TIDMFRR
RNS Number : 1319V
Frontera Resources Corporation
19 July 2018
19 July 2018
Frontera Resources Corporation
("Frontera" or "the Company")
Operations Update
Frontera Resources Corporation (AIM: FRR), the European focused
oil and gas exploration and production company, is pleased to
provide update regarding its operations at Block 12 in Georgia.
Well T-39
As previously announced by the Company on 29 June 2018, the well
T-39, the third well of the three-well drilling and testing
campaign at the Company's Taribani complex situated within the
Block 12 license in Georgia, has been sidetracked from the existing
wellbore and drilled to a vertical depth of 3056m into the Miocene
aged Eldari B formation. Total net pay of 132m has been calculated
for penetrated four oil bearing sandstones, Zones 9, 14, 15 and
19.
On 4 July 2018, Extended Well Testing ("EWT") commenced at T-39
well, by perforation of 21m interval of Zone 19, situated between
2970m and 3000m. After a well clean out, the well started to flow
light ( 41.5 API), sweet crude oil together with wet gas and, under
natural flow, achieved following production rates: 529 bbls/d of
oil and 600,000 scf/d of gas using an 8/64" chock size, 347 bbls/d
of oil and 425,000 scf/d of gas using an 7/64" chock size and 250
bbls/d of oil and 350,000 scf/d of gas through 6/64" chock,
demonstrating excellent well deliverability. The Company
anticipates that production rates from future development wells may
be significantly higher.
The CPR volume estimates of 14.8 million barrels of recoverable
oil from Zone 19 and 36.5 million barrels of recoverable oil from
Zones 20, 23 and 25 of the Eldari B formation, situated between
3056m and 3350m interval support the significant potential of the
Eldari B formation.
The 300m interval below Zone 19 was previously penetrated during
the drilling of the Niko-1 well, the first well drilled by the
Company in Block 12, Georgia. Testing of the interval confirmed the
presence of oil and gas bearing Miocene aged marine sandstones with
good reservoir properties, flowing light sweet oil and wet natural
gas at a commercial volumes.
Gareji formation, situated below the Eldari B reservoir in the
Taribani field is estimated to contain 3.2 Trillion Cubic Feet of
recoverable gas according to the CPR estimates.
Well Ud-2
As previously announced by the Company on 8 May 2018, Extended
Well Testing ("EWT") at Ud-2 well, situated in Mtsare Khevi Gas
Complex of Block 12 in Georgia, commenced on 21 April 2018.
The Company perforated and with 57 tons of proppant mechanically
stimulated 9.5m out of gross 27m interval situated between 2519m
and 2446m of Middle Miocene aged Zone F. During the clean out phase
the well flowed dry natural gas, carrier fluid with some proppant
and cement particles. It has transpired that cementing around the
casing at this section was of very poor quality and, accordingly,
did not allow achieving a designed fracture geometry during
stimulation and prevented continuous clean out process of the well.
Maximum flow rate of 150,000 scf/d of dry gas has been recorded
during the testing period.
Based on the current well test result, the reconfirmation of the
presence of Middle Miocene aged gas in Zone F and the potential to
increase stimulation efficiency by improving the fracture geometry,
the Company is considering the option of sidetracking from the
existing wellbore of Ud-2 well. In the meantime preparations
underway to plug and abandon the well.
Wells T-45 and Dino-2
The Company is continuing Extended Well Testing ("EWT") of the
wells T-45 and Dino-2 in the Taribani complex, and will update the
market about these wells in due course.
Corporate Finance Update
As announced on 7 June 2018, in accordance with the agreement
entered into with YA II PN, Ltd ("YA"), the Company redeemed 241
Series A convertible, preferred, redeemable shares in the Company
held by YA ("Series A shares") for the cash amount of US$265,000
(the "Redemption"). Following the Redemption, YA holds the total of
2,650 Series A shares.
Zaza Mamulaishvili, President and Chief Executive Officer,
commented:
"We are delighted with the excellent early test results from
Zone 19 of T-39 well, which support the Company's plans for a
Taribani field development. Current results demonstrate that we
have highly productive Eldari B formation, which has been tested
first time in Zones 19, 23 and 25 of Niko-1 well and delivered flow
rates of 960 bbls/d of light oil and 1 mmscf/d of wet gas.
"The drilling practices used in Niko-1 drilling operations did
not allow for drilling a gauged wellbore and, subsequently, very
poor cement integrity around the casing led to the production of
formation sediments preventing the continuous flow of hydrocarbons
into the wellbore after 45 days of well testing. Despite a good
reservoir response to a mechanical stimulation, unfortunately the
Company has now experienced a similar type of cement integrity
issue at Ud-2 well which was drilled by a previous operator in
1981. This prevented the stable flow of natural gas at a higher
flow rates. As a large section of the wellbore is usable, the
option of sidetracking the unusable section of the well represents
a significant cost saving over drilling a new well.
"It is very encouraging that our continued improvement in
drilling and cementing practices in Block 12 allowed the Company to
drill nicely gauged wellbore of T-39 (like in Dino-2 and T-45),
important precondition for achieving a good cement integrity around
the casing, ensuring sustainable and continuous oil and gas
production.
"This is a significant milestone for the Company. Successful
completion of the three-well drilling campaign in Taribani with
very encouraging early test results and further reconfirmation of
Middle Miocene aged gas presence in F sands of Mtsare Khevi Gas
Complex, brings us closer to becoming a profitable operator with
significant growth potential."
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).
Paolo Pratelli, Frontera's Vice President of Operations, is the
qualified person who reviewed and approved the technical
information contained in this announcement on behalf of Frontera
Resources. Mr. Pratelli has extensive experience in the oil and gas
industry and holds a degree in chemical engineering from the
University of Siena (Italy).
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: bbls/d - means barrels per day. 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. scf/d - means standard cubic feet per day. 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
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