Frontera Completes Placement to Fund Georgian Block 12 Programs



Frontera Resources has completed the placement of shares of common stock and warrants referred to in its announcement on September 4, 2009, and increased the size of the financing to approximately US $7.6 million. The resulting net proceeds will be used to fund the company's ongoing oil and gas development programs within its Shallow Fields Production Unit, Block 12, located in the country of Georgia, and for general corporate purposes.

The Company has issued 45,186,536 units ("Units") each comprised of one Common Share and one Common Share purchase warrant (a "Warrant") at an issue price of 10.3 pence per Unit, for gross proceeds of approximately US $7.6 million (£4.6 million). Each Warrant will entitle the holder to purchase from the Company one Common Share for a period of two years following the transaction closing date at an exercise price of 15 pence per Common Share.

Following this issue, the enlarged issued share capital of the Company will be 120,087,464 Common Shares (excluding 5,739,855 shares held as treasury stock). The new Common Shares will rank pari passu with the existing shares.

The Company's outstanding warrants issued in 2008 exercisable for approximately 3.15 million Common Shares in the aggregate will be adjusted in accordance with their terms following the placement. Those warrants will be adjusted to approximately 6.49 million Common Shares in the aggregate at a price of $1.70 per share.
 


RELATED COMPANIES