RNS - Dino2 Update21 May 2018 12:28
21 May 2018
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Frontera Resources Corporation
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("Frontera Resources" or "the Company")
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Well Dino-2 Update
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Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to provide a flow test update on Dino-2 well, situated in Taribani Complex of onshore Block 12, Georgia.
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As previously announced on 8 May 2018, extended well stimulation and testing program of the 78.8 m combined pay interval of target Zones 9, 14 and 15 of the Eldari A reservoir at Dino-2 well (the second well of the current three-well drilling/testing campaign) commenced on 7 May 2018 with perforation and mechanical stimulation of 3m interval of the Zone 15, situated between 2628m and 2631m. On 18 May 2018, 3m interval of the Zone 14, situated between 2543m and 2546m, has been perforated, mechanically stimulated and flow tested together with Zone 15.
The well naturally flowed light, sweet crude oil at a stabilised flow rate of 315 bbls per day. The intention is to continue to test the combined flow of Zones 14 and 15 and within a period of approximately 60 days, perforate and mechanically stimulate Zone 9 and produce from all target zones together. As previously announced,�in addition to these target Zones 9, 14 and 15, a 20.0m pay interval has been confirmed in Zone 13 and the�Company is also considering the perforation and stimulation of Zone 13 in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.
CPR estimates for Original Oil in Place in target Zones 9, 14 and 15 of the Eldari A reservoir in Taribani field are 689 million barrels, with 103.5 million barrels considered to be recoverable.�
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
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"We are hugely excited to have achieved a commercial production rate of 315 bbls/d from Zones 14 and 15. Dino-2 is the second well in a row, after well T-45, to confirm robust economics of the Taribani wells and commercial attractiveness of the Eldari formation of the Taribani field. The ongoing Block 12 Study Program, with the extensive geological and geophysical works, continues to confirm that the Eldari reservoir is very well developed within the Block 12 boundaries and extends well beyond 800sq.km wide Taribani Complex, where 80 sq.km Taribani field is situated. The current success of the Dino-2 testing is an important step forward towards achieving commercial development of the Taribani oilfield.�
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
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