1st Aug 2013 15:09
FRONTERA RESOURCES CORPORATION
("FRONTERA" OR THE "COMPANY")
Houston, Texas, U.S.A. - 1 August 2013
FRONTERA RESOURCES RELEASES FUNDING UPDATE AND OPERATIONAL UPDATE
Funding Update
Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company") with assets in the country of Georgia, today announces that it has retired the second tranche of the loan ("Further Advance") drawn pursuant to the SEDA-Backed Loan Agreement (the "Loan Agreement") entered into with YA Global Master SPV Ltd on 27 January 2012 and announced on 31 January 2012. On 31 July 2013, the Company and YA Global Master SPV Ltd agreed to amend the Loan Agreement to extend it through to 1 September 2014 (the "Amended Loan Agreement"). The Amended Loan Agreement will allow the Company to draw a SEDA-backed loan up to US$1,287,000, at an annual interest rate of 9%. All other terms of the Amended Loan Agreement are substantially the same as described in the Company's RNS dated 31 January 2012.
Operations Update
The Company also announces that it is continuing to make progress on the installation of an eight kilometre pipeline and related facilities within the Mtsare Khevi Field as previously announced on 6 June 2013. Due to operational delays related to installation logistics, it is now expected that first gas will occur in the fourth quarter of 2013. The infrastructure will accommodate production from currently shut-in gas wells which the Company believes could produce from the outset approximately two million cubic feet per day of gas (57,000 cubic metres per day).
Enquiries:
Frontera Resources Corporation
Liz Williamson
Vice President, Investor Relations and Corporate Communications
(713) 585-3216
Nominated Adviser and Joint Broker:
finnCap Limited
Matt Goode/Christopher Raggett
+44 (0) 20 7220 0500
Co-Broker:
Cornhill Capital Limited
Nick Bealer/Stefan Olivier
+44 (0)20 7710 9610
Financial PR:
Buchanan
Tim Thompson/Tom Hufton
+44 (0)20 7466 5000
www.buchanan.uk.com
Related Shares:
Frontera Resources