Challenging Drilling Conditions In Georgia Met Head On By Frontera

Frontera Resources Corporation announced an update of operations at the Lloyd #1 well at its Basin Edge Play Unit, Block 12, Georgia.

In the most recent Operations Update of February 19, 2008 for drilling operations at the "C" Prospect, it was reported that drilling operations at the Lloyd #1-Sidetrack #1-3 were in progress with the expectation of reaching the top of the primary objective Cretaceous formations at a measured depth of approximately 2,950 meters. As previously reported, the well was originally sidetracked (Sidetrack #1-2) in December 2007 in an effort to more optimally encounter the well's Cretaceous age primary geologic formation targets and also to appraise the Tertiary age geologic formations in an up-dip position to where oil and gas shows were encountered low on the structure in the original well bore. Sidetrack #1-3 was commenced in February 2008 in order to overcome challenging drilling conditions encountered within the Eocene formation, which is expected to lie stratigraphically directly above the primary Cretaceous target.

Since February, ongoing analysis determined that the challenging drilling conditions associated with the Eocene formation are most likely attributable to the highly tectonized nature of this formation. Sidetrack #1-3 commenced drilling from a measured depth of approximately 2,200 meters and again encountered encouraging hydrocarbon shows in the Tertiary section of the well, but after reaching approximately 2,600 meters, difficult drilling conditions were once again encountered.

With the primary objective Cretaceous interval expected to be within 300 meters, a new sidetrack (Sidetrack #1-4) commenced from a depth of about 2,500 meters and progressed to a depth of approximately 2,700 meters. Hydrocarbon shows were also seen in the #4 sidetrack. However, the well once again encountered well bore instability within the Eocene formation.

Based on the difficult drilling conditions associated with the Eocene formation, a formation that was not originally expected to be encountered within the "C" Prospect, a new approach to drilling this section of the well has been designed. As a result, appropriate changes have been made to well plan design for continued drilling and it has been concluded that it will be necessary to replace the existing drilling rig and associated equipment in favor of a new rig with capabilities and specifications that are better suited for the drilling challenges that we have encountered. This is being done with a focus on efficiently and successfully reaching our primary Cretaceous objective within the "C" Prospect. Based on this, efforts are currently underway to mobilize a new rig to continue operations in June.

Steve C. Nicandros, Chairman and Chief Executive Officer, commented: "Since February, Frontera's drilling operations at the 'C' Prospect have continued to be encouraging based on the ongoing analysis of mud logs, cuttings, cores, electronic logs and other technical data. Given that we are so close to our primary Cretaceous objective, we have deemed it prudent to evolve our approach to completing this important exploration well. Despite the unexpectedly difficult drilling conditions that have put us within 300 meters of our anticipated primary objective, we remain extremely encouraged about what we have discovered thus far with our work at the 'C' Prospect. In this context, the overall effort on the part of our integrated exploration and operations team has been very commendable and we believe the revisions we have now made to our overall plan will allow us to successfully reach our objectives on this important prospect."


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