Frontera Makes Headway at Shallow Fields Production Unit

Frontera has provided an update of drilling operations at the Mirzaani #1 well that is currently drilling in an underdeveloped portion of the Mirzaani Field within its Shallow Fields Production Unit, Block 12, in the country of Georgia.

Open-hole logging operations have recently been completed at the Mirzaani #1 well and, based on well logs as well as data obtained while drilling, analysis indicates that the well contains approximately 146 meters of total net sandstones with average porosity values of approximately 20-25%. These Lower Pliocene age Shiraki formation sandstones are distributed among seven known field reservoir horizons, Zones 12-18, that are situated at depths between approximately 1,200 meters and 1,490 meters. As expected, multiple hydrocarbon shows were encountered while drilling.

Located approximately 520 meters to the southwest and as much as 20 meters up-dip of the currently producing #73 well within the field, the Mirzaani #1 well commenced drilling during the month of October in the underdeveloped southeastern portion of the Mirzaani Field and
reached a planned total depth of approximately 1,500 meters during the second week of November. Efforts are currently underway to prepare for production testing in early December.

Steve C. Nicandros, Chairman and Chief Executive Officer, commented, "The successful drilling of the Mirzaani #1 well represents an important step for Frontera in our progress to increase production from the underdeveloped Mirzaani Field. Together with the results seen in our analysis to date, the significantly improved drilling performance of this most recent well compared to the drilling of our first well in the field earlier this year provides us with further encouragement for continued growth of the Shallow Fields Production Unit."

Discovered in 1932, the Mirzaani Field has historically produced approximately 7 million barrels of oil, but contains many undrilled locations across the structure. The Mirzaani #1 well is the second new well to be drilled in the field since 1972. In 2006, Frontera acquired approximately 100 kilometers of new seismic data over the field area as part of an effort to re-map and identify new potential associated with the field. Based on analysis to date at both fields, Frontera estimates Mirzaani Field to contain over 50 million barrels of prospective resources within the Shallow Fields Production Unit. New reserve reports are expected to be completed following the current work programs.

Frontera's Shallow Fields Production Unit is located in the central portion of Block 12 and represents what the company believes to be an
extensive trend of low-cost, low-risk oil and gas reserves. Containing four discovered yet undeveloped or underdeveloped fields that have additional exploration potential, objectives are considered to be traditional, well-known reservoirs of Pliocene and Miocene age that are situated at depths from 10 meters to 1,500 meters.