24 Nov 2009 07:00
Frontera Resources Announces Drilling Update at Shallow FieldsProduction Unit
HOUSTON, TX -- (MARKET WIRE) -- 11/24/09 -- Frontera ResourcesCorporation (AIM: FRR) (OTCQX: FRTE), an independent oil and gasexploration and production company, today announced an update ofdrilling operations at the Mirzaani #1 well that is currentlydrilling in an underdeveloped portion of the Mirzaani Field withinits Shallow Fields Production Unit, Block 12, in the country ofGeorgia.
Open-hole logging operations have recently been completed at theMirzaani #1 well and, based on well logs as well as data obtainedwhile drilling, analysis indicates that the well containsapproximately 146 meters of total net sandstones with averageporosity values of approximately 20-25%. These Lower Pliocene ageShiraki formation sandstones are distributed among seven known fieldreservoir horizons, Zones 12-18, that are situated at depths betweenapproximately 1,200 meters and 1,490 meters. As expected, multiplehydrocarbon shows were encountered while drilling.
Located approximately 520 meters to the southwest and as much as 20meters up-dip of the currently producing #73 well within the field,the Mirzaani #1 well commenced drilling during the month of Octoberin the underdeveloped southeastern portion of the Mirzaani Field andreached a planned total depth of approximately 1,500 meters duringthe second week of November.
Efforts are currently underway to prepare for production testing inearly December.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
"The successful drilling of the Mirzaani #1 well represents animportant step for Frontera in our progress to increase productionfrom the underdeveloped Mirzaani Field. Together with the resultsseen in our analysis to date, the significantly improved drillingperformance of this most recent well compared to the drilling of ourfirst well in the field earlier this year provides us with furtherencouragement for continued growth of the Shallow Fields ProductionUnit."
Discovered in 1932, the Mirzaani Field has historically producedapproximately 7 million barrels of oil, but contains many undrilledlocations across the structure. The Mirzaani #1 well is the secondnew well to be drilled in the field since 1972. In 2006, Fronteraacquired approximately 100 kilometers of new seismic data over thefield area as part of an effort to re-map and identify new potentialassociated with the field. Based on analysis to date at both fields,Frontera estimates Mirzaani Field to contain over 50 million barrelsof prospective resources within the Shallow Fields Production Unit.New reserve reports are expected to be completed following thecurrent work programs.
Frontera's Shallow Fields Production Unit is located in the centralportion of Block 12 and represents what the company believes to be anextensive trend of low-cost, low-risk oil and gas reserves. Containing four discovered yet undeveloped or underdeveloped fieldsthat have additional exploration potential, objectives are consideredto be traditional, well-known reservoirs of Pliocene and Miocene agethat are situated at depths from 10 meters to 1,500 meters.
Notes to editors:
1. Frontera Resources Corporation is an independent Houston, Texas,U.S.A.-based international oil and gas exploration and productioncompany whose strategy is to identify opportunities and operate inemerging markets around the world. Frontera has operated in Georgiasince 1997 where it holds a 100 percent working interest in aproduction sharing agreement with the government of Georgia. Thisgives Frontera the exclusive right to explore for, develop andproduce oil and gas from a 5,060 square kilometer area in easternGeorgia known as Block 12. Frontera Resources Corporation shares aretraded on the London Stock Exchange, AIM Market -- Symbol: FRR andvia the Over-the-Counter Market, U.S.A. -- OTCQX Symbol: FRTE. Formore information, please visit www.fronteraresources.com. For moreinformation regarding Frontera's work at the Shallow Fields ProductionUnit, please visit:www.fronteraresources.com/Operations.php?link_id=43.
2. Information on Reserve Estimates: The prospective resourcesestimates contained in this announcement were determined in accordancewith the petroleum resource definitions adopted by the Society ofPetroleum Engineers (SPE), World Petroleum Council (WPC) and theAmerican Association of Petroleum Geologists (AAPG) in 2000.Prospective resources are those quantities of petroleum which areestimated, on a given date, to be potentially recoverable fromundiscovered accumulations. Gerard Bono, Frontera's Vice Presidentand Chief Reservoir Engineer, who is a member of the SPE, is thequalified person who reviewed and approved the statements in thisannouncement and the prospective resources estimates associated withthe Mirzaani Field and Mtsare Khevi Field. These estimates are beingreviewed by Netherland, Sewell & Associates and will be released assoon as practicable.
3. This release may contain certain forward-looking statements,including, without limitation, expectations, beliefs, plans andobjectives regarding the potential drilling schedule, well resultsand other matters discussed in this release, as well as reserves,future drilling, development and production. Among the importantfactors that could cause actual results to differ materially fromthose indicated by such forward-looking statements are: futureexploration and development activities; availability and performanceof needed equipment and personnel; the company's ability to raisecapital to fund the planned exploration and development programs;seismic data; evaluation of logs, cores and other data from wellsdrilled; fluctuations in oil and gas prices; weather conditions;general economic conditions; the political situation in Georgia andrelations with neighboring countries; and other factors listed inFrontera's financial reports, which are available atwww.fronteraresources.com/Investors.php?link_id=23. There is noassurance that Frontera's expectations will be realized, and actualresults may differ materially from those expressed in theforward-looking statements.
Enquiries:
Frontera Resources CorporationLiz WilliamsonVice President, Investor Relations and Corporate Communications(713) 585-3216lwilliamson@fronteraresources.com