22 May 2008 07:00
FRONTERA RESOURCES CORPORATION
Houston, Texas, U.S.A. - May 22, 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 and production company, today announced an update of its operations at the Taribani Field Unit within Block 12, Georgia.
On May 21, fracing operations at the Taribani T-#45 well were successfully completed. This operation is a part of a larger field-wide effort to enhance production by applying artificially induced fractures to objective Zone 9 reservoirs at a depth of approximately 2,300 meters. Frac completions are designed to enhance well flow-rates and ensure sustainability of production. Production tubing is currently being installed in the well after which it will be placed into controlled production testing over the next thirty to sixty days in order to determine optimal sustainable flow rates.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
"With the successful application of our second frac completion at the Taribani Field, we continue our steady progress in the development of Zone 9 amidst a strong commodity price environment. The evolving production operation from Zone 9 will now continue with the objective of increasing production and reserve additions through the continuation of development drilling."
The Taribani Field is a large, undeveloped oil field covering an area of approximately 80 square kilometers with productive horizons situated in Miocene and Pliocene age reservoirs. These reservoirs are located at depths between 2,200 meters and 3,500 meters. The independent consulting firm of Netherland, Sewell & Associates has assigned 118 million barrels of P3 reserves from Zones 9, 14, 15 and 19 within the field. Additionally, Netherland, Sewell & Associates has assigned as much as 36 million barrels of unrisked resource potential associated with five deeper horizons in the field.
Enquiries:
Frontera Resources Corporation Liz Williamson Vice President, Investor Relations and Corporate Communications (713) 585-3216lwilliamson@fronteraresources.com
Brunswick Group LLP Patrick Handley / Mark Antelme +44 207 4045959
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 around the world. Frontera has operated in Georgia since 1997 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 and via the Over-the-Counter Market, U.S.A. - OTCQX Symbol: FRTE. For more information, please visit www.fronteraresources.com. For more 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 consulting firm of Netherland, Sewell & Associates in accordance with the petroleum resource definitions adopted by the Society of Petroleum Engineers (SPE), World Petroleum Council (WPC) and the American Association of Petroleum Geologists (AAPG) in 2000.
3. This release contains certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions, potential drilling schedule, well results and ventures discussed in this release, as well as reserves, future drilling, development and production. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: future exploration and development results; availability and performance of needed equipment and personnel; seismic data; evaluation of logs and cores from wells drilled; fluctuations in oil and gas prices; weather conditions; general economic conditions; and the political situation in Georgia and neighboring countries. 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.