Frontier Resources International plc
LSE : FRGP

June 22, 2009 10:28 ET

Audited Results for the period ended 31 December 2008

                                                                                      GB00B3K9ML24
                                                                                        22/06/2009

                               Frontier Resources International Plc
                                   ("Frontier" or "the Company")
                                                 
                        Final Results for the period ended 31 December 2008
                                                 

The  Directors  of Frontier Resources International Plc (formerly Frontier Resources International
Limited)  are  pleased to present their report together with the audited financial statements  for
the period ended 31 December 2008.

Highlights

The  Company was founded during the period, being incorporated and registered in England and Wales
on  22  April  2008, as a limited company with registered number 06573154.  The  Company  was  re-
registered  as  a public limited company on 17 December 2008. The main purpose for  re-registering
the  Company as a public limited company was to seek admission to the PLUS-quoted market which was
achieved on 30 January 2009 when the Company's shares were admitted to trading.

During  the  year,  Frontier Resources International Plc ("Frontier") acquired  the  oil  and  gas
producing  properties  of Frontier Resources International Inc. (FRII),  a  privately  held  Texas
corporation.   The transaction was completed on the 26 November 2008 when the total share  capital
of  FRII was purchased by Frontier Resources International Plc for $307,800 (£194,688) in exchange
for  shares  in the Company.  The Texas registered Company, FRII, was incorporated on 24  February
1989.  FRII  promotes  the  exploration for, and development  of,  hydrocarbons  via  current  and
innovative  interdisciplinary technology. FRII has also provided consultancy services to  oil  and
gas companies and owns various interests in oil and gas producing properties onshore in Texas.

The  recent financial turmoil and associated decline in commodity prices, including oil  and  gas,
may  continue  to  lead to widespread asset divestitures within the global oil industry.  Expected
high  rates of return, shortages of cash and manpower and the high cost of services may  encourage
more  major and independent oil companies to dispose of under-performing and non-core assets. This
situation  can  provide a unique opportunity for smaller companies to acquire exploration  acreage
with  upside  potential  and producing properties at reduced prices and  potentially  improve  the
properties' economics using technology such as horizontal and extended - reach drilling,  enhanced
recovery techniques and 3D seismic.

Frontier'sand  FRII's  (the Group's) immediate objective is to expand  production  in  the  United
States  ("US") while screening exploration/production deals internationally for future acquisition
and/or  farm-in opportunities. FRII has previously secured financing for oil and gas  acquisitions
through its existing banking relationships in Texas and will continue to seek additional financing
with  existing  and new banking relationships. The Group will continue to take  advantage  of  its
location  and  industry contacts by attempting to build an asset portfolio through investment  and
the  pursuit  of international acquisition opportunities. The Board is particularly interested  in
pursuing opportunities in the Middle East and Africa, but other international resource plays  that
are  deemed to be underexploited to-date will also be considered. Through the farm-in process  the
Group  will reduce the time required to acquire international assets as well as benefit  from  the
experience gained by joining with an already established operator.

It  is  the  intention of the Board that future investment and acquisitions of  US  assets  and/or
companies  will be made by FRII while all other investment and acquisitions will be  made  by  the
U.K. parent company.

In  keeping  with  its  strategy  of expanding its existing US production  base  while  monitoring
international opportunities, Frontier acquired a 50% interest in Bison II, on 20 March 2009. Bison
II (a Texas Limited Partnership) holds royalty and working interest ownership in several producing
oil and gas wells onshore Texas.

The  acquisition of royalty interests in long-life fields is part of the Group's future  strategy.
The cost of the Bison ll acquisition was $0.70 million paid for by a combination of US$575,000  in
cash and 1,588,996 ordinary shares at 8c (5.5p) per share. It is expected that additional drilling
will take place on these properties in the near future thus adding to the Group's existing reserve
base.   In both the short and long term, the outlook for the Group is positive.  The recent  surge
in  the  price  of  crude oil, combined with the modest decrease in the cost of  services,  should
enhance  the  operating revenue of the Group. It is expected that the ongoing  slump  in  drilling
activity and the consequent reduction in supply will diminish the present glut of natural  gas  in
the U.S. by the end of next year. This set of circumstances, together with an expected increase in
demand  as  the economy recovers, could result in a price spike.  Since the Group's production  is
currently biased towards natural gas, this situation could significantly impact our cash position.
Although additional wells may be drilled this year on the recently acquired Bison properties with,
hopefully,  positive  consequences, the Group continues to seek the acquisition  of  oil-producing
interests  within  the  $5-10  million  range. Such an acquisition  would  support  the  Company's
objective of moving its listing from PLUS-quoted markets to AIM during the next twelve to eighteen
months.

