Frontera Resources Regulatory News (FRR)

25 Jan 2006 07:10

Frontera Resources Corporation25 January 2006 CORPORATE NEWS UPDATE January 25, 2006 FRONTERA RESOURCES AZERBAIJAN CORPORATION ANNOUNCES AWARD IN ARBITRATION WITH SOCAR Houston, Texas U.S.A. (January 25, 2006): Frontera Resources Corporation (LondonStock Exchange, AIM Market - Symbol: FRR), an independent oil and gasexploration and production company, today announced that its wholly ownedsubsidiary, Frontera Resources Azerbaijan Corporation, has been awarded $1.2million plus interest in connection with its binding arbitration case withSOCAR, the State Oil Company of the Azerbaijan Republic. The arbitration washeld in Sweden and is binding on the parties under the rules of UNCITRAL, theUnited Nations Commission on International Trade Law. Frontera initiated the arbitration against SOCAR in October 2003 related toclaims resulting from SOCAR's halting of exports from the onshore Kursangi &Karabagli oilfields in the Azerbaijan Republic during the fourth quarter of2000. The arbitral panel found that the halting of exports of crude oil from theKursangi & Karabagli oil fields in the Azerbaijan Republic was in violation ofthe Agreement on Rehabilitation, Exploration, Development and Production Sharingbetween SOCAR, Frontera, Delta/Hess and SOCAR Oil Affiliate (the "PSA"). Thearbitration panel rejected all other claims and counterclaims between theparties and the arbitration therefore resolves all claims between Frontera andSOCAR with respect to the PSA. About Frontera Frontera Resources Corporation is an independent Houston, Texas, U.S.A.- basedinternational oil and gas exploration and production company whose strategy isto identify and operate opportunities in emerging markets around the world. Frontera was admitted to the Alternative Investment Market, operated by theLondon Stock Exchange, on 14 March 2005. For more information about Frontera,please see www.fronteraresources.com . This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions and ventures discussed in this release, as well as reserves, futureproduction, our ability to establish commercial production and our ability tocollect the award from SOCAR. Among the important factors that could causeactual results to differ materially from those indicated by such forward-lookingstatements are future exploration and development results, availability ofneeded equipment and personnel, fluctuations in oil and gas prices, generaleconomic condition, the political situation in Georgia and neighboringcountries, the ability of SOCAR to appeal successfully the award and theenforceability of the judgment in other jurisdictions. There is no assurancethat Frontera's expectations will be realized, and actual results may differmaterially from those expressed in the forward-looking statements. Enquiries Citigate Dewe Rogerson (+44 20 7638 9571) Media: Martin Jackson/George Cazenove Analysts: Nina Soon This information is provided by RNS The company news service from the London Stock Exchange