Frontera Resources Corporation Operations Update (5837U)
19 January 2017 - 6:01PM
UK Regulatory
TIDMFRR
RNS Number : 5837U
Frontera Resources Corporation
19 January 2017
FRONTERA RESOURCES CORPORATION
OPERATIONS UPDATE
Houston, Texas, U.S.A. 19 January 2017
Frontera Resources Corporation (London Stock Exchange, AIM
Market - Symbol: FRR), an independent oil and gas exploration and
production company ("Frontera" or the "Company"), today announces
an update of its operations in the country of Georgia.
During November and December of 2016, operations to complete a
new six well stimulation program were delayed pending delivery of
additional pumping equipment deemed necessary for execution of the
planned program, in order to reduce risk and enhance desired
outcome. The pending campaign, previously announced on October 24,
2016, is focused on continuation of the Company's ongoing Oil
Window and Gas Window operations at its South Kakheti Complex.
While awaiting mobilization of remaining equipment from the
United States, now expected to be delivered during the month of
March, ongoing operations have focused on workover, production
testing and related petrophysical analysis of previously stimulated
wells at the Taribani Field area of the South Kakheti Complex.
Results from this work have notably demonstrated that, based on
advanced log analysis, approximately 150 meters of gross oil and
associated gas pay has now been identified for development across
the extensively targeted Eldari Formation. Analysis of long term
cumulative production rates from key wells, Niko#1, T-45 and
Dino#2, have provided the basis reservoir performance modeling that
indicates the average expected ten-year ultimate recovery (EUR) per
stimulated gross meter is calculated to be approximately 8,000
barrels. This historical performance data now supports a greater
recovery potential than initially envisaged.
As previously announced, the Company expects that the pending
campaign, when completed, will significantly contribute towards its
current objective of achieving pilot production rates of
approximately 2,200 boe per day, which would result in monthly
revenues of approximately U.S. $3 million at current commodity
prices.
Further, the Company advises that it expects to convene its
annual general meeting in March or April 2017. Notice of the annual
general meeting will be sent to all shareholders in due course.
Steve C. Nicandros, Chairman and Chief Executive Officer
commented:
"Despite equipment related delays in completing our pending
stimulation campaign, the testing and associated analysis that has
been conducted in the interim has revealed greater potential for
oil and gas recovery than we previously envisaged. With this, our
ongoing work continues to demonstrate a lower risk profile
associated with this significant value for our company."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources Corporation
Jesse Jefferies
(713) 585-3216
info@fronteraresources.com
Nominated Adviser:
Cairn Financial Advisers LLP
Jo Turner / Liam Murray
+44 (0) 20 7213 0880
Broker
Cornhill Capital Limited
Nick Bealer
+44 (0) 207 710 9610
Financial PR:
Abchurch
Rebecca Clube / Jenny Lee
+44 (0) 20 7398 7700
fronterainfo@abchurch-group.com
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).
Internal resources estimates were determined by the Company. 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 both independent and internal estimates in this
announcement.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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