Block 12 Operations Focus

Within the Tertiary Clastics Play, Frontera’s primary focus is currently on the Shallow Fields Production Unit and the Taribani Field Unit.

The Shallow Fields Production Unit is located in the central portion of Block 12 and represents what Frontera believes to be an extensive trend of low-cost, low-risk oil and gas reserves. The unit contains ten discovered yet undeveloped or underdeveloped fields and drilled prospects – – each with associated developmental exploration potential. Development objectives are considered to be traditional, well-known reservoirs of Pliocene and Miocene age that are situated at depths from 10 meters to 1,500 meters.

The Taribani Field Unit Complex is an area of focus with the objective of beginning commercial oil production in the near term from the large, undeveloped Taribani Field. This field is part of the greater Taribani Field Unit Complex that consists of four undeveloped oil fields. All of these fields have multi-pay zones with similar reservoir characteristics, situated at depths from 2,300 meters to 3,000 meters.

Within the Cretaceous Carbonate Play, Frontera’s focus is on the Basin Edge Play Unit that contains the giant “A”, “B” and “C” Prospects. Extensive new 2D and 3D seismic has been acquired over the “B” and “C” Prospects and the surrounding areas within the play, which has led to the identification of specific drilling locations on the Basin Edge “B” Prospect and the Basin Edge “C” Prospect, where drilling has also taken place. Together with existing historical data from prior eras of exploration, similar assessments have been made for the “A” Prospect. Frontera’s extensive geophysical database provided the basis for new interpretation, mapping and drilling of a new well at the Basin Edge “C” Prospect.

The Shale Gas Play Unit consists of a prospective area encompassing approximately 2,000 square kilometers where potentially significant quantities of natural gas and hydrocarbon liquids could be exploited from the regionally present Oligocene-Lower Miocene age Maykop shales and Mesozoic age Liassic shales. Potentially similar to extensive natural gas shale plays in North America and Europe, study work to further define the play’s prospectivity is ongoing.

In addition, the Company is focused on continuing its work to evolve its extensive inventory of additional existing fields and undrilled prospects throughout the balance of the Block 12 area through the Block 12 Area Wide Inventory Development Unit.