Frontera Resources solidifies move into Ukraine

The AIM-traded independent oil and gas exploration and production company said the MOU furthered a joint effort initially established last year between Frontera and Naftogaz.

During July 2015, the two entities moved to work together in upstream exploration and production projects in Ukraine, as well as to study the possibility to bring liquefied natural gas to Ukraine from Frontera's ongoing work in Georgia where it had identified prospective natural gas resources of as much as 187trn cubic feet.

This MOU served to create a more detailed framework of technical and commercial cooperation between Frontera and UGV, the company's board explained, in order to move towards implementation of joint work in specifically targeted upstream exploration and production projects in Ukraine.

"Frontera is very pleased to continue to advance its work with Naftogaz and to further focus its upstream initiative in Ukraine with UGV as an important element of our Greater Black Sea Strategy", said Frontera chairman and CEO Steve Nicholas.

"Ukraine represents a unique opportunity for meaningful growth in Europe with its significant underdeveloped and under-explored oil and gas potential such that, with joint initiatives like ours, it will accelerate its path toward becoming an important supplier of energy not only to its domestic markets, but also to greater Europe in years to come", he explained.

At 1505 GMT, shares in Frontera Resources were up 5.41% to 0.58p.