Houston, Texas, U.S.A. – 25 April 2016
FRONTERA RESOURCES CORPORATION
FRONTERA ADVANCES NATURAL GAS EXPLORATION EFFORTS AT THE SOUTH KAKHETI GAS COMPLEX IN GEORGIA
Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company (“Frontera” or the “Company”), is pleased to announce an operations update for its work in the South Kakheti Gas Complex’s Gas Window initiative, situated within its portfolio in the country of Georgia.
• Operational and technical work advancing associated with the central and western areas of the Complex
• Operations at the Udabno#2 well are now continuing in May
• New 37 well plan to exploit approximately 1 TCF of gas
Operations and advancing technical studies within the western and central areas of the Complex have continued throughout the first quarter of this year where significant natural gas resources have been identified in targeted reservoirs situated between 300 metres and 5,000 metres in depth.
In the western area of the Complex, operations at the Udabno#2 well are now continuing in May where high bottom hole pressures and resulting high shut-in surface pressures remain at a depth of approximately 3,300 meters. Frontera plans to undertake a testing program designed to evaluate an extensive gas-bearing interval of approximately 2,000 meters in gross thickness where internal reservoir engineering models estimate production capability in the range of 10 million – 20 million cubic feet per day of gas.
In the central portion of the Complex’s gas-window related work, integrated analysis of the Company’s existing 3D seismic survey and extensive petrophysical database has resulted in the design of a new 37 well drilling plan to exploit approximately 1 trillion cubic feet of gas. The new program is currently planned to commence in 2017. This recoverable volume is related to Netherland, Sewell & Associate’s 2015 independent assessment of as much as 4.6 trillion cubic feet of gas-in-place, with as much as 3.2 trillion cubic feet of recoverable prospective natural gas resources related to this area of the Complex.
As previously reported, Frontera’s ongoing work has assessed the gas resources associated with its exploration and production efforts at the South Kakheti Gas Complex to contain as much as 187 trillion cubic feet of gas in place from reservoir targets found between 300 metres and 5,000 metres in depth. In 2015, Frontera announced results of reports related to sub-areas of the Complex that it commissioned by the U.S.-based consulting firm of Netherland, Sewell & Associates in order to provide independent assessment of the Company’s estimates. Independent assessment work continues on the balance of the Company’s estimates.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
“Our technical work at the South Kakheti Gas Complex continues to reveal a new and significant gas province within a broader regional fairway that is already the basis for the Southern Corridor’s extensive gas infrastructure network to Turkey and Europe. Strategically situated along this important gas export route, Frontera’s ongoing operations hold the potential for not only assuring Georgia its own domestic energy independence, but for also making it an important player in Europe’s future energy security. ”
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
+44 (0) 20 7148 7900
Cornhill Capital Limited
+44 (0) 207 710 9610
Notes to Editors:
About Frontera Resources Corporation
Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market – Symbol: FRR. For more information, please visit www.fronteraresources.com.
1. Information on Resource Estimates: The independent contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Internal resources estimates were determined by the Company. Gerard Bono, Frontera’s Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved both independent and internal estimates in this announcement.
2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company’s ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera’s financial reports, which are available at www.fronteraresources.com. There is no assurance that Frontera’s expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.
3. Glossary of Terms: BCF – means Billion Cubic Feet of gas. TCF – means Trillion Cubic Feet of gas. Mcf – means Thousand Cubic Feet of gas. OOIP – means Original Oil in Place. Bopd – means Barrels of Oil Per Day