Frontera Resources Shares Drop As Net Loss Widens

LONDON (Alliance News) - Frontera Resources Corporation Monday said its net loss widened in its first half as financing costs, lower sales and higher interest payments hit the company.

The oil and gas exploration and production company said its net loss widened to USD5.6 million from USD4.4 million for the six months ended June 30.

The company said sales fell 6.1% to USD3.1 million from USD3.3 million but the company said it will soon make progress towards the installation of new gas sales infrastructure to develop the company.

Frontera Resources said it was hit by financing costs related to construction of new infrastructure and operating costs related to the workover and fracturing programme at its Taribani Field in Georgia.

The company said it also had to pay a net interest expense of USD1.9 million which also affected company finances.

Frontera shares were down 8.43% to 0.760 pence Monday.

By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1

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