Frontera Resources Regulatory News (FRR)

18 Sep 2007 07:02

Frontera Resources Corporation18 September 2007 FRONTERA RESOURCES CORPORATION Houston, Texas, U.S.A. - 18 September, 2007 OPERATIONS UPDATE, BASIN EDGE PLAY UNIT Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol:FRR), an independent oil and gas exploration and production company, todayannounces that drilling operations at the Lloyd #1 well commenced, as planned,yesterday, September 17, at its Basin Edge Play Unit, Block 12, Georgia.Designed to evaluate multiple horizons, this well will target completion inprimary reservoir objectives at a total depth of approximately 2,700 meters. TheLloyd #1 well is expected to take approximately 50 days to reach total depth. Steve C. Nicandros, President and Chief Executive Officer, commented: "We are very pleased to have commenced drilling operations at this importantprospect. Our extensive historical preparations have positioned us well toevaluate the multiple objectives and associated enormous potential of this worldclass prospect. Drilling the Lloyd #1 well is the next step in what has thusfar proven to be a very encouraging exploration process related to the BasinEdge Play Unit's 'C' Prospect." September 2007: Drilling operations underway at the Basin Edge Play Unit, Lloyd #1 location.Frontera's objectives within the Basin Edge Play Unit are focused on accessingthe resource potential that is estimated by the independent consulting firm ofNetherland, Sewell and Associates to be in excess of one billion barrels ofrecoverable oil for the "B" and "C" Prospects. Of this total, prior to theacquisition of new seismic data, the "C" Prospect was estimated to contain asmuch as 500 million barrels of recoverable oil. The Basin Edge "B" and "C"Prospects are situated along the northern border of Block 12 and represent oneof the newest and potentially most prolific exploration plays in the Upper KuraBasin. Frontera's primary reservoir targets are located in the Cretaceous agecarbonate rocks, with secondary reservoir targets in the Miocene and Plioceneage clastic rocks as well as Jurassic carbonates. 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. 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 and ventures discussed in thisrelease, as well as reserves, future drilling, development and production. Amongthe important factors that could cause actual results to differ materially fromthose indicated by such forward-looking statements are future exploration anddevelopment results, availability and performance of needed equipment andpersonnel, seismic data, fluctuations in oil and gas prices, weather conditions,general economic conditions and the political situation in Georgia andneighboring countries. There is no assurance that Frontera's expectations willbe realized, and actual results may differ materially from those expressed inthe forward-looking statements. This information is provided by RNS The company news service from the London Stock Exchange