12 Jul 2011 07:00
12 July 2011
Frontera Resources Corporation
("Frontera" or the "Company")
Confirmation of $1.4 Million Arbitration Award in U.S District Court
Frontera (London Stock Exchange, AIM Market - Symbol: FRR; OTC Market, U.S.A. - Symbol: FRTE), an independent oil and gas exploration and production company , today announced that its operating subsidiary in Georgia, Frontera Eastern Georgia Limited ("FEGL"), has received a ruling from the United States District Court, Southern District of Texas, Houston District, that confirms its April 19, 2010 arbitration award in the amount of US$1.4 million against ARAR, Inc. and certain related parties ("ARAR") in its entirety and entitles FEGL to a judgment against ARAR. The Court's ruling also orders ARAR to pay associated legal fees and costs, estimated at $175,000, and denies any and all counterclaims made by ARAR. This ruling and the Court's final entry of judgment are important steps in the ongoing enforcement action against ARAR.
The underlying dispute arose out of the performance of a drilling contract between FEGL and ARAR in 2007-08, and FEGL initiated its arbitration in January 2008. The parties entered into a settlement agreement in December 2008 providing for ARAR to make certain payments to FEGL during the period December 2008 to December 2009. In August 2009, ARAR ceased making payments as required under the settlement agreement, and FEGL applied to the arbitration panel for entry of an agreed award as provided by the settlement. Following a hearing in March 2010, the arbitration panel issued its award. In April 2010, Frontera filed a civil action in U.S. District Court to seek confirmation of the award..
Enquiries:
Frontera Resources Corporation:
Liz Williamson
Vice President, Investor Relations and Corporate Communications
(713) 585-3216
lwilliamson@fronteraresources.com
Nominated Adviser:
Strand Hanson Limited
James Harris / Andrew Emmott / Paul Cocker / Liam Buswell
+44 (0)20 7409 3494
Brokers:
Arbuthnot Securities Limited
Richard Johnson / Adam Lloyd
+44 (0)20 7012 2000
Old Park Lane Capital Plc
Michael Parnes / Luca Tenuta
+44 (0)20 7493 8188
Financial PR:
Buchanan Communications
Tim Thompson / Ben Romney
+44 (0)20 7466 5000
timt@buchanan.uk.com
Notes to Editors:
1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets around the world. Frontera currently operates in the country of Georgia where it holds a 100 percent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas from a 5,060 square kilometer area in eastern Georgia known as Block 12. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com .