SOURCE: Frontera Resources Corporation

May 16, 2008 02:00 ET

First Quarter 2008 Results and Operations Review

HOUSTON, TX--(Marketwire - May 16, 2008) - Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR; OTCQX Market, U.S.A. - Symbol: FRTE), an independent oil and gas exploration and production company, today announced results for the quarterly period ended 31 March 2008.

2008 Q1 Financial Highlights

--  Results for the quarter ended 31 March 2008 reflect a net loss of $6.1
    million, or $0.09 per share on a fully-diluted basis, in line with the
    early stage nature of the company's asset portfolio and expenditures
    required to evaluate the company's undeveloped fields and exploration
    opportunities.
--  Working capital position of $29 million at 31 March 2008.
    

2008 Q1 Operational Highlights

--  Taribani Field Unit - Continued Zone 9 development program.
--  Basin Edge Play Unit - Continued extensive exploration drilling
    campaign at the "C" Prospect.
--  Shallow Fields Production Unit - Commenced new drilling campaign and
    continued profitable production, with oil sale arranged for completion in
    Q2.
--  Mirzaani Field Area Exploration Unit - Advanced efforts to farm out
    the Mirzaani Deep Prospect in order to accelerate drilling of this large
    prospect situated beneath the currently producing Mirzaani Field.
--  Block 12 Area Wide Development Unit - Evolved Frontera's extensive
    inventory of undrilled prospects and undeveloped fields in anticipation of
    mid-term and long-term value creation opportunities.
    

Additional updates of the company's ongoing progress can be found at www.fronteraresources.com.

Notes to Editors:

1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets around the world. Frontera has operated in Georgia since 1997 where it holds a 100 percent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas from a 5,060 square kilometer area in eastern Georgia known as Block 12. For more information, please see www.fronteraresources.com.

2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions, potential drilling schedule, well results and ventures discussed in this release, as well as reserves, future drilling, development and production. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: future exploration and development results; availability and performance of needed equipment and personnel; seismic data; evaluation of logs and cores from wells drilled; fluctuations in oil and gas prices; weather conditions; general economic conditions; and the political situation in Georgia and neighboring countries. There is no assurance that Frontera's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.

Contact Information

  • Enquiries:

    Frontera Resources Corporation
    Liz Williamson
    Vice President, Investor Relations and Corporate Communications
    (713) 585-3216
    Email Contact

    Brunswick Group LLP
    Patrick Handley / Mark Antelme
    London: +44 207 4045959