11 Apr 2017 07:00
FRONTERA RESOURCES CORPORATION
Frontera Resources Files Notice
of Feasibility of Commercial Production In Georgia
Houston, Texas U.S.A. - 11 April 2017
Frontera Resources Corporation (AIM: FRR), an independent oil and gas exploration and production company, is pleased to announce that Frontera Resources Georgia Corporation, a fully-owned subsidiary of the Company, filed a Notice of Feasibility of Commercial Production ("The Notice") related to its operations in the country of Georgia.
The Notice relates to the Company's ongoing work within its Block 12 license area and has been filed with the Georgian state-owned oil and gas company in accordance with the terms and provisions of the Company's production sharing agreement. This is an important milestone for Frontera, as the Notice is primarily associated with operations targeting the substantial oil bearing Eldari Formation and other related geologic targets.
Frontera's work to date has produced notable results, demonstrating that analysis of long term cumulative production rates from key wells have now provided the basis for reservoir performance modeling. This supports the conclusion that commercial production associated with the extensively distributed Eldari Formation is feasible. These results and conclusions have been achieved through successful evolution of completion designs; advancement of integrated technical analysis of associated reservoir performance, and; related geologic, geophysical and petrophysical studies.
Based on the Company's recent filing of the Notice, technical work will now continue in order to establish feasibility of commercial production across all of Block 12 related to the Eldari Formation and its related geologic targets.
The Eldari Formation and other related targets are estimated to contain more than 1 billion barrels of original oil in place ("OOIP") as independently assessed for the Company by Netherland, Sewell & Associates ("NSA").
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
"This important Notice represents the results of our extensive historical investment and associated technical work in Block 12. We have long believed in the giant potential associated with the Eldari Formation and our recently concluded technical analysis has enabled us to validate and reach this important milestone.
Like the giant onshore plays that have successfully been uncovered with similar technical efforts in our home state of Texas over the past decade, uncovering the extensive potential associated with the Eldari Formation has been very exciting. In this context, our work represents yet another example of how such dedicated technological efforts can bring material, transformational results and ultimately make a meaningful contribution to Georgia's energy independence."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources Corporation
Jesse Jefferies
+1 (713) 585-3216
info@fronteraresources.com
Financial PR/IR
Abchurch
Rebecca Clube / Jenny Lee
+44 (0) 20 7398 7700
fronterainfo@abchurch-group.com
Nominated Adviser
Cairn Financial Advisers LLP
Jo Turner/ Liam Murray
+44 (0) 20 7213 0880
Broker
Cornhill Capital Limited
Nick Bealer
+44 (0) 207 710 9610
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.