Frontera Resources Regulatory News (FRR)

2 Dec 2005 07:01

Frontera Resources Corporation02 December 2005 Operations News Update. December 2, 2005 FRONTERA RESOURCES ANNOUNCES UPDATE OF DRILLING OPERATIONS AT THE TARIBANI FIELD UNIT IN GEORGIA Houston, Texas U.S.A. (December 2, 2005): Frontera Resources Corporation (LondonStock Exchange, AIM Market - Symbol: FRR), an independent oil & gas explorationand production company based in Houston, Texas and operating in the country ofGeorgia, today provided an update on its planned horizontal drilling program atthe Taribani Field Unit. Frontera has announced the designation of the first well for reentry horizontaldrilling operations as the Dino #2 well at the Taribani Field. The Dino #2 wellis designed to evaluate multiple horizons within the field, with a primaryobjective of a final horizontal completion into horizon 15 at a depth ofapproximately 2,700 meters. The first phase of drilling operations at the Dino #2 well commenced on November2, 2005 and was successfully completed by November 15, 2005. These initialoperations included reentering the well with drill pipe to clean and wash itfree of debris; logging and pressure testing of the existing well bore toconfirm casing integrity; and the setting of a bottom-hole cement plug to ensurea sound well-bore from which sidetrack drilling operations will next commence.The well is now ready for drilling to the targeted reservoir horizons and aplanned horizontal completion into horizon 15. On November 15, 2005 the TuHaZJ-30 rig was moved from the Dino #2 location to continue preparation operationson other existing wells that have been designated as part of Frontera's initialdrilling program at the Taribani Field. Frontera is currently in the process of mobilizing the TPIC F-200 rig to theDino #2 location to continue the planned drilling phase of operations. Thecompany expects to commence the drilling phase of operations at this location inmid-January 2006. This start date is approximately six weeks later thananticipated due to minor delays in the delivery of casing and other materialsnecessary for operations. Current market conditions have limited theavailability of high quality, API standard oil field equipment. Having reviewedthe availability of alternative materials, Frontera believes that the shortdelay in commencing the drilling phase of operations at the Dino #2 well ispreferable and will uphold its desire to maintain prudent operational standardsby not compromising the quality of materials that will be used in operations. 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 have successfully completed the initial phase of ouroperations at the Dino #2 well at the Taribani Field. As we move forward with abrief pause in the commencement of the drilling phase, we want to makeabsolutely certain that we maintain a high standard of quality in ouroperations. This prudent approach will not only increase our chances ofsuccess, but it will also decrease our overall costs." 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 . 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 / George Cazenove This information is provided by RNS The company news service from the London Stock Exchange