Frontera Makes Headway at C Prospect in Georgia's Block 12

Frontera Resources Corporation has announced an update of operations at its Basin Edge Play Unit, Block 12, Georgia.

In the most recent Operations Update in April for drilling operations at the "C" Prospect, it was reported that 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 was designed. This was done with a focus on efficiently and successfully reaching our primary Cretaceous objective within the "C" Prospect.

As a result, it was also concluded that it would be necessary to obtain a new rig with capabilities and specifications that are better suited for the drilling challenges that we have encountered. Based on this, since April, efforts have been underway to secure a new rig to return to drilling operations as quickly as possible. However, due to a congested market for the higher specification drilling equipment required to meet the new technical objectives, it has not been possible to schedule a continuation of drilling operations as originally planned. Efforts are ongoing to secure the appropriate equipment with an objective of continuing operations at the "C" Prospect during the fourth quarter of this year.

While efforts to obtain a new rig have resulted in a delay in the planned continuation of drilling operations, this delay also provided an opportunity to take advantage of the current schedule for reprocessing and additional analysis of the 3D seismic survey related to the "C" Prospect. As a result, the extensive data obtained from the multiple well-bores associated with drilling operations at the Lloyd #1 location is being incorporated into the existing 3D volume in order to enhance the interpretation of the giant "C" Prospect. The result of this work will lead to the generation of a depth conversion, which will allow more accurate mapping of the prospect and provide the basis for future drilling operations.

While the reprocessing effort is still underway and not expected to be completed until the end of the third quarter, early results have revealed that previous structural interpretation remains intact, confirming that the height of the structure is large and that additional up-dip potential can be defined south of the current drilling location. It is also the goal of our reprocessing effort to better define the Miocene and Eocene reservoirs, where we have encountered oil and gas shows, for future drilling.

Steve C. Nicandros, Chairman and Chief Executive Officer, commented, "Since April, Frontera has been working to return to drilling operations as soon as possible at the 'C' Prospect, but has encountered delays associated with obtaining the required drilling equipment in the current oil price environment. During the delay, however, we have taken the opportunity to enhance our ongoing work by reprocessing our 3D seismic survey over the prospect. This work will incorporate the actual results encountered from the well-bores that have been drilled to date and provide the basis for continuation of drilling operations at the Lloyd #1 location. In addition, reprocessing will yield a more accurate view of the subsurface for future drilling operations that will be designed to appraise the results obtained from our work at the 'C' Prospect thus far. We remain extremely encouraged by our ongoing work at this important prospect."