16 Apr 2018 07:25
16 April 2018
Frontera Resources Corporation
("Frontera Resources" or "the Company")
Statement re: Media Speculation
Frontera Resources Corporation (AIM: FRR), the European focused independent oil and gas exploration and production company, notes the recent media speculation in respect to arbitration and potential territory relinquishment.
The Company confirms that it has received a request for arbitration ("Request") from Georgian Oil and Gas Corporation and State Agency of Oil and Gas in respect to certain terms of the Company's production sharing contract ("PSC") in Georgia, however, the full statement of the case has not been submitted and the timings for any such hearing, should it occur, are unknown.
In respect of potential relinquishment, as announced on 3 November 2017, the Company has commenced implementation of a program to study commerciality of Block 12 (the "Study Program"), in order to reach conclusion regarding sustainability of commercial production. Pursuant to Article 9 of the PSC, the Study Program has a 5-year term and it delineates the entire Block 12 as the area ("Study Area") where the Study Program will be implemented. Under the same Article, pending completion of the Study Program and notification of respective results, no relinquishment of any part of Block 12 is due for the duration of the Study Program. Quoting Article 9.5 of the PSC, in part: "In the event the Contractor [i.e., Frontera] makes a declaration under Article 9.4(c) above, Contractor shall not be obligated to relinquish the relevant Study Area pending the completion of the further work committed under that Article […]."
The Company considers the Request to be without merit and has engaged legal counsel to protect its rights. The Company intends, if the administrative formalities are followed through and the statement is submitted by the authors of the Request, to respond to each point and ensure that the Company's rights are protected. The Company is confident of its standing and complete compliance with the PSC.
Further details will be provided to the market in due course when available to the Company.
Enquiries:
Frontera Resources | (713) 585- 3216 |
| |
Zaza Mamulaishvili |
|
| |
info@fronteraresources.com |
|
| |
Cairn Financial Advisers LLP | +44 (0) 20 7213 0880 |
| |
Jo Turner / Liam Murray
|
|
| |
WH Ireland Limited | +44 (0) 20 3411 1880 |
| |
James Joyce / Alex Bond
|
|
| |
Yellow Jersey | +44 (0) 203 735 8825 |
| |
Tim Thompson |
|
| |
Harriet Jackson |
|
| |
Henry Wilkinson |
|
|
|
|
|
|
|