Frontera Resources predicts greater output despite delay

19th Jan 2017 08:46

(ShareCast News) - Frontera Resources Corporation, an AIM listed independent oil and gas exploration and production company, has found greater potential for oil and gas recovery at the Taribani Field area despite production delays.In the last two months operations to complete a new six well stimulation program were delayed due to the pending the delivery of additional pumping equipment needed for the execution of the planned programme.The pending campaign is focused on the continuation of the company's ongoing oil and gas window operations in the South Kakheti complex.The equipment from the US is expected to be delivered during the month of March. Until then ongoing operations have focused on workover, production testing and related petrophysical analysis of previously stimulated wells at the Taribani field area of the South Kakheti complex.Around 150 meters of gross oil and associated gas pay has been identified for development across the extensively targeted Eldari Formation.The expected 10-year ultimate recovery (EUR) per stimulated gross meter is calculated to be around 8,000 barrels, providing a greater recovery potential than initially predicted.The company expects the pending campaign to significantly contribute towards its current objective of achieving pilot production rates of around 2,200 barrels of oil equivalent (boe), resulting in monthly revenues of around $3m at current commodity prices.Chairman and chief executive Steve C. Nicandros said: "Despite equipment related delays in completing our pending stimulation campaign, the testing and associated analysis that has been conducted in the interim has revealed greater potential for oil and gas recovery than we previously envisaged. With this, our ongoing work continues to demonstrate a lower risk profile associated with this significant value for our company."The share price fell 6.25% to 0.08p at 0933 GMT on Thursday.