TIDMFRR
RNS Number : 5244C
Frontera Resources Corporation
22 January 2018
22 January 2018
Frontera Resources Corporation
("the Company")
Update on Ud-2 well
Frontera Resources Corporation (AIM: FRR), the European focused
oil and gas exploration and production company, is pleased to
provide an update regarding interim results on testing of the Ud-2
well, situated inside the 950km(2) Mtsare Khevi Gas Complex area,
located in onshore Block 12, Georgia.
Sustained deliverability of natural gas from the Gareji
formation has been confirmed during Stage 2 of the current
stimulation and testing program. The flowing interval, for Stage 2
testing, which is situated between 2519m - 2554m has indicated the
presence of commercial gas within the Miocene-aged Gareji
reservoir.
State Oil and Gas Service Company has performed analysis of the
flowed natural gas. Chemical composition is shown below:
Methane - 94.58%
Ethane - 2.50%
Propane - 1.90%
Nitrogen - 0.43%
Others - 0.59%
Lower Calorific value - 9230 kcal/m(3) (State standard: not less
than 7600 kcal/m(3) )
Higher Calorific value - 9910 kcal/m(3)
The natural gas quality satisfies all requirements of the
applicable GOST standard and corresponds to the applicable
regulations of the State Standard 5542-87, which makes it
acceptable for distribution through Georgia's natural gas grid.
As previously announced on 28 November 2017, residual formation
debris ('skin damage') from historical drilling operations was
encountered together with natural gas flow during Stage 1 flowback
operations while testing Miocene aged Gareji reservoir interval
situated between 2600m - 2620m.
Debris-free natural gas flow has now been successfully
established following the modifications to the perforation,
stimulation and flowback design for Stage 2 operations, while
testing Miocene aged Gareji reservoir interval situated between
2519m - 2554m. For reference, Stage 1 was completed with 15 metric
tons of proppant whereas Stage 2 included a 20 metric tons of
proppant stimulation.
Post Stage 2 stimulation analysis has determined that the
contributing intervals to current natural gas production are less
than 15% of the perforated and stimulated wellbore section situated
between 2519m - 2554m. When combined with reservoir and production
analysis, it has been concluded that a larger and more advanced
mechanical stimulation will greatly enhance natural gas production
rates from the targeted interval.
The next phase of testing operations will now focus on
establishing larger commercial gas production volumes from the
Stage 2 testing interval.
While continuing testing of the second interval of the Miocene
aged Gareji reservoir, situated between 2519m - 2554m, additional
pressure pumping equipment is being mobilized to conduct a
mechanical stimulation with 70 metric tons of proppant and improve
well performance. The planned stimulation effort will utilize
technology and scale in order to increase reservoir contact,
improve near wellbore conductivity, and enhance gas production from
all 100% of the perforated and stimulated Stage 2 testing
section.
Based on the Netherland, Sewell & Associates resource
estimate, the Gareji and the Maykop reservoirs of the Mtsare-Khevi
Gas Complex are estimated to contain 5.8 Trillion Cubic Feet of
recoverable gas, whereas the Gareji reservoir of Taribani complex
contains 3.2 Trillion Cubic Feet of recoverable gas.
Zaza Mamulaishvili, President and Chief Executive Officer,
commented:
"I am absolutely delighted to report about an early and
potentially very material success at the second of the three
testing intervals at Ud-2 well.
"We eagerly await next phase of a scaled up mechanical
stimulation and post stimulation flow rate of the second testing
interval but I believe the early results of the testing already
both prove a material sustained deliverability of the Ud-2 well and
provide significant confirmation as to the Block 12 potential of
the Gareji reservoir, development of which will be transformational
for the Company and Georgia's energy industry.
"I look forward to the results of the extended Ud-2 well test
and to updating shareholders in due course."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Frontera Resources (713) 585- 3216
Zaza Mamulaishvili
info@fronteraresources.com
Cairn Financial Advisers
LLP +44 (0) 20 7213 0880
Jo Turner / Liam Murray
WH Ireland Limited +44 (0) 20 3411 1880
James Joyce / Alex Bond
Yellow Jersey +44 (0) 203 735 8825
Tim Thompson
Harriet Jackson
Henry Wilkinson
Notes to Editors:
About Frontera Resources Corporation
Frontera Resources Corporation is an independent, international
oil and gas exploration and production company whose strategy is to
identify opportunities and operate in emerging markets in Eastern
Europe around the Black Sea. Frontera Resources Corporation shares
are traded on the London Stock Exchange, AIM Market - Symbol:
FRR.
For more information, please visit www.fronteraresources.com .
1. Information on Resource Estimates: The independent contingent
and prospective resources estimates contained in this announcement
were determined by the independent consulting firm of Netherland,
Sewell & Associates (NSA) in accordance with the definitions
and guidelines set forth in the 2007 Petroleum Resources Management
System (PRMS) adopted by the Society of Petroleum Engineers (SPE).
Dustin Aro, Frontera's Vice President, Well Completion and
Stimulation, is the qualified person who reviewed and approved the
technical information contained in this announcement on behalf of
Frontera Resources. Mr. Aro has extensive experience in the oil and
gas industry and holds a Bachelor of Science in Engineering and a
Bachelor of Science in Business Administration from Michigan
Technological University.
2. This release may contain certain forward-looking statements,
including, without limitation, expectations, beliefs, plans and
objectives regarding the transactions, work programs and other
matters discussed in this release. Exploration for oil is a
speculative business that involves a high degree of risk. Among the
important factors that could cause actual results to differ
materially from those indicated by such forward-looking statements
are: risks inherent in oil and gas production operations;
availability and performance of needed equipment and personnel; the
Company's ability to raise capital to fund its exploration and
development programs; seismic data; evaluation of logs, cores and
other data from wells drilled; inherent uncertainty in estimation
of oil and gas resources; fluctuations in oil and gas prices;
weather conditions; general economic conditions; the political
situation and relations with neighboring countries; and other
factors listed in Frontera's financial reports, which are available
at www.fronteraresources.com. There is no assurance that Frontera's
expectations will be realized, and actual results may differ
materially from those expressed in the forward-looking
statements.
3. Glossary of Terms: BCF - means Billion Cubic Feet of gas. TCF
- means Trillion Cubic Feet of gas. Mcf - means Thousand Cubic Feet
of gas. OOIP - means Original Oil in Place. OGIP - means Gas in
Place. Bopd - means Barrels of Oil Per Day. PPG - means
pounds-per-gallon.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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