SOURCE: Frontera Resources Corporation

October 20, 2008 02:00 ET

Frontera Resources Retains SMH Capital for Capital Markets Advisory and Trading Liquidity Services and as Designated Advisor for U.S. Disclosure

HOUSTON, TX--(Marketwire - October 20, 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 that it has entered into a formal agreement with SMH Capital Inc., the broker-dealer subsidiary of Sanders Morris Harris Group, to serve as the Investment Bank Designated Advisor for Disclosure ("DAD") in connection with Frontera's OTCQX listing.

In a separate agreement, Frontera engaged SMH Market & Liquidity Services LLC, an affiliate of SMH Capital Inc., to provide capital markets advisory, strategic investor communication, in-depth company research and analysis, and trading monitoring and services.

Frontera Resources began trading publicly in March 2005 on the London Stock Exchange's AIM Market, which remains the Company's primary securities market, under the symbol FRR and with Morgan Stanley & Co. International plc as its Nominated Advisor (NOMAD). The Company began quotation on the OTCQX market in February 2008 to provide enhanced exposure, trading visibility and liquidity in the U.S. capital markets via the premium OTCQX trading, quotation and disclosure platform.

Steve C. Nicandros, Chairman and Chief Executive Officer, commented:

"As part of our ongoing effort to enhance Frontera's exposure to worldwide financial markets, we are very pleased to announce this new relationship with SMH Capital. We believe their extensive expertise will enable our company to increase its visibility to U.S. investors and effectively allow our business to reach a broader investor base."

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 about Frontera Resources, please see www.fronteraresources.com.

2. SMH Capital Investment Banking Group is a division of SMH Capital Inc. (member FINRA/SIPC), the broker-dealer and largest subsidiary of Sanders Morris Harris Group. SMH Capital Investment Banking Group is a full-service investment bank providing middle-market companies with private placements and public offerings of equity and debt securities, as well as financial-advisory services in connection with mergers and acquisitions, restructuring and recapitalizations. SMH Capital Investment Banking Group provides a full spectrum of investment banking services, including raising capital, research coverage, creating liquidity, trading and market making, merger and acquisition advisory services, sales support, and investor conferences. For more information, please see www.smhib.com.

3. Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services. The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 600 offices in 32 countries. For further information about Morgan Stanley, please visit www.morganstanley.com.

4. This release contains 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 activities; 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; the political situation in Georgia and neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com/investors.php?link_id=23. 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 / Camilla Gore
    London: +44 207 4045959

    Nominated Advisor:

    Morgan Stanley
    Jon Bathard-Smith
    +44 20 7425 8000