Frontier Resources International plc
LSE : FRGP

May 31, 2012 06:40 ET

Annual Results for the year ended 31 Dec 2011

                                                                              Thursday 31 May 2012
                                                                                      GB00B3K9ML24
                               Frontier Resources International Plc
                                   ("Frontier" or the "Company")
                                           (PLUS: FRGP)
                                                 
         Group Annual Results and Financial Statements for the year ended 31 December 2011
The Directors of Frontier Resources International Plc are pleased to present the Company's audited
final results and financial statements for the year ending 31 December 2011.

Operational Highlights

*    In March 2011, the Company was awarded an exploration license in the Republic of Zambia

*    In  October  2011, a Petroleum Agreement was signed covering two blocks in the  Republic  of
     Namibia.  Upgraded mapping and resources estimates in progress

Financial Highlights

*    Funds of £512,771 successfully raised by placing 7,888,791 ordinary shares at 6.5p

*     Funds  used  to cover costs associated with ongoing operations in Zambia, new ventures  and
      general working capital

*    The Group's loss for the year after taxation was USD781,415 (2010: USD668,000)

Outlook

*     Negotiations  are  ongoing for an exploration license in the Middle  East  and  the  Company
      expects to make an announcement in due course

*    The Company has started the process to move Frontier's listing from PLUS to AIM

The Directors of the Company accept responsibility for the contents of this announcement.

Contact Details:
Frontier Resources International Plc.
Mr. Graeme Thomson
Telephone: U.K. +44 7930 405 921

Mr. Jack Keyes
Telephone: U.S. +1 (281) 920-0061

Corporate Adviser
St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: U.K. +44 7368 6959 


Highlights and business review

Frontier  is  an  exploration  and  production company with  producing  properties  in  Texas  and
exploration  acreage in Namibia and Zambia. The Company is focused on Africa and the  Middle  East
where it has extensive technical knowledge and contacts.

In  March  2011 the Company was awarded an exploration license in the Republic of Zambia  and  in
October 2011, a Petroleum Agreement was signed covering two blocks in the Republic of Namibia.

In June 2011 the Company successfully raised USD807,978 (GBP512,771) by placing 7,888,791 million
shares  at  USD0.10cents  (GBP0.065p). Funds were used to cover  costs  associated  with  ongoing
operations in Zambia, new ventures and general working capital.

The Group's loss for the year after taxation was USD781,415 (2010: USD668,000).

Zambia

In  March  2011,  Frontier,  together with its local partner, Metprosol,  was  awarded  Petroleum
Exploration  License, PEL 004, covering Block 34, by the Zambian Ministry of Mines  and  Minerals
Development. This Block covers an area of approximately 6,427 square kilometers and is located in
the  Kafue  Trough  150 kilometers southwest of the capital Lusaka.  Frontier  has  gathered  all
available data from the area, including three older seismic lines acquired by Placid Oil in 1986.
Core analysis from a shallow core hole drilled on the block by the Zambian Geological Survey  has
identified  an organic rich source rock that has generated hydrocarbons in the past. The  Company
is now engaged in further evaluation of this block.

Namibia

On  17 October 2011, Frontier signed a Petroleum Agreement with the Namibian Ministry of Mines and
Energy  for two blocks, 1717 and 1817 covering approximately 18,000 square kilometers. The initial
two  year license was granted on 20 January 2012. These blocks are located in the Owambo Basin  in
northern Namibia and have had only limited exploration for hydrocarbons.

During the initial two year exploration programme, Frontier will gather and evaluate all available
geological,  geophysical, geochemical, well and potential field data.   This  evaluation  will  be
followed by a geochemical survey and then the acquisition of new 2D seismic data.

Middle East

Negotiations are ongoing for an exploration license in the Middle East and the Company  will  make
an announcement in due course.

