Frontera Resources Corporation Corporate Update and Issue of Equity (7400F)
August 01 2016 - 1:00AM
UK Regulatory
TIDMFRR
RNS Number : 7400F
Frontera Resources Corporation
01 August 2016
Houston, Texas, U.S.A. - 1 August 2016
Frontera Resources Corporation
("Company")
Corporate Update and Issue of Equity
Frontera Resources Corporation (AIM: FRR), an independent oil
and gas exploration and production company, today releases the
following update with respect to its operations in the country of
Georgia.
Further to the Company's plans that were outlined in the
Shareholder Circular dated 10 June 2016 ("Circular") and adopted at
the Company's General Meeting on 28 June 2016, it has issued
2,398,786,214 new ordinary shares of US$0.00004 each in the Company
("New Ordinary Shares") at a price of 0.127 pence in order to
create strategic alliances with service providers associated with
its operations in the country of Georgia. Specifically,
2,098,937,937 New Ordinary Shares were issued to Uniserve Ltd. and
299,848,277 New Ordinary Shares were issued to Craft 07 Ltd. (both,
collectively, "Service Providers"). As stated in the Circular, the
price has been calculated based on an average of the daily volume
weighted average prices of the shares traded during the 15
consecutive trading days beginning on 28 June 2016.
As described in the June Circular, issuance of these New
Ordinary Shares is in consideration of procurement of $4,000,000 of
oilfield services by the Service Providers. This strategic alliance
will enable implementation of accelerated and more technically
advanced operations over the remainder of this year and next year
at the Company's South Kakheti Gas Complex and Shallow Fields
Production Unit assets within its Block 12 portfolio. The Company
expects that this work will increase revenue from ongoing
exploration related pilot-production programs and potentially
establish the basis for initiating full-scale commercial
development from both areas. Overall, the planned operations are
anticipated to achieve a transformational step change in Frontera's
cash flow profile.
In addition, the Company has drawn down on its previously
announced Standby Equity Distribution Agreement ("SEDA") with YA
Global Master SPV Ltd to the amount of US $545,000 ("Draw Down").
The Draw Down has been undertaken at a price of 0.0808 pence per
share in accordance with the terms of the SEDA, and will result in
the issue of 513,365,718 new ordinary shares of US$0.00004 each in
the Company ("SEDA New Ordinary Shares"). This funding will be used
to advance work programs of the Company and for general working
capital purposes.
Application has been made for the New Ordinary Shares and the
SEDA New Ordinary Shares to be admitted to trading on AIM, which is
anticipated to occur on 4 August 2016 ("Admission"). The New
Ordinary Shares and the SEDA New Ordinary Shares will rank pari
passu with existing shares of common stock of the Company.
Following Admission, Uniserve Ltd. will hold 29.2% of issued share
capital in the Company and Craft 07 Ltd. will hold 4.2 % of issued
share capital in the Company.
Following Admission, the Company will have 7,193,861,938
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 7,193,861,938 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.
Steve C. Nicandros, Chairman and Chief Executive Officer
commented:
"We are very pleased to have created these important strategic
alliances with Uniserve Ltd. and Craft 07 Ltd. These service
providers have been an important part of supporting Frontera's
operations in Georgia for many years. As we look to the future and
move ahead with the strong alignment that our new arrangement has
created, we believe that our alliance will further enhance
Frontera's ability to successfully execute the value creation
objectives that it has targeted."
Enquiries:
Frontera Resources Corporation
Jesse Jefferies
+1 (713) 585-3216
info@fronteraresources.com
Buchanan Communications
Ben Romney/Hannah Brandstaetter
+44 (0) 20 7466 5000
frontera@buchanan.uk.com
Nominated Adviser
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Jo Turner/ Liam Murray
+44 (0) 20 7148 7900
Broker
Cornhill Capital Limited
Nick Bealer
+44 (0) 207 710 9610
This information is provided by RNS
The company news service from the London Stock Exchange
END
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