Frontera Resources Begins 3D Seismic Program in Georgia

Block XII
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Frontera Resources has commenced an extensive 3D seismic survey within its onshore exploration and production license in eastern Georgia known as Block XII.

Taribani Field Unit - Drilling Operations

Since drilling began on February 10, 2006 in the Taribani Field Unit, the Dino #2 well has been successfully drilled and cased to an intermediate depth of 2,373 meters. The Dino #2 well is designed to evaluate multiple horizons within the field, with a primary objective of a final horizontal completion into horizon 15 at a total depth of approximately 2,700 meters.

Operations to drill out from the existing Dino #2 well bore commenced in early February with the opening of a window in the casing of the existing well at a depth of approximately 1,553 meters and continuing to drill to a vertical depth of 2,381 meters. Prior to reaching this depth, extensive coring and logging data was acquired for further evaluation of horizon 9. Although the Dino#2 well has a primary objective of horizon 15, the well was also designed to efficiently capture reservoir data for horizon 9 in order to enhance understanding of this horizon for future drilling in subsequently planned wells.

Drilling has thus far encountered 20 meters of gross pay sands. As expected, the Pliocene age oil bearing reservoir interval, horizon 9, was encountered from 2,300 meters to 2,311 meters. In addition, a previously unmapped oil bearing reservoir interval was encountered above horizon 9 from 2,275 meters to 2,285 meters.

Operations now continue with an objective of drilling ahead to horizon 15 to core and log the pay sands, followed by a final horizontal completion into this horizon at a total depth of approximately 2,700 meters within the next three weeks.

The Taribani Field is a large, undeveloped oil field covering an area of approximately 80 square kilometers with productive horizons situated in Miocene and Pliocene age reservoirs. These reservoirs are situated at depths of between 2,200 meters and 3,500 meters. The independent consulting firm of Netherland, Sewell & Associates has assigned 118 million barrels of P3 reserves from four of twelve identified horizons within the field.

Basin Edge Play Unit - Seismic Operations

Frontera has commenced operations to acquire a new 80 square kilometer 3D seismic survey over its Basin Edge Play Unit's 'C' prospect. Processing and interpretation of approximately 165 kilometers of 2D seismic data that was recently acquired over the 'C' prospect has revealed an independent four-way structural closure of approximately 55 square kilometres in size. As a result, the company has chosen to prioritize and focus on this large prospect within its broader Basin Edge Play Unit that is located in the northeastern portion of Block 12. Acquisition of the new 3D survey is expected to be complete by June and will be followed by a processing and interpretation effort that will be integrated into existing mapping prior to the end of this year. Drilling operations are planned for 2007.

The objective of the new 3D seismic program is to determine the exact lateral and vertical limits of this large structure, evaluate the extensions of fault blocks and fracture systems contained within it, and identify reservoirs on the basis of seismic attributes. Global Geophysical Services, Inc. of Houston, Texas will acquire the survey over this prospect for Frontera.

Frontera also recently acquired approximately 170 kilometers of 2D seismic data acquired over a second prospect within the Basin Edge Play Unit, known as the 'B' prospect. Interpretation of this data is currently underway.

The 'C' and 'B' prospects are two large exploration prospects that Frontera has mapped with Jurassic, Cretaceous and Tertiary age reservoir objectives. Targeted reservoirs are anticipated to be situated at depths of between 2,000 meters and 2,500 meters. The reservoir engineering firm of Netherland, Sewell and Associates, Inc. has assigned unrisked resource potential in excess of 1 billion barrels of recoverable reserve potential to these two exploration prospects.

Steve C. Nicandros, Frontera's Chairman and Chief Executive Officer, commented:
"Subsequent to initial start-up delays that we experienced in the commencement of drilling operations at the Taribani Field Unit, progress has been good. Successfully encountering horizon 9 as predicted was an important validation of our field mapping for this horizon. Moreover, encountering an unexpected and previously unmapped reservoir section above horizon 9 was a welcome bonus. Together with the associated cores and logs that were obtained, this information will be valuable in undertaking future drilling operations to determine the commercial viability of horizon 9. Now that we have successfully set casing below these secondary objectives in the well, drilling operations are continuing toward the well's primary objective of horizon 15.

At our Basin Edge Play Unit, we are very encouraged by what the results from our work to date have revealed. Having now confirmed the existence of such a sizable structure, we are very motivated to aggressively focus on further evaluating the 'C' prospect this year in order to enhance the exploration drilling of this opportunity next year."


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