Publish Date : 26-Nov-2016
Frontera Resources Corporation , an independent oil and gas exploration and production company with assets in Georgia, today announces further information regarding its recent successful Moldova license bid. As noted in that announcement, Fronteras fully owned subsidiary Frontera Resources International LLC has been awarded a bid for exploration and production of hydrocarbons in Moldova. The bidding was announced by the Government of the Republic of Moldova in July 2016 and was organized and conducted by the Agency of Geology and Mineral Resources at the Ministry of Environment.
The bidding process was overseen by a select committee comprised of representatives of various ministries and governmental agencies of the Republic of Moldova. In accordance with the set procedures, Frontera Resources International LLC submitted its bid on 27 September 2016 and, upon completion of the procedures, was notified that it had been chosen as the successful bidder.
The next step pursuant to Moldova legislation is to enter into a concession agreement with the government of the Republic of Moldova regarding hydrocarbon exploration and development. Frontera and the government have already started this process and expect that it will be completed within the next several weeks prior to the year-end. Fronteras objectives in the country are to undertake technical evaluation related to the onshore Dobrudga Basin, an underdeveloped geologic province situated in the southern portion of the country.
Steve C. Nicandros, Chairman and Chief Executive Officer, noted: We are very pleased to have this opportunity to expand our operations into Moldova as part of our greater Black Sea strategy. The government has created a very welcoming environment for U.S. foreign direct investment into its oil and gas sector. Moreover, its continued progress related to the European Union Association Agreement that it entered into in 2014 provides an attractive foundation for new U.S. foreign investment initiatives such as ours. With this, we look forward to becoming part of the countrys domestic energy landscape and to building a synergistic relationship with the government of Moldova in our pursuit of the sustainable exploration and production of hydrocarbons from our awarded area for many years to come.
The Company also announced today that it has drawn down on its previously announced Standby Equity Distribution Agreement with YA II PN, Ltd. in the amount of 289,170.25 , at a price of 0.000950 per share resulting in the issue of 304,389,734 new ordinary shares, and issued 187,533,040 new ordinary shares to Yorkville as part of fees due to Yorkville under previously announced SEDA-backed Loan Agreement. The funds raised through the Draw Down will be used to advance work programs of the Company.
Application will be made for the New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on 29 November 2016 (Admission). The New Ordinary Shares will rank pari passu with existing ordinary shares of the Company. Following Admission, the Company will have 8,842,004,983 ordinary shares in issue with voting rights and the aforementioned figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company, under the disclosure requirements applicable to the Company.
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