Houston, Texas U.S.A. (September 28, 2005): Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil and gas exploration and production company operating in the country of Georgia, today announced the award of a Master Services Agreement with Baker Hughes Services International, Inc. Under the terms of the agreement, Baker Hughes (NYSE: BHI) will provide well services and equipment associated with Frontera’s planned drilling program within its Taribani Field Unit. Frontera plans to drill at least three lateral or horizontal well extensions from a series of existing wells within the Taribani Field commencing later this year.
Located in eastern Georgia within Frontera’s license area known as Block 12, the Taribani Field is a large, undeveloped oil field covering an area of approximately 80 km2 with productive horizons situated in Miocene and Pliocene age reservoirs. These reservoirs are situated at depths of between 2,200 meters and 3,500 meters. The reservoir engineering firm of Netherland and Sewell has assigned 118 million barrels of P3 reserves from four of twelve identified horizons within the field.
Steve C. Nicandros, Frontera’s Chairman and Chief Executive Officer, commented:
“The addition of Baker Hughes to our operations team gives us great confidence that we have continued to successfully assemble a very strong and experienced team in support of our planned drilling efforts this year. Baker Hughes is an industry leader in the application of horizontal well drilling technology and we look forward to the expertise that they will be bringing to our effort to establish commerciality at the Taribani Field.”
Frontera plans to commence the drilling of the first well at the Taribani Field during the second half of November of this year.
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 and operate opportunities in emerging markets around the world.
Frontera was admitted to the Alternative Investment Market, operated by the London Stock Exchange, on 14 March 2005.
Frontera has operated in Georgia since 1997 where it holds a 100 per cent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas from a 5,060 square kilometer area in eastern Georgia known as Block 12. For more information, please see www.fronteraresources.com.
Baker Hughes is a leading provider of drilling, formation evaluation, completion, and production products and services to the worldwide oil and gas industry. For more information on Baker Hughes please see www.bakerhughes.com
This release contains certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release, as well as reserves, future production and our ability to establish commercial production. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are future exploration and development results, availability of needed equipment and personnel, fluctuations in oil and gas prices, general economic conditions and the political situation in Georgia and neighboring countries. 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.
Citigate Dewe Rogerson (+44 20 7638 9571)