Frontera Resources Announces Commencement Of Gas Production Operations At Mtsare Khevi Gas Complex In Georgia
rontera Resources Corporation
4 April, 2014
Frontera Resources Announces Commencement Of Gas Production
Operations At Mtsare Khevi Gas Complex In Georgia
FRONTERA RESOURCES CORPORATION
(“FRONTERA” OR THE “COMPANY”)
Houston, Texas, U.S.A. – 4 April, 2014
Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil and gas exploration and production company (“Frontera” or the “Company”), today announced that it has begun gas production operations at the Mtsare Khevi Gas Complex in the country of Georgia.
Following the update released on 20 January 2014, Frontera has completed commissioning of the gas gathering and transportation infrastructure at the Mtsare Khevi Field, situated within the greater Mtsare Khevi Gas Complex. Production has now commenced into the new system and associated 14 kilometer transportation system which will accommodate production from existing wells throughout the field at a planned rate of approximately two million cubic feet per day of gas (57,000 cubic metres per day).
The Mtstare Khevi Field is situated within a larger play area of approximately 80 square kilometres referred to as the Mtsare Khevi Gas Complex and encompasses gas targets found between 300 metres and 5,000 metres in depth. Based on Frontera’s internal estimates, analysis has revealed significant gas potential throughout this area of up to approximately 1.2 tcf of gas in place (28 billion cubic metres) and up to approximately 700 bcf of recoverable gas (19.8 billion cubic metres). Ongoing geologic studies related to existing well data associated with the Complex continue to provide support for defining the extent of the identified potential throughout the greater Mtsare Khevi Gas Complex. Gas production from the Mtsare Khevi Field will contribute to the assessment of the Complex’s potential. Independent assessment is expected to take place in 2014.
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Nominated Adviser and Joint Broker:
Matt Goode/Christopher Raggett
+44 (0) 20 7220 0500
Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0)20 7710 9610
Tim Thompson / Tom Hufton
+44 (0)20 7466 5000
Notes to Editors:
1. 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.
2. Information on Resource Estimates: The 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). 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 the statements in this announcement.
3. 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.