LONDON (Alliance News) - Frontera Resources Corp on Thursday said operations to complete a six-well stimulation programme in Georgia have been delayed while it awaits delivery of additional pumping equipment.
The oil and gas exploration company said the additional equipment, coming from the US, was "deemed necessary" for execution of the planned program in order to reduce risk and enhance the desired outcome. The pending campaign is focused on continuation of Frontera's ongoing oil window and gas window operations in South Kakheti.
Frontera said it currently expects the remaining equipment to be delivered during March, but until then ongoing operations have been focused on workover, production testing and related petrophysical analysis in the Taribani Field area of the South Kakheti complex.
The group said results from this have "notably demonstrated" that around 150 metres of gross oil and associated gas pay has now been identified for development across the Eldari formation, based on advanced log analysis.
Frontera said analysis of long-term cumulative production rates from key wells at the site have provided the basis reservoir performance modelling, indicating the average expected ten-year ultimate recovery per stimulated gross metre is around 8,000 barrels.
The group said it expects the pending campaign will "significantly contribute" to its current objective of achieving pilot production of around 2,000 barrels of oil per day, resulting in monthly revenue of around USD3.0 million at current commodity prices.
"Despite equipment related delays in completing our pending stimulation campaign, the testing and associated analysis that has been conducted in the interim has revealed greater potential for oil and gas recovery than we previously envisaged," said Chairman and CEO Steve Nicandros.
Shares in Frontera were flat at 0.07 pence on Thursday morning.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
Copyright 2017 Alliance News Limited. All Rights Reserved.
