Frontera Resources Regulatory News (FRR)

27 Nov 2007 15:00

Frontera Resources Corporation27 November 2007 Houston, Texas U.S.A. - November 27, 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. At this time, the well has been drilled to a depth of approximately 2,720meters, and initial wireline logging operations have been completed. Drillingoperations to date have revealed multiple hydrocarbon shows based on analysis ofcuttings and mud logs through this depth in the Tertiary age section of thewellbore, which contains the secondary objectives of the Basin Edge "C"Prospect. As previously stated, our analysis of the 3D seismic data related to the "C"Prospect prior to commencement of drilling indicated that the primary targetreservoir objectives, identified on the basis of seismic attributes, could occurat depths from 2,000 meters to 3,700 meters. We believe the data gathered fromthe well thus far supports this model, but also suggests that additionalsecondary objectives, as well as the primary target objectives, are likely to beencountered from the current depth to as much as 3,700 meters. The Lloyd #1 well was originally planned to be drilled to a depth of 2,700meters. However, on the basis of the data gathered from drilling operations todate plans are now to continue drilling the well to a maximum depth of as muchas 3,700 meters. We expect this will allow us to fully evaluate all potentialobjectives within the encountered and anticipated geological sequences. Theseoperations are expected to be completed in December. Steve C. Nicandros, President and Chief Executive Officer, commented: "We are very encouraged by results that we have so far encountered at the Lloyd#1 well. We believe the data gathered from this important exploration wellcalibrates our geologic model for the 'C' Prospect, and having hydrocarbon showsthus far in this wildcat well is very significant. The hydrocarbon shows thatwe have seen in the Tertiary age sections of the well appear to be from the sameage sections that have been historically prolific throughout the Kura Basin andare associated with a significant portion of the recoverable resource potentialthat we have attributed to the 'C' Prospect. We look forward to continuing ourdrilling operations as we progress our planned program to evaluate the enormouspotential of the Basin Edge 'C' Prospect." Frontera's Basin Edge Play Unit is located along the northern border of Block 12and represents what the company believes is one of the newest and potentiallymost prolific exploration plays in the Upper Kura Basin. Netherland, Sewell andAssociates estimate total unrisked resource potential to be in excess of onebillion barrels of recoverable oil within the unit's two major prospects ("B"and "C"). Of this total, prior to the acquisition of new seismic data suggestingan even larger structure, the "C" Prospect was estimated to contain as much as300 million barrels of recoverable oil from primary reservoir targets and asmuch as 250 million barrels from secondary reservoir objectives. Frontera'sprimary reservoir targets are located in the Cretaceous age carbonate rocks,with secondary reservoir targets in the Tertiary age clastic rocks as well asJurassic 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, 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