LONDON (Alliance News) - Frontier Resources International PLC Thursday said it has been offered a two year extension to its exploration licence covering two onshore blocks in Namibia, but said it may not take up the offer taking the current environment into account.
Frontier shares were up 45% to 0.0940 pence per share on Thursday afternoon.
The licence extension covers blocks 1717 and 1718 in the Owambo basin, with the original licence being issued back in January 2012 and previously extended until January 2016. Although the licence has now been extended further, the company said it will review its options.
"The company intends to consider in the context of current market and oil sector conditions with the Ministry if and on what basis the licence might be extended or re-issued as may be applicable for any further period," it said.
"The company still has an urgent need to arrange additional funding for its immediate working capital requirements over and above any potential licence commitments and consequently there can be no certainty that the company would proceed in any event with any subsequent extension or reissue should the Ministry so agree," Frontier added.
Frontier said it is continuing to evaluate all of its funding options, including the potential to issue new equity or selling some or all of the company's existing licence interests, with the company previously stating it would consider transitioning the company to invest in projects "outside of the oil sector".
Frontier also tried to alleviate speculation about broker research on the company.
"The company has also become aware of erroneous postings on various financial community websites in respect of purported broker research on the company. There is no such research and therefore any such postings together with references to any broker share price target should be disregarded," it said, without providing any further details.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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