Frontera Resources Corporation announced its results for the six-month period ended June 30, 2006 and provided an update on its operations.

Highlights include:

OPERATIONS

Taribani Field Unit

• Began a planned three-well drilling program to re-enter existing wells in the Taribani Field where recoverable reserves are believed to be approximately 140 million barrels.
• Horizontal drilling and testing completed at the first well, the Dino #2, validated several important elements of Frontera's field model regarding commercial viability.
• Objective reservoirs were found to be highly pressured and fractured, as well as thicker, higher in porosity and more numerous than originally estimated.
• Extended production testing yielded good quality 38 degree API oil, while challenged with sediment obstruction.
• Completion program for wells to be redesigned to overcome sediment challenge.
• Further drilling postponed pending successful completion program redesign.
• Company remains confident that challenges can be overcome with a return to operations later this year or early next year.
• Processed, interpreted and integrated new seismic data acquired in 2005 into our existing mapping of the field. This data revealed a larger structure than previously thought and identified a new prospect
  lead to the southwest of the Taribani Field.

Basin Edge Play Unit

• Advanced key studies related to the 350 kilometers of new 2D seismic data over the Basin Edge Play Unit's "B" and "C" prospects where unrisked recoverable reserves are estimated to be in excess of
  1 billion barrels.
• Successfully completed acquisition of a new 80-square kilometer, 3-D seismic survey over the Basin Edge Play Unit's "C" prospect to further define a large, independent four-way structural closure of pproximately 55 square kilometers.
• Completed acquisition and began interpretation of approximately 170 kilometers of 2-D seismic data over the Basin Edge Play Unit's "B" prospect.
• Advanced an environmentally important multi-year hydro-geologic study designed to assess ground water quality in the vicinity of Basin Edge Play Unit prior to commencement of drilling operations in
  2007.

Mizraani Field Area Exploration Unit

• Completed interpretation of 105 kilometers of 2-D seismic data acquired in 2005 to further delineate mapped prospects beneath the Mirzaani Field.
• Interpretation revealed a larger than originally mapped structure with potential reserves believed to be in excess of 50 million barrels.
• Confirmed and further delineated a second prospect called the Mirzaani South Prospect.
• Selected a drilling location for the Mirzaani Deep Prospect in 2007.

Mirzaani Field Area Production Unit

• Profitable production continued.
• Options to increase productivity of the field are being evaluated. If successful, could lead to development of large undeveloped portions of the field and two other undeveloped nearby fields.

Block 12 Area-Wide Field/Prospect Inventory Development

• Continued development and prioritization of extensive inventory of prospects within Block 12, consisting of 19 identified prospects and leads and five undeveloped fields.

CORPORATE

• Balance sheet remains strong to carry out planned drilling programs at Taribani Field Unit and Basin Edge Play Unit.
• Reported a net loss of $5.0 million, or $0.09 per share on a fully diluted basis, for the period ending June 30, 2006.
• Net loss includes $1.6 million non-cash charge related to expensing of stock options.
• Commenced initiative to seek and evaluate new venture growth opportunities throughout the Greater Black Sea Region.
• Announced and pursuing enforcement of an award of $1.2 million plus interest against the State Oil Company of the Azerbaijan Republic (SOCAR).

Steve C. Nicandros, Chairman and Chief Executive Officer, commented:

"The results achieved from operations within each of our business units this year have continued to encourage us and confirm our assumptions regarding these individual areas of prospectivity within Block 12. The information we have obtained has brought Frontera closer to its goal of establishing commercial production from the four business units that represent only a portion of the company's very large portfolio of opportunities in Block 12. We remain confident that our technically prudent and steady approach will place Frontera Resources in an ever-stronger position to tap the significant value that we have identified in Block 12 and the Greater Black Sea Region."