Zaza Mamulaishvili, President and CEO, commented: I am excited to report that the MOU with BHGE has been signed. This MOU sets very important terms and areas of cooperation between the Company and BHGE, who is the one of the best and the largest players in the industry.
This cooperation will deliver the best of BHGE’s expertise, knowledge, know-how and services that will be applied towards increase of production and development of our oil and gas fields in the Taribani, Mtsarekhevi and Mirzaani areas of Block 12. We are continuing to work with BHGE with the view to entering into definitive agreement(s) that will define our mutual cooperation, which may include the Company contributing to the venture via sharing of its oil and gas production. We look forward to keeping the market updated as we progress with our work together.”
Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to announce that, on 26 October 2018, its subsidiary Frontera Eastern Georgia Limited signed a Memorandum of Understanding (“MOU”) with Baker Hughes Services LLC, a GE company (“BHGE”), regarding future mutual cooperation with regards to the Company’s Block 12 asset in Georgia. This MOU is a result of previously announced discussions with industry majors.
Under the terms of the MOU, the Company and BHGE will collaborate with the aim to improve efficiency of operations, enhance service capacity and capabilities, and commence in-field drilling and intervention campaign to increase production and recovery of resources in the Taribani, Mtsarekhevi and Mirzaani fields of Block 12 in Georgia. For this purpose, BHGE may provide equipment and products, technical services, project management and other related services on as needed basis (“Work”). This may include, but not be limited to: provision of BHGE expertise, knowledge, process and procedures for agreed areas of collaboration; project management and field engineering services; BHGE digital solutions.
The MOU divides the scope of work into three phases. During Phase I, candidate wells at Taribani will be chosen to work on field program with the aim to increase oil production. During Phase II, the parties will cooperate to work on Taribani field development project that may include, but not be limited to, the Work. During Phase III, the parties will cooperate to work on future projects that includes BHGE solutions and expertise with regards to the natural gas monetisation.
Pursuant to the MOU, the parties will work together towards entering into definitive agreement(s) which may include, but not be limited to, commercial models regarding increasing the field production, BHGE’s provision of services and products, and the Company contributing to the venture via sharing of its oil and gas production. The MOU will remain in force and effective until 26 September 2019 and may be terminated by either side giving 30 days’ notice. The entry into such definitive agreement(s) is subject to the finalization of ongoing due diligence by BHGE.
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