Frontera Resources Regulatory News (FRR)

08 May 2018

Frontera Resources Corporation

("Frontera Resources" or "the Company")

Operations and Corporate Update

Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to provide the following update.

Taribani Complex, Well T-45

Extended well stimulation and testing program commenced on 8 April 2018. 6m (3m of Zone 14 and 3m of Zone 15) out of the identified 98.9m combined pay interval from Zones 9, 14 and 15 of the Eldari reservoir has been perforated, mechanically stimulated and flowed together. The well naturally flowed light, sweet crude oil at a stabilised flow rate of 270 bbls per day. The intention is to continue to test the combined flow of Zones 14 and 15 and, within a period of approximately 60 days, perforate and stimulate Zone 9 and produce from all zones together. As previously announced, in addition to these target Zones, a 14.9m pay interval has been confirmed in Zone 13. The Company is also considering the perforation and stimulation of Zone 13 in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.

Taribani Complex, Well Dino-2

Extended well stimulation and testing program commenced on 7 May 2018. 6m (3m of Zone 14 and 3m of Zone 15) out of the identified 78.8m of combined pay interval from target Zones 9, 14 and 15 will be perforated, mechanically stimulated and flow tested together. Zone 9 is intended to be perforated, stimulated and produced together with Zones 14 and 15 within a 60-90 day period from the commencement of testing of Zones 14 and 15. As previously announced, in addition to these target Zones, a 20m pay interval has been confirmed in Zone 13. The Company is considering the perforation and stimulation of Zone 13, in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.

Taribani Complex, Well T-39

Drilling (sidetracking) operations at this third well of the current three-well drilling campaign in the Taribani complex commenced on 5 May 2018. The drilling operations are expected to be completed within the month of May, reaching a total target depth of 2800m. Following completion of the drilling operations, testing of the well is expected to commence and, as previously announced, it is the intention that Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together in due course. 

Taribani Complex, Well Niko-1

The Company has submitted the drilling/sidetrack permit application to the State Agency of Oil and Gas for approval and is expecting to receive the permit by 21 May 2018. The intention is to sidetrack and drill Niko-1 well to a target depth of 2800m, stimulate Zones 9, 14 and 15 and produce them together in due course.

Mtsare Khevi Gas Complex, Well Ud-2

Extended testing program commenced on 21 April 2018. The Company perforated and mechanically stimulated 9.5m out of gross interval of 27m situated between 2519m and 2446m of Middle Miocene aged Zone. At the moment the well is in the clean out phase and, once stable natural gas flow is established, the Company will update the market in due course.

Corporate

The Company announces the retirement of Mr Andrew Szescila from the Company's Board of Directors, following more than twenty years of dedicated service to the Company. A successor non-executive director is planned to be named in due course.

Zaza Mamulaishvili, President and Chief Executive Officer, commented:

"I am pleased to report very encouraging results of the T-45 well testing program. The flow rate of 270 barrels of light sweet crude oil from only Zones 14 and 15 has slightly exceeded pre-test expectations, including the assumptions incorporated in a sample development well economics presented at the shareholders meeting on 25 January 2018, and potentially has made development well economics much more attractive. Very successful current drilling and stimulation operations reconfirmed that the Taribani development wells will require approximately $2.9m to be drilled and frack completed into Zones 9, 14 and 15. Interim test results from Zones 14 and 15, together with successful historical long term test results from Zone 9 and current oil price suggest that we will be recovering cost of each new well in approximately 8 to 10 months with a 10-year Estimated Ultimate Recovery of over 500,000 bbls of oil per well. CPR estimates for Original Oil in Place in Zones 9, 14 and 15 of the Eldari reservoir in Taribani are 689 million barrels, with 103.5 million barrels considered to be recoverable. CPR estimates for Taribani's Gareji reservoir are 4.6 Trillion Cubic Feet of Original Gas in Place, with 3.2 Trillion Cubic Feet considered to be recoverable."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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Notes to Editors:

About Frontera Resources Corporation

Frontera Resources Corporation is an independent, 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). Dustin Aro, Frontera's Vice President, Well Completion and Stimulation, is the qualified person who reviewed and approved the technical information contained in this announcement on behalf of Frontera Resources. Mr. Aro has extensive experience in the oil and gas industry and holds a Bachelor of Science in Engineering and a Bachelor of Science in Business Administration from Michigan Technological University.

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 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. OGIP - means Gas in Place. Bopd - means Barrels of Oil Per Day. PPG - means pounds-per-gallon. PSI - means pounds per square inch. SG - means Specific Gravity.