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Operational Update

28 Oct 2014 07:00

RNS Number : 4033V
Frontier Resources International
28 October 2014
 



For immediate release

28 October 2014

FRONTIER RESOURCES INTERNATIONAL PLC

("Frontier" or the "Company")

Operational Update

The Board of Frontier (AIM Ticker: FRI), the AIM-traded international oil and gas exploration company with assets in Oman, Zambia and Namibia, is pleased to provide shareholders with an operational update.

Frontier is actively engaged in seeking industry partners to participate in its projects in Oman, Namibia and Zambia. As part of this farm-out process, the Company has established online data-rooms for Namibia and Zambia while data for Oman is available to interested parties for detailed review at the Houston office. At present over fifteen Companies have signed the Oman Confidentiality Agreement with several visiting the data room in Houston. Industry presentations by the Company's technical staff are ongoing. Status of the work completed on each is set out below.

Oman Block 38

· Frontier's 17,452 square kilometer Block 38 is located in the Dhofar Region of southwest Oman

· Block 38, as part of a larger concession, was operated by various companies including BP, PDO, Phillips and SINOPEC up to 2010 and sits within a petroleum province with oil production in Block 6 to the East operated by PDO and in various Blocks to the North

· 3 wells have been drilled on the Block, the most recent in 2001, providing geological and structural control

· 4,262 Kms of 2D seismic data were acquired by various operators between 1978 and 2005 with the most recent acquisition of ~1,300kms in 2005

· 817 Kms legacy 2D seismic across the Block were reprocessed in 2013 with significant improvements in image quality

· Reprocessing has led to identification of seismic markers previously unseen on legacy data with additional prospectivity

· An additional 574 Kms legacy 2D seismic were reprocessed during Q2 2014

· Gravity and magnetic modeling was undertaken in Q1 2014

 

Zambia Block 34

· Zambia Block 34 is located in the Kafue Trough in the southwestern region of the country and covers an area of approximately 6,427 square kilometers

· Zambia has a favorable fiscal regime with low political risk

· The Kafue Trough is considered to be a southwesterly extension of the East African Rift System

· A 2013 land gravity survey indicated the presence of a thick sedimentary section in the Block

· Geochemical analysis by Weatherford International of a core sample recovered from a shallow bore hole confirmed the presence of source rock

· An airborne, block-wide gravity and magnetic survey is in the planning stage

· Planning for a soil gas survey is also underway

 

Namibian Blocks 1717 and 1817

· Namibian Blocks 1717 and 1817 are located in the Owambo Basin in northern Namibia and cover an area of approximately 18,933 square kilometers

· Analysis of the results from a 2013 soil gas survey performed by ETI in Houston indicate strongly the presence of at least one oil bearing source rock underlying the Blocks

· 480 Kms of legacy 2D seismic data have been reprocessed

· Planning in ongoing for an additional soil gas survey, land gravity data, and a 2D seismic survey in 2014/2015

All licences are operated by Frontier which, in Namibia, has a 100% paying interest with NAMCOR carried for 10% through the exploration phase, and in Zambia, a 100% paying interest with local partner METPROSOL retaining a 10% carry. In Oman, Frontier has a 100% interest. The licence is held under an Exploration and Production Sharing Agreement with the Omani Ministry of Oil and Gas.

Commentating on today's update, Jack Keyes, Frontier's CEO said:

"Following our successful work programs to date, we are now actively looking for suitably qualified co-venturers to join Frontier in the next phase of exploration on each of our projects. The level of interest shown by industry has been very encouraging and we will update shareholders in due course".

 

Enquiries:

Frontier Resources International Plc

Jack Keyes, Chief Executive Officer

Tel: +1 (281) 920 0061

Barbara Spurrier, Finance Director

Tel: 020 3475 8108

Beaumont Cornish Limited (Nomad)

Michael Cornish

Tel: 020 7628 3396

Roland Cornish

 

SP Angel Corporate Finance LLP (Joint Broker)

Richard Hail

Tel: 020 3463 2260

Beaufort Securities Limited (Joint Broker)

Tel: 020 7382 8300

Saif Janjua

 

Yellow Jersey PR Limited (Financial PR)

Dominic Barretto

Tel: 07768 537 739

Anna Legge

Tel: 07747 788 221

 

A copy of this announcement is available from the Company's website www.friplc.com

 

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.

 

GLOSSARY OF TERMS

The following is a glossary of technical terms:

 "2D" means two dimensional

 "Seismic" means use of sound waves generated by controlled explosions to ascertain the nature of the subsurface geological structures. 2D records a cross section through the subsurface while 3D provides a three dimensional image of the subsurface

Qualified Persons Statement

The scientific and technical information contained within this announcement has been reviewed and approved by Michael (Jack) Keyes, CEO of the Company. Mr Keyes has over 30 years' experience in the international oil industry specialising in exploration operations, project management and corporate management. Mr. Keyes completed his formal education at the University of Tulsa, Oklahoma with a Master's Degree in Exploration Geophysics, and is a member, inter alia, of the American Association of Petroleum Engineers (AAPG), Society of Petroleum Engineers (SPE), Society of Exploration Geophysicists (SEG), Petroleum Exploration Society of Great Britain (PESGB) and is the Qualified Person for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements

Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

 

ENDS

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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