Frontier Resources International plc
LSE : FRGP

September 22, 2009 02:00 ET

Interim Results

                                                     
                                                                                                 22/09/2009
                                                                                               GB00B3K9ML24
                                                     
                                   Frontier Resources International plc
                                       ("Frontier" or the "Company")

                                              Interim Results


CHIEF EXECUTIVE OFFICER'S STATEMENT


I am pleased to report the Company's interim results for the 6 months ended 30 June 2009.
    
Key events

The operational highlights of the period were as follows:

    *       the admission of the Company's shares to trading on the Plus-quoted Market on 30 January 2009; and
    *       the  acquisition of a non-controlling interest in Bison II, which holds producing oil and  gas
            properties onshore in Texas.
        
Financial Performance

The  group  incurred a loss of $259,000 for the six months to 30 June 2009. The basic loss  per  share  was
$0.01.

Outlook

In both the short and long term the outlook for the Company is positive. The rebound in oil prices combined
with the modest decrease in the cost of services should enhance the operating revenue of the Company.

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 2010. Since the Company's production  is
currently  biased towards natural gas a reduction in supply and increase in demand could  have  a  positive
impact  on the Company's results and cash position. Additional wells may be drilled this year on the  Bison
properties at no cost to the Company but which will generate further income through the Company's  interest
in the Bison revenue streams.

The Company is reviewing oil and gas acquisitions on an ongoing basis and will announce any developments at
the  appropriate time. The Board anticipates that additional funds will be required to finance any  further
acquisitions.


Michael J Keyes
CEO

STATEMENT OF COMPREHENSIVE INCOME

                                                                       6 months           Period
                                                                 ended 30  June         22 April
                                                                           2009   to 31 December
                                                                                            2008
                                                                        US$'000          US$'000
                                                                                                
Revenue                                                                      56                7
                                                                                                
Cost of sales
Impairment                                                                    -            (163)
Other cost of sales                                                       (100)             (18)
Total cost of sales                                                       (100)            (181)
                                                                                                
Gross loss                                                                 (44)            (174)
                                                                                                
Other income                                                                  7                -
                                                                                                
Administrative expenses                                                                         
Administrative expenses                                                   (259)             (51)
IPO costs expensed                                                            -             (54)
Total administrative expenses                                             (259)            (105)
                                                                                                
Operating loss                                                            (296)            (279)
                                                                                                
Finance costs                                                               (4)                -
Finance income                                                                2                1
Share of profit of associate                                                 33                -
                                                                                                
Loss for the period before tax                                            (265)            (278)
                                                                                                
Taxation credit                                                               6               56
                                                                                                
LOSS FOR THE PERIOD                                                       (259)            (222)
                                                                                                
                                                                                                
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD                                   (259)            (222)
                                                                                                
                                                                                                
Loss per share                                                                                  
                                                                                                
From continuing operations                                                                      
Basic and diluted                                                       ($0.01)          ($0.05)
                                                                                                

The results reflected above relate to continuing activities.


STATEMENT OF FINANCIAL POSITION

                                                                           30 June 2009     31  December 2008
                                                                                       

                                                                                US$'000               US$'000
                                                                                                             
ASSETS                                                                                                       
Non-current assets                                                                                           
Property, plant and equipment - oil and gas assets                                  494                   342
Investment in associate                                                             728                     -
                                                                                                             
                                                                                  1,222                   342
                                                                                                             
Current assets                                                                                               
Trade and other receivables                                                          29                   103
Cash and cash equivalents                                                           615                 1,120
                                                                                                             
                                                                                    644                 1,223
                                                                                                             
TOTAL ASSETS                                                                       1,866                 1,565
                                                                                                             
EQUITY AND LIABILITIES                                                                                       
Equity attributable to the holders of the parent                                                             
Share capital                                                                       865                   362
Share premium                                                                       765                    96
Other reserves                                                                      129                     -
Foreign exchange translation reserve                                              (109)                     -
Retained earnings                                                                 (481)                 (222)
                                                                                                             
                                                                                  1,169                   236
                                                                                                             
Non-current liabilities                                                                                      
Provisions                                                                           29                    28
Deferred tax liability                                                              108                   113
                                                                                                             
                                                                                    137                   141
                                                                                                             
Current liabilities                                                                                          
Trade and other payables                                                            250                 1,188
Bank loan                                                                           310                     -
                                                                                                             
                                                                                    560                 1,188
                                                                                                             
TOTAL EQUITY AND LIABILITIES                                                      1,866                 1,565
STATEMENT OF CHANGES IN EQUITY


                                            Share         Share      Retained       Foreign       Total
                                           Capital       Premium       Loss        Exchange
                                                                                    Reserve
                                           US$'000       US$'000      US$'000       US$'000      US$'000
                                                                                                    
