6 May 2015 07:01
This announcement replaces RNS 1451M issued at 7am on 5 May 2015 which was issued as an "RNS Reach" announcement. The content of the announcement remains unchanged.
Houston, Texas, U.S.A. - 6 May 2015
FRONTERA RESOURCES CORPORATION MARKS HISTORIC ONE YEAR ANNIVERSARY OF GAS PRODUCTION OPERATIONS IN GEORGIA
Frontera Resources Corporation (AIM: FRR), an independent international oil and gas exploration and production company, today announces a milestone at its gas operations in Georgia.
Since commencing gas production operations in April 2014 from the Mtsare Khevi Gas Complex, located within the Sagarejo District of its eastern Georgia, Block 12 contract area, Frontera has successfully marked one year of gas production operations.
Over the past year, Frontera's installation of a 14-kilometer network of gathering, processing and pipeline transportation facilities culminated in the initiation of gas production operations from the Company's ongoing drilling operations. Continuous gas sales from the area have represented the first time domestically produced non-associated gas has been continuously marketed to Georgia's national consumption market. Together with extensive technical analysis associated with the Mtsare Khevi Gas Complex, this work has opened a historic new chapter in Georgia's move towards energy independence.
A planned 8 well drilling program for the remainder of this year will commence in June. In addition, an 18 well workover program designed to access gas production from extensive unperforated/behind-pipe gas-bearing intervals is underway. Collectively, including the ongoing expansion of existing processing facilities, these operations are expected to bring daily gas production in excess of 7 million cubic feet per day by the end of this year. This will continue to provide increased revenue generation from the area and will also serve to further advance technical studies associated with the Mtsare Khevi Gas Complex.
Frontera recently announced results of a report by the independent consulting firm of Netherland, Sewell & Associates that confirmed combined prospective natural gas resources of as much as 12.9 trillion cubic feet (365 billion cubic meters) of gas-in-place, with as much as 9.4 trillion cubic feet (266 billion cubic meters) of recoverable prospective natural gas resources at the Mtsare Khevi Gas Complex and Taribani Field Complex.
Steve C. Nicandros, Chairman and Chief Executive Officer commented:
"Marking the one year anniversary of our gas production operations in Georgia is an important milestone in our business as well as in the country's historic march towards energy independence. Based on today's national gas demand in Georgia, our extensive technical work in eastern Georgia has revealed significant gas resources that can provide more than 150 years of gas supply to the country. Moreover, as Georgia is situated on the doorstep of Eastern Europe's consumption markets, this extensive resource will no doubt also provide the foundation for enhanced domestic economic development as the country seeks to not only grow its economy but further enhance its important association with the European Union and other nearby regional markets."
Enquiries:
Frontera Resources Corporation
Liz Williamson
Vice President, Investor Relations and Corporate Communications
(713) 585-3216
lwilliamson@fronteraresources.com
Nominated Adviser:
Cairn Financial Advisers LLP
61 Cheapside, London EC2V 6AX
Jo Turner/Avi Robinson
+44 (0) 20 7148 7900
Broker
Cornhill Capital Limited
Nick Bealer / Stefan Olivier
+44 (0) 207 710 9610
Financial PR:
Buchanan
Helen Chan
+44 (0) 20 7466 5000
helenc@buchanan.uk.com
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 in Eastern Europe around the Black Sea. Frontera Resources Corporation shares are traded on the London Stock Exchange, AIM Market - Symbol: FRR. For more information, please visit www.fronteraresources.com.
2. The Mtstare Khevi Gas Complex is an area of approximately 140 square kilometres and encompasses gas reservoir targets found between 300 metres and 5,000 metres in depth. Based on Frontera's internal estimates, analysis has revealed significant gas potential throughout this area of up to approximately 11 TCF of gas-in-place and up to approximately 9 TCF of recoverable gas resources. An April 2015 report by the independent consulting firm of Netherland, Sewell & Associates confirms prospective resources of as much as 8.29 TCF of gas-in-place for the Mtsare Khevi Gas Complex, with as much as 6.15 TCF of recoverable prospective resources.
3. The Taribani Field Complex is an area that encompasses approximately 1,400 square kilometres and includes the discovered yet undeveloped Taribani, Kila Kupra, Bayda and Iori fields within Block 12. Internal preliminary analysis suggests that there could be as much as 18 billion barrels of oil in place throughout this complex. Ongoing work continues to study and assess the viability of this analysis and larger scale development potential. Situated within the Taribani Field Complex, the Taribani Field's oil potential consists of 788 million barrels of original oil in place ("OOIP") at depths between 2,000 meters and 3,300 meters, independently assessed by Netherland, Sewell & Associates ("NSA") in 2005. In addition, Frontera estimates gas-in-place resources associated with deeper horizons at the Taribani Field to be as much as approximately 9 tcf from reservoir targets found between 3,400 metres and 5,000 metres in depth. An April 2015 report by NSA confirms prospective resources of as much as 4.62 TCF of gas-in-place associated with deeper gas bearing sands at the Taribani Field, with as much as 3.23 TCF of recoverable prospective resources from horizons situated between 3,400 meters and 5,400 meters in depth.
4. Information on Resource Estimates: The contingent and prospective resources estimates contained in this announcement were determined by the independent consulting firm of Netherland, Sewell & Associates (NSA) in accordance with the definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) adopted by the Society of Petroleum Engineers (SPE). Gerard Bono, Frontera's Vice President and Chief Reservoir Engineer, who is a member of the SPE, is the qualified person who reviewed and approved the statements in this announcement.
5. This release may contain certain forward-looking statements, including, without limitation, expectations, beliefs, plans and objectives regarding the transactions, work programs and other matters discussed in this release. Exploration for oil is a speculative business that involves a high degree of risk. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are: risks inherent in oil and gas production operations; availability and performance of needed equipment and personnel; the Company's ability to raise capital to fund its exploration and development programs; seismic data; evaluation of logs, cores and other data from wells drilled; inherent uncertainty in estimation of oil and gas resources; fluctuations in oil and gas prices; weather conditions; general economic conditions; the political situation in Georgia and relations with neighboring countries; and other factors listed in Frontera's financial reports, which are available at www.fronteraresources.com. 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.
6. Glossary of Terms: BCF - means Billion Cubic Feet of gas. TCF - means Trillion Cubic Feet of gas. Mcf - means Thousand Cubic Feet of gas. OOIP - means Original Oil in Place. Bopd - means Barrels of Oil Per Day.