Frontier Resources International plc
LSE : FRGP

May 27, 2011 02:00 ET

Audited Results for the year ended 31 December 2010

                                                                                            27 May 2011
                                                                                           GB00B3K9ML24
        
                                  Frontier Resources International Plc
                                     ("Frontier" or "the Company")
                                                   
                          Audited Results for the year ended 31 December 2010

Frontier  Resources International Plc (PLUS: FRGP), the oil and gas exploration and production company,
announce the Company's audited accounts for the financial year ended 31 December 2010.

Highlights

Frontier  is  an  oil and gas company with producing properties in the USA and exploration  acreage  at
present in Africa. Primarily focused on opportunities in the Middle East and Africa, the Group  has  an
extensive  database and strategic relationships worldwide. The Group has the ability to  focus  on  new
production and the identification of new exploration prospects and add value to under developed fields.

In  2010,  Frontier completed its first full year of operations following admission to the  PLUS-quoted
Markets in 2009.  Frontier Resources International Inc ("FRII") participated in the drilling of  a  new
gas  well  in Texas, the Stridde No. 1 in addition to acquiring overriding royalties in two  additional
wells.  The Group will continue to expand production in the United States.

With  the  ongoing volatility in commodity prices, primarily driven by worldwide political and economic
uncertainty,  major  as well as independent oil companies continued to refine and divest  non-core  and
underperforming  assets.   FRII is positioned to evaluate opportunities that become  available  and  is
prepared to make targeted acquisitions that add value to its existing portfolio, such as the successful
acquisition of Bison II LLP in 2009.

Much of 2010 was spent researching and compiling geologic data for areas of interest in Africa and  the
Middle East.

Zambia

Effort  and  resource was put into formulating technical and commercial strategies and positioning  the
Company  to be successful in anticipated petroleum exploration bid rounds. This was rewarded  with  the
successful  submission of an application for petroleum exploration block in Zambia.   In  January  2011
Frontier  was  awarded  Petroleum Exploration Block 34 by the Zambian Ministry of  Mines  and  Minerals
Development.  The Block covers 6,400 square kilometers and is located in the Kafue Trough approximately
150  kilometers  southwest of the capital Lusaka. The area has had no previous hydrocarbon  exploration
and  may  form  a part of the south western extension of the productive East African rift  system  -  a
geologic  trend  that  has  produced significant quantities of oil further north  in  Uganda.  This  is
Frontier's  first  exploration license in the southern African region where the  Company  is  reviewing
additional opportunities.  A local office is currently being opened in Lusaka.

Under  the terms of the license agreement, Frontier has committed to geological and geophysical studies
and  the  acquisition  of aeromagnetic and aerogravity data within the next few years.   Following  the
granting  of the license, the Company is in the process of raising £450,000 by placing shares at  6.5p,
to  fund the agreed work programme over the next two years.  As of May 2011, it is anticipated that the
fund raising will be fully subscribed and completed soon.
With  anticipated growth and additional opportunities the Board of Directors plans to move the  Company
to  AIM.   AIM  is the London Stock Exchange's international market for smaller growing companies.  The
move to AIM will enhance Frontier's ability to raise additional growth capital and position it for  the
future.
     
The directors  continue  to  review  future  acquisition opportunities to further enhance the Company's
value.

Dividend

The directors do not recommend payment of a final dividend (2009: nil).

Business review

The Group's loss for the year after taxation was $668,000 (2009: $640,000).

A   full   review  of  the  Group's activities in the period and recent events are in the  'highlights'
section above.


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.

On behalf of the Board

Michael J Keyes
Chief Executive Officer
26 May 2011


Frontier Resources International Plc
                                                   
Consolidated statement of comprehensive income for the year ended 31 December 2010

                                                                                  Year ended       Year ended
                                                                                 31 December      31 December 
                                                                                        2010             2009
                                                                                       $'000            $'000
                                                                                                             
Revenue                                                                                 117              119
                                                                                                             
Cost of sales                                                                                                
Impairment of oil and gas assets                                                         (8)             (24)
Depletion of oil and gas assets                                                         (67)             (73)
Other cost of sales                                                                     (70)            (110)
Total cost of sales                                                                    (145)            (207)
                                                                                                             
Gross loss                                                                              (28)             (88)
Other income                                                                              9                7
Share-based payments                                                                    (61)               -
Administrative expenses                                                                (524)            (416)
                                                                                                             
Operating loss                                                                         (604)            (497)
                                                                                                             
Share of associate's loss                                                               (70)            (149)
Finance income                                                                            1                4
Finance costs                                                                            (6)              (9)
                                                                                                             
Loss before tax                                                                        (679)            (651)
Taxation credit                                                                          11               11
                                                                                                             
Loss for the year                                                                      (668)            (640)
                                                                                                             
Other comprehensive income                                                           
Exchange differences arising on translation foreign operations                           27              (98)
Total comprehensive loss for the year                                                  (641)            (738)
                                                                                                             
Loss per share (cents)                                                                                       
Basic and diluted                                                                    (1.08c)          (1.18c)
                                                                                                             
The  results reflected above relate to continuing activities. The loss for the current and prior  years
and  the  total  comprehensive loss for the current and prior years are wholly attributable  to  equity
holders of the Parent Company, Frontier Resources International plc.




