Frontera Resources Upgrades Gas Potential in Georgia Operations
October 08 2015 - 5:17AM
Business Wire
Frontera Resources Corporation (AIM:FRR), an independent oil and
gas exploration and production company (“Frontera” or the
“Company”), today provided an announcement of a significant upgrade
to gas resources associated with its ongoing exploration and
production efforts in the country of Georgia.
The Company recently announced that it had continued to advance
its natural gas focus within its eastern Georgia holdings by
combining the technical focus of its Mtsare Kheve Gas Complex and
Taribani Field Complex into one integrated 2,000 square kilometer
geologic unit called the South Kakheti Gas Complex. In addition to
gas resources previously identified for subsets of this combined
area, Frontera’s ongoing work recently concluded new estimation of
as much as 135 trillion cubic feet (3.8 trillion cubic meters) of
gas in place from reservoir targets found between 300 metres and
5,000 metres in depth. An independent assessment of Frontera’s new
internal estimates is now underway.
Earlier this year, during the month of April, Frontera announced
results of a report it commissioned by the U.S.-based independent
consulting firm of Netherland, Sewell & Associates that
confirmed combined prospective natural gas resources of as much as
12.9 trillion cubic feet (365 billion cubic meters) of
gas-in-place, with as much as 9.4 trillion cubic feet (266 billion
cubic meters) of recoverable prospective natural gas resources at
the Mtsare Khevi Gas Complex and Taribani Field Complex.
Following on from this assessment, extensive geologic and
geophysical studies continued within and between the Mtsare Khevi
Gas Complex and the Taribani Field Complex areas as the Company has
believed that these areas are part of a common geologic complex. As
a result, ongoing exploration studies have confirmed an extensive
integrated gas resource potential that is much larger than
previously identified.
In 2014, Frontera’s installation of a 14-kilometer network of
gathering, processing and pipeline transportation facilities
culminated in the initiation of gas production operations from the
Company’s ongoing drilling operations. 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. Continuous gas sales from the area
have represented the first time domestically produced
non-associated gas has been continuously marketed to Georgia’s
national consumption market. Together with extensive technical
analysis associated with the greater South Kakheti Gas Complex,
this work has opened a historic new chapter in Georgia’s move
towards energy independence as well as providing gas to markets
beyond its borders.
Frontera is advancing evaluation of commercialization options to
expand and accelerate efforts to bring this resource to not only
Georgia’s domestic market, but also to nearby regional markets in
Turkey and Europe. In this context, during the month of July,
Frontera entered into to a strategic Memorandum of Understanding
with Ukraine’s national energy company, National Joint Stock
Company Naftogaz of Ukraine whereby an engineering FEED study is
underway related to the possibility of bringing liquefied natural
gas (LNG) 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.
Steve C. Nicandros, Chairman and Chief Executive Officer
commented:
“Our ongoing investments in Georgia have continued to reveal the
emergence of what we believe to be a world class gas play with the
identification of the South Kakheti Gas Complex. Much like the
recent evolution of similarly prolific gas plays in the United
States that have transformed the U.S.A.’s energy independence
trajectory, our results continue to indicate that Georgia has the
natural gas resources to follow a similar path. We believe that our
ongoing work will further serve to establish Georgia’s domestic
energy independence in the years to come and also make it a
strategic supplier of gas to Turkish and European consumption
markets.”
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version on businesswire.com: http://www.businesswire.com/news/home/20151008005538/en/
Frontera Resources Corporation:Liz WilliamsonVice President,
Investor Relations and Corporate Communications+1 713 585
3216lwilliamson@fronteraresources.comorFinancial
PR:BuchananHelen Chan+44 (0) 20 7466 5000helenc@buchanan.uk.com
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