Frontera Resources Regulatory News (FRR)

1 May 2008 07:01

Frontera Resources Corporation01 May 2008 FRONTERA RESOURCES CORPORATION Houston, Texas, U.S.A. - May 1, 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. During the last week of April, operations to apply artificially inducedfractures to objective reservoirs within the Dino #2 well as part of thecontinuation of Zone 9 development operations at the Taribani Field have beensuccessfully completed. A ten-meter oil-producing reservoir interval washydraulically fraced at a depth of approximately 2,300 meters. Frac completionsare designed to enhance well flow-rates and ensure sustainability of production.Production tubing is currently being installed in the well after which it willbe placed into controlled production testing over the next thirty to sixty daysin order to determine optimal sustainable flow rates. The workover rig and frac equipment will now be mobilized a short distancewithin the Taribani Field from the Dino #2 location to the T-#45 location for afrac pac completion in Zone 9 at a depth of approximately 2,400 meters. In addition, plans to drill the Taribani South #1 well have been rescheduled.It is now planned to drill this well using the new rig that is currently beingprocured for the Lloyd #1 well. It is anticipated that drilling would commenceduring the third quarter of 2008 following the completion of Lloyd #1operations. The Taribani South #1 well is designed to be completed in Zone 9 ata depth of approximately 2,200 meters, and will also test Zones 14 and 15 atdepths of approximately 2,400 meters and 2,500 meters, respectively. Situatedapproximately 100 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: "With the successful application of the first of two planned frac completions atthe Taribani Field, we are pleased to be progressing with the development ofZone 9 amidst a strong commodity price environment. Commencement of productionfrom Zone 9 will represent an important milestone in realizing value from aportion of the total recoverable reserves that our historical investments haveidentified in multiple reservoirs at the Taribani Field." 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