23rd Jun 2014 09:18
LONDON (Alliance News) - Frontera Resources Corp Monday reconfirmed an update provided in April regarding the start of gas production operations at its Mtsare Khevi Gas Complex in Georgia and said "no new related material information has since occurred", despite media reports of a material reserves increase.
The oil and gas exploration and production company made the announcement after a 54% increase in its share price on Friday. However, since the announcement, Frontera's share price has fallen back 9.1% to 0.950 pence, putting it amongst the top-ten AIM ALL-Share fallers on Monday.
In April, the company said it began gas production operations in Georgia after completing its infrastructure development, allowing for production throughout the field at a planned rate of roughly two million cubic feet per day of gas.
However, some media reports on Friday suggested that a ceremony for the start of gas deliveries from the field to the country's gas network took place on Friday, and Frontera President Steve Nicandros revealed total natural gas reserves in the amount of 42 billion cubic metres at the site.
The Caucasus news organisation Vestnik Kavkaza and Interfax both said on Friday that Nicandros made the announcement, stating that it meant energy independence for Georgia, which currently only consumes around 2 billion cubic metres of natural gas.
In April, the company said its internal estimates showed 28 billion cubic metres of gas in place at the Mtsare Khevi Field and up to 19.8 billion cubic metres of recoverable gas.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Frontera Resources