Houston, Texas U.S.A. (October 27, 2005): Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil & gas exploration and production company operating in the country of Georgia, today announced the award of a workover and well preparation contract to TuHa Petroleum Exploration and Development Corporation, a subsidiary of China National Petroleum Corporation (CNPC). Under the terms of the contract, TuHa will provide a rig and perform certain engineering services as Frontera commences its planned horizontal well drilling program from a series of existing wells within its Taribani Field Unit.
TuHa’s rig and associated services will prepare three existing wells within the Taribani Field for sidetrack and horizontal drilling operations. Preparation operations will include fishing operations to ensure existing wells are free of any debris; wellhead installation and testing; logging and pressure testing of existing well bores; and setting packers and/or cement plugs to isolate targeted reservoirs for drilling. These well preparation operations will begin in early November in advance of the drilling of sidetrack and horizontal extensions in the same wells by a rig provided by Turkish Petroleum International Company LTD (TPIC), a subsidiary of Turkish Petroleum Corporation. Frontera announced the award of a drilling contract to TPIC in August. Drilling operations by the TPIC rig will commence in late November.
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 independent consulting firm of Netherland, Sewell & Associates 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:
“Our agreement with TuHa represents continued progress in our planned operations at the Taribani Field for 2005. The commencement of preparatory workover operations in advance of drilling operations will serve to ensure cost and timing efficiencies in our planned operations for the remainder of this year and early next year. Operating two rigs in tandem will provide us with an efficient means through which we can optimize our efforts to gain a better understanding of the Taribani Field’s reservoirs and hopefully establish commerciality.”
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.
For more information regarding the TuHa Petroleum Exploration and Development Corporation please see www.cnpc.com.cn/english/inter/Drilling.htm.
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)