Frontera Resources enters into commercial discussions regarding Georgian operations

Frontera noted that, while the discussions were still at an early stage, talks had taken "a significant step forward" after two interested parties attended extended site surveys and management meetings.

As a result of the discussions and to assist with data analysis, Frontera has since begun conducting extended well tests to better establish production capabilities.

The AIM-listed firm noted it had continued to see "consistent oil and gas delivery" from its Taribani wells, situated within Georgia's onshore Block 12, but told investors on Monday that it was "not yet in a position to report volumes" until longer-term tests had been completed.

Frontera's president and chief executive Zaza Mamulaishvili, said: "Due to the current technical and commercial discussions with industry majors, which may lead to a farmout or joint operating arrangement in specific areas within Block 12 with respect to both oil and natural gas, the Company has changed the initial well testing program such that the current production test from Zones 14, 15 and 19 will continue for a longer period of time than what was anticipated before and additional tests could potentially be performed."

As of 0830 BST, Frontera shares had surged 34.04% to 0.32p.