Frontera Resources Hydrogeology Program

Frontera Resources began a comprehensive hydrogeology program within its Block 12 operations area in 2005. This voluntary environmental program is representative of Frontera’s commitment to responsible stewardship of the environment in Georgia and reinforces the Company’s HSEC Policy of “moving towards zero harm.”

Frontera has now completed the fourth year of this hydrogeology program, which is designed to establish a detailed baseline of water quality across Block 12 and better understand ground water flow, direction and its possible interaction with the Company’s operations. Additional and noteworthy benefits from this initiative include the identification of source and quality of water that will be used for communities in eastern Georgia, and the training and sharing of technical information and data among students in Georgia and the USA.

Each summer for the past four years, Frontera has undertaken a program of extensive field measurement and the collection of water samples at over 300 locations within Block 12 and, for the past two years, soil samples at about 40 locations. This data collection is conducted by students from Tbilisi Technical University and various universities in the USA under the leadership of researchers from Tbilisi Technical University and Penn State University. Field measurements and field notes are recorded, results are mapped and samples are analyzed by an independent laboratory in Tbilisi for a suite of selected anions, cations and organics. Results for each chemical constituent are mapped to define any “hot spots,” or areas of high concentration, with year-to-year trends evaluated for possible sources of hot spots, both natural and man-made.  In addition to this summer program, Frontera personnel regularly conduct quarterly field measurements at these 300+ locations, recording and mapping the results.

At the conclusion of the 2007 summer program, sufficient data had been obtained to prepare a comprehensive report of findings. The resultingBlock 12 Hydrogeologic Framework Report was supplemented by three special focus area reports which concentrate on the Taribani Field Unit, the Shallow Fields Production Unit and the Basin Edge Play Unit. All reports were provided to Georgia’s National Agency for Regulation of Oil and Gas (NAOG), and the Company has provided numerous technical presentations to this agency on these reports.  This hydrogeology program and its findings have also been discussed in various town hall meetings that Frontera regularly conducts with Georgian non-governmental organizations.

Most recently, Frontera has completed updates of the Framework and the three supplemental reports based on 2008 data which are being made available to the Georgia’s National Agency for Regulation of Oil and Gas. Results reveal that most areas of Block 12 are essentially contamination free, with relatively few existing or potential hot spots.

For more information regarding Frontera’s waste management programs, please contact Terry Thoem, Vice President, Health, Safety and Environment, at tthoem@fronteraresources.com.