FRR Frontera Res

TIDMFRR

RNS Number : 9026S

Frontera Resources Corporation

29 December 2016

FRONTERA RESOURCES CORPORATION

Houston, Texas, U.S.A. - 29 December 2016

RESTRUCTURING OF COMPANY DEBT

Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company"), is pleased to announce that, further to the announcement of 25 July 2016, it has restructured the 10% notes (the "Old Notes") issued by Frontera Resources Holdings LLC ("FRH"), a wholly-owned subsidiary of the Company, on 1 August 2011. This restructuring has been effected by exchanging the Old Notes which had maturity date of 1 August 2016, to new notes ("New Notes") which have maturity date of 1 August 2020. The New Notes are issued by Frontera International Corporation, a fully-owned subsidiary of the Company, and bear interest rate of 10 per cent. if paid in cash or 12 per cent. if paid in-kind with additional notes at the Company's election. The New Notes, which are not convertible into ordinary shares of the Company, are secured and, in aggregate, have a face value of $30,063,276 and an effective date of 1 August 2016. Other than the terms described above, the terms of the New Notes remain materially unchanged as previously announced. In furtherance of the restructuring, all previously announced legal proceedings related to the Old Notes will now be dismissed.

Steve C. Nicandros, a director of the Company, held a minority interest in the Old Notes and therefore the exchange of these notes for New Notes is considered to be a related party transaction pursuant to AIM Rule 13. The independent directors of the Company, having consulted with the Company's nominated adviser, Cairn Financial Advisers LLP, consider the terms of the loan notes to be fair and reasonable insofar as shareholders are concerned.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Steve C. Nicandros, Chairman and Chief Executive Officer commented:

"We are very pleased to have successfully concluded this important restructuring of the Company's debt. Moreover, we greatly appreciate the support of our bond holders as we now look to the future with a common goal of continuing to advance towards realizing the significant value that has been identified from our historical investments."

Enquiries:

Frontera Resources Corporation

Jesse Jefferies

+1 (713) 585-3216

info@fronteraresources.com

Financial PR/IR:

Abchurch

George Robinson / Rebecca Clube

+44 (0) 20 7398 7700

fronterainfo@abchurch-group.com

Nominated Adviser

Cairn Financial Advisers LLP

Jo Turner/ Liam Murray

+44 (0) 20 7213 0880

Broker

Cornhill Capital Limited

Nick Bealer

+44 (0) 207 710 9610

Notes to Editors:

Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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