Frontera Resources Regulatory News (FRR)

Houston, Texas, U.S.A. - 23 December 2015

FRONTERA RESOURCES CORPORATION

OPERATIONS UPDATE

Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company"), is pleased to announce an operations update for its work in the Greater Black Sea region of Eastern Europe.

Georgia

South Kakheti Gas Complex

Increasing Gas Resource Potential: As of the Company's announcement in October, Frontera's ongoing work had assessed the gas resources associated with its ongoing exploration and production efforts at the South Kakheti Gas Complex ("Complex") to contain as much as 135 trillion cubic feet (3.8 trillion cubic meters) of gas in place from reservoir targets found between 300 metres and 5,000 metres in depth. Since then, extensive integrated geologic and geophysical studies conducted by the Company have continued within the Complex. This ongoing technical analysis has provided a more detailed understanding of an extensive integrated gas resource potential that continues to evolve as larger than previously identified in October such that as much as an additional 52.5 trillion cubic feet (1.5 trillion cubic meters) of gas in place has been added to the Company's previous estimate and is now 187 trillion cubic feet (5.31 trillion cubic meters).

Frontera is now in the process of completing the second independent assessment of its gas resource estimates associated with the South Kakheti Gas Complex. Earlier this year, Frontera announced results of the first report that it commissioned by the U.S.-based consulting firm of Netherland, Sewell & Associates. This report was associated with two sub-areas situated within the South Kakheti Gas Complex and confirmed combined prospective natural gas resources of as much as 12.9 trillion cubic feet (365 billion cubic meters) of gas-in-place, with as much as 9.4 trillion cubic feet (266 billion cubic meters) of recoverable prospective natural gas resources. As reported in September 2015, the Company concluded that the South Kakheti Gas Complex was one integrated geologic unit. The Company has since engaged Netherland, Sewell & Associates to complete a further independent assessment of the gas potential associated with the balance of the South Kakheti Gas Complex. Results of this work are expected during the first quarter of next year.

Underpinning the Company's assessment of this significant natural gas resource is its substantial proprietary integrated database associated with the South Kakheti Gas Complex that consists of extensive geologic field work; approximately 2,000 kilometers of modern and historical 2D and 150 square kilometers of 3D geophysical data, and; more than 680 modern and historical wells, including recently constructed gas production/testing facilities. This technical work has provided the basis for new geologic mapping and quantification of the gas resources that the Company has identified. Moreover, Frontera's regional study work has further revealed that the South Kakheti Gas Complex is part of a prolific hydrocarbon region known as the Kura-South Caspian Megabasin that extends eastward from Eastern Georgia and through Azerbaijan to the South Caspian Sea and Western Turkmenistan. This regional megabasin contains the prolific Shah Deniz gas field that is situated approximately 400 kilometers to the east of the South Kakheti Gas Complex. Operated by BP, this field is estimated to contain approximately 40 trillion cubic feet (1.13 trillion cubic meters) of gas in place.

Operations: Within the South Kakheti Gas Complex, operations continue associated within the western area of the Complex (formerly referred to as the Mtsare Khevi area) where work is ongoing to continue to explore, test and add new gas production from reservoirs situated between 300 meters and 5,000 meters in depth. Of note are ongoing re-entry operations at the Udabno #2 well where re-entry operations are currently at a depth of approximately 3,300 meters with discovered bottom hole pressure estimated to be approximately 8,700 psi. This well is designed to test an extensive gas-bearing interval of approximately 2,000 meters. Frontera's internal reservoir engineering models estimate production capability in the range of 10 million - 20 million cubic feet per day of gas once it is completed during the first quarter of 2016.

Together with ongoing well operations, expansion of existing processing facilities have progressed and it is now anticipated that operations will bring daily gas production in excess of 7 million cubic feet per day during Q1 of 2016.

As reported in October, Frontera continues to advance evaluation of commercialisation options to expand and accelerate efforts to bring this resource to not only Georgia's domestic market, but also to nearby regional markets in Turkey and Europe. 

Within the central portion of the South Kakheti Gas Complex (formerly referred to as the Taribani Field Complex) operations have continued at the Niko#1 well under Phase I of the Varang Exploration farmout agreement at the Taribani Field. Since October, extended production testing has been ongoing at the first of several oil-bearing zones associated with this well. Production testing of Zone 9 has successfully resulted in a new technical discovery that has revealed better than average reservoir parameters. Over a 70 day period, the zone in question has produced approximately 1,900 bbls of oil with no discernable decline. This is technically significant as production history and associated reservoir data have now provided the basis for frac-completion operations that have been modeled to potentially yield an initial production rate of approximately 1,000 bbls of oil per day. Fracing operations are currently scheduled to take place during Q1 of 2016.

In addition to operations at the Niko#1 well, frac-completion operations are also now scheduled in Q1 of 2016 for additional wells that have been prepared this year at the Taribani Field. Building on the new results observed from recent operations at the Niko#1 well, this campaign is targeting Zones 9, 14 and 15 and is anticipated to yield similar results.

Based on the above, Frontera has designed a 175 well plan for Zones 9, 14 and 15 that will employ a "stack and frac" completion to enhance well productivity. This plan is anticipated to exploit approximately 690 million bbls of original oil in place associated with Netherland, Sewell & Associate's assessment of 788 million bbls of oil in place for Zones 9, 14 and 15.

Ukraine

Frontera has continued work related to a strategic Memorandum of Understanding that was signed with Ukraine's national energy company, National Joint Stock Company Naftogaz of Ukraine, as announced in July 2015. Studies have continued relating to the evaluation of upstream exploration and production projects in Ukraine and efforts are progressing to acquire specific licence areas. In addition, an engineering study continues with Naftogaz relating to the possibility of bringing liquefied natural gas (LNG) to Ukraine from Frontera's ongoing gas work in Georgia.

Corporate Update

As described in the Company's 2015 half-yearly report, the Company has $4.0 million debt obligations which mature at 31 December 2015. The Company has extended for one year the maturity dates in respect of $3.7 million of these obligations and has repaid $0.3 million in accordance with its previously announced SEDA-Backed Loan Agreement entered into with YA Global Master SPV Ltd.

Steve C. Nicandros, Chairman and Chief Executive Officer commented:

"As we come to the end of 2015, our work this past year at both the South Kakheti Gas Complex and the Taribani Field Complex has successfully revealed significant increases in the value associated with our portfolio. Thanks to a focused technical effort, underpinned by an independent assessment, our gas holdings continue to materially grow in size, thereby establishing the basis for a strategic development initiative. Similarly, our oil holdings are experiencing breakthrough technical results that I continue to equate to similar advances in the United States that have transformed the country's energy independence trajectory. Because of this, we continue to believe that our ongoing work will serve to uniquely distinguish Frontera's significant value creation and further serve to establish Georgia's domestic energy independence in the years to come and make it a strategic supplier of oil and gas to Europe and Turkey's nearby consumption markets."

Enquiries:

Frontera Resources Corporation:Liz WilliamsonVice President, Investor Relations and Corporate Communications+1 713 585 3216lwilliamson@fronteraresources.com

Nominated Adviser:Cairn Financial Advisers LLP61 Cheapside, London EC2V 6AXAvi Robinson / Jo Turner+44 (0) 20 7148 7900

Broker:Cornhill Capital LimitedNick Bealer+44 (0) 207 710 9610

Financial PR:BuchananHelen Chan+44 (0) 20 7466 5000helenc@buchanan.uk.com

Notes to Editors:

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