HOUSTON, TX -- (Marketwire) -- 10/08/08 -- Frontera Resources Corporation (London Stock
Exchange, AIM Market - Symbol: FRR; OTCQX Market, U.S.A. - Symbol: FRTE),
an independent oil and gas exploration and production company, today
announced early results of its ongoing development drilling program at the
Mtsare Khevi Field in its Shallow Fields Production Unit, Block 12, in the
country of Georgia.
Development drilling operations at the Mtsare Khevi Field have continued to
progress rapidly since the announcement of the completion of the MK#12 and
MK#25 wells in August. Four additional wells have been drilled, each
targeting the Upper Pliocene age Akchagil formation as part of a total
20-well rolling development program this year. The MK#13, MK#14, MK#22 and
MK#23 wells were drilled to total measured depths of approximately 355
meters and, as expected, each encountered three hydrocarbon bearing zones
between depths of 200-315 meters (Horizons I, II and III). As expected, mud
log oil shows exist in these horizons in all six wells, and well log
analyses continue to indicate approximately 20-30 meters of potential gross
pay in each well.
The combined results of the first six wells have revealed a structure
larger in area than previously thought. In addition, the presence of a
substantial gas cap in the field has been confirmed and continuous
development drilling has successfully pushed the limits of the lowest known
oil on the structure further down the flank than originally mapped, thereby
increasing the size of the oil bearing portion of the field. Individual
wells are also drilling more quickly than originally projected. As a
result, this new information has initiated a structural remapping of the
field, and current plans call for at least 40 additional locations to be
drilled in 2009.
Of the six development wells drilled to date, wells MK#12 and MK#13 are
currently producing a combined total of approximately 31 barrels of oil per
day of good quality 21 degree API oil from Horizon I, greater than original
projections.
