Frontera Resources Regulatory News (FRR)

28 Jun 2007 07:04

Frontera Resources Corporation28 June 2007 Houston, Texas U.S.A. June 28, 2007 OPERATIONS UPDATE, TARIBANI FIELD UNIT, GEORGIA Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol:FRR), an independent oil and gas exploration and production company, todayannounces an update on its operations in the Taribani Field Unit, Block XII,Georgia. Summary • Zone 9 development operations in progress. • Plans for this year consist of the re-completion of Dino #2 well, followed by two new development wells. • Eight additional Zone 9 wells planned in 2008. • Specialized frac-pack completions designed to increase production rates and manage sediment control during production operations. Steve C. Nicandros, President and Chief Executive Officer, commented: "We are very pleased to have new operations underway at the Taribani Field andwe look forward to advancing the development of Zone 9 throughout the rest ofthis year and beyond. Frontera's historical investment in this largeundeveloped field has positioned us well to now begin to realize the significantvalue that this effort has identified." Operations Update Frontera is in the process of commencing its planned development program withinZone 9 at the Taribani Field Unit through the re-entry of the Dino #2 well. TheDynamic #1 rig arrived on location during the month of June and is currently inthe final stages of rigging-up and passing requisite inspections prior tocommencement of re-entry operations within the next two weeks. Once operationscommence, Zone 9 intervals will be perforated between the depths of 2,274 -2,285 meters and between 2,300 - 2,312 meters. Re-completion of the Dino#2 wellis expected to take approximately 30 days. After perforation, the well will beput on controlled production until a frac-pack completion is applied inSeptember, together with the next well to be drilled. Once initial operations are completed at the Dino #2 well, the Dynamic #1 rigwill immediately move a short distance within the field to commence drilling atthe Taribani #45 location. This well is scheduled to commence in August and willtake approximately fifty days to reach total depth and complete in Zone 9. Athird well, the Taribani South #1 is scheduled to commence in October. Eightnew additional wells are planned for 2008. Frac-pack equipment will be mobilized to the Taribani Field in September and,once drilling is completed at the Taribani #45 well, a frac-pack completion isscheduled to be applied to this well and the Dino#2 well. Completions will takeapproximately three days per well. Frac-Pac technology is a designed solutionto address possible formation sediment flow issues associated with oilproduction from Zone 9. This is anticipated to more efficiently achieve similarproduction/recovery results obtained from drilling short-reach horizontal wells.Sediment control will come from applying packing technology whereby screensare installed and gravel is pumped into the well as a slurry, "packing" itbehind the screen at the formation face. The gravel and screen are designed totrap the reservoir formation sediment before it can enter the well and causeobstruction. The Zone 9 development program is a thirty-six month, 20-well program, whichrepresents approximately 17 percent of the reserves attributed to Zones 9, 14,15 and 19 within the field. Background on 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 situated 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 CommunicationsHouston, Texas U.S.A.Office: +1 (713) 585-3216Email: lwilliamson@fronteraresources.com Brunswick Group LLPPatrick Handley / Mark AntelmeLondon: +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 whosestrategy is to identify opportunities and operate in emerging markets around theworld. Frontera has operated in Georgia since 1997 where it holds a 100 per centworking interest in a production sharing agreement with the government ofGeorgia. This gives Frontera the exclusive right to explore for, develop andproduce oil and gas from a 5,060 square kilometer area in eastern Georgia knownas 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 forwardlooking 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. For more information, please see www.fronteraresources.com . This information is provided by RNS The company news service from the London Stock Exchange