The  Directors  are  encouraged by the potential of the current portfolio, and future  acquisition
opportunities, and are looking forward to further enhancement of portfolio value.

The Directors do not recommend payment of a final dividend.


Michael J Keyes

Chief Executive Officer

Frontier Resources International Plc (formerly Frontier Resources International Limited)

Consolidated income statement for the period ended 31 December 2008

                                                                                                        
                                                                        Period 22 April 2008 to
                                                                               31 December
                                                                               2008
                                                                               US$'000
                                                                               
Revenue                                                                           7
                                                                               
Cost of sales
Impairment                                                                     (163)
Other cost of sales                                                             (18)
Total cost of sales                                                            (181)
                                                                               
Gross loss                                                                     (174)
                                                                               
Administrative expenses                                                        
IPO costs expensed                                                              (51)
Other administrative expenses                                                   (54)
Total administrative expenses                                                  (105)
                                                                               
Operating loss                                                                 (279)
                                                                               
Financial income                                                                  1
                                                                               
Loss before tax                                                                (278)
Taxation credit                                                                  56
                                                                               
Loss for the period attributable to equity shareholders of                     (222)
the parent company
                                                                               
Loss per share                                                                 
                                                                               
From continuing operations                                                     
Basic                                                                         (0.05c)




Frontier Resources International Plc (formerly Frontier Resources International Limited)

Consolidated balance sheet as at 31 December 2008

                                                                                                        
                                                                               31 December
                                                                               2008
                                                                               US$'000
                                                                               
Assets                                                                         
Non-current assets
Property, plant and equipment - oil and gas assets                              342
                                                                               
                                                                                342
Current assets                                                                 
Trade and other receivables                                                     103
Cash and cash equivalents                                                     1,120
                                                                               
                                                                              1,223
                                                                               
TOTAL ASSETS                                                                  1,565
                                                                               
Liabilities
Current liabilities                                                            
Trade and other payables                                                     (1,188)
                                                                               
                                                                             (1,188)
Non-current liabilities                                                        
Provisions                                                                      (28)
Deferred tax liability                                                         (113)
                                                                               
                                                                               (141)
                                                                               
TOTAL LIABILITIES                                                            (1,329)
                                                                               
NET ASSETS                                                                      236
                                                                               
Equity                                                                         
Capital and Reserves                                                           
Share capital                                                                   362
Share premium                                                                    96
Retained loss                                                                  (222)
                                                                               
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY                                         236
SHAREHOLDERS OF THE PARENT COMPANY
                                                                               


                                                                               31 December
                                                                               2008
                                                                               US$'000
                                                                               
Assets                                                                         
Non-current assets                                                             
Investments                                                                     308
                                                                               
                                                                                308
                                                                               
Current assets                                                                 
Trade and other receivables                                                     465
Cash and cash equivalents                                                       633
                                                                               
                                                                              1,098
                                                                               
TOTAL ASSETS                                                                  1,406
                                                                               
Liabilities
Current liabilities
Trade and other payables                                                     (1,036)
                                                                               
TOTAL LIABILITIES                                                            (1,036)
                                                                               
NET ASSETS                                                                      370
                                                                               


Equity and liabilities                                                         
Capital and reserves                                                           
Share capital                                                                   362
Share premium                                                                    96
Retained loss                                                                   (88)
                                                                               
TOTAL EQUITY ATTRIBUTABLE TO THE EQUITY                                         370
SHAREHOLDERS OF THE PARENT COMPANY
                                                                               


The figures above are extracted from the full financial statements. The complete accounts can be
found on the PLUS webite under the Report and Accounts section.

The Directors of Frontier accept responsibility for this announcement.

Contact Details:

Frontier Resources International Plc
Jack Keyes
Telephone: +1 (281) 920 0061

St Helen's Capital Plc:
Mark Anwyl/Duncan Vasey
Telephone: +44 20 7628 5582

Conduit PR
Jonathan Charles
Telephone: +44 207 429 6611
Mobile: +44 7791 892509
Email: jonathan@conduitpr.com

About the Company
Frontier  Resources  International Plc. is a U.K. oil and gas exploration and  production  company
with a focus on onshore U.S.A., North and Southern Africa and the Middle East.


Contact Information

  • Frontier Resources International plc