Basin Edge Play Unit – Lloyd #1 Well Operations Gallery, July 2007 – January 2008

2007: Frontera’s objectives within the Basin Edge Play Unit are focused on accessing the resource potential that is estimated to be in excess of one billion barrels of recoverable oil for the ‘B’ and ‘C’ Prospects. Of this total, prior to the acquisition of new seismic data, the ‘C’ prospect was estimated to contain as much as 500 million barrels of recoverable oil. Primary reservoir targets are located in the Cretaceous age carbonate rocks, with secondary reservoir targets in the Tertiary age clastic rocks as well as Jurassic carbonates. The Lloyd #1 well is designed to evaluate multiple horizons and will target final completion in the Cretaceous reservoir targets at depths of as much as 3,700 meters.

July 2007: Drilling location construction underway in far eastern Georgia.

July 2007: Due to the remote location of the ‘C’ prospect, 6.5 kilometers of new road was constructed in order to have access to the Lloyd #1 drilling location from the nearest village of Qedebi in eastern Georgia.

July 2007: The Lloyd #1 drilling location under construction overlooking the Alanzani Valley to the north and the border with Azerbaijan (background).

July 2007: Lloyd #1 drillsite under construction. Preparations are made for the arrival of the drilling rig that will be situated in the center of the photograph below on the concrete pad around which workers are spreading gravel. The rig will drill the well into the ‘cellar’ that has been prepared (lower right of the green box inset below). Due to the remote nature of this operation, the location is designed to be entirely self sufficient and must generate its own electrical power in order to power the rig and camp. As a result, fuel tanks are installed to support the needs of the planned operation.

July 2007: Lloyd #1 location ready to receive the Lapidoth Ideco Super 7-11/II drilling rig.

August 2007: Lapidoth Ideco Super 7-11/II drilling rig is mobilized from Israel to the Georgian port of Poti and then transported approximately 500 kilometers via 90 truckloads to the Lloyd #1 drilling location in eastern Georgia.

August – September 2007: After arrival on location, the Lapidoth Ideco Super 7-11/II is assembled and prepared for commencement of operations as Frontera and Lapidoth operations management oversee the process. Pictured in green box below, from left to right, Paolo Pratelli, Frontera’s General Manager, Operations; Amram Sussana, Lapidoth Drilling; Biswajit Ghosh, Frontera’s Company Man for Lloyd #1 drilling operations.

September 2007: Rig-up complete and the Lloyd #1 well is ready to commence drilling.

September 2007: Lloyd #1 location.

September 2007: Prior to commencement of operations, a ceremony was held with Georgian government officials and Frontera’s organization in attendance to commemorate the start of drilling operations.

September 2007: Drilling operations commence on September 17, 2007.

September – October 2007: Drilling operations underway. Pictured below: Red box, from left to right in doghouse on drilling rig, Zaza Mamulaishvili, Frontera Eastern Georgia, General Director and Reggie Spiller, Frontera’s Executive Vice President, Exploration-Production; Blue Boxes: Rig crew running casing on rig floor; Green box, foreground, Walter Muratore, Frontera’s Drilling Superintendent on rig floor during drilling operations.

October 2007: Drilling operations progressing as fall weather envelopes the Lloyd #1 location in fog.

October 2007: Weather changes day to day as clear conditions reveal a beautiful view of drilling operations and the snow capped Caucasus Mountains rising high above the Alanzani Valley.

November 2007: As drilling operations progress into November, the onset of cooler winter weather is evident as the Alanzani Valley is blanketed with a thick cloud layer in the background.

January 2008: Ongoing operations at the Lloyd #1 well within the Basin Edge Play Unit.

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