20 Jul 2012 07:00
For immediate release | 20 July 2012 |
FRONTERA RESOURCES CORPORATION
Houston, Texas, U.S.A. - 20 July 2012
Frontera Receives Favorable Ruling from the United States Court of Appeals for the Fifth Circuit in Frontera vs. ARAR
Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gas exploration and production company ("Frontera""), today announced that, further to the disclosure in its financial statements for the year ended December 31, 2011, its operating subsidiary, Frontera Eastern Georgia Limited ("FEGL"), received on July 16, 2012, a favorable ruling from the United States Court of Appeals for the Fifth Circuit ("Court of Appeals") in relation to the arbitration case described below.
In this ruling, the Court of Appeals affirmed, in entirety, the confirmation by the United States District Court for the Southern District of Texas of an arbitration award in favor of FEGL, in the total amount of US$1.6 million, against ARAR, ARAR's Turkish affiliate and Mr. Fatih Alpay, from an international arbitration panel of the International Centre for Dispute Resolution (the "ICDR") seated in Houston, Texas.
The arbitration dispute arose out of the performance of a drilling contract between FEGL and ARAR, Inc. in 2007-08, and FEGL initiated arbitration before the ICDR in January 2008. The parties entered into a settlement agreement in December 2008 providing for ARAR to, among other things, 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 which was subsequently confirmed by the District Court judgment. ARAR appealed the District Court's judgment with the Court of Appeals which, upon hearing on July 9, 2012, issued its ruling on July 16, 2012, dismissing ARAR's appeal and affirming the District Court's judgment in its entirety.
Enquiries:
Frontera Resources CorporationLiz WilliamsonVice President, Investor Relations and Corporate Communications(713) 585-3216lwilliamson@fronteraresources.com
Nominated Adviser and Joint Broker:
FinnCap Limited
Matt Goode/ Christopher Raggett
+44 (0) 20 7220 0500
Co-Brokers:
Old Park Lane Capital PlcMichael Parnes / Luca Tenuta+44 (0)20 7493 8188
Cornhill Capital LimitedNick Bealer / Stefan Olivier+44 (0)20 7710 9610
Financial PR:
BuchananTim Thompson / Helen Chan+44 (0)20 7466 5000timt@buchanan.uk.com