Frontera Resources Regulatory News (FRR)

21 Dec 2007 07:01

Frontera Resources Corporation21 December 2007 FRONTERA RESOURCES CORPORATION Houston, Texas, U.S.A. - 21 December, 2007 OPERATIONS UPDATE, TARIBANI FIELD UNIT Frontera Resources Corporation (London Stock Exchange, AIM Market - Symbol: FRR;Over-the-Counter Market, U.S.A. - Symbol: FRTE), an independent oil and gasexploration and production company, today announced the completion of drillingoperations at the T-#45 well at the Taribani Field Unit within Block 12,Georgia. The T-#45 well is the second of an initial three well program that has commencedthe company's planned development of Zone 9. The well was drilled to a depth ofapproximately 2,400 meters and encountered Zone 9 oil bearing reservoirs atapproximately 2,300 meters. In addition, the well drilled through additionalpotential pay zones below Zone 9. Analysis of geologic core and log data iscurrently in process in anticipation of a frac-pac completion. Due to serviceprovider delays associated with mobilization and delivery of equipment toGeorgia, application of frac-pac completions to the T-#45 and Dino #2 wells hasbeen delayed and a final optimized schedule to complete these wells is currentlybeing arranged with the service provider. Frontera intends to provide a furtherupdate of operations at the Taribani Field Unit reporting the final schedule. Drilling operations at the Taribani Field will now continue with thecommencement of operations at the Taribani South #1 location as soon as rigmobilization is completed. Steve C. Nicandros, President and Chief Executive Officer, commented: "During the fourth quarter of 2007, we have completed the Dino #2 and T-#45wells as part of our planned drilling program at the Taribani Field this year.We are now looking forward to commencing the Taribani South #1 well. Thisimportant well will be drilled with particular anticipation, as it will be thefirst ever to be drilled on the crest of the large Taribani Field structure,some 900 feet up-dip from the lowest known oil in the field. Although our finalfrac-pac completion schedule has been unavoidably delayed due to a congestedservice company environment, operations at our Taribani Field Unit remain on acritical path to realize the significant potential value that our historicalinvestments in this large undeveloped field have identified." 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. -Pinksheets Symbol: FRTE. For more information, please visitwww.fronteraresources.com. 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. 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