16 Nov 2015 13:34
For immediate release
16 November 2015
FRONTIER RESOURCES INTERNATIONAL PLC
("Frontier", the "Company" or the "Group")
Corporate Update
As announced last week, Frontier's request to extend the initial term of the Group's 100%-owned Block 38 located in the Rub Al Khali Basin in the southwest of the Sultanate of Oman ("Block 38 EPSA") for 24 months (i.e. to 25 November 2017) was granted subject to Frontier providing a bank guarantee for the amount required to conduct the amended work programme (which it must do by the beginning of February 2016). As stated in recent releases, the potential farm-out process of the Company's interest in the Block 38 EPSA continues. The Company retained the services of Dallas-based Moyes & Co., a Company that specialises in international oil and gas mergers and acquisitions, to assist and provide general transaction advice on the ongoing farm-out process by the Company for its Oman Block. Given the challenging environment for oil and gas projects there can as yet be no certainty as to the outcome of this process.
The Company needs to arrange additional funding for its immediate working capital requirements over and above the potential commitments under its licences and the Board is considering all options for the potential ongoing funding of the Company. However, The Directors have taken the following measures which substantially reduce these working capital requirements going forward:
· The Directors have agreed to waive the current outstanding amounts owed to them under the terms of their existing services agreements and letters of appointment ("Service Arrangements"), amounting in aggregate to approximately £184,452 in aggregate, and have also agreed to waive any future entitlement for remuneration under their Service Arrangements which materially reduces the ongoing liabilities of the Group.
· As previously announced on 30 June 2015, £272.223.13 then owed to Mr M (Jack) Keyes will only be paid in the event that the Company completes a farm-out of its interests in one or more of its projects which involves the reimbursement to the Company of at least £435,556 of historic exploration expenditure.
· The Company has also continued to reduce outstanding creditor accruals by agreeing reduced settlement terms and / or the proposed issue of new Ordinary Shares ("New Shares") as payment in lieu of services provided. A further announcement will be made as and when such New Shares are issued.
Jack Keyes, Chief Executive Officer, said: "This is a very challenging environment for the oil and gas sector and exploration companies particularly. We continue to progress with the farm out for our Oman block and are actively working our advisers as we review the options for the Company and its exploration projects. In addition we have aggressively reduced our working capital requirements to a minimum amount possible and I would like to thank all of those who have worked with us for the financial sacrifices they have made."
Enquiries:
Frontier Resources International Plc
Jack Keyes, Chief Executive Officer Tel: +1 (713) 962 0887
Beaumont Cornish Limited (Nomad) Tel: 0207 628 3396
Michael Cornish
Roland Cornish
Beaufort Securities Limited (Broker) Tel: 020 7382 8300
Zoe Alexander