22 Aug 2017 07:00
22 August, 2017
Frontera Resources Corporation
(the "Company")
Operations Update
Frontera Resources Corporation (AIM:FRR), a European focused independent oil and gas exploration and production company, is pleased to provide operations update related to its ongoing work at Block 12 in Georgia.
Taribani
The Eldari A reservoir contains a number of stacked pay zones. The Company first drilled the Dino-2 vertical well targeting Zone 9 of Eldari A reservoir in Taribani in 2008. Following stimulation, this well has provided the Company with a long term production history from which it can more accurately model further wells. Now the Company intends to stimulate multiple pay zones in a vertical well (targeting zones 9, 14 and 15). Total thickness of these zones is a multiple of Zone 9 and, based on the Eldari A reservoir modeling, it is expected that the stacked nature of the pay zones should substantially increase productivity per well when compared the historical production from the Dino-2 well. With crude oil at $50/bbl, the directors estimate that well cost could be recovered in less than one year from the commencement of production on the basis of a successful workover of an existing well.
For the remainder of the year 2017, the Company's ongoing work program will be focused on sidetracking and drilling the Dino 2 well, which will be drilled to a target depth of 2700m. It is intended that Zones 9, 14 and 15 will be stimulated and produced together.
Drilling contractor selection is in progress and the board expects to complete this in early September 2017. The Dino 2 Drilling permit is expected to be approved in October, with drilling operations to commence in November and well testing to start in December subject to there being no unforeseen circumstances.
In January 2018, it is the Company's intention to start deepening the T-45 well, to a target depth of 2650m, in order that Zones 9, 14 and 15 can be stimulated and produced together. It is expected that the drilling permit will be approved in November and well testing may be able to commence from February 2018.
Based on the Netherland, Sewell and Associates resource estimate (which is available on the Company's website), Zones 9, 14 and 15 of the Eldari A reservoir are estimated to contain about 700 million bbls of oil in place, with expected ultimate recovery of about 100 million bbls.
Mtsare-Khevi
The company will continue its work-over operations in the Ud-2 well of the Mtsare Khevi gas complex. The bridge plug will be set at 3340m and three gas-bearing intervals located between 2620m and 3320m will be perforated and tested. Of these intervals, two are in the Gareji formation and one interval is in the Oligocene age source rock (Maykop).
Work-over operations are expected to be completed by end of September, subject to there being no unforeseen circumstances, followed by perforation and testing in October.
Based on the Netherland, Sewell & Associates resource estimate, the Gareji and the Oligocene formations of the Mtsare-Khevi gas complex are estimated to contain 8.3 TCF of Gas in Place, with 6.15 TCF considered to be recoverable.
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
"This is a very exciting time for the Company to focus on Taribani operations. As a result of many years of advances along the learning curve of drilling, completion and stimulation, coupled with long-term production tests, the Company is now hoping to substantially increase well productivity by utilizing multi-zone frac completions successfully used in US and worldwide.
Additionally, we are very optimistic about testing gas-bearing intervals of the Udabno-2 well. Successful testing will prove up the tremendous natural gas reserves estimated by Netherland, Sewell & Associates and will initiate transformational development for the Company and, in time, the country as well."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources Corporation
Jesse Jefferies
(713) 585-3216
info@fronteraresources.com
Nominated Adviser:
Cairn Financial Advisers LLP
Jo Turner / Liam Murray
+44 (0) 20 7213 0880
Broker:
WH Ireland Limited
James Joyce / Alex Bond
+44 (0) 207 220 1666
Financial PR:
Abchurch
Tim Thompson
+44 (0) 20 7398 7700
fronterainfo@abchurch-group.com
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.
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. Bopd - means Barrels of Oil Per Day.