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.
During the last week of April, operations to apply artificially induced fractures to objective reservoirs within the Dino #2 well as part of the continuation of Zone 9 development operations at the Taribani Field have been successfully completed. A ten-meter oil-producing reservoir interval was hydraulically fraced at a depth of approximately 2,300 meters. Frac completions are designed to enhance well flow-rates and ensure sustainability of production. Production tubing is currently being installed in the well after which it will be placed into controlled production testing over the next thirty to sixty days in order to determine optimal sustainable flow rates.
The workover rig and frac equipment will now be mobilized a short distance within the Taribani Field from the Dino #2 location to the T-#45 location for a frac pac completion in Zone 9 at a depth of approximately 2,400 meters.
In addition, plans to drill the Taribani South #1 well have been rescheduled. It is now planned to drill this well using the new rig that is currently being procured for the Lloyd #1 well. It is anticipated that drilling would commence during the third quarter of 2008 following the completion of Lloyd #1 operations. 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 100 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:
“With the successful application of the first of two planned frac completions at the Taribani Field, we are pleased to be progressing with the development of Zone 9 amidst a strong commodity price environment. Commencement of production from Zone 9 will represent an important milestone in realizing value from a portion of the total recoverable reserves that our historical investments have identified in multiple reservoirs at the Taribani Field.”
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.