Frontera Resources Corporation Taribani Drilling/Well Logging Update (3030P)

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 
[e-mail] 
 
  Cairn Financial Advisers 
  LLP                        [phone] 
Jo Turner / Liam Murray 
WH Ireland Limited           [phone] 
James Joyce / Alex Bond 
Yellow Jersey                [phone] 
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 [e-mail] or visit www.rns.com.

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May 25, 2018 02:01 ET (06:01 GMT)