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Frontera Resources Corporation
05 May 2015
Houston, Texas, U.S.A. - 5 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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