Frontera Resources Corporation Taribani Update; Conversion of Convertible Shares (5191Z)

TIDMFRR

RNS Number : 5191Z

Frontera Resources Corporation

15 December 2017

15 December 2017

Frontera Resources Corporation

("Frontera" or the "Company")

Taribani Update; Conversion of Series A Preferred Convertible Shares

Frontera Resources Corporation (AIM: FRR), the European focused independent oil and gas exploration and production company, today provides update related to its work in Taribani Complex of Block 12 in the country of Georgia.

In furtherance of the Company's announcements of 4 December 2017 and 13 November 2017, the Company is pleased to announce that the drilling services contract for drilling of wells at Taribni complex has now been entered into with Gulf Drilling Supply FZY, a Dubai, United Arab Emirates-based, international drilling services company.

Further, the cementing services contract has been entered into with Baker Hughes Services International LLC, a US-based international oil service company, which will provide cementing services during drilling operations at Taribani wells.

As previously announced, the sidetracking/drilling operations at Dino-2 well in Taribani Complex is scheduled to commence in January 2018. This will be followed by T-45 well where deepening/drilling operations are scheduled to commence in March 2018. Thereafter, the operations will move to T-39 well, the third well in Taribani Complex, to be deepened/drilled.

All three wells at the Taribani Complex (Dino-2, T-45 and T-39) will be drilled to a target depth of 2700m and Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together.

According to the estimates produced by Netherland, Sewell and Associates, Zones 9, 14 and 15 in Taribani Complex are estimated to have 689 million barrels of oil in place, with 103.5 million barrels considered to be recoverable.

On 13 December 2017, the Company received a conversion notice for the month of December 2017 from YA II PN, Ltd. ("YA") to convert 400 Series A Preferred Convertible Shares ("Convertible Shares") out of its outstanding total of 4800 Convertible Shares. Pursuant to the terms of the agreement with YA, conversion will be made at a price of 0.422 pence, which will result in the issue of 71,137,440 new ordinary shares ("New Ordinary Shares") to YA. The agreement with YA contains a limitation of a maximum of 1,300,000,000 ordinary shares ("Ordinary Shares") that YA is entitled to convert before 16 June 2018. Following this conversion, 1,037,289,968 Ordinary Shares out of agreed 1,300,000,000 will have been converted and issued to YA. Accordingly, YA may only convert a further 262,710,032 Ordinary Shares before 16 June 2018.

Application will be made for New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on or around 22 December 2017 ("Admission"). The New Ordinary Shares will rank pari passu with the existing Ordinary Shares of the Company.

Following Admission, the Company will have 14,629,798,423 Ordinary Shares in issue with voting rights. The Company does not hold any Ordinary Shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 14,629,798,423 Ordinary Shares may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Enquiries:

 
Frontera Resources           (713) 585- 3216 
Zaza Mamulaishvili 
[e-mail] 
 
  Cairn Financial Advisers 
  LLP                        [phone] 
Jo Turner / Liam Murray 
WH Ireland Limited           [phone] 
James Joyce / Alex Bond 
Yellow Jersey                [phone] 
Tim Thompson 
Harriet Jackson 
Henry Wilkinson 
 
 

Notes to Editors:

About Frontera Resources Corporation

Frontera Resources Corporation is an independent, international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR.

For more information, please visit   www.fronteraresources.com   . 

1. Information on Resource Estimates: The independent contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE).

2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company's ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation and relations with neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com. 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.

3. Glossary of Terms: BCF - means Billion Cubic Feet of gas. TCF - means Trillion Cubic Feet of gas. Mcf - means Thousand Cubic Feet of gas. OOIP - means Original Oil in Place. OGIP - means Gas in Place. Bopd - means Barrels of Oil Per Day. PPG - means pounds-per-gallon.

This information is provided by RNS

The company news service from the London Stock Exchange

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December 15, 2017 06:47 ET (11:47 GMT)