Frontera Resources Corporation Collection on Arbitration Award (7492W)

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RNS Number : 7492W

Frontera Resources Corporation

17 November 2017

17 November 2017

Frontera Resources Corporation

("Frontera" or the "Company")

Collection on Arbitration Award

Frontera Resources Corporation (AIM: FRR), the European focused independent oil and gas exploration and production company, is pleased to announce that it has completed enforcement proceedings with respect to the Arbitration Award (as defined below) and will receive $2,026,126.32 which is the total amount due.

As previously announced, on 9 January 2008 the Company served a notice of arbitration and claim on ARAR, Inc., for breach of contract and infliction of damages. The arbitration resulted, on 16 April 2010, in the final, binding arbitration award in favour of Frontera and against the defendants ARAR Inc, ARAR Petrol ve Gas Arama Uretim Paz A.S., and Mr. Fatih Alpay (collectively, "Defendants"), in the amount of $1.43 million ("Arbitration Award"). Following a series of subsequent court hearings in the United States' courts, on 16 July 2012 the U.S. Court of Appeals for the Fifth Circuit confirmed the Final Award granting Frontera total amount of $1,552,707, which included the Arbitration Award and Frontera's attorney's fees and expenses.

In order to enforce the Arbitration Award against Defendants' assets located in Turkey, in July 2010 Frontera filed an enforcement action in the 4th Commercial Court in Ankara, Turkey. Following extensive enforcement proceedings in courts in Turkey, on 20 December 2015 the 4th Commercial Court in Ankara, Turkey, adopted a decision granting Frontera's enforcement of the Arbitration Award. On 17 January 2017, the Appeals Court in Ankara, Turkey, affirmed decision of the 4th Commercial Court thereby making it final and not subject to further appeal. Following this, the enforcement was referred to the execution authorities in Turkey. As a result of the execution proceedings, Frontera will now collect, in installments, the full amount of the Arbitration Award plus statutorily prescribed interest, in the amount of $2,026,126.32.

Frontera has received the first installment and the full amount is expected to be received by the end of Q1 2018.

Enquiries:

 
                             (713) 585- 
Frontera Resources            3216 
Zaza Mamulaishvili 
[e-mail] 
 
  Cairn Financial Advisers   +44 (0) 20 
  LLP                         7213 0880 
Jo Turner / Liam Murray 
                             +44 (0) 20 
WH Ireland Limited            3411 1880 
James Joyce / Alex Bond 
                             +44 (0) 203 
Yellow Jersey                735 8825 
Tim Thompson 
Harriet Jackson 
Henry Wilkinson 
 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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November 17, 2017 02:00 ET (07:00 GMT)