North America

Frontier continues to evaluate prospects in the US as they become available.  In 2011, the Company
added  additional  production  through  its Bison partnership  which  slightly  offset  production
declines.    While net production was lower in 2011 than the prior year and despite a gas glut due
to enhanced shale gas technology, the Company's overall asset valuation was improved owing to much
stronger oil prices.

Stock market listing

The recent announcements by PLUS Markets about their intention to undertake an orderly closure  of
the  market  over  a six month period and followed by a sale of parts of their  business  and  the
uncertainty  that this presents, has crystallised the Board of Directors plans to move  Frontier's
listing  from  PLUS  to AIM - The London Stock Exchange's growth market for small  companies.   In
anticipation of the move to AIM the Board of Directors has appointed Beaumont Cornish  to  act  as
Nominated  Advisor.  With the move, Frontier will be poised to take advantage of the  more  liquid
and robust AIM market and the subsequent exposure to needed growth capital.

Dividends

The directors do not recommend the payment of a dividend for this period (2010: nil).

Future outlook

The Group continues to evaluate a number of potential investment and acquisition opportunities  to
increase  its  US  production  base,  its existing reserve base  and  its  international  outlook.
Subsequent events since the year end are discussed below.

Subsequent events

In  January 2012 the Group was granted its first exploration license in Nambia. Under the terms of
the  license  agreement  the  Group has committed to geological and geophysical  studies  and  the
acquisition  of  aeromagnetic and aerogravity data within the next few years. To ensure  that  the
Group  has  sufficient  funds  to cover the costs of its planned work  programme  the  Company  is
currently in the process of raising a minimum of USD750,000 by a placing of shares and loans.

Information to shareholders - website

The  Company  maintains a website (www.friplc.com) to facilitate the provision of  information  to
both current and potential investors.

On behalf of the Board

Michael J Keyes
Chief Executive Officer




Frontier Resources International Plc
                                                 
Consolidated statement of comprehensive income for the year ended 31 December 2011

                                                             Year ended                Year ended
                                                          31 December 2011       31 December 2010
                                                              USD'000                  USD'000
                                                                                                      
Revenue                                                         127                        117
                                                                                                      
Cost of sales                                                                                         
Impairment of oil and gas assets                                 -                          (8)
Depletion of oil and gas assets                                 (79)                       (67)
Other cost of sales                                             (90)                       (70)
Total cost of sales                                            (169)                      (145)
                                                                                          
Gross loss                                                      (42)                       (28)
                                                                                          
Other income                                                      2                          9
Share-based payments                                           (137)                       (61)
Administrative expenses                                        (595)                      (524)
                                                                                          
Operating loss                                                 (772)                      (604)
                                                                                                      
Share of associate's loss                                       (76)                       (70)
Finance income                                                    -                          1
Finance costs                                                    (2)                        (6)
                                                                                                   
Loss before tax                                                (850)                      (679)
Taxation credit                                                  16                         11
                                                                                                   
Loss for the year                                              (834)                      (668)
                                                                                                   
Other comprehensive income                                                                          
Exchange differences arising on translation                      52                         27
of foreign operations
Total comprehensive loss for the year                          (782)                      (641)
                                                                                                   
Loss per share (cents)                                                                             
Basic and diluted                                            (1.26c)                    (1.08c)
                                                                                                   


Frontier Resources International Plc

Consolidated statement of financial position as at 31 December 2011

                                                                                                   
                                                          31 December 2011         31 December 2010
                                                               USD'000                  USD'000
ASSETS                                                                                             
Non-current assets                                                                                 
Property, plant and equipment                                    277                       351
Exploration and evaluation assets                                258                         -
Investment in associate                                          200                       352

                                                                 735                       703
                                                                                                   
Current assets                                                                                     
Trade and other receivables                                       52                        23
Cash and cash equivalents                                        331                       190
                                                                 383                       213
                                                                                                   
TOTAL ASSETS                                                   1,118                       916
                                                                                                   
EQUITY AND LIABILITIES                                                                             
Equity attributable to holders of the parent                                                       
Share capital                                                  1,115                       984
Share premium                                                  1,833                     1,156
Share-based payment reserve                                      198                        61
Foreign exchange reserve                                         (19)                      (71)
Retained losses                                               (2,364)                   (1,530)

