Frontera Resources to Begin Testing at Dino #2 in Georgia

Block XII
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Frontera Resources has completed horizontal drilling operations at the Dino#2 well within its Taribani Field Unit. Production testing of Zones 14 and 15 will shortly commence and continue for approximately 90 days in order to establish the commercial viability of the well. The Taribani Field Unit is located within Frontera's onshore exploration and production license in eastern Georgia known as Block XII.

Since commencement of operations at the Dino#2 well on February 10th, drilling of the vertical pilot hole encountered the Pliocene age reservoir Zones 9, 14 and 15 at expected depths, with hydrocarbon shows from each while drilling. Extensive coring and logging operations were completed throughout key portions of the vertical pilot hole. The main Zone 9 reservoir was encountered from 2,300 meters to 2,311 meters. In addition, a previously unmapped reservoir interval also encountered oil shows above Zone 9 from 2,275 meters to 2,285 meters. Deeper in the well, oil and gas shows were encountered in the Zone 14 and 15 intervals between 2,560 meters and 2,700 meters, true vertical depth (TVD).

The results from coring and logging operations confirmed original plans to drill the well horizontally into Zone 15. As a result, a 6-1/4 inch, 668 meter lateral hole was successfully drilled to the southeast from the base of the vertical pilot hole casing shoe. The lateral hole consisted of a 493 meter build-up section to achieve the proper angle of entry into Zone 15 and 175 meters of new horizontal hole into the objective sandstone section at a TVD of 2,655 meters. Total measured depth of the well reached a length of 3,040 meters.

The lateral well drilled through Zone 14 at an angle of approximately 51 degrees and into Zone 15 at a final horizontal angle of approximately 86 degrees. Drilling mud weights that were used to drill the lateral section of the hole were between 15.5 and 16.9 pounds per gallon. During drilling operations through Zones 14 and 15, high pressure oil and gas bearing intervals were encountered with oil and gas flowing to the surface. At several instances during the drilling of the lateral hole, well flow cut the mud weight to below 9 pounds per gallon requiring oil and gas to be diverted to the mud pit and flare line.

The main objective of Frontera's horizontal drilling program at the undeveloped Taribani Field this year is to test whether or not the reservoirs within the field are fractured. By drilling horizontal wells into these reservoirs to favorably encounter fracture systems, it is hoped that sustainable commercial production can be achieved. Analysis of recent coring, logging and drilling operations at the Dino#2 well has confirmed the presence of fractures and the company will now test the well over the next 90 days to determine its commercial viability. In addition, results have revealed a better-than-expected reservoir section at Zone 14 such that plans have been modified to add this zone to the planned testing program. Zones 14 and 15 will therefore be tested separately and, if successful, final production from the well will be commingled and simultaneously produced from both zones.

Over the next few days, casing will be run, production tubing set and a Xmas Tree will be installed at the Dino#2 well before the commencement of testing operations. The F-200 rig will then move to well #23 within the Taribani Field, where the next re-entry is planned to commence drilling within three weeks. A Zone 9 horizontal completion is the planned objective for this well.

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.

Steve C. Nicandros, Frontera's Chairman and Chief Executive Officer, commented:

"We are encouraged thus far by the results of our work at the Dino#2 well. Encountering oil and gas shows in Zones 9, 14 and 15; confirming the presence of fractures; and, physically seeing oil and gas flow to the surface despite heavy drilling mud weights has provided important information that continues to support our hypothesis for a potential commercial development of the Taribani Field. Moreover, encountering a better-than-expected sand interval in Zone 14 was a welcome addition to our testing plans. Based on this, we look forward to the testing phase of our work at the Dino#2 well.

We are also encouraged to commence new drilling operations at well #23. In the Dino#2 well, extensive coring and logging data was acquired for further evaluation of Zone 9 even though deeper zones were the primary objective of the well. We will now use this data as the basis for our work at well #23 in order to drill and test Zone 9 since it is expected that it will not be possible to commingle production from this zone with that of deeper zones in the field due to reservoir pressure differentials.

Overall, Frontera remains on track with its plans to this year evaluate the commercial viability of Zones 9, 14, 15 and 19 with its planned drilling program at the Taribani Field. "


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