Frontera Energy Corp T.FEC

RE: Heging, Pipeline Startup, & Tune ownership

[bdogg]

The Company had the following oil collars outstanding at March 31, 2009:

Country Term                                               Volume        Price (US$/bbl)                 Benchmark    Fair value

Colombia Dec. 4, 2008 - Jun 30, 2009    2,100,000   $40 floor/$59 ceiling         WTI                  $ (1,036)

Colombia May 1, 2009 - Jun 30, 2009     600,000       $40 floor/$65 ceiling         WTI                  $ (228)

Colombia Jan 1, 2009 - April 30, 2009    1,200,000    $40 floor/$58.25 ceiling   WTI                  $ (68)

Colombia July 1, 2009 - Sept 30, 2009    900,000      $40 floor/$78.25 ceiling    WTI                  $ 303



The ODL pipeline is a special purpose vehicle organized for the project, owned 35% by PREand 65% by Ecopetrol.

PRE's interes in the oil in the pipeline (a majority comes from Rubiales field) is broken down as follows:

Block                        PRE Interest                 Royalty

Rubiales                  40%                                 20%

Piriri                           50%                                 20%

Quifa                          60%                                 6.4%

As far as filling the pipeline:
Line filling should commence in the second half of August 2009, likely after the inauguration of the pipeline on August 10, 2009. Line filling will ensure there is no drop in sales while the Company redirects production from the trucking transportation platform into the pipeline.