Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR; Over-the-Counter Market, U.S.A. – Symbol: FRTE), an independent oil and gas exploration and production company, today announced the completion of drilling operations at the T-#45 well at the Taribani Field Unit within Block 12, Georgia.
The T-#45 well is the second of an initial three well program that has commenced the company’s planned development of Zone 9. The well was drilled to a depth of approximately 2,400 meters and encountered Zone 9 oil bearing reservoirs at approximately 2,300 meters. In addition, the well drilled through additional potential pay zones below Zone 9. Analysis of geologic core and log data is currently in process in anticipation of a frac-pac completion. Due to service provider delays associated with mobilization and delivery of equipment to Georgia, application of frac-pac completions to the T-#45 and Dino #2 wells has been delayed and a final optimized schedule to complete these wells is currently being arranged with the service provider. Frontera intends to provide a further update of operations at the Taribani Field Unit reporting the final schedule.
Drilling operations at the Taribani Field will now continue with the commencement of operations at the Taribani South #1 location as soon as rig mobilization is completed.
Steve C. Nicandros, President and Chief Executive Officer, commented:
“During the fourth quarter of 2007, we have completed the Dino #2 and T-#45 wells as part of our planned drilling program at the Taribani Field this year. We are now looking forward to commencing the Taribani South #1 well. This important well will be drilled with particular anticipation, as it will be the first ever to be drilled on the crest of the large Taribani Field structure, some 900 feet up-dip from the lowest known oil in the field. Although our final frac-pac completion schedule has been unavoidably delayed due to a congested service company environment, operations at our Taribani Field Unit remain on a critical path to realize the significant potential value that our historical investments in this large undeveloped field have identified.”
The Taribani Field is a large, undeveloped oil field covering an area of approximately 80 square kilometers with productive horizons situated in Miocene and Pliocene age reservoirs. These reservoirs are located at depths 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 Zones 9, 14, 15 and 19 within the field. Additionally, Netherland, Sewell & Associates has assigned as much as 36 million barrels of unrisked resource potential associated with five deeper horizons in the field.
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. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market – Symbol: FRR and via the Over-the-Counter Market, U.S.A. – Pinksheets Symbol: FRTE. For more information, please visit www.fronteraresources.com.
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, well results 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; evaluation of logs and cores from wells drilled; 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.