Frontera Resources Corporation (London Stock Exchange, AIM Market – Symbol: FRR), an independent oil and gas exploration and production company, today announced the continuation of development drilling operations at the Taribani Field Unit within Block 12, Georgia. The Taribani #45 (T-45) well commenced on Wednesday, October 10th and is expected to take approximately 50 days to reach a total depth of 2,400 meters.
Steve C. Nicandros, President and Chief Executive Officer, commented:
“The commencement of drilling operations at the T-45 well is the latest milestone achieved in our continuation of a Zone 9 development program for the Taribani Field Unit. Our progress to date at both the Dino #2 and T-45 wells represents steady progress toward our goal of realizing the significant 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.
The T-45 is the second of three wells scheduled for workover or drilling in 2007 as part of the Company’s Zone 9 development program, a 36-month, 20-well program targeting approximately 17 percent of the estimated reserves attributed to Zones 9, 14, 15 and 19 within the field. The first well – the Dino #2 – was re-completed in Zone 9 during September 2007 and will receive a frac-pack completion once the T-45 well is drilled and has been completed in the same manner. A third well – the Taribani South #1 – is scheduled to commence drilling in the fourth quarter of this year, and eight new wells are planned for 2008.
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. 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 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.