Frontera Resources Corporation, a European focused independent oil and gas exploration and production company, is pleased to provide operations update related to its ongoing work at Block 12 in Georgia.
The Eldari A reservoir contains a number of stacked pay zones. The Company first drilled the Dino-2 vertical well targeting Zone 9 of Eldari A reservoir in Taribani in 2008. Following stimulation, this well has provided the Company with a long term production history from which it can more accurately model further wells. Now the Company intends to stimulate multiple pay zones in a vertical well (targeting zones 9, 14 and 15). Total thickness of these zones is a multiple of Zone 9 and, based on the Eldari A reservoir modeling, it is expected that the stacked nature of the pay zones should substantially increase productivity per well when compared the historical production from the Dino-2 well. With crude oil at $50/bbl, the directors estimate that well cost could be recovered in less than one year from the commencement of production on the basis of a successful workover of an existing well.
For the remainder of the year 2017, the Company's ongoing work program will be focused on sidetracking and drilling the Dino 2 well, which will be drilled to a target depth of 2700m. It is intended that Zones 9, 14 and 15 will be stimulated and produced together.
Drilling contractor selection is in progress and the board expects to complete this in early September 2017. The Dino 2 Drilling permit is expected to be approved in October, with drilling operations to commence in November and well testing to start in December subject to there being no unforeseen circumstances.
In January 2018, it is the Company's intention to start deepening the T-45 well, to a target depth of 2650m, in order that Zones 9, 14 and 15 can be stimulated and produced together. It is expected that the drilling permit will be approved in November and well testing may be able to commence from February 2018.
Based on the Netherland, Sewell and Associates resource estimate (which is available on the Company's website), Zones 9, 14 and 15 of the Eldari A reservoir are estimated to contain about 700 million bbls of oil in place, with expected ultimate recovery of about 100 million bbls.
The company will continue its work-over operations in the Ud-2 well of the Mtsare Khevi gas complex. The bridge plug will be set at 3340m and three gas-bearing intervals located between 2620m and 3320m will be perforated and tested. Of these intervals, two are in the Gareji formation and one interval is in the Oligocene age source rock (Maykop).
Work-over operations are expected to be completed by end of September, subject to there being no unforeseen circumstances, followed by perforation and testing in October.
Based on the Netherland, Sewell & Associates resource estimate, the Gareji and the Oligocene formations of the Mtsare-Khevi gas complex are estimated to contain 8.3 TCF of Gas in Place, with 6.15 TCF considered to be recoverable.
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
"This is a very exciting time for the Company to focus on Taribani operations. As a result of many years of advances along the learning curve of drilling, completion and stimulation, coupled with long-term production tests, the Company is now hoping to substantially increase well productivity by utilizing multi-zone frac completions successfully used in US and worldwide.
Additionally, we are very optimistic about testing gas-bearing intervals of the Udabno-2 well. Successful testing will prove up the tremendous natural gas reserves estimated by Netherland, Sewell & Associates and will initiate transformational development for the Company and, in time, the country as well."