Frontera Resources Regulatory News (FRR)

28 Sep 2005 07:00

Frontera Resources Corporation28 September 2005 Operations News Update. September 28, 2005 FRONTERA RESOURCES ANNOUNCES AWARD OF MASTER SERVICES AGREEMENT FOR WELL SERVICES WITH BAKER HUGHES IN GEORGIA Houston, Texas U.S.A. (September 28, 2005): Frontera Resources Corporation(London Stock Exchange, AIM Market - Symbol: FRR), an independent oil and gasexploration and production company operating in the country of Georgia, todayannounced the award of a Master Services Agreement with Baker Hughes ServicesInternational, Inc. Under the terms of the agreement, Baker Hughes (NYSE: BHI)will provide well services and equipment associated with Frontera's planneddrilling program within its Taribani Field Unit. Frontera plans to drill atleast three lateral or horizontal well extensions from a series of existingwells within the Taribani Field commencing later this year. Located in eastern Georgia within Frontera's license area known as Block 12, theTaribani Field is a large, undeveloped oil field covering an area ofapproximately 80 km2 with productive horizons situated in Miocene and Plioceneage reservoirs. These reservoirs are situated at depths of between 2,200 metersand 3,500 meters. The reservoir engineering firm of Netherland and Sewell hasassigned 118 million barrels of P3 reserves from four of twelve identifiedhorizons within the field. Steve C. Nicandros, Frontera's Chairman and Chief Executive Officer, commented: "The addition of Baker Hughes to our operations team gives us great confidencethat we have continued to successfully assemble a very strong and experiencedteam in support of our planned drilling efforts this year. Baker Hughes is anindustry leader in the application of horizontal well drilling technology and welook forward to the expertise that they will be bringing to our effort toestablish commerciality at the Taribani Field." Frontera plans to commence the drilling of the first well at the Taribani Fieldduring the second half of November of this year. About Frontera Frontera Resources Corporation is an independent Houston, Texas, U.S.A.- basedinternational oil and gas exploration and production company whose strategy isto identify and operate opportunities in emerging markets around the world. Frontera was admitted to the Alternative Investment Market, operated by theLondon Stock Exchange, on 14 March 2005. 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. For more information, please see www.fronteraresources.com . Baker Hughes is a leading provider of drilling, formation evaluation,completion, and production products and services to the worldwide oil and gasindustry. For more information on Baker Hughes please see www.bakerhughes.com This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions and ventures discussed in this release, as well as reserves, futureproduction and our ability to establish commercial production. Among theimportant factors that could cause actual results to differ materially fromthose indicated by such forward-looking statements are future exploration anddevelopment results, availability of needed equipment and personnel,fluctuations in oil and gas prices, general economic conditions and thepolitical situation in Georgia and neighboring countries. There is no assurancethat Frontera's expectations will be realized, and actual results may differmaterially from those expressed in the forward-looking statements. Enquiries Citigate Dewe Rogerson (+44 20 7638 9571) Martin Jackson This information is provided by RNS The company news service from the London Stock Exchange