Frontera Resources Announces Start Of New Drilling Campaign At Mtsare Khevi Gas Complex In Georgia
FRONTERA RESOURCES CORPORATION
Frontera Resources Announces Start Of New Drilling Campaign At
Mtsare Khevi Gas Complex In Georgia
Houston, Texas, U.S.A. – 9 July 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 the start of a new drilling campaign at the Mtsare Khevi Gas Complex in the country of Georgia.
Location construction for well #32a will commence shortly and drilling is expected to commence during the month of August. The well will take approximately fifteen days to reach total depth. Well #32a is planned to be drilled to a depth of approximately 400 meters and is designed to continue to explore and expand the identified gas potential associated with the Mtsare Khevi Gas Complex.
Gas production operations have continued since commencement in April and are delivering gas to Georgia’s national grid via the Company’s gas gathering/processing facilities and associated 14 kilometer transportation system. This system accommodates gas production at a planned rate of approximately two million cubic feet per day of gas.
Concurrent with ongoing production and new drilling operations, extensive geologic studies continue across the Mtsare Khevi Gas Complex. These ongoing studies include the integration of current gas production performance; historical geologic, geophysical and engineering databases; new geologic field work and outcrop sampling, as well as associated laboratory analysis. To date, study work reveals extensive conventional and unconventional (Maykop shales) potential associated with the Mtsare Khevi Gas Complex. This work is expected to conclude during the third quarter of this year, with independent assessment to commence later in the fourth quarter of 2014.
The Mtstare Khevi Gas Complex is an area of approximately 80 square kilometres and encompasses gas reservoir 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 and up to approximately 700 bcf of recoverable gas.
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Nominated Adviser and Joint Broker:
Matt Goode/Christopher Raggett
+44 (0) 20 7220 0500
Co-Broker: Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0)20 7710 9610
Financial PR: Buchanan
+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.