15 Jul 2015 07:00
Houston, Texas, U.S.A. - 15 July 2015
FRONTERA RESOURCES CORPORATION
Frontera and Naftogaz of Ukraine Sign Strategic Memorandum of Understanding For Upstream and LNG Cooperation
Frontera Resources Corporation (AIM:FRR), an independent international oil and gas exploration and production company, today announces that on 13 July 2015 it signed a strategic Memorandum of Understanding ("MOU") with Ukraine's national energy company, National Joint Stock Company Naftogaz of Ukraine.
The MOU serves to establish a focused joint effort to work together in upstream exploration and production projects in Ukraine, as well as to study the possibility to bring liquefied natural gas (LNG) to Ukraine from Frontera's ongoing work in Georgia where it has identified combined prospective natural gas resources of as much as 12.9 trillion cubic feet (365 billion cubic meters) of gas-in-place, with as much as 9.4 trillion cubic feet (266 billion cubic meters) of recoverable prospective natural gas resources at the Mtsare Khevi Gas Complex and Taribani Field Complex. These natural gas resources were recently announced by Frontera earlier this year and confirmed in reports by the U.S.-based independent consulting firm of Netherland, Sewell & Associates.
The MOU was executed by Andriy Kobolyev, Chairman and Chief Executive Officer of Naftogaz of Ukraine, and Steve C. Nicandros, Chairman and Chief Executive Officer of Frontera. The signing took place in Washington, D.C. during the first U.S.-Ukraine Business Forum, hosted by the U.S. Chamber of Commerce in collaboration with the U.S. Department of Commerce.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
"We are very pleased to continue to advance our initiatives in Ukraine and, in particular, our relationship with Naftogaz. This important MOU reflects Frontera's ongoing focus to progress its Greater Black Sea Strategy by pursuing new growth throughout a region that contains significant underdeveloped and under-explored oil and gas potential.
Moreover, in conjunction with the significant natural gas resources that our ongoing operations in Georgia have identified, I strongly believe that our closer work with Naftogaz will open avenues to strategically supply Ukraine with LNG from across the Black Sea. This will serve to diversify the country's supply of natural gas and, by doing so, bring Georgia to the forefront as a strategic supplier of natural gas to Europe."
Enquiries:
Frontera Resources Corporation
Liz Williamson
Vice President, Investor Relations and Corporate Communications
(713) 585-3216
lwilliamson@fronteraresources.com
Nominated Adviser:
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Avi Robinson / Jo Turner
+44 (0) 20 7148 7900
Broker
Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0) 207 710 9610
Financial PR:
Buchanan
Helen Chan
+44 (0) 20 7466 5000
helenc@buchanan.uk.com
Notes to Editors:
1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-based international oil and gas exploration and production company whose strategy is to identify opportunities and operate in emerging markets in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com.
2. The Mtstare Khevi Gas Complex is an area of approximately 140 square kilometres and encompasses gas reservoir targets found between 300 metres and 5,000 metres in depth. Based on Frontera's internal estimates, analysis has revealed significant gas potential throughout this area of up to approximately 11 TCF of gas-in-place and up to approximately 9 TCF of recoverable gas resources. An April 2015 report by the independent consulting firm of Netherland, Sewell & Associates confirms prospective resources of as much as 8.29 TCF of gas-in-place for the Mtsare Khevi Gas Complex, with as much as 6.15 TCF of recoverable prospective resources.
3. The Taribani Field Complex is an area that encompasses approximately 1,400 square kilometres and includes the discovered yet undeveloped Taribani, Kila Kupra, Bayda and Iori fields within Block 12. Internal preliminary analysis suggests that there could be as much as 18 billion barrels of oil in place throughout this complex. Ongoing work continues to study and assess the viability of this analysis and larger scale development potential. Situated within the Taribani Field Complex, the Taribani Field's oil potential consists of 788 million barrels of original oil in place ("OOIP") at depths between 2,000 meters and 3,300 meters, independently assessed by Netherland, Sewell & Associates ("NSA") in 2005. In addition, Frontera estimates gas-in-place resources associated with deeper horizons at the Taribani Field to be as much as approximately 9 tcf from reservoir targets found between 3,400 metres and 5,000 metres in depth. An April 2015 report by NSA confirms prospective resources of as much as 4.62 TCF of gas-in-place associated with deeper gas bearing sands at the Taribani Field, with as much as 3.23 TCF of recoverable prospective resources from horizons situated between 3,400 meters and 5,400 meters in depth.
4. Information on Resource Estimates: The contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Gerard Bono, Frontera's Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved the statements in this announcement.
5. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company's ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia, Ukraine and relations with neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com. There is no assurance that Frontera's expectations will be realized, and actual results may differ materially from those expressed in the forward-looking statements.
6. Glossary of Terms: BCF - means Billion Cubic Feet of gas. TCF - means Trillion Cubic Feet of gas. Mcf - means Thousand Cubic Feet of gas. OOIP - means Original Oil in Place. Bopd - means Barrels of Oil Per Day.