Frontera Resources, the Georgia focused oil and gas company, says that a new well has hugely increased the size of its Mtsare Khevi field.
So-called "well 32" was dug to a depth of 370 metres and the test results delivered a flow rate of approximately 12,500 cubic meters of gas per day.
Frontera's site is 10 kilometres from Georgia's national gas pipeline so the company hopes that infrastructure will now be put in place to connect its site to the grid.
The Chairman and Chief Executive of Frontera, Steve Nicandros, said of the find:
"The successful results achieved by the 32 well are extremely significant in that they not only serve to ... enhance the value of the Mtsare Khevi field's gas resources, but also confirm the presence of gas in the western portion of Block 12 which may lead to further upside prospectivity. "
He went on to add: "...the success achieved from recent drilling has significantly enhanced the value of the Mtsare Khevi field and will now set us on a course to accelerate gas sales into the local market where prices range from $4 to $6 per mcf [million cubic feet]. When these gas sales commence, the increase in production will provide Frontera with the additional cash flow to significantly enhance the profile of the Company and contribute to its target of reaching 5,000b/d by the end of 2013."
Frontera's share price jumped 11.86% in early trading on news of the find.
Frontera Resources, an oil and gas exploration and production company, saw its share leap over 60 per cent on Wednesday after it announced that it has received approval to proceed with the installation of the eight kilometre pipeline and related facilities within the Mtsare Khevi Field from the Georgian government. [13 Mar '13]
Frontera Resources, an oil and gas exploration and production company, is down following news that it has still not received the required permits to build an 8kn gas pipeline in Georgia at the Mtsare Khevi field. [7 Dec '12]
Frontera Resources, an oil and gas exploration and production company, has raised funds through a drawdown from its previously announced SEDA facility, with the funds being used to advance the company's work programmes. [19 Sep '12]
Frontera Resources, the Georgia- (USA) focused oil company has reported falling revenues for full year 2011. Crude oil sales fell from 8.3m dollar in 2010 to 7.4m dollars in 2011. The company also completed a restructuring during the year resulting in a net loss of 119.9m dollars compared to 63.9m dollars in 2010. Earnings per share came in at 13 cents. By 11:50 the shares had fallen 15.3 per cent. [29 Jun '12]
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