Frontera Resources Corporation provides operational update

Taribani Complex, Well T-45

Extended well stimulation and testing programme commenced on 8 April 2018. 6 m (3 m of Zone 14 and 3 m of Zone 15) out of the identified 98.9 m combined pay interval from Zones 9, 14 and 15 of the Eldari reservoir has been perforated, mechanically stimulated and flowed together. The well naturally flowed light, sweet crude oil at a stabilised flow rate of 270 bpd. The intention is to continue to test the combined flow of Zones 14 and 15 and, within a period of approximately 60 days, perforate and stimulate Zone 9 and produce from all zones together. As previously announced, in addition to these target Zones, a 14.9 m pay interval has been confirmed in Zone 13. The company is also considering the perforation and stimulation of Zone 13 in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.

Taribani Complex, Well Dino-2

Extended well stimulation and testing program commenced on 7 May 2018. 6 m (3 m of Zone 14 and 3 m of Zone 15) out of the identified 78.8m of combined pay interval from target Zones 9, 14 and 15 will be perforated, mechanically stimulated and flow tested together. Zone 9 is intended to be perforated, stimulated and produced together with Zones 14 and 15 within a 60 - 90 day period from the commencement of testing of Zones 14 and 15. As previously announced, in addition to these target Zones, a 20 m pay interval has been confirmed in Zone 13. The company is considering the perforation and stimulation of Zone 13, in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.

Taribani Complex, Well T-39

Drilling (sidetracking) operations at this third well of the current three-well drilling campaign in the Taribani complex commenced on 5 May 2018. The drilling operations are expected to be completed within the month of May, reaching a total target depth of 2800 m. Following completion of the drilling operations, testing of the well is expected to commence and, as previously announced, it is the intention that Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together in due course.

Taribani Complex, Well Niko-1

The Company has submitted the drilling/sidetrack permit application to the State Agency of Oil and Gas for approval and is expecting to receive the permit by 21 May 2018. The intention is to sidetrack and drill Niko-1 well to a target depth of 2800 m, stimulate Zones 9, 14 and 15 and produce them together in due course.

Mtsare Khevi Gas Complex, Well Ud-2

Extended testing programme commenced on 21 April 2018. The Company perforated and mechanically stimulated 9.5m out of gross interval of 27m situated between 2519m and 2446m of Middle Miocene aged Zone. At the moment the well is in the clean out phase and, once stable natural gas flow is established, the Company will update the market in due course.

Corporate

The Company announces the retirement of Mr Andrew Szescila from the Company's Board of Directors, following more than twenty years of dedicated service to the Company. A successor non-executive director is planned to be named in due course.

Zaza Mamulaishvili, President and Chief Executive Officer, commented:

"I am pleased to report very encouraging results of the T-45 well testing programme. The flow rate of 270 barrels of light sweet crude oil from only Zones 14 and 15 has slightly exceeded pre-test expectations, including the assumptions incorporated in a sample development well economics presented at the shareholders meeting on 25 January 2018, and potentially has made development well economics much more attractive. Very successful current drilling and stimulation operations reconfirmed that the Taribani development wells will require approximately US$2.9 million to be drilled and frack completed into Zones 9, 14 and 15. Interim test results from Zones 14 and 15, together with successful historical long term test results from Zone 9 and current oil price suggest that we will be recovering cost of each new well in approximately 8 to 10 months with a 10-year Estimated Ultimate Recovery of over 500 000 bbls of oil per well. CPR estimates for Original Oil in Place in Zones 9, 14 and 15 of the Eldari reservoir in Taribani are 689 million bbls, with 103.5 million bbls considered to be recoverable. CPR estimates for Taribani's Gareji reservoir are 4.6 trillion f^t3 of Original Gas in Place, with 3.2 trillion ft³ considered to be recoverable.”

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