Frontier Resources International plc
LSE : FRGP

September 08, 2010 07:00 ET

Interim Results for the six months ended 30 June 2010

                                                                                                 08/09/2010
                                                                                               GB00B3K9ML24
                                   Frontier Resources International plc
                                                     
                                       ("Frontier" or the "Company")
                                                     
                           Interim Results for the six months ended 30 June 2010
                                                     
CHIEF EXECUTIVE OFFICER'S STATEMENT

I am pleased to report the company's interim results for the 6 months ended 30 June 2010.

Frontier  Resources  International Plc. and its subsidiary Frontier Resources International  Inc.  are,  at
present,  engaged  in  hydrocarbon exploration and production in the U.S.A.  International  exploration  is
planned for the future.
    
Key events

The operational highlights of the period were as follows;

    *       The signing of an agreement to provide technical services to ResCom-Shelf, a Russian oil and gas
            consulting group based in St. Petersburg.
    *       The successful completion of the Stridde #1 well in Liveoak County, Texas that added an additional
            270 mcf gas per month net to Frontier.
    *       The appointment of Kent Nelson B.E., MBA as Vice-President Business Operations.
        
        
Financial Performance

The  group incurred a loss of $285,000 for the half year to 30 June 2010 (half year to 30.06.09: $259,000).
The basic and diluted loss per share was $0.005 (half year to 30.06.09: $0.01).
    
Outlook

The  long term outlook for the Company is positive and the year on year increase in oil prices has enhanced
our operating revenue. The slow economic recovery in the U.S. is, of course, having an effect on demand for
both oil and natural gas.

The  continued glut of natural gas is set to continue for some time as the high prices paid for  leases  is
forcing  companies  to drill on these leases or to risk losing them. Many companies are starting  to  focus
more  on  oil  exploration and, longer term, this situation, together with an improvement  in  the  overall
economy  and the reduction in drilling in the Gulf of Mexico by government regulation, should  lead  to  an
increase in natural gas prices. This situation will have a positive impact the Company's cash position.

The  Company is continuing to review acquisitions, particularly oil, either by direct acquisition or  farm-
in.  The Company has also submitted applications for exploration licenses internationally and will announce
any  new  developments at the appropriate time. The Board anticipates raising funds to finance any  further
acquisitions.



Michael J Keyes
Chief Executive Officer



Frontier Resources International plc                                                                       
Consolidated statement of comprehensive income for
the half year to 30 June 2010

                                                                                                           
                                                                                                           
                                                                  Half year to    Half year to      Year to
                                                                      30.06.10        30.06.09     31.12.09
                                                                          $000            $000         $000
                                                                                                           
Revenue                                                                     61              56          119
                                                                                                           
Cost of sales                                                                                              
Impairment                                                                (19)               -         (97)
Other cost of sales                                                       (46)           (100)        (110)
Total cost of sales                                                       (65)           (100)        (207)
                                                                                                           
Gross loss                                                                 (4)            (44)         (88)
Other income                                                                 9               7            7
                                                                                                           
Administrative expenses                                                  (320)           (259)        (416)
                                                                                                           
Operating loss                                                           (315)           (296)        (497)
                                                                                                           
Share of associate profit/(loss)                                            29              33        (149)
Finance income                                                               1               2            4
Finance cost                                                               (5)             (4)          (9)
                                                                                                           
Loss before tax                                                          (290)           (265)        (651)
Taxation credit                                                              5               6           11
                                                                                                           
Loss for the period                                                      (285)           (259)        (640)
                                                                                                           
Other comprehensive income                                                                                 
                                                                                                           
Exchange difference on translation foreign                                (25)              69         (98)
operations
                                                                                                           
Total comprehensive loss for the period                                  (310)           (259)        (738)
                                                                                                           
Loss per share                                                                                             
                                                                                                           
From continuing operations, basis and diluted                           0.005c           0.05c        0.01c


The  results reflected above relate to continuing activities. The losses for this period and prior  periods
and  the total comprehensive losses to this period and prior periods are wholly attributable to the  equity
holders of the parent company, Frontier Resources International plc.


Frontier Resources International plc                                                                       
Consolidated statement of financial position as at
30 June 2010
                                                                                                          
                                                                                                           
                                                                      30.06.10        30.06.09     31.12.09
                                                                          $000            $000         $000
ASSETS                                                                                                     
Non-current assets                                                                                         
Property, plant and equipment                                              436             494          473
Investment in associate                                                    509             728          533
                                                                           945           1,222        1,006
                                                                                                           
Current assets                                                                                             
Trade and other receivables                                                 50              29           46
Cash and cash equivalents                                                  365             615          780
                                                                           415             644          826
                                                                                                           
TOTAL ASSETS                                                             1,360           1,866        1,832
                                                                                                           
EQUITY AND LIABILITIES                                                                                     
Equity attributable to the holders of parent                                                               
Share capital                                                              980             865          980
Share premium                                                            1,139             765        1,139
Foreign exchange reserve                                                 (123)              20         (98)
Retained earnings                                                      (1,147)           (481)        (863)
                                                                           849           1,169        1,159
                                                                                                           
Non-current liabilities                                                                                    
Provisions                                                                  60              29           73
Deferred tax liability                                                      98             108          102
                                                                           158             137          175
                                                                                                           
Current liabilities                                                                                        
Trade and other payables                                                   353             250          218
Short term borrowings                                                        -             310          280
                                                                           353             560          498
                                                                                                           
TOTAL EQUITY AND LIABILITIES                                             1,360           1,866        1,832
                                                                                                           



Frontier Resources International plc
Consolidated statement of changes in equity for the
half year to 30 June 2010
                                                                                                           
