An investor call last night appears to generated significant excitement around AIM-quoted oil and gas play Frontera Resources (FRR:AIM).

The shares are up 50% to 0.36p as the company reveals it is in discussions with potential partners over a farm-out or joint venture agreement on its Block 12 holding in Georgia.

DOUBLE-EDGED SWORD

This news is a bit of a double-edged sword as planned operations, including a six-well stimulation programme at its South Kakheti Complex, are postponed.

Ultimately any agreement could underpin the value of the asset and provide valuable funds to progress its development.

WHO IS FRONTERA?

Frontera was founded more than 20 years ago with a strategy focused on Eastern Europe, specifically around the Black Sea.

At present the company’s sole active project is Block 12 although it recently secured acreage in Moldova. At the beginning of March it agreed rights over 3m acres in the country with 10 years to conduct initial exploration work in the area.

NEED FOR CAPITAL

The company restructured some of its debt in December but a capital injection would be welcome.

At the last count in June 2016 the company had cash on the balance sheet of $50,811 having generated $2m of revenue in the first half of 2016 from pilot oil and gas production in Georgia.

FRR

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Issue Date: 22 Mar 2017