TIDMFRR
RNS Number : 6386X
Frontera Resources Corporation
28 November 2017
28 November 2017
Frontera Resources Corporation
("Frontera" 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 regarding interim results on testing of the Ud-2
well, situated inside the 950km(2) Mtsare Khevi Gas Complex area,
located in onshore Block 12, Georgia.
After perforation and small-scale mechanical stimulation of a
20m thick interval of the Miocene-aged Gareji reservoir, situated
between 2600m - 2620m, the well started to flow natural gas, which
has been flared during cleanup.
State Oil and Gas Service Company has performed analysis of the
flowed natural gas. Chemical composition is shown below:
Methane - 90.4%
Ethane - 4.15%
Propane - 1.4%
Nitrogen - 3.1%
Others - 0.95
Lower Calorific value - 8818 kcal/m(3) (State standard: not less
than 7600 kcal/m3)
Higher Calorific value - 9763 kcal/m(3)
The natural gas quality satisfies all requirements of the
applicable GOST standard and corresponds to the applicable
regulations of the State Standard 5542-87, which makes it
acceptable for distribution through Georgia's natural gas grid.
The natural gas quality matches expectations and samples of
natural gas from the Miocene-aged Gareji reservoir in other wells
of the Mtsarekhevi Gas Complex and the Taribani Complex.
Together with natural gas, the Ud-2 well is flowing hematite
(used by previous operator as a weighting material for Ud-2
drilling mud) and water (used during small-scale mechanical
stimulation). The gas flow rate has increased with progressing of
the cleanup of the well.
Once the well cleanup is completed and a stabilized gas flow is
established, the Company will update the market regrading accurate
gas flow volumetrics.
As previously announced, the Ud-2 well had been drilled by a
previous operator with significant gas shows recorded while
drilling in the Gareji and Maykop reservoirs between 2450m and
5289m, with drilling mud weights of 17.5 ppg and 17.9 ppg
respectively. Based on the Netherland, Sewell & Associates
resource estimate, the Gareji and the Maykop reservoirs of the
Mtsare-Khevi Gas Complex are estimated to contain 8.3 TCF of Gas in
Place (OGIP), with 5.8 TCF considered to be recoverable.
As previously announced, the Company is in the process of
completing technical design of the 18km natural gas pipeline
connecting the Ud-2 well with the Mtsare Khevi gas processing
facility (which is connected to Georgia's natural gas distribution
grid). The Company is also in the process of securing right of way
for this new flow line.
Zaza Mamulaishvili, President and Chief Executive Officer,
commented:
"We are hugely excited with the interim results of the Ud-2 well
testing. Flowing gas from Miocene-aged Gareji reservoir is a
transformational milestone for the Company and a big step towards
the energy independence for Georgia.
"Natural gas with similar quality as at Ud-2 well had been
sampled by a previous operator whilst drilling the Gareji reservoir
at V-1 well, situated 14 km north of Ud-2 well in the Mtsarekhevi
Gas Complex, and also at wells T-39 and T-40 in the Taribani
Complex, situated 50 km east of Ud-2 well. Within Block 12, the
thickness of the Miocene-aged Gareji reservoir is estimated at
approximately 2,000m and extends for about 130km from northwest to
southeast. Oil and gas contained in this reservoir is sourced from
the world class Maykop source rock. 500km further southeast from
Block 12, the giant Shah-Deniz gas field contains natural gas
sourced from the Maykop formation as well. Current progress at Ud-2
well brings all abovementioned into context for future drilling
operations and tremendously increases our confidence while flowing
Miocene-aged Gareji natural gas first time in Georgia's
history.
"As expected, we have drilling debris and fluids (hematite)
still coming out of the formation and perforations, and once the
well cleanup is completed and we are in a position to accurately
measure gas flow rates, we look forward to updating market in due
course."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources (713) 585- 3216
Zaza Mamulaishvili
info@fronteraresources.com
Cairn Financial Advisers
LLP +44 (0) 20 7213 0880
Jo Turner / Liam Murray
WH Ireland Limited +44 (0) 20 3411 1880
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, 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 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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