TIDMFRR
RNS Number : 0632T
Frontera Resources Corporation
15 July 2015
Houston, Texas, U.S.A. - 15 July 2015
FRONTERA RESOURCES CORPORATION
Frontera and Naftogaz of Ukraine Sign Strategic Memorandum of
Understanding For Upstream and LNG Cooperation
Frontera Resources Corporation (AIM:FRR), an independent
international oil and gas exploration and production company, today
announces that on 13 July 2015 it signed a strategic Memorandum of
Understanding ("MOU") with Ukraine's national energy company,
National Joint Stock Company Naftogaz of Ukraine.
The MOU serves to establish a focused joint effort to work
together in upstream exploration and production projects in
Ukraine, as well as to study the possibility to bring liquefied
natural gas (LNG) to Ukraine from Frontera's ongoing work in
Georgia where it has identified 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. These natural gas resources were recently announced by
Frontera earlier this year and confirmed in reports by the
U.S.-based independent consulting firm of Netherland, Sewell &
Associates.
The MOU was executed by Andriy Kobolyev, Chairman and Chief
Executive Officer of Naftogaz of Ukraine, and Steve C. Nicandros,
Chairman and Chief Executive Officer of Frontera. The signing took
place in Washington, D.C. during the first U.S.-Ukraine Business
Forum, hosted by the U.S. Chamber of Commerce in collaboration with
the U.S. Department of Commerce.
Steve C. Nicandros, Chairman and Chief Executive Officer,
commented:
"We are very pleased to continue to advance our initiatives in
Ukraine and, in particular, our relationship with Naftogaz. This
important MOU reflects Frontera's ongoing focus to progress its
Greater Black Sea Strategy by pursuing new growth throughout a
region that contains significant underdeveloped and under-explored
oil and gas potential.
Moreover, in conjunction with the significant natural gas
resources that our ongoing operations in Georgia have identified, I
strongly believe that our closer work with Naftogaz will open
avenues to strategically supply Ukraine with LNG from across the
Black Sea. This will serve to diversify the country's supply of
natural gas and, by doing so, bring Georgia to the forefront as a
strategic supplier of natural gas to Europe."
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
Avi Robinson / Jo Turner
+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, Ukraine 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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