Frontier Resources International plc

March 23, 2009 03:00 ET

Frontier announces first Production acquisition Interest in Bison Investments Ltd



                                 FRONTIER RESOURCES INTERNATIONAL PLC
                                     ('Frontier' or 'the Company')
           Frontier announces first Production acquisition Interest in Bison Investments Ltd
    *       Total consideration of $0.7million for 50% stake in Bison Investments Ltd ('BIS')
    *       Bison  holds a portfolio of  producing oil and gas properties in Texas, USA
    *       Frontier continues to seek further acquisitions

Frontier Resources International Plc (PLUS: FRGP), the oil and gas exploration and production company,
is  pleased  to announce its first production acquisition since the Company listed on the  PLUS-quoted
market  on  30th  January 2009. Frontier has acquired through its wholly owned US subsidiary  Frontier
Resources  International,  Inc.  a  50%  interest  in  Bison  Investments  Limited,  a  Texas  Limited
Partnership.  BIS  holds  a  portfolio of oil and gas properties weighed  towards  overriding  royalty
interests in producing wells and leases that are candidates for future drilling and development.

Payment comprised of a combination of cash and 1,588,996 shares in Frontier at a price of 5.5p.  These
shares  were issued on 20th March 2009. Total cash consideration was $575,000 with part of the payment
raised  by  way of a secured term-loan from Frost Bank in Houston. This acquisition adds approximately
5,200  barrels  of  oil  and 126 million cubic feet of currently producing oil  and  gas  reserves  to
Frontier's  portfolio,  in  addition to behind-pipe reserves, proved,  yet  undeveloped  reserves  and
exploration opportunities.

The  producing  wells,  which  are  non-operated, are located in  several  counties  throughout  Texas
including Matagorda, Andrews, Fort Bend, Goliad, Brooks and Live Oak.

Commenting on the announcement, Jack Keyes, CEO of Frontier Resources International Plc said, "This is
Frontier's first acquisition of producing oil and gas properties since its listing in February and  is
in  keeping with the Company's strategy of initially building on its US production base. We  are  also
evaluating several other properties as potential acquisition targets.

Following  this acquisition Frontier now has 56,944,280 Ordinary shares of 1p each in  issue  and  the
Directors  are  interested in a total of 35,686,358 Ordinary shares, which equates to  62.49%  of  the
issued share capital.

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:
Barry Hocken/Duncan Vasey
Telephone: +44 20 7628 5582

Conduit PR
Fiona Hyland/Jonathan Charles
Telephone: +44 207 429 6614
Mobile: +44 777 600 5847

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