Houston, Texas U.S.A. (May 31, 2006): Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil and gas exploration and production company, today announces it has commenced the second of three planned oil wells in the Taribani Field Unit in the country of Georgia.
Well #23 is the second of a three-well drilling program Frontera expects to complete this year in the Taribani Field. Last month, Frontera announced it had completed drilling operations on its first well in the series, the Dino #2, which currently is undergoing testing operations. Well #23 is located approximately 500 meters to the southwest of the Dino #2 and is designed for a horizontal completion into the Pliocene age oil bearing reservoir interval, Zone 9, at a total depth of approximately 2,200 meters. It is expected to take approximately 40 days to reach total depth. Once total depth is reached, the company anticipates the testing phase of Well #23 will take approximately 90 days, similar to the Dino #2.
The planned three-well program is designed to reenter existing wells in the Taribani Field and focuses on establishing sustainable commercial production from undeveloped oil bearing horizons that were identified by wells drilled over twenty years ago. Frontera believes targeted horizons can be effectively developed and produced with the use of conventional horizontal drilling, completion and associated production engineering techniques that the company has tailored specifically for the Taribani Field. Extensive testing results from the three-well program will provide Frontera engineers with the necessary technical data they need to determine whether the Taribani Field can be commercially developed.
Once drilling operations at Well #23 are complete, the F-200 rig will be used to drill the third well, the Niko #1. The Niko well is designed to evaluate multiple horizons within the field, with a horizontal completion into Zone 19 as its primary objective 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 12 identified horizons within the field.
Steve C. Nicandros, Frontera’s Chairman and Chief Executive Officer, commented:
“We remain focused on the drilling and testing of our three-well program and will use the collective results to determine whether the Taribani Field can be commercialized using conventional horizontal drilling, completion and production engineering techniques. Thus far, the data collected while drilling the Dino #2 well have greatly increased our understanding of the field and have supported our overall hypothesis that the potential for commercialization exists. To date, our operations are on schedule and progressing according to our plan. We look forward to analyzing the data collected from all three wells ? the Dino #2, Well #23 and Niko #1 ? to help us conclude whether or not a successful commercial field development is possible in the Taribani Field.”
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 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 Frontera’s operations at the Taribani Field Unit, 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.
The reserve information in this press release was determined by the independent consulting firm of Netherland, Sewell & Associates in accordance with the petroleum resource definitions adopted by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC) and the American Association of Petroleum Geologists (AAPG) in 2000.
Citigate Dewe Rogerson (+44 20 7638 9571)