Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil & gas exploration and production company based in Houston, Texas and operating in the country of Georgia, today provided an update on its planned horizontal drilling program at the Taribani Field Unit.
Frontera has announced the designation of the first well for reentry horizontal drilling operations as the Dino #2 well at the Taribani Field. The Dino #2 well is designed to evaluate multiple horizons within the field, with a primary objective of a final horizontal completion into horizon 15 at a depth of approximately 2,700 meters.
The first phase of drilling operations at the Dino #2 well commenced on November 2, 2005 and was successfully completed by November 15, 2005. These initial operations included reentering the well with drill pipe to clean and wash it free of debris; logging and pressure testing of the existing well bore to confirm casing integrity; and the setting of a bottom-hole cement plug to ensure a sound well-bore from which sidetrack drilling operations will next commence. The well is now ready for drilling to the targeted reservoir horizons and a planned horizontal completion into horizon 15. On November 15, 2005 the TuHa ZJ-30 rig was moved from the Dino #2 location to continue preparation operations on other existing wells that have been designated as part of Frontera’s initial drilling program at the Taribani Field.
Frontera is currently in the process of mobilizing the TPIC F-200 rig to the Dino #2 location to continue the planned drilling phase of operations. The company expects to commence the drilling phase of operations at this location in mid-January 2006. This start date is approximately six weeks later than anticipated due to minor delays in the delivery of casing and other materials necessary for operations. Current market conditions have limited the availability of high quality, API standard oil field equipment. Having reviewed the availability of alternative materials, Frontera believes that the short delay in commencing the drilling phase of operations at the Dino #2 well is preferable and will uphold its desire to maintain prudent operational standards by not compromising the quality of materials that will be used in operations.
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:
“We are very pleased to have successfully completed the initial phase of our operations at the Dino #2 well at the Taribani Field. As we move forward with a brief pause in the commencement of the drilling phase, we want to make absolutely certain that we maintain a high standard of quality in our operations. This prudent approach will not only increase our chances of success, but it will also decrease our overall costs.”
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 .
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)