Frontier Resources International Plc

Consolidated statement of financial position as at 31 December 2010


                                                                                        2010             2009
                                                                                       $'000            $'000
ASSETS                                                                                                       
Non-current assets                                                                                           
Property, plant and equipment                                                            351              473
Investment in associate                                                                  352              533
                                                                                         703            1,006
                                                                                                             
Current assets                                                                                               
Trade and other receivables                                                               23               46
Cash and cash equivalents                                                                190              780
                                                                                         213              826
                                                                                                             
TOTAL ASSETS                                                                             916            1,832
                                                                                                             
EQUITY AND LIABILITIES                                                                                       
Equity attributable to holders of the parent                                                                 
Share capital                                                                            984              980
Share premium                                                                          1,156            1,139
Share-based payment reserve                                                               61               -
Foreign exchange reserve                                                                 (71)             (98)
Retained losses                                                                       (1,530)            (862)
                                                                                         600            1,159
                                                                                                             
Non-current liabilities                                                                                      
Provision for decommissioning                                                             44               73
Deferred tax liability                                                                    91              102
                                                                                         135              175
                                                                                                             
Current liabilities                                                                                          
Trade and other payables                                                                 181              218
Borrowings                                                                                 -              280
                                                                                         181              498
                                                                                                             
TOTAL EQUITY AND LIABILITIES                                                             916            1,832

These  financial statements were approved and authorised for issue by the board of directors on 26  May 2011 
and were signed on its behalf by:

Michael J Keyes
Director





Frontier Resources International Plc

Company statement of financial position as at 31 December 2010

                                                                                        2010             2009
                                                                                       $'000            $'000
ASSETS                                                                                                       
Non-current assets                                                                                           
Investment in subsidiary                                                               1,509            1,409
                                                                                                             
Current assets                                                                                               
Trade and other receivables                                                                8               32
Cash and cash equivalents                                                                112              449
                                                                                         120              481
                                                                                                             
TOTAL ASSETS                                                                           1,629            1,890
                                                                                                             
EQUITY AND LIABILITIES                                                                                       
Equity attributable to holders of the parent                                                                 
Share capital                                                                            984              980
Share premium                                                                          1,156            1,139
Share-based payment reserve                                                               61                -
Retained losses                                                                        (658)            (413)
                                                                                       1,543            1,706
                                                                                                             
Non-current liabilities                                                                                      
Payables                                                                                   -              116
                                                                                                             
Current liabilities                                                                                          
Trade and other payables                                                                  86               68
                                                                                                             
TOTAL EQUITY AND LIABILITIES                                                           1,629            1,890

These  financial  statements were  approved and authorised for issue by the board of directors on 26 May 2011 
and were signed on its behalf by:

Michael J Keyes
Director





Frontier Resources International Plc

Consolidated statement of cash flows for the year ended 31 December 2010

                                                                                  Year ended       Year ended
                                                                            31 December 2010 31 December 2009
                                                                     
                                                                     
                                                                                       $'000            $'000
                                                                                                             
Net cash used in operating activities                                                   (416)            (330)
                                                                                                             
Cash flows from investing activities                                                                         
Purchase of plant and equipment                                                           (4)              (1)
Settlement of oil and gas properties acquired in prior year                               20                -
Interest received                                                                          1                4
Cash consideration for acquisition of associate                                            -             (575)
Distribution from associate                                                              111               41
Contributions to associate                                                                 -              (23)
Net cash from/(used in) investing activities                                             128             (554)
                                                                                                             
Cash flows from financing activities                                                                         
Proceeds from issue of share capital                                                       -              359
Proceeds from long term borrowings                                                         -              325
Repayment of borrowings                                                                 (280)             (45)
Interest paid                                                                             (6)              (9)
Net cash (used in)/from financing activities                                            (286)             630
                                                                                                             
Net decrease in cash and cash equivalents                                               (574)            (254)
Cash and cash equivalents at the beginning of year                                       780            1,120
Effect of foreign exchange rate changes                                                  (16)             (86)
Cash and cash equivalents at end of year                                                 190              780
                                                                                                             
  


Frontier Resources International Plc

Company statement of cash flows for the year ended 31 December 2010

                                                                                  Year ended       Year ended
                                                                            31 December 2010 31 December 2009
                                                                     
                                                                     
                                                                                       $'000            $'000
                                                                                                             
Net cash used in operating activities                                                  (139)            (263)
                                                                                                             
Cash flows from investing activities                                                                         
Funds paid to subsidiary                                                               (198)            (280)
Net cash used in investing activities                                                  (198)            (280)
                                                                                                             
Cash flows from financing activities                                                                         
Proceeds from issue of share capital                                                      -              359
Proceeds from shares yet to be issued                                                     -                -
Net cash from financing activities                                                        -              359
                                                                                                             
Net decrease in cash and cash equivalents                                              (337)            (184)
Cash and cash equivalents at the beginning of year                                      449              633
Cash and cash equivalents at end of year                                                112              449
                                                                                                             
                                                                                                             
                                                                                                            
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.For more information on Frontier Resources, please visit: www.friplc.com

Contact details:

Company:
Frontier Resources International Plc
Mr Jack Keyes - CEO
Telephone: U.S. +1 (713) 962-0887

Corporate Advisers
St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl
Telephone: +44 20 7368 6959

Contact Information

  • Frontier Resources International plc