Frontera Resources Regulatory News (FRR)

12 Nov 2007 07:01

Frontera Resources Corporation12 November 2007 Houston, Texas U.S.A. - November 12, 2007 OPERATIONS UPDATE, BASIN EDGE PLAY UNIT Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR;Over-the-Counter Market, U.S.A. - Symbol: FRTA), an independent oil and gasexploration and production company, today announced that drilling operations atthe Lloyd #1 well are continuing at its Basin Edge Play Unit, Block 12, Georgia.Designed to evaluate multiple horizons in Frontera's Basin Edge "C" Prospect,this well targets primary reservoir objectives at a total depth of approximately2,700 meters. At this time, the company expects the well to reach total depthin early December due to a variety of operational delays and contingencies notuncommon with exploratory drilling operations in frontier areas. Fronteraintends to report third quarter results and provide an update for all of itsoperations on November 15, 2007. Steve C. Nicandros, President and Chief Executive Officer, commented: "Frontera's operations in Georgia have not been affected by the recent politicalevents in Georgia and it has been business as usual for our company. To thisend, despite the operational delays, work at the Lloyd #1 well is progressing asplanned to target the multiple objectives and associated enormous potential ofthe Basin Edge 'C' Prospect." 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 suggesting an even larger structure, the "C"Prospect was estimated to contain as much as 500 million barrels of recoverableoil. The Basin Edge "B" and "C" Prospects are situated along the northern borderof Block 12 and represent what the company believes is one of the newest andpotentially most prolific exploration plays in the Upper Kura Basin. Frontera'sprimary reservoir targets are located in the Cretaceous age carbonate rocks,with secondary reservoir targets in the Miocene and Pliocene age clastic rocksas 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