                                                     
                                               Share       Share       Retained       Foreign        Total
                                              Capital     Premium        Loss        Exchange
                                                                                      Reserve
                                                $000        $000           $000         $000         $000
As at 1 January 2010                            980         1,139          (862)        (98)         1,159
Loss for the period                              -            -            (285)          -          (285)
Other comprehensive loss for the period          -            -              -          (25)         (25)
Total comprehensive loss for the period          -            -            (285)        (25)         (310)
Issue of share capital                           -            -              -            -            -
Issue costs                                      -            -              -            -            -
Balance as at 30 June 2010                      980         1,139         (1,147)       (123)         849


                                               Share       Share       Retained       Foreign        Total
                                              Capital     Premium        Loss        Exchange
                                                                                      Reserve
                                               $000        $000          $000          $000          $000
As at 1 January 2009                            362         96           (222)           -            236
Loss for the period                              -           -           (259)           -           (259)
Other comprehensive loss for the period          -           -             -           (109)         (109)
Total comprehensive loss for the period          -           -           (259)         (109)         (368)
Issue of share capital                          503         806            -             -           1,309
Issue costs                                      -         (137)           -             -           (137)
Balance as at 30 June 2009                      865         765          (481)         (109)         1,040


The following describes the nature and purpose of each reserve within owners' equity.

Share Capital                    Amount subscribed for share capital at nominal value
Share premium                    Amount subscribed for share capital in excess of nominal value
Retained loss                    Cumulative net losses recognised in the financial statements
Foreign exchange reserve         Exchange difference on translating foreign operations



Frontier Resources International plc                                                                       
Consolidated statement of cash flows for the half
year ended 30 June 2010

                                                                                                           
                                                                                                           
                                                                  Half year to     Half year to     Year to
                                                                      30.06.10         30.06.09    31.12.09
                                                                          $000             $000        $000
                                                                                                           
Net cash flows from operating activities                                 (182)            (137)       (330)
                                                                                                           
Cash flows from investing activities                                                                       
Cash consideration for acquisition of associate                                           (575)       (575)
Purchase of property, plant and equipment                                 (22)                -         (1)
Investment valuation amendment                                              20                             
Interest received                                                            1                2           4
Dividends from associate                                                    52                6          41
Contributions to associate                                                   -                -        (23)
                                                                                                           
Net cash used in investing activities                                       51            (567)       (540)
                                                                                                           
Cash flows from financing activities                                                                       
Proceeds from issue of share capital                                         -                7         359
Proceeds from certificates of deposit                                       10                -           -
Purchase of certificates of deposit                                      (250)                -           -
Redemption of certificates of deposit                                      305                -           -
Proceeds from borrowings                                                     -              325         325
Repayment of borrowings                                                  (280)             (15)        (45)
Interest paid                                                              (5)              (4)         (9)
                                                                                                           
Net cash used in financing activities                                    (220)              313         630
                                                                                                           
Net (decrease)/increase in cash and cash                                 (351)            (391)       (254)
equivalents
Cash and cash equivalents at  beginning of period                          780            1,120       1,120
                                                                                                           
Effect of foreign exchange rates changes                                  (64)            (114)        (86)
                                                                                                           
Cash and cash equivalents at end of period                                 365              615         780



This interim financial information was approved and authorised for issue by the board of directors on 7
September 2010 and were signed on its behalf by:

Michael J Keyes

Director



General Information

The  information  for  the half year ended 30 June 2010 is unaudited, but reflects all  normal  adjustments
which  are, in the opinion of management, necessary to provide a fair statement of results and the  Group's
financial  position for and as at the period presented. The results of operations for the period  ended  30
June 2010 are not necessarily indicative of the operating results for future operating periods.

Accounting policies

Basis of preparation

The  annual  financial statements of Frontier Resources International plc are prepared in  accordance  with
IFRSs  as  adopted by the European Union. The condensed set of financial statements included in this  half-
yearly  financial  report  has  been prepared in accordance with IAS 34 "Interim  Financial  Reporting"  as
adopted by the European Union.

Changes in accounting policy
The  accounting  policies  adopted  in  the  preparation of the interim  condensed  consolidated  financial
statements  are  consistent with those followed in the preparation of the Group's financial statements  for
the year ended 31 December 2009, except for the adoption of new standards and interpretations, noted below.
Adoption  of  these  standards and interpretations did not have any effect on  the  financial  position  or
performance of the Group.

In  the  current  financial  year, the Group has adopted International Financial  Reporting  Standard  3,
'Business  Combinations  (revised  2008)',  and International Accounting  Standard  27,  'Consolidated  and
Separate Financial Statements (revised 2008)'.

Risks and uncertainties
Exploration  for oil and gas is speculative and involves significant degrees of risks. Risks that  prospect
areas  will be acquired, that they will lead to a discovery of oil or gas and financial and other resources
will  be  secured  to  exploit  the  opportunities are uncertain. Other risks  include  cross-border  trade
regulations and exposure to foreign exchange rate fluctuation. It is anticipated that the risk profile will
not  significantly change for the remainder of the year. Risk is an inherent part of doing business and the
strong  cash position of the Group leads the Directors to believe that the Group is well placed  to  manage
business risks successfully.

Going concern
The  Group's  forecasts  and  projections,  taking  account  of  reasonably  possible  changes  in  trading
performance, support the conclusion that there is a reasonable expectation that the Company and  the  Group
have  adequate resources to continue in operational existence for the foreseeable future, a period  of  not
less than 12 months from the date of this report. Accordingly, the going concern basis has been adopted  in
preparing the half-yearly financial statements.

The Directors of Frontier are responsible for the contents of this announcement.

For more information on Frontier, please visit: www.friplc.com

Contact details:

Frontier Resources International Plc
Jack Keyes, CEO
Telephone: +1 (281) 920 0061

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

Contact Information

  • Frontier Resources International plc