FRONTERA RESOURCES CORPORATION
Houston, Texas, U.S.A., 19 January 2017
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.
During November and December of 2016, operations to complete a new six well stimulation program were delayed pending delivery of additional pumping equipment deemed necessary for execution of the planned program in order to reduce risk and enhance desired outcome. The pending campaign, previously announced on October 24, 2016, is focused on continuation of the Company’s ongoing Oil Window and Gas Window operations at its South Kakheti Complex.
While awaiting mobilization of remaining equipment from the United States, now expected to be delivered during the month of March, ongoing operations have focused on workover, production testing and related petrophysical analysis of previously stimulated wells at the Taribani Field area of the South Kakheti Complex.
Results from this work have notably demonstrated that, based on advanced log analysis, approximately 150 meters of gross oil and associated gas pay has now been identified for development across the extensively targeted Eldari Formation. Analysis of long term cumulative production rates from key wells, Niko#1, T-45 and Dino#2, have provided the basis reservoir performance modeling that indicates the average expected ten-year ultimate recovery (EUR) per stimulated gross meter is calculated to be approximately 8,000 barrels. This historical performance data now supports a greater recovery potential than initially envisaged.
As previously announced, the Company expects that the pending campaign, when completed, will significantly contribute towards its current objective of achieving pilot production rates of approximately 2,200 boe per day, which would result in monthly revenues of approximately U.S. $3 million at current commodity prices.
Further, the Company advises that it expects to convene its annual general meeting in March or April 2017. Notice of the annual general meeting will be sent to all shareholders in due course.
Steve C. Nicandros, Chairman and Chief Executive Officer commented:
“Despite equipment related delays in completing our pending stimulation campaign, the testing and associated analysis that has been conducted in the interim has revealed greater potential for oil and gas recovery than we previously envisaged. With this, our ongoing work continues to demonstrate a lower risk profile associated with this significant value for our company.”
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Frontera Resources Corporation
Cairn Financial Advisers LLP
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.
- 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.
- 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.
- 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.