LONDON (Alliance News) - Frontera Resources Corp said Friday it has secured a USD3 million funding from an undisclosed institutional investor for the Niko-1 well in Georgia.
In consideration for the funding, the investor will receive 60% of the well production from the completion of the work program until recovery of its investment, and 30% of the well production thereafter.
The oil and gas exploration company said it is expecting to commence drilling operation at Niko-1 well in December, following the receipt of a drilling permit from the State Agency of Oil and Gas earlier this month.
Frontera said combined pay for Zones 9, 14 and 15 at Niko-1 is 86.9 million with 14.0% porosity.
At well T-39, the company said combined pay for zones 9, 14 and 15 amounts to 102.5 million, with 14.2% porosity. At zone 13, 12.4 million combined pay interval has been confirmed.
Frontera shares were trading 8.1% higher at 0.47 pence.