TOTAL EQUITY                                                     763                       600
                                                                                                   
Non-current liabilities                                                                            
Provision for decommissioning                                     44                        44
Deferred tax liability                                            75                        91
                                                                 119                       135
                                                                                                   
Current liabilities                                                                                
Trade and other payables                                         236                       181
                                                                 236                       181
                                                                                                
TOTAL EQUITY AND LIABILITIES                                   1,118                       916



Frontier Resources International Plc

Company statement of financial position as at 31 December 2011

                                                                                                   
                                                          31 December 2011         31 December 2010
                                                              USD'000                   USD'000
ASSETS                                                                                             
Non-current assets                                                                                 
Investments in subsidiaries                                    1,345                     1,509
                                                                                                   
Current assets                                                                                    
Trade and other receivables                                       21                         8
Cash and cash equivalents                                        283                       112
                                                                 304                       120
                                                                                                   
TOTAL ASSETS                                                   1,649                     1,629
                                                                                                   
EQUITY AND LIABILITIES                                                                             
Equity attributable to holders of the parent                                                       
Share capital                                                  1,115                       984
Share premium                                                  1,833                     1,156
Share-based payment reserve                                      198                        61
Retained losses                                               (1,644)                     (658)
                                                                                                    
                                                                                                   
Current liabilities                                                                               
Trade and other payables                                         147                        86
                                                                                                   
TOTAL EQUITY AND LIABILITIES                                   1,649                     1,629



Frontier Resources International Plc

Consolidated statement of cash flows for the year ended 31 December 2011

                                                              Year ended                Year ended
                                                          31 December 2011           31 December 2010
                                                                USD'000                   USD'000
                                                                                                     
Net cash used in operating activities                           (527)                     (437)
                                                                                                     
Cash flows from investing activities                                                                 
Purchase of plant and equipment                                  (10)                       (4)
Expenditures for exploration and evaluation                     (258)                        -
Settlement of oil and gas properties acquired                      -                        20
in prior year
Interest received                                                  -                         1
Distribution from associate                                       76                       111

Net cash (used in)/from investing activities                    (192)                      128
                                                                                                     
Cash flows from financing activities                                                                 
Proceeds from issue of share capital                             808                        21
Repayment of borrowings                                            -                      (280)
Interest paid                                                     (1)                       (6)

Net cash from/(used in) financing activities                     807                      (265)
                                                                                                     
Net increase/(decrease) in cash and cash                          88                      (574)
equivalents
Cash and cash equivalents beginning of year                      190                       780
Effect of foreign exchange rate changes                           53                       (16)
Cash and cash equivalents at end of year                         331                       190
                                                                                                     
                                                                                                     


Frontier Resources International Plc

Company statement of cash flows for the year ended 31 December 2011

                                                                Year ended               Year ended
                                                          31 December 2011         31 December 2010
                                                                 USD'000                  USD'000
                                                                                                   
Net cash used in operating activities                           (198)                     (160)
                                                                                                   
Cash flows from investing activities                                                               
Funds paid to subsidiary                                        (439)                     (198)

Net cash used in investing activities                           (439)                     (198)
                                                                                                   
Cash flows from financing activities                                                               
Proceeds from issue of share capital                             808                        21

Net cash from financing activities                               808                        21
                                                                                                   
Net increase/(decrease) in cash and cash                         171                      (337)
equivalents
Cash and cash equivalents beginning of year                      112                       449

Cash and cash equivalents at end of year                         283                       112
                                                                                                   
                                                                                                      
                                                                                                      


The  statement  and  figures  above are extracted from the Company's full  audited  accounts.  The
complete  accounts can be found on the PLUS markets website under the Report and Accounts  section
of Frontier Resources International Plc.

END

Contact Information

  • Frontier Resources International plc