Balance at 22 April 2008                      -             -            -             -            -
Issue of share capital                       362           96            -             -           458
Total comprehensive loss for period           -             -          (222)           -          (222)
Balance at 31 December 2008                  362           96          (222)           -           236
Issue of share capital                       503           806           -             -          1,306
Issue costs                                   -           (137)          -             -          (137)
Foreign exchange reserve                      -             -            -           (109)        (109)
Total comprehensive loss for period           -             -          (259)           -          (259)
Balance at 30 June 2009                      865           765         (481)         (109)        1,169


STATEMENT OF CASH FLOWS

                                                                                   6 months        Period 22
                                                                                   ended 30      April to 31
                                                                                  June 2009    December 2008
                                                                      
                                                                                                            
                                                                                    US$'000          US$'000
                                                                                                            
Cash flows from operating activities                                                                        
Operating loss before interest and  taxation                                          (255)            (279)
Adjustments for:                                                                                            
Share of profit of associate                                                           (33)             -
Impairment charge                                                                        -              163
Depletion charge                                                                        38                -
Decrease/(increase) in trade and other receivables                                      74             (103)
(Decrease)/increase in trade and other payables                                         52               96
                                                                                                            
Net cash from operating activities                                                    (124)            (123)
                                                                                                            
Cash flows from investing activities                                                                        
Cash consideration for acquisition of associate                                       (575)               -
Purchase of property, plant and equipment                                             (190)               -
Interest received                                                                        2                1
Dividends from associate                                                                 6                -
                                                                                                            
Net cash used in investing activities                                                 (757)               1
                                                                                                            
                                                                                                            
Cash flows from financing activities                                                                        
Proceeds from issue of share capital                                                     7              150
Cash raised from shares yet to be issued                                                 -              990
Proceeds from borrowings                                                               325                -
Loan from related party                                                                  -              102
Repayment of borrowings                                                                (15)               -
Interest paid                                                                           (4)               -
                                                                                                             
Net cash used in financing activities                                                  313            1,242
                                                                                                            
Net increase/(decrease) in cash and cash equivalents                                  (568)           1,120
                                                                                                            
Cash and cash equivalents at the beginning of period                                  1,120               -
                                                                                                            
Effect of foreign exchange rate changes                                                  63               -
                                                                                                            
Cash and cash equivalents at end of period                                              615           1,120
                                                                                                            
                                                                                                            
NOTES

1       General information

The functional currency of the company is sterling (£). The presentational currency of the company and
group is the US$ dollar.

This consolidated interim financial information has not been audited and does not constitute statutory
accounts within the meaning of Section 434 of the Companies Act 2006.

The company commenced trading on 22 April 2008.

Basis of preparation

The  condensed  interim  financial  statements have been prepared using  policies  based  on  International
Financial  Reporting  Standards  (IFRS and IFRIC interpretations) issued by  the  International  Accounting
Standards Board (IASB) as adopted for use in the EU. The condensed interim financial information  has  been
prepared  using the accounting policies which will be applied in the Group's statutory financial statements
for the year ended 31 December 2009.

This results in the adoption of the revision to IAS 1; this revision prohibits the presentation of items of
income  and  expenses  (that  is, "non-owner changes in equity") in the statement  of  changes  in  equity,
requiring "non-owner changes in equity" to be presented separately from owner changes in equity.  All  non-
owner  changes  in equity will be required to be shown in a performance statement. This revision  has  been
applied throughout these interim financial statements

Financial reporting period

The condensed interim financial information for the period 1 January 2009 to 30 June 2009 is unaudited.  In
the opinion of the Directors the condensed interim financial information for the period presents fairly the
financial  position,  and  results from operations and cash flows for the period  are  in  conformity  with
generally accepted accounting principles consistently applied. The accounts incorporate comparative figures
for  the  audited financial period to 31 December 2008. The financial information contained in this interim
report  does  not constitute statutory accounts as defined by section 435 of the Companies  Act  2006.  The
comparatives for the period ended 31 December 2008 are not the Company's full statutory accounts  for  that
year. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies.  The
auditors' report on those accounts was unqualified, did not include references to any matters to which  the
auditors  drew attention by way of emphasis without qualifying their report and did not contain a statement
under section 498(2)-(3) of the Companies Act 2006.

2       Basic loss per share

The  basic  and diluted loss per share has been calculated using the weighted average number of  shares  of
50,748,591 (period to 31 December 2008 - 4,260,833; period to 30 June 2008 - 1).

The Directors of Frontier Resources International Plc 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 7368 6959

Conduit PR
Fiona Hyland/Jonathan Charles
Telephone: +44 207 429 6614
Mobile: +44 777 600 5847
Email: Fiona@conduitpr.com

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


Contact Information

  • Frontier Resources International plc