Frontera Resources Corporation, the European focused oil and gas exploration and production company, is pleased to provide an update on well Dino-2, situated in the Taribani complex of Block 12 in Georgia. The work towards commencement of sidetracking/drilling operations at Dino-2 well in November 2017 is progressing as planned. Drilling permit application has been submitted to the State Agency of Oil and Gas and is expected to be approved by the end of October.
Selection process of contractors to provide drilling services, well logging services, cementing services and procurement services for tubulars, drilling fluids, mud and chemicals has been completed. Contract discussions are in progress and expected to be finalised by 15 October 2017.
The well Dino-2 will be drilled to a target depth of 2700m and, as previously announced on 22 August 2017, Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together. Drilling will be completed in December and the well will be tested before the end of the year.
Based on the Netherland, Sewell and Associates' resource estimates, Zones 9, 14 and 15 of the Eldari reservoir in the Taribani field contain 689 million bbls of oil in place, of which 103.5 million bbls considered to be recoverable.
The Eldari reservoir contains a number of stacked pay zones. The Company first drilled the Dino-2 vertical well targeting Zone 9 of the Eldari reservoir in 2008. Following stimulation, this well has provided the Company with a long-term production history from which further wells have been modeled more accurately. Now the Company intends to stimulate multiple pay zones in a vertical well (targeting zones 9, 14 and 15). Total thickness of these zones will exceed approximately four times the thickness of Zone 9. Based on the Eldari reservoir modeling, it is expected that the stacked nature of the pay zones should substantially increase productivity per well when compared the historical production from the Dino-2 well. With crude oil at $50/bbl, the company estimates that well cost could be recovered in less than one year from the commencement of production.
Zaza Mamulaishvili, President and Chief Executive Officer, commented:
"After a successful capital raise, we now are fully funded to sidetrack and test Dino-2 well in Q4, which will be followed by deepening and testing of well T-45 in Q1 of 2018. Oil processing and export infrastructure of the Taribani complex can handle production of 10,000 bbls per day, allowing Company to monetise all produced crude oil upon the commencement of production.
"It is very important to note that, in addition to Zones 9, 14 and 15, the Eldari reservoir of Taribani complex has more oil-bearing stacked pay Zones: 16, 17, 18, 19, 24 and 25, situated between 2700m and 3500m and the gas-bearing Miocene-aged Gareji reservoir situated between 3500m and 5500m. Significant gas shows were recorded and sampled by previous operator while drilling Gareji reservoir.
"According to Netherland, Sewell and Associates' estimates, the Taribani complex contains 1,031 million bbls of Oil in Place, of which 155 million bbls are considered as recoverable, and 4.6 Trillion Cubic Feet of Gas in Place, of which 3.2 Trillion Cubic Feet are considered to be recoverable.
"With successful drilling operations, the Company will further prove up and start to unlock the tremendous oil and gas potential of the Taribani complex which in turn should substantially increase current valuation of the asset. I look forward to updating shareholders in due course."