Frontera Resources Regulatory News (FRR)

31 May 2006 07:03

Frontera Resources Corporation31 May 2006 Operations News Update. FRONTERA RESOURCES BEGINS DRILLING OPERATIONS ON ITS SECOND OIL WELL IN THE COUNTRY OF GEORGIA Houston, Texas U.S.A. (May 31st, 2006): Frontera Resources Corporation (LondonStock Exchange, AIM Market - Symbol: FRR), an independent oil and gasexploration and production company, today announces it has commenced the secondof three planned oil wells in the Taribani Field Unit in the country of Georgia. Well #23 is the second of a three-well drilling program Frontera expects tocomplete this year in the Taribani Field. Last month, Frontera announced it hadcompleted drilling operations on its first well in the series, the Dino #2,which currently is undergoing testing operations. Well #23 is locatedapproximately 500 meters to the southwest of the Dino #2 and is designed for ahorizontal completion into the Pliocene age oil bearing reservoir interval, Zone9, at a total depth of approximately 2,200 meters. It is expected to takeapproximately 40 days to reach total depth. Once total depth is reached, thecompany anticipates the testing phase of Well #23 will take approximately 90days, similar to the Dino #2. The planned three-well program is designed to reenter existing wells in theTaribani Field and focuses on establishing sustainable commercial productionfrom undeveloped oil bearing horizons that were identified by wells drilled overtwenty years ago. Frontera believes targeted horizons can be effectivelydeveloped and produced with the use of conventional horizontal drilling,completion and associated production engineering techniques that the company hastailored specifically for the Taribani Field. Extensive testing results fromthe three-well program will provide Frontera engineers with the necessarytechnical data they need to determine whether the Taribani Field can becommercially developed. Once drilling operations at Well #23 are complete, the F-200 rig will be used todrill the third well, the Niko #1. The Niko well is designed to evaluatemultiple horizons within the field, with a horizontal completion into Zone 19 asits primary objective at a total depth of approximately 2,900 meters. Located in eastern Georgia within Frontera's license area known as Block 12, theTaribani Field is a large, undeveloped oil field covering an area ofapproximately 80 km. sq. with productive horizons situated in Miocene andPliocene age reservoirs. These reservoirs are situated at depths of between2,200 meters and 3,500 meters. The independent consulting firm of Netherland,Sewell & Associates has assigned 118 million barrels of P3 reserves from four of12 identified horizons within the field. Steve C. Nicandros, Frontera's Chairman and Chief Executive Officer, commented: "We remain focused on the drilling and testing of our three-well program andwill use the collective results to determine whether the Taribani Field can becommercialized using conventional horizontal drilling, completion and productionengineering techniques. Thus far, the data collected while drilling the Dino #2well have greatly increased our understanding of the field and have supportedour overall hypothesis that the potential for commercialization exists. To date,our operations are on schedule and progressing according to our plan. We lookforward to analyzing the data collected from all three wells - the Dino #2, Well#23 and Niko #1 - to help us conclude whether or not a successful commercialfield development is possible in the Taribani Field." About Frontera Frontera Resources Corporation is an independent Houston, Texas, U.S.A.- basedinternational oil and gas exploration and production company whose strategy isto identify and operate opportunities in emerging markets around the world.Frontera has operated in Georgia since 1997 where it holds a 100 per centworking interest in a production sharing agreement with the government ofGeorgia. This gives Frontera the exclusive right to explore for, develop andproduce oil and gas from a 5,060-square-kilometer area in eastern Georgia knownas Block 12. For more information, please see www.fronteraresources.com . For moreinformation regarding Frontera's operations at the Taribani Field Unit, pleasesee www.fronteraresources.com/operations/taribanifieldunit.php . For more information regarding Netherland, Sewell and Associates, please seewww.netherlandsewell.com . This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions, potential drilling schedule and ventures discussed in thisrelease, as well as reserves and future production. Among the important factorsthat could cause actual results to differ materially from those indicated bysuch forward-looking statements are future exploration and development results,availability and performance of needed equipment and personnel, the finalresults of the processing of seismic data, fluctuations in oil and gas prices,weather conditions, general economic conditions and the political situation inGeorgia and neighboring countries. There is no assurance that Frontera'sexpectations will be realized, and actual results may differ materially fromthose expressed in the forward-looking statements. The reserve information in this press release was determined by the independentconsulting firm of Netherland, Sewell & Associates in accordance with thepetroleum resource definitions adopted by the Society of Petroleum Engineers(SPE), World Petroleum Council (WPC) and the American Association of PetroleumGeologists (AAPG) in 2000. Enquiries Citigate Dewe Rogerson (+44 20 7638 9571)Martin Jackson This information is provided by RNS The company news service from the London Stock Exchange