Frontera Resources Corporation (AIM: FRR), the European-focused independent oil and gas exploration and production company, is pleased to provide an update on its progress in Georgia in advance of the Annual General Meeting (“AGM”) scheduled for later today. Additionally, a power point presentation given at the AGM will be uploaded to the Company’s website (www.fronteraresources.com) simultaneously with the commencement of the AGM.
Further to the filing of its Notice of Feasibility of Commercial Production as announced on 11 April 2017, the Company has commenced implementation of a program to study commerciality of Block 12 (the “Study Program”), in order to reach conclusion regarding sustainability of commercial production. Commencement of the Study Program represents another important milestone in Company’s ongoing work and its goal to reach commerciality of production, as it is primarily associated with operations targeting the substantial oil bearing Eldari Formation and other related geologic targets where independent assessment by Netherland, Sewell & Associates (“NSA”) estimated to contain significant resources.
Pursuant to the terms and provisions of Frontera Resources’ production sharing agreement, the Study Program has a 5-year term and it delineates the entire Block 12 as the area where the Study Program will be implemented. Pending completion of the Study Program and notification of respective results, no relinquishment of any part of Block 12 is due for the duration of the Study Program.
The Study Program provide for combination of work designed to reach conclusion that the commercial production is sustainable. As announced earlier, the immediate program for near term consists of sidetracking and deepening of wells in the Taribani area: Dino-2 and T-45.
With respect to wells Dino-2 and T-45, the Company has entered into materials and services agreements with various service providers for provision of long lead items such as tubulars, drilling fluids, mud and chemicals. Due to the delivery schedule associated with these long lead items, operations at Dino-2 well are now scheduled to commence in January 2018. Additionally, negotiations are currently underway with drilling and cementing service providers and respective contracts are expected to be entered into shortly.
Drilling permit for Dino-2 well has been issued by the State Agency of Oil and Gas
The well Dino-2 will be drilled to a target depth of 2700m and, as previously announced on 10 October 2017, Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together.
As announced earlier, operations at Dino-2 well will be followed by operations at T-45 well. Subsequently, further wells for drilling and sidetracking will be selected.
With respect to operations at well Ud-2, as announced on 2 October 2017 the Company has commenced extensive testing of the well following successful completion of workover operations. An update will be provided in due course as this work unfolds.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
