8th Oct 2015 07:15
LONDON (Alliance News) - Frontera Resources Corp Thursday said it has secured a "significant upgrade" to the gas resources associated with its ongoing exploration and production efforts in Georgia, which has shown potential resources are more than ten times the amount suggested by its previous estimate.
The exploration and production company has recently integrated its Mtsare Kheve gas complex and Taribani field complex, both in Georgia, into one 2,00 square kilometre project called the South Kakheti gas complex.
Since that integration, further work has been conducted on the combined area as the company believed that these areas are part of a common geologic complex.
The company said its work has estimated that the South Kakheti gas complex has as much as 135.0 trillion cubic feet of gas-in-place. Frontera is now carrying out an independent assessment to provide a formal internal estimate for the combined area.
Earlier in 2015, Frontera hired US-based independent consulting firm Sewell & Associates, which published a report that said the South Kakheti gas complex had a prospective natural gas resource of up to 12.9 trillion cubic feet of gas-in-place, of which around 9.4 trillion cubic feet were thought to be recoverable.
Frontera is evaluating its commercialization options to expand and accelerate efforts to bring the prospective resource to Georgia's domestic market and to nearby regional markets in Turkey and Europe.
Frontera entered into to a strategic memorandum of understanding in July with Ukraine's national energy company, National Joint Stock Company Naftogaz of Ukraine, whereby an engineering front-end engineering and design study is underway related to the possibility of bringing liquefied natural gas to Ukraine from Frontera's ongoing upstream gas work in Georgia.
"Similar studies are in progress related to other trans-Black Sea markets as well as contemplated regional pipeline routes," said Frontera.
"Since commencing gas production operations in April of last year from its operations in eastern Georgia, Frontera has successfully marked eighteen months of gas production operations," said the company.
Frontera shares were trading up 7.8% to 0.78 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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