SOURCE: Frontera Resources Corporation

August 15, 2008 02:00 ET

Second Quarter 2008 Results and Operations Review

HOUSTON, TX--(Marketwire - August 15, 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 30 June 2008.

2008 Q2 Financial Highlights

--  Revenues from crude oil sales for the quarter ending 30 June 2008 were
    $2.9 million, an increase of $2.3 million from $0.6 million during the same
    period last year. Revenues for the first six months of 2008 were $1.1
    million higher than in 2007.
--  Results for the quarter ended 30 June 2008 reflect a net loss of $5.5
    million, or $0.08 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.
--  Strong working capital position to continue planned investment
    programs.
    

2008 Q2 Operational Highlights

--  Taribani Field Unit - Increased production from continuation of Zone 9
    development program.  A rig is currently being mobilized within Block 12 to
    commence drilling the next Zone 9 well, Taribani South #1, in early
    September.
--  Shallow Fields Production Unit - Achieved a 30% increase in oil
    production through an aggressive new drilling campaign across the Unit that
    is ongoing. Drilling campaigns within the Mirzaani, Mtsare Khevi, Nazarlebi
    and Patara Shiraki fields have resulted in continued profitable production
    and Q2 oil revenues of $2.6 million.
--  Basin Edge Play Unit - Continued exploration effort at "C" Prospect
    with reprocessing of 3D seismic survey to incorporate drilling results to
    date. Early results confirm large size and up-dip potential associated with
    this giant prospect. Efforts continue to secure a new rig for continuation
    of Lloyd #1 well operations.
--  Mirzaani Field Area Exploration Unit - Continued 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 background, details and 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 / Camilla Gore
    London: +44 207 4045959

    Nominated Advisor:

    Morgan Stanley
    Jon Bathard-Smith
    +44 20 7425 8000