2 Jun 2015 07:00
For immediate release
2 June 2015
FRONTIER RESOURCES INTERNATIONAL PLC
("Frontier" or the "Company")
Operational Update: Sultanate of Oman
Block 38 Farm-Out Discussions
Frontier's 100%-owned Block 38 is located in the Rub Al Khali Basin in the southwest of the Sultanate of Oman and covers a surface area of approximately 17,425 square kilometers. A six year Exploration and Production Sharing Agreement (EPSA), comprising two three-year phases, was signed on 25 November 2012. Frontier is the operator. In April 2015, the Company announced that it had received approval to exchange the Phase 1 work commitment of a 3D seismic survey for an exploration well with a 2D seismic survey and that it would start discussions with the tender board to begin the process to select suitable contractors to complete this work program.
Subsequent to this recent agreed change in the work program, Frontier has entered into preliminary discussions with Middle East-based entities regarding a potential farm-in to Block 38. The Company anticipates that any formal farm-in agreement would include a carried interest for Frontier through the initial drilling program and the repayment to Frontier of a proportion of its sunk costs to date (which currently amount in total to US$1.6 million). Completion of any farm-out would be subject to formal documentation and due diligence and in respect of a transfer by Frontier of the operatorship of Block 38, would also be conditional on Oman regulatory approval.
As previously reported, during the past two years, Frontier has completed the re-processing of some of the existing 2D seismic data on the Block and has identified two potential structural leads not identified by previous operators. The few historic wells drilled in this very large block did not penetrate any of the geologic formations considered to comprise each of the new independent leads.
A further announcement will be made in due course.
Enquiries:
Frontier Resources International Plc
Neil Herbert, Chairman Tel: +44 07785 957784
Jack Keyes, Chief Executive Officer Tel: +1 (713) 962 0887
Beaumont Cornish Limited (Nomad) Tel: 0207 628 3396
Michael Cornish
Roland Cornish
Beaufort Securities Limited (Broker) Tel: 020 7382 8300
Saif Janjua
Yellow Jersey PR Limited (Financial PR)
Dominic Barretto Tel: +44(0) 7768 537 739
Anna Legge Tel: +44 (0) 7747 788 221
About Frontier:
Frontier Resources International Plc, which was founded in April 2008, is focused on onshore oil and gas exploration and development in the Middle East and Southern Africa where the Company has technical knowledge and expertise. The Company currently has three exploration projects in Oman, Zambia and Namibia.
Frontier's immediate objectives are to continue developing its core exploration projects towards first production particularly in Oman where the Company's knowledge base is most advanced because of the proximity to producing oil and gas fields and the availability of existing seismic and well data.
The Company is incorporated in the United Kingdom with its registered office in London. It also maintains a technical and commercial office in the United States in Houston, Texas. Additionally, to support its regional operations in Southern Africa and the Middle East, offices are maintained in Namibia, Zambia and Oman.
The Company's shares were admitted to AIM of the London Stock Exchange on 5 July 2013.