Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR; Over-the-Counter Market, U.S.A. – Symbol: FRTA), an independent oil and gas exploration and production company, today announced that drilling operations at the Lloyd #1 well are continuing at its Basin Edge Play Unit, Block 12, Georgia. Designed to evaluate multiple horizons in Frontera’s Basin Edge “C” Prospect, this well targets primary reservoir objectives at a total depth of approximately 2,700 meters. At this time, the company expects the well to reach total depth in early December due to a variety of operational delays and contingencies not uncommon with exploratory drilling operations in frontier areas. Frontera intends to report third quarter results and provide an update for all of its operations on November 15, 2007.
Steve C. Nicandros, President and Chief Executive Officer, commented:
“Frontera’s operations in Georgia have not been affected by the recent political events in Georgia and it has been business as usual for our company. To this end, despite the operational delays, work at the Lloyd #1 well is progressing as planned to target the multiple objectives and associated enormous potential of the Basin Edge ‘C’ Prospect.”
Frontera’s objectives within the Basin Edge Play Unit are focused on accessing the resource potential that is estimated by the independent consulting firm of Netherland, Sewell and Associates to be in excess of one billion barrels of recoverable oil for the “B” and “C” Prospects. Of this total, prior to the acquisition of new seismic data suggesting an even larger structure, the “C” Prospect was estimated to contain as much as 500 million barrels of recoverable oil. The Basin Edge “B” and “C” Prospects are situated along the northern border of Block 12 and represent what the company believes is one of the newest and potentially most prolific exploration plays in the Upper Kura Basin. Frontera’s primary reservoir targets are located in the Cretaceous age carbonate rocks, with secondary reservoir targets in the Miocene and Pliocene age clastic rocks as well as Jurassic carbonates.
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
Brunswick Group LLP
Patrick Handley / Mark Antelme
+44 207 4045959
Notes to editors:
1. 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 around the world. Frontera has operated in Georgia since 1997 where it holds a 100 percent 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.
2. The reserve information herein 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.
3. 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, future drilling, development and 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, 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.