Frontera Spotlights Frac Ops at Shallow Fields Production Unit

Frontera provided an update on operations at the Mirzaani #5 well in the Mirzaani Field, located within its Shallow Fields Production Unit, Block 12, in the country of Georgia.

A multi-zone frac completion at the Mirzaani #5 well, located in the undeveloped Mirzaani Northwest extension of the field, was successfully completed in late September. The frac completion targeted Zones 13 and 16/17, at depths of approximately 897-909 meters and 1,057-1,075 meters, respectively, commingling these intervals. After a 36-hour cleanout, the well delivered a 48-hour initial average flow rate of approximately 230 barrels per day of fluid, at an average flowing well head pressure of approximately 230 psi, including an average of approximately 100 barrels per day of oil with associated gas, from the 28 meters (92 feet) of fraced pay. The well has continued to flow naturally at a 14-day average rate of approximately 130 barrels per day of fluid, including 60 barrels per day of 29.5O API oil and associated gas. The well will remain on cleanout production operations for the next 30 days in order to continue to recover the remainder of the approximately 2,200 barrels of injection water that was pumped into the reservoir formations during fracing operations. During this early production period, the well will be monitored and analyzed, after which flow parameters will be determined for the sizing of a submersible pump to maximize production rates from the well. Production logs also will be recorded in order to determine production rates from individual reservoir intervals for purposes of future reserves booking.

The Mirzaani #5 frac completion constitutes an essential first step towards increasing near term production at the Mirzaani Field. As development continues within the field, similar frac completions will be employed in existing and future wells.

Discovered in 1932, the Mirzaani Field has historically produced approximately 7 million barrels of oil, but contains extensive undeveloped and underdeveloped areas. An independent assessment by Netherland, Sewell & Associates gives a "Best Estimate" for gross original oil-in-place for the Mirzaani Field and Mirzaani Northwest Extension of 541.7 million barrels, with a "low"-to-"high" range of 343.8-857.3 million barrels; and "Best Estimate" for gross contingent and unrisked prospective oil resources in the Mirzaani and Mirzaani Northwest Extension areas of 43.8 million barrels, with a "low"-to-"high" range of 20.5-86.1 million barrels. This assessment is consistent with Frontera's internal estimates. Frontera holds a 100% working interest in the field.

Steve C. Nicandros, Chairman and Chief Executive Officer, commented, "We are very encouraged with the initial results from frac operations at the Mirzaani #5 well. As production operations continue, we expect that the well will contribute significantly towards reaching our near term production objectives and establish the foundation for continued development operations at the Mirzaani field."

Shallow Fields Production Unit

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 resources. Containing the Mirzaani Field, Mtsare Khevi Field, Nazarlebi Field, and Patara Shiraki Field, these assets represent discovered yet undeveloped or underdeveloped fields that have additional associated exploitation potential. In addition, this unit contains an inventory of look-alike prospects known as the Kakabeti, Lambalo, Mkralihevi, Mlashiskhevi-Oleskhevi and Tsitsmatiani prospects. Each of these prospects contains Soviet-era wells that demonstrated hydrocarbon shows while drilling but were never placed on production or adequately appraised. 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.