6 Sep 2017 07:00
6 September 2017
Frontera Resources Corporation
("Company")
Mobilization of Workover Rig to Ud- 2 well
Frontera Resources Corporation (AIM: FRR), a European focused independent oil and gas exploration and production company, is pleased to announce the mobilization of a workover rig to Ud-2 well, situated inside the 950 square km Mtsare Khevi Gas Complex area located in onshore Block 12 in Georgia.
Block 12 covers 5,060 square km in the Kura Basin of eastern Georgia and contains existing significant gas discoveries in the Miocene-aged Gareji and deeper Oligocene-aged Maykop reservoirs.
Existing oil and gas export pipelines and domestic gas distribution infrastructure run through Block 12. A state-owned 230 MW gas power plant is also located in the Block 12 area, with a second plant of the same capacity expected to be built in 2020.
The Ud-2 well had been drilled by a previous operator with significant gas shows recorded while drilling in the Gareji and Maykop reservoirs between 2450m and 5289m, with drilling mud weights of 17,5 ppg and 17,9 ppg respectively. As previously announced, based on the Netherland, Sewell & Associates resource estimate, the Gareji and the Maykop reservoirs of the Mtsare-Khevi Gas Complex are estimated to contain 8.3 TCF of Gas in Place (OGIP) with 6.15 TCF considered to be recoverable.
The workover rig will execute operations to clean the well, retrieve the packer and set the bridge plug at 3340m, following which three gas-bearing intervals located between 2620m and 3320m will become accessible for perforation and extended testing. Of these intervals, two are in the Gareji and one is in the Maykop formation.
Workover operations are expected to be completed by the end of September, followed by well testing to commence in October.
The Company intends, within approximately 6 weeks after completion of well testing, to connect the Ud-2 well with the Mtsare Khevi gas processing facility which is situated18 km from the well location and is directly linked with the national gas distribution infrastructure. This will allow swift commencement of sales of gas produced from this well.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources Corporation
Zaza Mamulaishvili
(713) 585-3216
info@fronteraresources.com
Nominated Adviser:
Cairn Financial Advisers LLP
Jo Turner / Liam Murray
+44 (0) 20 7213 0880
Broker:
WH Ireland Limited
James Joyce / Alex Bond
+44 (0) 207 220 1666
Financial PR:
Abchurch
Tim Thompson
+44 (0) 20 7398 7700
fronterainfo@abchurch-group.com
Notes to Editors:
About Frontera Resources Corporation
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.
1. Information on Resource Estimates: The independent 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). Internal resources estimates were determined by the Company. 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 both independent and internal estimates in this announcement.
2. 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 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.
3. 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. PPG - means pounds-per-gallon.