Frontera Resources provides encouraging Taribani drilling and well logging update, Georgia

Well T-39

As previously announced by the Company, the well has been sidetracked from the existing wellbore and drilled to a vertical depth of 2800 m into the Eldari formation.

The Company has completed open hole well logging of the recently drilled section. The open hole logging suite consisted of resistivity, neutron porosity, sonic, bulk density, and gamma ray measurements. Data processing has confirmed pay interval identifications made during the drilling operations. Combined pay for Zones 9, 14 and 15 within T-39 well has been calculated to be 102.5 m with 14.2% porosity. 12.4 m combined pay interval has been confirmed in Zone 13. This is a further developed pay section in addition to the original Zones 9, 14 and 15 targets. The Company confirms that it has observed a number of oil and gas shows during drilling operations.

Well Niko-1

On 16 May 2018, the Company received drilling permit from the State Agency of Oil and Gas for drilling operations at the well Niko-1. The well will be drilled (by way of well sidetracking) to a target depth of 2850 m, and Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together. It is expected that drilling operations will commence in early November 2018 and will complete in early December 2018 followed by the well flow test to commence before the end of the year 2018.

Niko-1 well open hole logging data processing form previous drilling operations, consisted of resistivity, neutron porosity, sonic, bulk density, and gamma ray measurements, confirmed combined pay for Zones 9, 14 and 15 to be 86.9 m with 14.0% porosity. 14.9 m combined pay interval has been confirmed in Zone 13.

Well Niko-1 Funding

On 24 May 2018, the Company entered into an agreement with an unrelated institutional investor to secure funding for the planed operations at Niko-1 well. Pursuant to the agreement, the investor will provide up to US$3 million investment, to be disbursed in two equal tranches by 1 September 2018 and by 15 October 2018, respectively, in order to fund the Niko-1 well work program to be commenced in November 2018. In consideration for this financing, the investor will receive share in the production from the Niko-1 well in the following proportion: 60% of the well production from the completion of the work program until recovery of its investment, and 30% of the well production thereafter.

Zaza Mamulaishvili, President and Chief Executive Officer, commented: “We are pleased to see Zones 9, 14 and 15 within well T-39 to be equally developed and correlating well to the zones in the recently stimulated wells Dino-2 and T-45. Our 2D and 3D seismic data interpretation together with geological, geophysical and drilling data confirm an excellent distribution of Zones 9, 14 and 15 of the Eldari reservoir sandstones within the Taribani field.

T-39 well is the last one out of the current, fully funded, three-well drilling and testing program. Upon completion of the drilling operations at T-39, which is progressing ahead of the drilling schedule, the drilling rig will be released and the well testing will commence.

It is hugely exciting that we will be mobilising the drilling rig to Niko-1 location on 1 November 2018, for the fully funded drilling, stimulation and testing of Zones 9, 14 and 15.

With current successful drilling operations and encouraging early well testing results, as per our previous announcements, it is anticipated that oil production from the Taribani field will increase as we develop the wells, test further zones and move towards production during remainder of 2018. This will assist in building a strong revenue stream for the company. We will update the market in due course regarding new well drilling and testing programme for 2019.”

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/25052018/frontera-resources-provides-encouraging-taribani-drilling-and-well-logging-update-georgia/