Shallow Fields Production Unit

Within the Tertiary Clastics Play, Frontera has identified and high-graded the area associated with ten existing discovered and undeveloped fields.

Within this area, oil has extended into and out of the synclinal axis of the trapping folds. This provides a good indication of the significant quantities of oil generated in the Upper Kura Basin where Block 12 is situated. Oil appears to be migrating into these structures both laterally along carrier beds, and vertically along basement related faults, creating what appears to be a very efficient charge system for the area.

Frontera’s Shallow Fields Production Unit is located in the central portion of Block 12 and represents what the company believes to be an extensive trend of low-cost, undeveloped oil and gas reserves situated in Pliocene age horizons at depths from 100 meters to 1,500 meters. The Unit contains ten discovered yet undeveloped and underdeveloped fields with associated exploration potential, that were discovered prior to the grant of the Block 12 PSA.

The Shallow Fields Unit is the backdrop for Frontera’s important near-term production as well as for the augmentation of reserve additions. In the face of extremely attractive business economics, the Unit’s shallow reservoir objectives provide an incredible opportunity for low-cost operations. The low-risk characteristics of these reservoirs make the Unit a viable complement to the Company’s other, higher profile areas of operation.


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