Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil & gas exploration and production company, today announces it has commenced the drilling of the Dino #2 well in the Taribani Field Unit in the country of Georgia.
The Dino #2 well is the first of at least three wells to be drilled in succession within the Taribani field. The well is designed to evaluate multiple horizons within the field, with a primary objective of a final horizontal completion into horizon 15 at a total depth of approximately 2,700 meters.
Frontera anticipates that each of the three planned wells will take approximately 40 days to reach total depth. Once total depth is reached in each case, the company anticipates testing each well for a period of 90 to 100 days.
The planned three well program is designed to reenter existing wells in the Taribani Field and focus on establishing commercial production from undeveloped oil bearing horizons that have been identified by historical drilling in the field. Frontera believes that targeted horizons can be effectively developed and produced with the use of conventional horizontal drilling and completion techniques that it has tailored for use in the field.
Once drilling operations at the Dino #2 well are complete, the TPIC F-200 rig will move to commence drilling operations at well #23 in the Taribani Field. This well will have a primary objective of a horizontal completion into horizon 9 at a total depth of approximately 2,200 meters.
The Niko #1 well is planned to be the third reentry in Frontera’s initial three well drilling program. This well is also designed to evaluate multiple horizons within the field, with a primary objective of a final horizontal completion into horizon 19 at a total depth of approximately 2,900 meters.
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 km. sq. 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:
“Now that the next phase of our planned drilling operations at Taribani Field has commenced, we look forward to seeing the collective results of our initial three well drilling program. Based on the results of the Dino#2, T-#23 and Niko #1 wells, we will be able to make a determination on the viability of commercial development of four of the twelve identified horizons in the field. Integrating the results of each of these wells into our current understanding of this large field will provide us with the basis for designing what we hope will be a successful commercial development plan.”
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 March 14, 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 Taribani Field, please see www.fronteraresources.com/taribanifieldunit.php .
For more information regarding Netherland, Sewell and Associates, please see www.netherlandsewell.com .
This release contains certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions, potential drilling schedule and ventures discussed in this release, as well as reserves and future 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 and performance of needed equipment and personnel, the final results of the processing of seismic data, fluctuations in oil and gas prices, weather conditions, 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)