CALGARY,
Jan. 7, 2014 /CNW/ - (TSX-V:
PFC) - PetroFrontier Corp. ("PetroFrontier") is pleased to
announce that the Joint Venture Operating Committee has approved
the 2014 Work Plan and Budget (the "2014 WP&B"). The 2014
WP&B includes the drilling of up to five vertical test
wells. All wells will include an extensive coring and open
hole evaluation program and up to three of the wells will be
hydraulically fractured and production tested.
"This program reflects the synergies of having
Statoil technical staff imbedded in PetroFrontier's former
Adelaide office for over a year,"
stated Earl Scott, PetroFrontier's
President and CEO, "Statoil and PetroFrontier staff were able to
quickly achieve alignment and Statoil staff have diligently
developed their "in country" operating capability. Both Statoil and
PetroFrontier are keen to move forward and further test the oil
production potential of the Southern Georgina Basin, which the 2014
WP&B will provide for in a capital efficient way. Depending on
government approvals, weather and service company availability, we
hope to see drilling results in Q3 and testing results in Q4."
Under the terms of the Amended Farmin Agreement
between Statoil Australia Theta BV ("Statoil") and PetroFrontier
(the "Amended Farmin Agreement"), Statoil has committed to spend a
minimum of US$50 million in Phase 2A,
which includes the Amy 2D seismic program completed in August of
2013 and the new vertical test wells.
Also included in the Amended Farmin Agreement is
Statoil's commitment to bear the cost of abandonment and
reclamation of surface lands as well as the existing three wells at
no cost to PetroFrontier. These operations are also planned for
2014 to capture operational and cost efficiency. Statoil (the
"operator") does not believe material new information will be
obtained from testing the Macintyre-2H well, as the presence of H2S
is believed to be an indication of water in the wellbore area, as
was seen in the Owen-3H well. The new wells have been selected to
avoid vertical faulting, which is believed to be the primary source
of water and with it, H2S, at the Owen-3H and Macintyre-2H wells.
The Baldwin-2Hst1 well with its casing failure is considered by the
operator to warrant permanent abandonment.
Baraka Energy & Resources Ltd ("Baraka"), a
25% working interest owner in EP 127 and EP128 is disputing the
2014 WP&B on these blocks. PetroFrontier does not see merit in
Baraka's objections and both Statoil and PetroFrontier are keen to
move forward with the work plan announced. The joint operating
agreement ("JOA") among the parties does provide for the potential
dilution of Baraka's 25% working interest should it refuse to pay
its cash calls. Statoil and PetroFrontier together hold 75% of the
working interest and have voted to approve the 2014 WP&B in
accordance with the JOA. These issues may result in a realignment
of the actual work performed on EP127 and EP128 but are not
expected to have a material impact on the overall technical results
of the 2014 work program and information gathered.
Upcoming Investor Presentations
On January 19 and
20, 2014 PetroFrontier will participate, in conjunction with
Proactive Investors, at the Vancouver Resource Investment
Conference. This will be followed by a series of Proactive
Investors One2One forums in Vancouver (January
21), New York (January 22), Toronto (January
23) and Montreal
(January 24). To find out more
details and to register for any of these events, please go to
Proactive Investors.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas
exploration company engaged in the exploration, acquisition and
development of both conventional and unconventional petroleum
assets in Australia's Southern
Georgina Basin where, subsequent to its Amended Farmin Agreement
with Statoil Australia Theta B.V., it holds an average net carried
17% working interest in approximately 13.5 million gross
acres. PetroFrontier's head office is based in Calgary, Alberta and its common shares are
listed on the TSX Venture Exchange under the symbol "PFC".
Forward-Looking Statements
This press release may contain
forward-looking information that involves substantial known and
unknown risks and uncertainties, most of which are beyond the
control of PetroFrontier. All statements included herein,
other than statements of historical fact, are forward-looking
information and such information involves various risks and
uncertainties. There can be no assurance that such
information will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
information. A description of assumptions used to develop
such forward-looking information and a description of risk factors
that may cause actual results to differ materially from
forward-looking information can be found in PetroFrontier's
disclosure documents on the SEDAR website at
www.sedar.com. Any forward-looking statements
are made as of the date of this release and, other than as required
by applicable securities laws, PetroFrontier does not assume any
obligation to update or revise them to reflect new events or
circumstances.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE PetroFrontier Corp.
