The International Oil and Gas Company “Frontera Resources Georgia Corporation” doesn’t reveal information about the gas reserves.
In June of the current year “Frontera” confirmed that gas deposit with capacity of 42 bln cubic meters was discovered in Georgia, in particular in Sagarejo district that caused a stir in expert and public circles, because the discovery of energy reserves in such anamount actually meant the country’s energyindependence.
To date, there isn’t any kind of documents confirmingthat the company owns such gas reserves. Gas reserves of 23 million m3 of were mentioned in the documents for obtaining a license filed to the State Oil and Gas Agency by “Frontera” 5 months ago.
According to the regulations, the company is obliged to submit information about reserves, however, as “Frontera” has not submitted this documentation to the Agency, it imposed a fine on the company.
According to the Agency’s Director Giorgi Tatishvili, the Agency draw up protocol on administrative offences under which the company was fined GEL 1 000 .
Tatishvili notes that at this point they are waiting for a response from “Frontera”, two weeks left to paythe amount or appeal it.
The fine was imposed for the violation of regulations established by the Agency.
The company defends its position referring to the contract signed with the government in 1996. Accordingly, the legal dispute began between the two sides.
The Agency continues to say that “Frontera” holds its position.
American “Frontera” had to submit a report on reserves before June 1.