LONDON (Alliance News) - Frontera Resources Corp said Tuesday that tests done at its Georgian oil field have "slightly exceeded" expectations.
The extended well stimulation and testing program done at the T-45 Well in the Taribani complex "naturally flowed light, sweet" crude oil at a stabilised flow rate of 270 barrels per day. Frontera's intention is to continue to test the combined flow within a period of about 60 days.
The oil & gas exploration company said it will update the market with the results from its Dino-2 Well, T-39 Well and Niko-1 Well in the Taribani complex in "due course". Similarly, Frontera will report the results from the Ud-2 Well in the Mtsare Khevi gas complex when they are available.
The company also announced that Non-Executive Director Andrew Szeclia will be stepping down from the board after 20 years service. A successor non-executive director is planned to be named in "due course".
President and Chief Executive Officer Zaza Mamulaishvili said: "I am pleased to report very encouraging results of the T-45 well testing program. The flow rate of 270 barrels of light sweet crude oil from only Zones 14 and 15 has slightly exceeded pre-test expectations, and potentially has made development well economics much more attractive.
"Very successful current drilling and stimulation operations reconfirmed that the Taribani development wells will require approximately USD2.9 million to be drilled and frack completed into Zones 9, 14 and 15", Mamulaishvili added.
Shares in Frontera were down 9.3% Tuesday to 0.49 pence each.
