Shallow Fields Production Unit – Mtsare Khevi Field – Operations Gallery, March – November 2008

Mtsare Khevi Field is located in the western portion of Block 12, and consists of multiple objective reservoirs that are situated at depths between 200 meters and 1,100 meters. Frontera’s initial development plan focuses on bringing reservoirs from the Upper Pliocene age Akchagil formation, situated at depths of approximately 200-400 meters, into production.

From 1960 to 1993 several wells were drilled to the Miocene age Sarmatian formation, encountering oil pay in the Akchagil as shallow as 200 meters. Although Frontera’s current development plans are aimed at the Akchagil (shown in green in the seismic cross section below), additional potential existing in the deeper horizons – which have flowed oil in the past – are currently under study.

The targeted Akchagil formation, located at 200 – 400 meters depth in the Upper Pliocene, is highlighted in the stratigraphic column below. The previously drilled Sarmatian formation lies below the Akchagil in the Upper Miocene.

March 2008: As part of an initialstudy designed to determine the viability of new development drilling on the field, several existing wells were re-entered and re-completed in Spring 2008. Below, MK#68 undergoes workover activities to recomplete the well in the Akchagil formation and bring it on production.

March 2008: Frontera’s workover program also established the presence of gas in the field. Here, the MK#66 well flared gas at a rate of approximately 1.2 million cubic feet per day while on test after recompletion.

August 2008: After studying results from the workover program, an extensive development drilling program commenced in August. The first two development wells drilled were the MK#12 and MK#25 wells, both drilled to total measured depths of approximately 355 meters. As expected, both wells encountered three oil and gas bearing zones within the Akchagil formation between depths of 200 meters and 315 meters.

August 2008: On the left, workers examine oil shows and cuttings from the flowline at the MK#12 well. On the right, preparations for perforation operations at MK#12.

August 2008: Well site preparations include the efficient utilization of temporary portable cement pads that are removed once operations are complete.

August 2008: Workers run production tubing with the A-50 Rig at MK#12 in the foreground, as drilling operations are underway at MK#25 in the background.

September 2008: Operations at the MK#14 well underway.

October 2008: Production underway at MK#13. The combined results of the first nine wells in the initial Mtsare Khevi development drilling program have revealed a structure larger in area than previously thought.

November 2008: Trucks transport equipment to the next drilling location. Current plans call for an objective of drilling as many as 20 wells this year, with an additional 40 locations in 2009.

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