15 Sep 2014 07:42
FRONTERA RESOURCES CORPORATION
Frontera Resources Announces Results Of Ongoing Drilling Campaign And Gas Resources Study At Mtsare Khevi Gas Complex In Georgia
Houston, Texas, U.S.A. - 15 September 2014
Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company"), today announced that it has completed well #32a at the Mtsare Khevi Gas Complex in the country of Georgia.
Following announcement of the start of a new drilling campaign at the Mtsare Khevi Gas Complex in July, well #32a was drilled and recently completed. The well successfully encountered approximately 20 meters of objective pay sands from 330 meters to 350 meters. Testing of this objective has determined that it will be capable of delivering up to 700 Mcf per day of gas. An additional approximate 25 meters of pay sands were also encountered in the well and gas from these sands will be placed into production over time. The well is currently being connected to Frontera's gas gathering and sales infrastructure.
Mobilization to the next planned location is underway and drilling of well #34 is expected to commence before the end of September. The well will take approximately fifteen days to reach total depth. Well #34 is planned to be drilled to a depth of approximately 400 meters and is designed to continue to explore and expand the identified gas potential associated with the Mtsare Khevi Gas Complex.
Gas production operations have continued since commencement in April and are delivering gas to Georgia's national grid via the Company's gas gathering/processing facilities and associated 14 kilometer transportation system. This system accommodates gas production at a planned rate of approximately two million cubic feet per day of gas and during the month of August, new engineering design work commenced to increase capacity of the existing system.
As previously announced, concurrent with ongoing operations, extensive geologic studies have continued across the Mtsare Khevi Gas Complex and have now been completed, revealing extensive new gas resource potential associated with the Complex. These ongoing studies have been designed to evolve identification of gas potential associated with the Complex and have included the integration of current gas production performance; ongoing drilling results; historical geologic, geophysical and engineering databases; new geologic field work and outcrop sampling, as well as associated laboratory analysis.
Recently concluded internal studies have now increased gas in place estimates from as much as approximately 1.2 tcf to as much as approximately 11 tcf, with as much as approximately 9 tcf of recoverable gas possible from reservoir targets found between 300 metres and 5,000 metres in depth. In addition, the area of prospectivity associated with the Mtsare Khevi Gas Complex has grown from approximately 80 square kilometers to approximately 140 square kilometers. Independent assessment of Frontera's internal estimates will now commence during the fourth quarter of 2014.
Enquiries:
Frontera Resources Corporation
Liz Williamson
Vice President, Investor Relations and Corporate Communications
(713) 585-3216
lwilliamson@fronteraresources.com
Nominated Adviser and Joint Broker:
finnCap Limited
Matt Goode/Christopher Raggett
+44 (0) 20 7220 0500
Co-Broker:
Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0)20 7710 9610
Financial PR: Buchanan
Helen Chan
+44 (0)20 7466 5000
Notes to Editors:
1. 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.
2. Information on Resource Estimates: The 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). 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 the statements in this announcement.
3. 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.