Frontera Resources Regulatory News (FRR)

9 Jan 2007 07:01

Frontera Resources Corporation09 January 2007 FRONTERA RESOURCES CORPORATION 9 January 2007 BASIN EDGE PLAY UNIT, GEORGIA - "C" PROSPECT UPDATE Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol:FRR), an independent oil and gas exploration and production company, todayannounces an update on its operations in the Basin Edge Play Unit, Block XII,Georgia. Summary: • Results of 80 square kilometer 3D seismic survey over the "C" prospect confirms larger than previously mapped structure that had been previously estimated to contain as much as 500 million barrels of recoverable oil. • Target Cretaceous reservoir objectives identified at depths from 2,700 meters - 3,700 meters. • Advanced seismic processing technology (AVO) shows potential presence of hydrocarbons within the "C" prospect. • Drilling location selected for Basin Edge-C#1 well with site preparation underway. • Exploration drilling to commence in Q2 2007. Steve C. Nicandros, Chairman and Chief Executive Officer, commented: "We are extremely encouraged by the excellent results of our 2D and 3Dgeophysical programs over the past year. The "C" prospect has emerged as aprospect of rare scale and we are very fortunate to have been able to evolve itin a methodical manner that is technically responsible and commensurate with theprospect's significant potential. Work is currently underway to drill it as soonas possible in 2007." Enquiries: Frontera Resources Corporation Liz WilliamsonVice President Investor Relations and Corporate Communications(713) 585-3216lwilliamson@fronteraresources.com Brunswick Group LLPPatrick Handley / Mark Antelme+44 207 4045959 During 2006, processing and interpretation of approximately 165 kilometers ofnew 2D seismic data acquired by Frontera over the "C" prospect revealed a large,independent, four-way structural closure with an area of approximately 55 squarekilometers. As a result, Frontera prioritized this significant prospect forexploration drilling within the broader Basin Edge Play Unit located in thenortheastern portion of Block 12. Based on the encouraging results of the 2D seismic program, Frontera acquired an80 square kilometer 3D seismic survey over the "C" prospect that was completedin June 2006. Processing and interpretation results of the 3D survey have nowconfirmed that the prospect is larger than initially estimated and provide newdetailed imaging of its lateral and vertical limits, as well as the extensionsof fault blocks and possible fracture systems within the prospect. The 3D dataconfirms that the prospect has a structural height of approximately 1,000meters. Most significantly, the primary target Cretaceous reservoirs have beenidentified on the basis of seismic attributes at depths from 2,700 meters to3,700 meters. The use of specialized Advanced Versus Offset (AVO) technology inthe processing of the new 3D data has revealed the possible presence ofhydrocarbons within structural closure. Frontera has now selected a drilling location for the Basin Edge-C#1 well andhas commenced a plan to construct the selected drill-site, which includes theupgrading of roads leading to the location. Drilling of the first well at the"C" prospect is expected to commence during Q2 of 2007. Frontera's objectives within the Basin Edge Play Unit remain focused onaccessing the resource potential that is estimated by the independent consultingfirm of Netherland, Sewell and Associates to be in excess of one billion barrelsof recoverable oil for the "B" and "C" Prospects. Of this total, prior to theacquisition of new seismic data, the "C" prospect was estimated to contain asmuch as 500 million barrels of recoverable oil. The Basin Edge "B" and "C"Prospects are situated in the Cretaceous Carbonate Play which lies along thenorthern border of Block 12 and represents one of the newest and potentiallymost prolific exploration plays in the Upper Kura Basin. Frontera's primaryreservoir targets are located in the Cretaceous age carbonate rocks, withsecondary reservoir targets in the Jurassic, Miocene and Pliocene age clasticrocks. Notes to editors: 1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-basedinternational oil and gas exploration and production company whose strategy isto identify opportunities and operate in emerging markets around the world.Frontera has operated in Georgia since 1997 where it holds a 100 per centworking interest in a production sharing agreement with the government ofGeorgia. This gives Frontera the exclusive right to explore for, develop andproduce oil and gas from a 5,060 square kilometer area in eastern Georgia knownas Block 12. 2. The reserve information herein was determined by the independent consultingfirm of Netherland, Sewell & Associates in accordance with the petroleumresource definitions adopted by the Society of Petroleum Engineers (SPE), WorldPetroleum Council (WPC) and the American Association of Petroleum Geologists(AAPG) in 2000. 3. This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions, potential drilling schedule and ventures discussed in thisrelease, as well as reserves, future drilling, development and production. Amongthe important factors that could cause actual results to differ materially fromthose indicated by such forward-looking statements are future exploration anddevelopment results, availability and performance of needed equipment andpersonnel, seismic data, fluctuations in oil and gas prices, weather conditions,general economic conditions and the political situation in Georgia andneighboring countries. There is no assurance that Frontera's expectations willbe realized, and actual results may differ materially from those expressed inthe forward-looking statements. For more information, please see www.fronteraresources.com. This information is provided by RNS The company news service from the London Stock Exchange