13 Mar 2013 07:00
FRONTERA RESOURCES CORPORATION
Houston, Texas, U.S.A. - 13 March 2013
FRONTERA RESOURCES RELEASES OPERATIONS UPDATE
Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gas exploration and production company ("Frontera" or the "Company"), today released an operations update regarding its Mtsare Khevi Gas Complex.
Frontera is pleased to announce that it has received approval to proceed with the installation of the eight kilometer pipeline and related facilities within the Mtsare Khevi Field from the Georgian government. As previously announced, equipment required for the gas pipeline has been procured, mobilized, and stacked in the field and in key staging areas. First gas production is now expected within 120 days. The infrastructure will accommodate production from currently shut-in wells, and the Company is targeting production of approximately two million cubic feet per day of gas (57,000 cubic meters per day).
The Mtstare Khevi Field is situated within a larger play area of approximately 80 square kilometres referred to as the Mtsare Khevi Gas Complex and encompasses gas targets found between 300 metres and 5,000 metres in depth. Based on Frontera's internal estimates, analysis has revealed significant gas potential throughout this area of up to approximately 1.2 tcf of gas in place (28 billion cubic meters) and up to approximately 700 bcf of recoverable gas (19.8 billion cubic meters). An integrated geologic study, including data from a number of existing wells within the area such as the V-#18 well, previously referenced in the Company's 31 January 2012 announcement, is currently in progress to better understand and define the extent of this potential throughout the greater Mtsare Khevi Gas Complex.
Enquiries:
Frontera Resources CorporationLiz WilliamsonVice President, Investor Relations and Corporate Communications(713) 585-3216lwilliamson@fronteraresources.com
Nominated Adviser and Joint Broker:
finnCap Limited
Matt Goode / Christopher Raggett
+44 (0) 20 7220 0500
Joint Broker:
Cornhill Capital LimitedNick Bealer / Stefan Olivier+44 (0)20 7710 9610
Financial PR:
BuchananTim Thompson / / Tom Hutton+44 (0)20 7466 5000timt@buchanan.uk.com
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 currently operates in the country of Georgia where it holds a 100 percent working interest in a production sharing agreement with the government of Georgia. This gives Frontera the exclusive right to explore for, develop and produce oil and gas 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. 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). The full report, dated July 1, 2010, is available at www.fronteraresources.com . 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.