Frontera Resources, the American company that has been trying to develop a profitable oil and gas business in the Republic of Georgia for over 20 years, has missed another production deadline.
The company announced on January 19 that a plan to increase production on six existing wells at the end of 2016 has been delayed at least until March because pumping equipment from the United States has not arrived.
The company told shareholders during a conference call last November 10 that it would have significant production figures to report by the end of 2016. They did not tell shareholders at that time about the equipment delay, which would make it impossible to increase production for those wells before the end of 2016. Final production figures for 2016 have not been given to shareholders.
Frontera was able to restructure $30 million of debt that was due August 1, 2016 and is now due on August 1, 2020. The company had tried to contend in court that the debt actually belonged to a 100% subsidiary company Frontera Resources Holding LLC.
The company was criticized in July of 2016 when Frontera Resources Holding LLC filed for a Chapter 7 liquidation bankruptcy in the United States, which would have allowed Frontera Resources to escape the debt. The debt restructuring includes an agreement that ends all possible court cases concerning the bankruptcy filing.