Frontera Resources Corporation and SOCAR complete court procedures
Houston, Texas U.S.A. (January 25, 2006): Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gas exploration and production company, today announced that its wholly owned subsidiary, Frontera Resources Azerbaijan Corporation, has been awarded $1.2 million plus interest in connection with its binding arbitration case with SOCAR, the State Oil Company of the Azerbaijan Republic. The arbitration was held in Sweden and is binding on the parties under the rules of UNCITRAL, the United Nations Commission on International Trade Law, Trend reports.
Frontera initiated the arbitration against SOCAR in October 2003 related to claims resulting from SOCAR's halting of exports from the onshore Kursangi & Karabagli oilfields in the Azerbaijan Republic during the fourth quarter of 2000.
The arbitral panel found that the halting of exports of crude oil from the Kursangi & Karabagli oil fields in the Azerbaijan Republic was in violation of the Agreement on Rehabilitation, Exploration, Development and Production Sharing between SOCAR, Frontera, Delta/Hess and SOCAR Oil Affiliate (the "PSA"). The arbitration panel rejected all other claims and counterclaims between the parties and the arbitration therefore resolves all claims between Frontera and SOCAR with respect to the PSA.