Introduction

Frontera’s strategy is to seek early opportunities in “known hydrocarbon bearing basins” where historic political or economic conditions have caused significant oil and gas plays to be underdeveloped. To date, the Company has focused its operations activities on the eastern flank of the Greater Black Sea region on the onshore Kura Basin situated between the Black Sea and the Caspian Sea in the nations of Georgia and Azerbaijan, as shown on the map below.

Frontera’s current activities in this area are focused on the exploration and development of the large geographic area associated with Block 12 in Georgia. With Frontera’s significant historical investment, it has undertaken an extensive series of studies, geologic field work and operational work programs that have resulted in the identification of two major geologic plays within the block that contain significant reserve potential that the Company intends to pursue to commercial production.

Historically, Frontera’s work has principally involved the acquisition, processing and interpretation of new 2D and 3D seismic data; reprocessing of historic seismic and well log data; undertaking new and extensive geological field work; carrying out new reservoir engineering studies in some of the existing fields which has entailed workovers of existing wells and the drilling of new wells; other integrated geologic and engineering studies designed to identify prospectivity for new field discoveries within Block 12; and upgrading existing production, transport and export facilities.