FRONTERA RESOURCES CORPORATION
Houston, Texas, U.S.A. – 24 October 2016
Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil and gas exploration and production company (“Frontera” or the “Company”), today releases an update of its operations in the country of Georgia.
As previously announced on September 30, work is underway to begin the stimulation campaign for six further wells within the Company’s ongoing Oil Window and Gas Window operations at its South Kakheti Gas Complex.
Specifically, following extensive workover operations throughout October and the procurement of necessary materials, six new wells have now been prepared and will shortly receive stimulation completions in November. The Company expects that the upcoming campaign will significantly contribute towards its current objective of achieving overall year-end pilot production rates of 2,200boe per day, which would result in monthly revenues of approximately U.S. $3 million at current commodity prices.
This year, ongoing work programs have resulted in the Company achieving important new technical milestones in stimulation operations. The application of a demonstrated stimulation methodology has consequently led to improved overall hydrocarbon recovery. As the Company continues to implement techniques that have been applied in similar zones across North America, it continues to evolve completion designs in order to maximize production rates and cumulative volumes.
Steve C. Nicandros, Chairman and Chief Executive Officer commented:
“Our November program represents another important step in the continuation of our evolving well stimulation work. Our work at the Udabno#2 well is particularly important, as we plan to undertake a testing program that is designed to evaluate an extensive gas-bearing interval of approximately 2,000 meters in gross thickness. I look forward to communicating results in the weeks ahead.”
The Company will be holding a live conference call to update analysts and investors on Thursday 10 November 2016 at 1700 GMT.
To participate in this conference call please dial in to 0203 425 3098 (UK Toll Number), 0800 279 5622 (UK Toll-Free Number) using the participant PIN 813189#.
A recording of the call will also be available to download on the Company website www.fronteraresources.com
The CEO, Steve C. Nicandros, will host the call followed by a question and answer session.
Investors are invited to submit questions via email ahead of the conference call to Fronterainfo@abchurch-group.com. Please send any questions by 12pm GMT on Wednesday 2 November 2016.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Frontera Resources Corporation
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Jo Turner / Liam Murray
+44 (0) 20 7213 0880
Cornhill Capital Limited
+44 (0) 207 710 9610
George Robinson / Rebecca Clube
+44 (0) 20 7398 7700
Notes to Editors:
About Frontera Resources Corporation
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.
1. Information on Resource Estimates: The independent 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). Internal resources estimates were determined by the Company. 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 both independent and internal estimates in this announcement.
2. 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.
3. Glossary of Terms: BCF – means Billion Cubic Feet of gas. TCF – means Trillion Cubic Feet of gas. Mcf – means Thousand Cubic Feet of gas. OOIP – means Original Oil in Place. Bopd – means Barrels of Oil Per Day.