Fontera Resources Corporation reported that its operating subsidiary in Georgia, Frontera Eastern Georgia Limited (FEGL), has received a ruling from the United States District Court, Southern District of Texas, Houston District, that confirms its April 19, 2010 arbitration award in the amount of US$1.4 million against ARAR, Inc. and certain related parties (ARAR) in its entirety and entitles FEGL to a judgment against ARAR. The Court’s ruling also orders ARAR to pay associated legal fees and costs, estimated at $175,000, and denies any and all counterclaims made by ARAR. This ruling and the Court’s final entry of judgment are important steps in the ongoing enforcement action against ARAR.

The underlying dispute arose out of the performance of a drilling contract between FEGL and ARAR in 2007-08, and FEGL initiated its arbitration in January 2008. The parties entered into a settlement agreement in December 2008 providing for ARAR to make certain payments to FEGL during the period December 2008 to December 2009. In August 2009, ARAR ceased making payments as required under the settlement agreement, and FEGL applied to the arbitration panel for entry of an agreed award as provided by the settlement. Following a hearing in March 2010, the arbitration panel issued its award. In April 2010, Frontera filed a civil action in U.S. District Court to seek confirmation of the award..

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