Frontera Resources Regulatory News (FRR)

31 Aug 2005 07:30

Frontera Resources Corporation31 August 2005 Operations News Update. August 31, 2005 FRONTERA RESOURCES ANNOUNCES AWARD OF DRILLING CONTRACT FOR 2005 DRILLING PROGRAM IN GEORGIA Houston, Texas U.S.A. (August 31, 2005): Frontera Resources Corporation (LondonStock Exchange, AIM Market - Symbol: FRR), an independent oil & gas explorationcompany based in Houston, Texas and operating in the country of Georgia, todayannounced the award of a drilling contract to Turkish Petroleum InternationalCompany LTD (TPIC), a subsidiary of Turkish Petroleum Corporation. Under theterms of the contract, TPIC will provide a drilling rig and certain associatedservices in support of Frontera's plans to drill lateral or horizontal wellextensions from a series of existing wells within Frontera's Taribani FieldUnit. This work will commence in the fourth quarter of this year. Under theagreement, Frontera is committed to utilizing the TPIC rig to drill three wells,with an option to drill up to six additional wells. 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 km2 with productive horizons situated in Miocene and Plioceneage reservoirs. These reservoirs are situated at depths of between 2,200 metersand 3,500 meters. The independent consulting firm of Netherland, Sewell &Associates has assigned 118 million barrels of P3 reserves from four of twelveidentified horizons within the field. Steve C. Nicandros, Frontera's Chairman and Chief Executive Officer, commented: "We are very pleased to be working with TPIC again. Our positive experienceand successful history with them was a significant factor in the decision tohave them join our team as drilling contractor in our Georgian operations.Through drilling the next three wells with TPIC's F-200 rig, we will gain abetter understanding of the Taribani Field's reservoirs and hopefully establishcommerciality." Frontera plans to commence the drilling of the first well at the Taribani Fieldduring the second half of November of this year. 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 was admitted to the Alternative Investment Market, operated by theLondon Stock Exchange, on 14 March 2005. 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 more information regarding Turkish Petroleum International Company LTD,please see www.tpic.com.tr This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions and ventures discussed in this release, as well as reserves, futureproduction and our ability to establish commercial production. Among theimportant factors that could cause actual results to differ materially fromthose indicated by such forward-looking statements are future exploration anddevelopment results, availability of needed equipment and personnel,fluctuations in oil and gas prices, general economic conditions and thepolitical situation in Georgia and neighboring countries. There is no assurancethat Frontera's expectations will be realized, and actual results may differmaterially from those expressed in the forward-looking statements. Enquiries Citigate Dewe Rogerson (+44 20 7638 9571) Martin Jackson / Rachel Lankester This information is provided by RNS The company news service from the London Stock Exchange