TIDMFRR
RNS Number : 3030P
Frontera Resources Corporation
25 May 2018
25 May 2018
Frontera Resources Corporation
("Frontera" or "the Company")
Taribani Drilling/Well Logging Update
Frontera Resources Corporation (AIM: FRR), the European focused
oil and gas exploration and production company, is pleased to
provide an update on drilling operations in Taribani field,
situated within Taribani Complex of Block 12 in Georgia.
Well T-39
As previously announced by the Company, the well has been
sidetracked from the existing wellbore and drilled to a vertical
depth of 2800m into the Eldari formation.
The Company has completed open hole well logging of the recently
drilled section. The open hole logging suite consisted of
resistivity, neutron porosity, sonic, bulk density, and gamma ray
measurements. Data processing has confirmed pay interval
identifications made during the drilling operations. Combined pay
for Zones 9, 14 and 15 within T-39 well has been calculated to be
102.5m with 14.2% porosity. 12.4m combined pay interval has been
confirmed in Zone 13. This is a further developed pay section in
addition to the original Zones 9, 14 and 15 targets. The Company
confirms that it has observed a number of oil and gas shows during
drilling operations.
Well Niko-1
On 16 May 2018, the Company received drilling permit from the
State Agency of Oil and Gas for drilling operations at the well
Niko-1. The well will be drilled (by way of well sidetracking) to a
target depth of 2850m, and Zones 9, 14 and 15 of the Eldari
reservoir will be stimulated and produced together. It is expected
that drilling operations will commence in early November 2018 and
will complete in early December 2018 followed by the well flow test
to commence before the end of the year 2018.
Niko-1 well open hole logging data processing form previous
drilling operations, consisted of resistivity, neutron porosity,
sonic, bulk density, and gamma ray measurements, confirmed combined
pay for Zones 9, 14 and 15 to be 86.9m with 14.0% porosity. 14.9m
combined pay interval has been confirmed in Zone 13.
Well Niko-1 Funding
On 24 May 2018, the Company entered into an agreement with an
unrelated institutional investor to secure funding for the planed
operations at Niko-1 well. Pursuant to the agreement, the investor
will provide up to $3 million investment, to be disbursed in two
equal tranches by 1 September 2018 and by 15 October 2018,
respectively, in order to fund the Niko-1 well work program to be
commenced in November 2018. In consideration for this financing,
the investor will receive share in the production from the Niko-1
well in the following proportion: 60% of the well production from
the completion of the work program until recovery of its
investment, and 30% of the well production thereafter.
Zaza Mamulaishvili, President and Chief Executive Officer,
commented:
"We are pleased to see Zones 9, 14 and 15 within well T-39 to be
equally developed and correlating well to the zones in the recently
stimulated wells Dino-2 and T-45. Our 2D and 3D seismic data
interpretation together with geological, geophysical and drilling
data confirm an excellent distribution of Zones 9, 14 and 15 of the
Eldari reservoir sandstones within the Taribani field.
T-39 well is the last one out of the current, fully funded,
three-well drilling and testing program. Upon completion of the
drilling operations at T-39, which is progressing ahead of the
drilling schedule, the drilling rig will be released and the well
testing will commence.
It is hugely exciting that we will be mobilising the drilling
rig to Niko-1 location on 1 November 2018, for the fully funded
drilling, stimulation and testing of Zones 9, 14 and 15.
With current successful drilling operations and encouraging
early well testing results, as per our previous announcements, it
is anticipated that oil production from the Taribani field will
increase as we develop the wells, test further zones and move
towards production during remainder of 2018. This will assist in
building a strong revenue stream for the Company. We will update
the market in due course regarding new well drilling and testing
program for 2019."
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).
Dustin Aro, Frontera's Vice President, Well Completion and
Stimulation, is the qualified person who reviewed and approved the
technical information contained in this announcement on behalf of
Frontera Resources. Mr. Aro has extensive experience in the oil and
gas industry and holds a Bachelor of Science in Engineering and a
Bachelor of Science in Business Administration from Michigan
Technological University.
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. PSI - means pounds per square inch. SG - means
Specific Gravity.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLEELBLVEFEBBZ
(END) Dow Jones Newswires
May 25, 2018 02:01 ET (06:01 GMT)
Frontera (LSE:FRR)
Historical Stock Chart
From Apr 2024 to May 2024
Frontera (LSE:FRR)
Historical Stock Chart
From May 2023 to May 2024