Frontera Resources Regulatory News (FRR)

20 Mar 2008 07:00

Frontera Resources Corporation20 March 2008 FRONTERA RESOURCES CORPORATION Houston, Texas, U.S.A. - 20 March, 2008 OPERATIONS UPDATE, TARIBANI FIELD UNIT Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR;OTCQX Market, U.S.A. - Symbol: FRTE), an independent oil and gas exploration andproduction company, today announced an update of its operations at the TaribaniField Unit within Block 12, Georgia. Plans have now been finalized and are underway for the continuation of Zone 9development operations at the Taribani Field. After a period of delay beginningin late December due to changes in service provider schedules, application offrac pac completions on the Dino #2 and T-#45 wells is now scheduled to takeplace in April. A workover rig is currently rigging-up at the Dino #2 locationand will commence preparatory operations later this month. Simultaneously,specialized fracing equipment is being mobilized from various locations inEurope. Preliminary results from these completions are expected during the monthof May. In addition, drilling operations at the Taribani South #1 location are expectedto commence in April. In December, plans called for drilling operations tocommence as soon as rig mobilization was completed. However, operations weredelayed after it became necessary to terminate and replace the drillingcontractor. As a result, plans have been made to mobilize the Lapidoth IdecoSuper 7-11/II drilling rig to the Taribani South #1 location once it hascompleted drilling operations at the Lloyd #1 well, which is locatedapproximately fifty kilometers to the northeast in the Basin Edge Play Unit "C"Prospect. The Taribani South #1 well is designed to be completed in Zone 9 at adepth of approximately 2,200 meters and will also test Zones 14 and 15 at depthsof approximately 2,400 meters and 2,500 meters, respectively. Situatedapproximately 150 meters up-dip to the Dino #2 and T-#45 wells and approximately300 meters up-dip to the lowest known oil in Zone 9, this well will be the firstto be drilled near the crest of the Taribani Field structure and is expected tofurther delineate the size of the field. Steve C. Nicandros, Chairman and Chief Executive Officer, commented: "During the first quarter of 2008, amidst a very challenging environment forengaging oilfield services internationally, we have been able to successfullynegotiate the resumption of our development program at the Taribani Field, andwe are pleased that work is once again proceeding as planned. The Dino #2 andT-#45 completions, together with the drilling of the Taribani South #1 well,represent important milestones for our work at the Taribani Field and will setthe stage for ongoing development operations at Zone 9 and future development ofZones 14 and 15." The Taribani Field is a large, undeveloped oil field covering an area ofapproximately 80 square kilometers with productive horizons situated in Mioceneand Pliocene age reservoirs. These reservoirs are located at depths between2,200 meters and 3,500 meters. The independent consulting firm of Netherland,Sewell & Associates has assigned 118 million barrels of P3 reserves from Zones9, 14, 15 and 19 within the field. Additionally, Netherland, Sewell &Associates has assigned as much as 36 million barrels of unrisked resourcepotential associated with five deeper horizons in the field. Enquiries: Frontera Resources CorporationLiz WilliamsonVice President, Investor Relations and Corporate Communications(713) 585-3216lwilliamson@fronteraresources.com Brunswick Group LLPPatrick Handley / Mark Antelme+44 207 4045959 Notes to editors: 1. Frontera Resources Corporation is an independent Houston, Texas, U.S.A.-basedinternational oil and gas exploration and production company whose strategy isto identify opportunities and operate in emerging markets around the world.Frontera has operated in Georgia since 1997 where it holds a 100 percent workinginterest in a production sharing agreement with the government of Georgia. Thisgives Frontera the exclusive right to explore for, develop and produce oil andgas from a 5,060 square kilometer area in eastern Georgia known as Block 12.Frontera Resources Corporation shares are traded on the London Stock Exchange,AIM Market - Symbol: FRR and via the Over-the-Counter Market, U.S.A. - OTCQXSymbol: FRTE. For more information, please visit www.fronteraresources.com. Formore information regarding Frontera's work at the Taribani Field, please visit:http://www.fronteraresources.com/operations/taribanifieldunit.php 2. The reserve information herein was determined by the independent consultingfirm of Netherland, Sewell & Associates in accordance with the petroleumresource definitions adopted by the Society of Petroleum Engineers (SPE), WorldPetroleum Council (WPC) and the American Association of Petroleum Geologists(AAPG) in 2000. 3. This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions, potential drilling schedule, well results and ventures discussedin this release, as well as reserves, future drilling, development andproduction. Among the important factors that could cause actual results todiffer materially from those indicated by such forward-looking statements are:future exploration and development results; availability and performance ofneeded equipment and personnel; seismic data; evaluation of logs and cores fromwells drilled; fluctuations in oil and gas prices; weather conditions; generaleconomic conditions; and the political situation in Georgia and neighboringcountries. There is no assurance that Frontera's expectations will be realized,and actual results may differ materially from those expressed in theforward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange