Message #3 From:
NewsBot Date: May 5, 2008 06:26:59 PM
Operations Update, Taribani Field Unit
Frontera Resources Corporation (London Stock
Exchange, AIM Market – Symbol: FRR; OTCQX Market, U.S.A. – Symbol: FRTE),
an independent oil and gas exploration and production company, today
announced an update of its operations at the Taribani Field Unit within
Block 12, Georgia.
During the last week of April, operations to apply artificially induced
fractures to objective reservoirs within the Dino #2 well as part of the
continuation of Zone 9 development operations at the Taribani Field have
been successfully completed. A ten-meter oil-producing reservoir interval
was hydraulically fraced at a depth of approximately 2,300 meters. Frac
completions are designed to enhance well flow-rates and ensure
sustainability of production. Production tubing is currently being
installed in the well after which it will be placed into controlled
production testing over the next thirty to sixty days in order to determine
optimal sustainable flow rates.
The workover rig and frac equipment will now be mobilized a short distance
within the Taribani Field from the Dino #2 location to the T-#45 location
for a frac pac completion in Zone 9 at a depth of approximately 2,400
meters.
In addition, plans to drill the Taribani South #1 well have been
rescheduled. It is now planned to drill this well using the new rig that
is currently being procured for the Lloyd #1 well. It is anticipated that
drilling would commence during the third quarter of 2008 following the
completion of Lloyd #1 operations. The Taribani South #1 well is designed
to be completed in Zone 9 at a depth of approximately 2,200 meters, and
will also test Zones 14 and 15 at depths of approximately 2,400 meters and
2,500 meters, respectively. Situated approximately 100 meters up-dip to the
Dino #2 and T-#45 wells and approximately 300 meters up-dip to the lowest
known oil in Zone 9, this well will be the first to be drilled near the
crest of the Taribani Field structure and is expected to further delineate
the size of the field.
Steve C. Nicandros, Chairman and Chief Executive Officer, commented:
"With the successful application of the first of two planned frac
completions at the Taribani Field, we are pleased to be progressing with
the development of Zone 9 amidst a strong commodity price environment.
Commencement of production from Zone 9 will represent an important
milestone in realizing value from a portion of the total recoverable
reserves that our historical investments have identified in multiple
reservoirs at the Taribani Field."
The Taribani Field is a large, undeveloped oil field covering an area of
approximately 80 square kilometers with productive horizons situated in
Miocene and Pliocene age reservoirs. These reservoirs are located at depths
between 2,200 meters and 3,500 meters. The independent consulting firm of
Netherland, Sewell & Associates has assigned 118 million barrels of P3
reserves from Zones 9, 14, 15 and 19 within the field. Additionally,
Netherland, Sewell & Associates has assigned as much as 36 million barrels
of unrisked resource potential associated with five deeper horizons in the
field.
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
around the world. Frontera has operated in Georgia since 1997 where it
holds a 100 percent working interest in a production sharing agreement with
the government of Georgia. This gives Frontera the exclusive right to
explore for, develop and produce oil and gas 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. - OTCQX Symbol: FRTE. For more
information, please visit www.fronteraresources.com. For more information
regarding Frontera's work at the Taribani Field, please visit:
http://www.fronteraresources.com/operations/taribanifieldunit.php
2. The reserve information herein was determined by the independent
consulting firm of Netherland, Sewell & Associates in accordance with the
petroleum resource definitions adopted by the Society of Petroleum
Engineers (SPE), World Petroleum Council (WPC) and the American Association
of Petroleum Geologists (AAPG) in 2000.
3. This release contains certain forward-looking statements, including,
without limitation, expectations, beliefs, plans and objectives regarding
the potential transactions, potential drilling schedule, well results and
ventures discussed in this release, as well as reserves, future drilling,
development and production. Among the important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are: future exploration and development results;
availability and performance of needed equipment and personnel; seismic
data; evaluation of logs and cores from wells drilled; fluctuations in oil
and gas prices; weather conditions; general economic conditions; and the
political situation in Georgia and neighboring countries. 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.
