Frontier Resources International Operational update Oman (8723O)
June 02 2015 - 2:01AM
UK Regulatory
TIDMFRI
RNS Number : 8723O
Frontier Resources International
02 June 2015
For immediate release
2 June 2015
FRONTIER RESOURCES INTERNATIONAL PLC
("Frontier" or the "Company")
Operational Update: Sultanate of Oman
Block 38 Farm-Out Discussions
Frontier's 100%-owned Block 38 is located in the Rub Al Khali
Basin in the southwest of the Sultanate of Oman and covers a
surface area of approximately 17,425 square kilometers. A six year
Exploration and Production Sharing Agreement (EPSA), comprising two
three-year phases, was signed on 25 November 2012. Frontier is the
operator. In April 2015, the Company announced that it had received
approval to exchange the Phase 1 work commitment of a 3D seismic
survey for an exploration well with a 2D seismic survey and that it
would start discussions with the tender board to begin the process
to select suitable contractors to complete this work program.
Subsequent to this recent agreed change in the work program,
Frontier has entered into preliminary discussions with Middle
East-based entities regarding a potential farm-in to Block 38. The
Company anticipates that any formal farm-in agreement would include
a carried interest for Frontier through the initial drilling
program and the repayment to Frontier of a proportion of its sunk
costs to date (which currently amount in total to US$1.6 million).
Completion of any farm-out would be subject to formal documentation
and due diligence and in respect of a transfer by Frontier of the
operatorship of Block 38, would also be conditional on Oman
regulatory approval.
As previously reported, during the past two years, Frontier has
completed the re-processing of some of the existing 2D seismic data
on the Block and has identified two potential structural leads not
identified by previous operators. The few historic wells drilled in
this very large block did not penetrate any of the geologic
formations considered to comprise each of the new independent
leads.
A further announcement will be made in due course.
Enquiries:
Frontier Resources International Plc
Neil Herbert, Chairman Tel: +44 07785 957784
Jack Keyes, Chief Executive Officer Tel: +1 (713) 962 0887
Beaumont Cornish Limited (Nomad) Tel: 0207 628 3396
Michael Cornish
Roland Cornish
Beaufort Securities Limited (Broker) Tel: 020 7382 8300
Saif Janjua
Yellow Jersey PR Limited (Financial PR)
Dominic Barretto Tel: +44(0) 7768 537 739
Anna Legge Tel: +44 (0) 7747 788 221
About Frontier:
Frontier Resources International Plc, which was founded in April
2008, is focused on onshore oil and gas exploration and development
in the Middle East and Southern Africa where the Company has
technical knowledge and expertise. The Company currently has three
exploration projects in Oman, Zambia and Namibia.
Frontier's immediate objectives are to continue developing its
core exploration projects towards first production particularly in
Oman where the Company's knowledge base is most advanced because of
the proximity to producing oil and gas fields and the availability
of existing seismic and well data.
The Company is incorporated in the United Kingdom with its
registered office in London. It also maintains a technical and
commercial office in the United States in Houston, Texas.
Additionally, to support its regional operations in Southern Africa
and the Middle East, offices are maintained in Namibia, Zambia and
Oman.
The Company's shares were admitted to AIM of the London Stock
Exchange on 5 July 2013.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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