Operations Update, Taribani Field Unit, Georgia
Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil and gas exploration and production company, today announces an update on its operations in the Taribani Field Unit, Block XII, Georgia.
- Zone 9 development operations in progress.
- Plans for this year consist of the re-completion of Dino #2 well, followed by two new development wells.
- Eight additional Zone 9 wells planned in 2008.
- Specialized frac-pack completions designed to increase production rates and manage sediment control during production operations.
Steve C. Nicandros, President and Chief Executive Officer, commented:
“We are very pleased to have new operations underway at the Taribani Field and we look forward to advancing the development of Zone 9 throughout the rest of this year and beyond. Frontera’s historical investment in this large undeveloped field has positioned us well to now begin to realize the significant value that this effort has identified.”
Frontera is in the process of commencing its planned development program within Zone 9 at the Taribani Field Unit through the re-entry of the Dino #2 well. The Dynamic #1 rig arrived on location during the month of June and is currently in the final stages of rigging-up and passing requisite inspections prior to commencement of re-entry operations within the next two weeks. Once operations commence, Zone 9 intervals will be perforated between the depths of 2,274 – 2,285 meters and between 2,300 – 2,312 meters. Re-completion of the Dino#2 well is expected to take approximately 30 days. After perforation, the well will be put on controlled production until a frac-pack completion is applied in September, together with the next well to be drilled.
Once initial operations are completed at the Dino #2 well, the Dynamic #1 rig will immediately move a short distance within the field to commence drilling at the Taribani #45 location. This well is scheduled to commence in August and will take approximately fifty days to reach total depth and complete in Zone 9. A third well, the Taribani South #1 is scheduled to commence in October. Eight new additional wells are planned for 2008.
Frac-pack equipment will be mobilized to the Taribani Field in September and, once drilling is completed at the Taribani #45 well, a frac-pack completion is scheduled to be applied to this well and the Dino#2 well. Completions will take approximately three days per well. Frac-Pac technology is a designed solution to address possible formation sediment flow issues associated with oil production from Zone 9. This is anticipated to more efficiently achieve similar production/recovery results obtained from drilling short-reach horizontal wells. Sediment control will come from applying packing technology whereby screens are installed and gravel is pumped into the well as a slurry, “packing” it behind the screen at the formation face. The gravel and screen are designed to trap the reservoir formation sediment before it can enter the well and cause obstruction.
The Zone 9 development program is a thirty-six month, 20-well program, which represents approximately 17 percent of the reserves attributed to Zones 9, 14, 15 and 19 within the field.
Background on 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 situated 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
Houston, Texas U.S.A.
Office: +1 (713) 585-3216
Brunswick Group LLP
Patrick Handley / Mark Antelme
London: +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 per cent 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 forwardlooking 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.
For more information, please see www.fronteraresources.com.