Khevi Field will take place in 2014.
Regarding the company's Taribani Field, the company plans workovers and stimulation of existing wells into the first quarter 2014 to increase production and provide data towards an upcoming four-well drilling programme.
Frontera said in remains in discussions with strategic financing partners for development of the Tarabani site and the new programme is expected to start during the first half of 2014.
The company also said it expects talks with a potential strategic partner over the development of its Mirzaani Field to allow the beginning of a five-well drilling campaign at the site to start in the first half of 2014.
Frontera shares were down 1.6% to 0.728 pence Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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