Houston, Texas, U.S.A. – 21 March 2016
FRONTERA RESOURCES CORPORATION
SOUTH KAKHETI GAS COMPLEX
OIL WINDOW OPERATIONS UPDATE
Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company (“Frontera” or the “Company”), is pleased to announce an operations update for its work in the South Kakheti Gas Complex’s Oil Window initiative, situated within its upstream portfolio in the country of Georgia.
Within the central portion of the South Kakheti Gas Complex, preparation and mobilization operations have been completed related to a four well frac campaign that will now commence this month. Results from this campaign will be instrumental in the continuation of the Company’s progress towards large-scale exploitation of significant associated oil-in-place volumes related to this area of the Complex. Within the area of current Oil Window operations at the Complex, the independent firm of Netherland, Sewell & Associates, have estimated 788 million bbls of oil in place..
One of the wells included in the current campaign is the Niko#1 well that can be considered to be typical of planned future wells designed for large-scale exploitation. As previously reported in September 2015, independent assessment has estimated this well to contain 209,681 bbls of oil/condensate and 223 mmcf of Proved Undeveloped reserves; 483,554 bbls of oil/condensate and 197 mmcf of Probable Undeveloped reserves, and; 1,143,599 bbls of oil/condensate and 1,146 mmcf of Possible Undeveloped reserves.
Recent petrophysical, geophysical and production related analysis associated with ongoing operations have resulted in a new technical understanding of the reservoir parameters associated with the central portion of the Complex. Because of this, studies conducted over the past several months have revealed new technical analogues to similar hybrid-unconventional reservoir plays in the United States that have been successfully developed in recent years.
Specifically, internal studies have focused on technical reservoir performance comparisons with similar plays in the United States. This focused analytical comparison and associated transfer of completion technology has provided the basis for Frontera’s evolved technical approach that is designed to optimize new well completions.
Results from the upcoming four well campaign will be instrumental in the final design of a larger planned program that is currently underway. As previously announced, Frontera has designed a 175 well plan for the central portion of the Complex that will employ multi-zone vertical well completions. This plan is anticipated to exploit approximately 690 million bbls of original oil in place associated with Netherland, Sewell & Associate’s independent assessment related to the area of current Oil Window operations at the Complex.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
“As work progresses at the South Kakheti Gas Complex, our technical work continues to bring us closer to realizing the significant value that our extensive historical investments have identified within this important asset. As is the case with analogous plays that we have extensively studied in the United States, persistent and focused technical investment ultimately results in unlocking a game-changing outcome. With the work we are currently advancing, we believe that the South Kakheti Gas Complex will fall into this same historical pattern.”
Frontera Resources Corporation
Vice President, Investor Relations and Corporate Communications
+1 713 585 3216
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Avi Robinson / Jo Turner
+44 (0) 20 7148 7900
Cornhill Capital Limited
+44 (0) 207 710 9610
+44 (0) 20 7466 5000
Notes to Editors:
About Frontera Resources Corporation
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 in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market – Symbol: FRR. For more information, please visit www.fronteraresources.com.
1. Information on Resource Estimates: The independent estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Internal resources estimates were determined by the Company. Gerard Bono, Frontera’s Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved both independent and internal estimates in this announcement.
2. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company’s ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera’s financial reports, which are available at www.fronteraresources.com. 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.
3. Glossary of Terms: BCF – means Billion Cubic Feet of gas. TCF – means Trillion Cubic Feet of gas. Mcf – means Thousand Cubic Feet of gas. OOIP – means Original Oil in Place. Bopd – means Barrels of Oil Per Day. Definitions related to other terms can be found within independent reports posted on Frontera’s website.