31st Oct 2018 13:25
LONDON (Alliance News) - Frontera Resources Corp confirmed Wednesday it remains in discussions with a "second industry major" in addition to the memorandum of understanding it signed with General Electric Co's Baker Hughes Services LLC for its Block 12 asset in Georgia.
The AIM-listed oil & gas production and exploration company confirmed "recent comments made in the media" that it remains in discussions with the company announced in early September.
The discussion are regarding possible transactions involving a farm-out or joint operating arrangement within its Block 12 asset in Georgia.
In September, Frontera had said that, while the discussions are at an early stage, talks with the unnamed "majors" have taken a significant step forward, with both interested parties having attended extended site surveys and management meetings.
On Monday, Frontera Resources revealed one of the two "majors". It said its subsidiary has agreed to co-operate with GE's Baker Hughes Services.
Frontera said it will collaborate with Baker Hughes to improve efficiency of operations, enhance service capacity and capabilities, and commence in-field drilling and intervention campaign to increase production and recovery of resources in the Taribani, Mtsarekhevi and Mirzaani fields.
Shares in Frontera Resources were up 5.7% at 0.43 pence each in London.