27th Oct 2005 07:00
Frontera Resources Corporation27 October 2005 Operations News Update. October 27, 2005 FRONTERA RESOURCES ANNOUNCES AWARD OF SECOND RIG CONTRACT FOR 2005 DRILLING PROGRAM IN GEORGIA Houston, Texas U.S.A. (October 27, 2005): Frontera Resources Corporation (LondonStock Exchange, AIM Market - Symbol: FRR), an independent oil & gas explorationand production company operating in the country of Georgia, today announced theaward of a workover and well preparation contract to TuHa Petroleum Explorationand Development Corporation, a subsidiary of China National PetroleumCorporation (CNPC). Under the terms of the contract, TuHa will provide a rigand perform certain engineering services as Frontera commences its plannedhorizontal well drilling program from a series of existing wells within itsTaribani Field Unit. TuHa's rig and associated services will prepare three existing wells within theTaribani Field for sidetrack and horizontal drilling operations. Preparationoperations will include fishing operations to ensure existing wells are free ofany debris; wellhead installation and testing; logging and pressure testing ofexisting well bores; and setting packers and/or cement plugs to isolate targetedreservoirs for drilling. These well preparation operations will begin in earlyNovember in advance of the drilling of sidetrack and horizontal extensions inthe same wells by a rig provided by Turkish Petroleum International Company LTD(TPIC), a subsidiary of Turkish Petroleum Corporation. Frontera announced theaward of a drilling contract to TPIC in August. Drilling operations by the TPICrig will commence in late November. Located in eastern Georgia within Frontera's license area known as Block 12, theTaribani Field is a large, undeveloped oil field covering an area ofapproximately 80 km2 with productive horizons situated in Miocene and Plioceneage reservoirs. These reservoirs are situated at depths of between 2,200 metersand 3,500 meters. The independent consulting firm of Netherland, Sewell &Associates has assigned 118 million barrels of P3 reserves from four of twelveidentified horizons within the field. Steve C. Nicandros, Frontera's Chairman and Chief Executive Officer, commented: "Our agreement with TuHa represents continued progress in our planned operationsat the Taribani Field for 2005. The commencement of preparatory workoveroperations in advance of drilling operations will serve to ensure cost andtiming efficiencies in our planned operations for the remainder of this year andearly next year. Operating two rigs in tandem will provide us with an efficientmeans through which we can optimize our efforts to gain a better understandingof the Taribani Field's reservoirs and hopefully establish commerciality." Enquiries Citigate Dewe Rogerson (+44 20 7638 9571) George Cazenove About Frontera Frontera Resources Corporation is an independent Houston, Texas, U.S.A.- basedinternational oil and gas exploration and production company whose strategy isto identify and operate opportunities in emerging markets around the world. Frontera was admitted to the Alternative Investment Market, operated by theLondon Stock Exchange, on 14 March 2005. Frontera has operated in Georgia since 1997 where it holds a 100 per centworking interest in a production sharing agreement with the government ofGeorgia. This gives Frontera the exclusive right to explore for, develop andproduce oil and gas from a 5,060 square kilometer area in eastern Georgia knownas Block 12. For more information, please see www.fronteraresources.com . For more information regarding the TuHa Petroleum Exploration and DevelopmentCorporation please see www.cnpc.com.cn/english/inter/Drilling.htm . This release contains certain forward-looking statements, including, withoutlimitation, expectations, beliefs, plans and objectives regarding the potentialtransactions and ventures discussed in this release, as well as reserves, futureproduction and our ability to establish commercial production. Among theimportant factors that could cause actual results to differ materially fromthose indicated by such forward-looking statements are future exploration anddevelopment results, availability of needed equipment and personnel,fluctuations in oil and gas prices, general economic conditions and thepolitical situation in Georgia and neighboring countries. There is no assurancethat Frontera's expectations will be realized, and actual results may differmaterially from those expressed in the forward-looking statements. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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