Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil & gas exploration and production company, today announces an update on drilling operations as well as the successful completion of an extensive seismic acquisition program within its onshore exploration and production license in eastern Georgia known as Block XII.
Frontera has now completed mobilization of the TPIC F-200 rig to the Dino #2 location at the Taribani Field Unit in eastern Georgia. With the rig on location, together with all necessary associated materials and equipment, Frontera expects to commence the next phase of its drilling operations at this location within the next two weeks.
The Dino #2 well is the first of three wells to be drilled in succession within the Taribani field and 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 (TD) of approximately 2,700 meters. Once drilling begins at the Dino #2 well, Frontera anticipates that it will take approximately 40 days to reach total depth (TD).
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.
The recently completed seismic program involved the acquisition of approximately 500 km of 2D seismic across Frontera’s Basin Edge Play Unit, Mirzaani Field Area Exploration Unit, and Taribani Field Unit. The newly acquired data will enhance understanding of existing mapped prospects and provide the basis for future drilling operations in each of these areas.
Frontera acquired the majority of the 500km program over its Basin Edge Play Unit where it has mapped two large exploration prospects with Jurassic, Cretaceous and Tertiary age reservoir objectives. Targeted reservoirs are anticipated to be situated at depths of between 2,000 meters and 2,500 meters. The reservoir engineering firm of Netherland, Sewell and Associates, Inc. has assigned unrisked resource potential in excess of 1 billion barrels of recoverable reserve potential to these two exploration prospects.
At the Taribani Field Unit, new seismic data was acquired in order to confirm the up-dip southwestern limits of the field in anticipation of future drilling in this undeveloped portion of the field.
At the Mirzaani Field Area Exploration Unit, new seismic was acquired to enhance understanding of existing mapped prospects that are situated below the currently producing Mirzaani Field. The field’s producing reservoirs are situated at depths of between 900 meters and 1,300 meters and have historically produced approximately seven million barrels of oil. Below this existing field, Frontera has identified a new geologic play, characterized by Miocene-age, Sarmatian reservoirs that are similar to those found in the Taribani Field. These reservoirs are situated at relatively shallow depths of 1,800 meters to 2,500 meters. Frontera believes these deeper reservoirs could represent a new trend of significant potential within Block 12.
Processing of the recently completed seismic program is currently underway at the laboratories of Tricon Geophysics, Inc., a Houston-based company. Processing and interpretation of the new seismic data is scheduled to be completed over the next several months.
Steve C. Nicandros, Frontera’s Chairman and Chief Executive Officer, commented:
“After experiencing unanticipated delays associated with the delivery of materials and harsh winter weather conditions along the mobilization route of TPIC’s rig from southeastern Turkey, we are now glad to see all of our equipment on location at the Taribani Field Unit and ready to commence drilling operations on our planned three well program. Separately, the completion of our seismic program over the three important business units within our extensive Georgia portfolio represents a significant step forward in our planned progress for unlocking the potential we believe to be contained within these areas. Early results of the seismic processing are encouraging and we look forward to producing final interpretations over the next few months.”
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 Tricon Geophysics, Inc., please see www.tricongeophysics.com.
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)