Frontera Resources Regulatory News (FRR)

21 May 2018

Frontera Resources Corporation

("Frontera Resources" or "the Company")

Well Dino-2 Update

Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to provide a flow test update on Dino-2 well, situated in Taribani Complex of onshore Block 12, Georgia.

As previously announced on 8 May 2018, extended well stimulation and testing program of the 78.8 m combined pay interval of target Zones 9, 14 and 15 of the Eldari A reservoir at Dino-2 well (the second well of the current three-well drilling/testing campaign) commenced on 7 May 2018 with perforation and mechanical stimulation of 3m interval of the Zone 15, situated between 2628m and 2631m. On 18 May 2018, 3m interval of the Zone 14, situated between 2543m and 2546m, has been perforated, mechanically stimulated and flow tested together with Zone 15.

The well naturally flowed light, sweet crude oil at a stabilised flow rate of 315 bbls per day. The intention is to continue to test the combined flow of Zones 14 and 15 and within a period of approximately 60 days, perforate and mechanically stimulate Zone 9 and produce from all target zones together. As previously announced, in addition to these target Zones 9, 14 and 15, a 20.0m pay interval has been confirmed in Zone 13 and the Company is also considering the perforation and stimulation of Zone 13 in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.

CPR estimates for Original Oil in Place in target Zones 9, 14 and 15 of the Eldari A reservoir in Taribani field are 689 million barrels, with 103.5 million barrels considered to be recoverable.  

Zaza Mamulaishvili, President and Chief Executive Officer, commented:

"We are hugely excited to have achieved a commercial production rate of 315 bbls/d from Zones 14 and 15. Dino-2 is the second well in a row, after well T-45, to confirm robust economics of the Taribani wells and commercial attractiveness of the Eldari formation of the Taribani field. The ongoing Block 12 Study Program, with the extensive geological and geophysical works, continues to confirm that the Eldari reservoir is very well developed within the Block 12 boundaries and extends well beyond 800sq.km wide Taribani Complex, where 80 sq.km Taribani field is situated. The current success of the Dino-2 testing is an important step forward towards achieving commercial development of the Taribani oilfield."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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About Frontera Resources Corporation

Frontera Resources Corporation is an independent, 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). Dustin Aro, Frontera's Vice President, Well Completion and Stimulation, is the qualified person who reviewed and approved the technical information contained in this announcement on behalf of Frontera Resources. Mr. Aro has extensive experience in the oil and gas industry and holds a Bachelor of Science in Engineering and a Bachelor of Science in Business Administration from Michigan Technological University.

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 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. OGIP - means Gas in Place. Bopd - means Barrels of Oil Per Day. PPG - means pounds-per-gallon. PSI - means pounds per square inch. SG - means Specific Gravity.