9 Feb 2016 07:00
Houston, Texas, U.S.A. - 9 February 2016
FRONTERA RESOURCES CORPORATION
Frontera and UkrGasVydobuvannya Sign Strategic Memorandum of Understanding For Upstream Cooperation
Frontera Resources Corporation (AIM:FRR), an independent international oil and gas exploration and production company ("Frontera"), today announces that it has signed a Memorandum of Understanding ("MOU") with Ukraine's public joint stock company UkrGasVydobuvannya ("UGV"), a subsidiary of Ukraine's national energy company, National Joint Stock Company Naftogaz of Ukraine ("Naftogaz").
The MOU furthers a focused joint effort that was established last year between Frontera and Naftogaz, which led to a strategic MOU being signed in July 2015. This MOU serves to create a more detailed framework of technical and commercial cooperation between Frontera and UGV in order to move towards implementation of joint work in specifically targeted upstream exploration and production projects in Ukraine.
During July of 2015, Frontera and Naftogaz initiated cooperation to work together in upstream exploration and production projects in Ukraine, as well as to study the possibility to bring liquefied natural gas (LNG) to Ukraine from Frontera's ongoing work in Georgia where it has identified prospective natural gas resources of as much as 187 trillion cubic feet (5.31 trillion cubic meters) of gas in place from reservoir targets found between 300 metres and 5,000 metres in depth. In 2015, Frontera announced results of reports that it commissioned by the U.S.-based consulting firm of Netherland, Sewell & Associates in order to provide independent assessment of the company's estimates. Since last year, joint work has advanced and has now further evolved the upstream focus of this cooperation with UGV.
The MOU was executed by Oleg Prokhorenko, Chairman of the Board of UGV, and Steve C. Nicandros, Chairman and Chief Executive Officer of Frontera.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
"Frontera is very pleased to continue to advance its work with Naftogaz and to further focus its upstream initiative in Ukraine with UGV as an important element of our Greater Black Sea Strategy.
"Ukraine represents a unique opportunity for meaningful growth in Europe with its significant underdeveloped and under-explored oil and gas potential such that, with joint initiatives like ours, it will accelerate its path toward becoming an important supplier of energy not only to its domestic markets, but also to greater Europe in years to come. With this in mind, we are very pleased to continue to advance our work with the forward-looking management of Naftogaz and UGV"
Enquiries:
Frontera Resources Corporation
Liz Williamson
Vice President, Investor Relations and Corporate Communications
+1 713 585 3216
lwilliamson@fronteraresources.com
Nominated Adviser
Cairn Financial Advisers LLP
Avi Robinson / Jo Turner
+44 (0) 20 7148 7900
Broker
Cornhill Capital Limited
Nick Bealer
+44 (0) 207 710 9610
Financial PR
Buchanan
Helen Chan
+44 (0) 20 7466 5000
helenc@buchanan.uk.com
About Frontera Resources Corporation
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 in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com.
1. Information on Resource Estimates: The independent contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Internal resources estimates were determined by the Company. Gerard Bono, Frontera's Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved both independent and internal estimates in this announcement.
2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company's ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com. There is no assurance that Frontera's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.
3. Glossary of Terms: BCF - means Billion Cubic Feet of gas. TCF - means Trillion Cubic Feet of gas. Mcf - means Thousand Cubic Feet of gas. OOIP - means Original Oil in Place. Bopd - means Barrels of Oil Per Day.