TIDMFRR
RNS Number : 5191Z
Frontera Resources Corporation
15 December 2017
15 December 2017
Frontera Resources Corporation
("Frontera" or the "Company")
Taribani Update; Conversion of Series A Preferred Convertible
Shares
Frontera Resources Corporation (AIM: FRR), the European focused
independent oil and gas exploration and production company, today
provides update related to its work in Taribani Complex of Block 12
in the country of Georgia.
In furtherance of the Company's announcements of 4 December 2017
and 13 November 2017, the Company is pleased to announce that the
drilling services contract for drilling of wells at Taribni complex
has now been entered into with Gulf Drilling Supply FZY, a Dubai,
United Arab Emirates-based, international drilling services
company.
Further, the cementing services contract has been entered into
with Baker Hughes Services International LLC, a US-based
international oil service company, which will provide cementing
services during drilling operations at Taribani wells.
As previously announced, the sidetracking/drilling operations at
Dino-2 well in Taribani Complex is scheduled to commence in January
2018. This will be followed by T-45 well where deepening/drilling
operations are scheduled to commence in March 2018. Thereafter, the
operations will move to T-39 well, the third well in Taribani
Complex, to be deepened/drilled.
All three wells at the Taribani Complex (Dino-2, T-45 and T-39)
will be drilled to a target depth of 2700m and Zones 9, 14 and 15
of the Eldari reservoir will be stimulated and produced
together.
According to the estimates produced by Netherland, Sewell and
Associates, Zones 9, 14 and 15 in Taribani Complex are estimated to
have 689 million barrels of oil in place, with 103.5 million
barrels considered to be recoverable.
On 13 December 2017, the Company received a conversion notice
for the month of December 2017 from YA II PN, Ltd. ("YA") to
convert 400 Series A Preferred Convertible Shares ("Convertible
Shares") out of its outstanding total of 4800 Convertible Shares.
Pursuant to the terms of the agreement with YA, conversion will be
made at a price of 0.422 pence, which will result in the issue of
71,137,440 new ordinary shares ("New Ordinary Shares") to YA. The
agreement with YA contains a limitation of a maximum of
1,300,000,000 ordinary shares ("Ordinary Shares") that YA is
entitled to convert before 16 June 2018. Following this conversion,
1,037,289,968 Ordinary Shares out of agreed 1,300,000,000 will have
been converted and issued to YA. Accordingly, YA may only convert a
further 262,710,032 Ordinary Shares before 16 June 2018.
Application will be made for New Ordinary Shares to be admitted
to trading on AIM, which is anticipated to occur on or around 22
December 2017 ("Admission"). The New Ordinary Shares will rank pari
passu with the existing Ordinary Shares of the Company.
Following Admission, the Company will have 14,629,798,423
Ordinary Shares in issue with voting rights. The Company does not
hold any Ordinary Shares in treasury and accordingly there are no
voting rights in respect of any treasury shares. The aforementioned
figure of 14,629,798,423 Ordinary Shares may be used by
shareholders as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change to their interest in, the Company, under the disclosure
requirements applicable to the Company.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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
Notes to Editors:
About Frontera Resources Corporation
Frontera Resources Corporation is an independent, 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).
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 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. OGIP - means Gas in
Place. Bopd - means Barrels of Oil Per Day. PPG - means
pounds-per-gallon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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