21 Sep 2017 07:00
21 September 2017
Frontera Resources Corporation
("Frontera Resources" or the "Company")
Update on Ud-2 well
Frontera Resources Corporation (AIM: FRR), the European focused oil and gas exploration and production company, is pleased to provide an update on progress of its workover operations at Ud-2 well, situated inside the 950 km2 Mtsare Khevi Gas Complex area, located in onshore Block 12 in Georgia.
The workover operation at Ud-2 well is progressing as planned. The packer has been successfully retrieved and the well has been cleaned to the depth of 3327m. All three target gas bearing intervals are now accessible for testing. After running the casing scraper to ensure the wellbore is clean and replacing mud with water, a bridge plug will be set at 3326m and a pressure test will follow. The Company expects the workover operation to be completed as planned by the end of September, and will provide a further update in due course.
Well testing operations will commence in October. The service company, which has been contracted to perforate gas-bearing intervals in the Ud-2 well, will mobilise on site in the first week of October.
Refurbishment of the separation equipment is completed. The final technical design of the 18km gas pipeline connecting Ud-2 well with the Mtare Khevi gas processing facility (this facility is connected to Georgia's natural gas distribution grid) will be completed by October 1.
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
"We are pleased that workover operations are progressing as anticipated. Three gas-bearing intervals of Oligocene-aged, Lower Miocene-aged and Middle Miocene-aged rocks will be tested, starting in early October.
"Based on the Netherland, Sewell & Associates resource estimate, the Gareji (Middle Miocene-aged) and the Maykop (Oligocene and Lower Miocene-aged) reservoirs of the Mtsare Khevi Gas Complex are estimated to contain 8.3 Trillion Cubic Feet (TCF) of Gas in Place (OGIP) with 5.8 TCF considered recoverable.
"If the well completes successfully, we will start working on connecting it to Georgia's gas distribution grid and hope that the Company could start monetising the gas as soon as the end of the year. I look forward to keeping shareholders updated on our progress."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Zaza Mamulaishvili (713) 585-3216
info@fronteraresources.com
Cairn Financial Advisers LLP +44 (0) 20 7213 0880
Jo Turner / Liam Murray
WH Ireland Limited +44 (0) 207 220 1666
James Joyce / Alex Bond
Yellow Jersey +44 (0) 203 735 8825
Tim Thompson
Harriet Jackson
Henry Wilkinson
Notes to Editors:
About Frontera Resources Corporation
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.
1. Information on Resource Estimates: The independent 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).
2. 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.
3. 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. PPG - means pounds-per-gallon.