Frontera Resources recorded a net loss of $20.5million for its latest financial year.
The firm’s revenue from crude oil and gas sales totaled $3.7million.
Chairman Steve Nicandros said: “During 2015 and during the first half of 2016, Frontera has continued to invest in a focused manner in our exploration work programs in Georgia that are designed to unlock the value associated with the significant oil and gas potential that our historical investments have identified. Amidst a depressed commodity price environment for the oil and gas sector, we nevertheless remain diligent to capitalize on the ongoing technical progress that our investments continue to highlight.
“At the same time, political challenges in Georgia’s domestic gas market continue to delay related investment due to the Ministry of Energy’s discouragement of ongoing exploration of domestic natural gas resources in favor of preserving existing gas import monopolies. As efforts are ongoing to address the Ministry’s opposition to this work, we are hopeful that it will ultimately see the benefit of allowing for a free and competitive market for U.S. and foreign investment in its domestic natural gas sector that today does not exist.
“Overall, we look forward to progressing our work programs in Georgia and the Greater Black Sea region as we believe the company remains uniquely positioned to achieve near and long term growth from its efforts in Eastern Europe.”
Frontera is currently looking to purchase $4million of additional oil field equipment to expand the Company’s current fleet in order to undertake larger well-stimulation completions in the planned work programs. It will also provide $10million of working capital in support of the work programs.
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