Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR; OTCQX Market, U.S.A. – Symbol: FRTE), an independent oil and gas exploration and production company, today announced an update of its operations at the Taribani Field Unit within Block 12, Georgia.
Plans have now been finalized and are underway for the continuation of Zone 9 development operations at the Taribani Field. After a period of delay beginning in late December due to changes in service provider schedules, application of frac pac completions on the Dino #2 and T-#45 wells is now scheduled to take place in April. A workover rig is currently rigging-up at the Dino #2 location and will commence preparatory operations later this month. Simultaneously, specialized fracing equipment is being mobilized from various locations in Europe. Preliminary results from these completions are expected during the month of May.
In addition, drilling operations at the Taribani South #1 location are expected to commence in April. In December, plans called for drilling operations to commence as soon as rig mobilization was completed. However, operations were delayed after it became necessary to terminate and replace the drilling contractor. As a result, plans have been made to mobilize the Lapidoth Ideco Super 7-11/II drilling rig to the Taribani South #1 location once it has completed drilling operations at the Lloyd #1 well, which is located approximately fifty kilometers to the northeast in the Basin Edge Play Unit “C” Prospect. The Taribani South #1 well is designed to be completed in Zone 9 at a depth of approximately 2,200 meters and will also test Zones 14 and 15 at depths of approximately 2,400 meters and 2,500 meters, respectively. Situated approximately 150 meters up-dip to the Dino #2 and T-#45 wells and approximately 300 meters up-dip to the lowest known oil in Zone 9, this well will be the first to be drilled near the crest of the Taribani Field structure and is expected to further delineate the size of the field.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
“During the first quarter of 2008, amidst a very challenging environment for engaging oilfield services internationally, we have been able to successfully negotiate the resumption of our development program at the Taribani Field, and we are pleased that work is once again proceeding as planned. The Dino #2 and T-#45 completions, together with the drilling of the Taribani South #1 well, represent important milestones for our work at the Taribani Field and will set the stage for ongoing development operations at Zone 9 and future development of Zones 14 and 15.”
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. – OTCQX Symbol: FRTE. For more information, please visit www.fronteraresources.com. For more information regarding Frontera’s work at the Taribani Field, please visit:
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.