Frontier Resources International Corporate Update (8570F)
November 16 2015 - 8:34AM
UK Regulatory
TIDMFRI
RNS Number : 8570F
Frontier Resources International
16 November 2015
For immediate release
16 November 2015
FRONTIER RESOURCES INTERNATIONAL PLC
("Frontier", the "Company" or the "Group")
Corporate Update
As announced last week, Frontier's request to extend the initial
term of the Group's 100%-owned Block 38 located in the Rub Al Khali
Basin in the southwest of the Sultanate of Oman ("Block 38 EPSA")
for 24 months (i.e. to 25 November 2017) was granted subject to
Frontier providing a bank guarantee for the amount required to
conduct the amended work programme (which it must do by the
beginning of February 2016). As stated in recent releases, the
potential farm-out process of the Company's interest in the Block
38 EPSA continues. The Company retained the services of
Dallas-based Moyes & Co., a Company that specialises in
international oil and gas mergers and acquisitions, to assist and
provide general transaction advice on the ongoing farm-out process
by the Company for its Oman Block. Given the challenging
environment for oil and gas projects there can as yet be no
certainty as to the outcome of this process.
The Company needs to arrange additional funding for its
immediate working capital requirements over and above the potential
commitments under its licences and the Board is considering all
options for the potential ongoing funding of the Company. However,
The Directors have taken the following measures which substantially
reduce these working capital requirements going forward:
-- The Directors have agreed to waive the current outstanding
amounts owed to them under the terms of their existing services
agreements and letters of appointment ("Service Arrangements"),
amounting in aggregate to approximately GBP184,452 in aggregate,
and have also agreed to waive any future entitlement for
remuneration under their Service Arrangements which materially
reduces the ongoing liabilities of the Group.
-- As previously announced on 30 June 2015, GBP272.223.13 then
owed to Mr M (Jack) Keyes will only be paid in the event that the
Company completes a farm-out of its interests in one or more of its
projects which involves the reimbursement to the Company of at
least GBP435,556 of historic exploration expenditure.
-- The Company has also continued to reduce outstanding creditor
accruals by agreeing reduced settlement terms and / or the proposed
issue of new Ordinary Shares ("New Shares") as payment in lieu of
services provided. A further announcement will be made as and when
such New Shares are issued.
Jack Keyes, Chief Executive Officer, said: "This is a very
challenging environment for the oil and gas sector and exploration
companies particularly. We continue to progress with the farm out
for our Oman block and are actively working our advisers as we
review the options for the Company and its exploration projects. In
addition we have aggressively reduced our working capital
requirements to a minimum amount possible and I would like to thank
all of those who have worked with us for the financial sacrifices
they have made."
Enquiries:
Frontier Resources International Plc
Jack Keyes, Chief Executive Officer Tel: +1 (713) 962 0887
Beaumont Cornish Limited (Nomad) Tel: 0207 628 3396
Michael Cornish
Roland Cornish
Beaufort Securities Limited (Broker) Tel: 020 7382 8300
Zoe Alexander
This information is provided by RNS
The company news service from the London Stock Exchange
END
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