Frontera Resources Corporation has announced that the service contract has been executed with the service company to provide pressure pumping equipment and services for stimulation of Zones 9, 14 and 15 in the Taribani wells T-45, Dino-2 and T-39, and for the stimulation of Zone F in the Mtsarekhevi Gas Complex's well Ud-2.
Preparations are currently underway to commence the equipment mobilisation. As previously announced, Zones 9, 14 and 15 of each of the wells T-45, Dino-2 and T-39 will be stimulated and produced together.
Drilling operations at T-45 well are progressing as planned and the company looks forward to updating the market in due course.
The company also announces that, further to the completion of the fundraising announced on 12 February 2018, an institutional investor has subscribed for 331 858 407 ordinary shares ("New Ordinary Shares") at a price of 0.452 pence per ordinary share raising a further £1.5 million for the company. As previously announced, the Company's operations at T-45, Dino-2 and Ud-2 were funded and underway. The new funds raised are to further advance the Company's work program operations at the Taribani and Mtsarekhevi complexes which includes the drilling and stimulation program at well T39 as planned. Under the terms of the subscription, the subscriber has agreed to a 6-month lock-in period for the subscribed New Ordinary Shares.
Application will be made for the New Ordinary Shares to be admitted to trading on AIM, which is anticipated to occur on or around 19 February 2018 ("Admission"). The New Ordinary Shares will rank pari passu with the existing ordinary shares of the company.
Following Admission, the company will have 15 566 751 470 ordinary shares in issue with voting rights. The company does not hold any ordinary shares in treasury and accordingly there are no voting rights in respect of any treasury shares. The aforementioned figure of 15 566 751 470 ordinary shares 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.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13022018/frontera-resources-corporation-update-subscription-and-issue-of-equity/