Frontera Resources Upgrades Gas Potential in Georgia

Frontera Resources Corporation, an independent oil and gas exploration and production company, announced a significant upgrade of its gas resources associated with ongoing exploration and production efforts in Georgia.

Extensive geologic and geophysical studies within and between the Mtsare Khevi Gas Complex and the Taribani Field Complex areas have confirmed an extensive integrated gas resource potential that is much larger than previously calculated.

The Company combined the technical focus of its Mtsare Kheve Gas Complex and Taribani Field Complex into one integrated 2,000 square kilometer geologic unit called the South Kakheti Gas Complex.

Frontera’s ongoing work includes a new estimation, of as much as 135 trillion cubic feet (3.8 trillion cubic meters), of gas in reservoir targets found between 300 meters and 5,000 meters in depth. An independent assessment of Frontera’s new internal estimates is now underway.

After eighteen months of gas production operations in eastern Georgia, it is the first time domestically produced non-associated gas has been continuously marketed to Georgia’s national consumption market. Together with South Kakheti Gas Complex, the work has opened a historic new chapter in Georgia’s move towards energy independence as well as providing gas to markets beyond its borders.

“Our ongoing investments in Georgia have continued to reveal the emergence of what we believe to be a world class gas play with the identification of the South Kakheti Gas Complex,“ Steve C. Nicandros, Chairman and Chief Executive Officer, commented, “We believe that our ongoing work will further serve to establish Georgia’s domestic energy independence in the years to come and also make it a strategic supplier of gas to Turkish and European consumption markets.”

Frontera plans to export the newly found gas to nearby regional markets in Turkey and Europe. The company entered into to a strategic Memorandum of Understanding with Ukraine’s national energy company, National Joint Stock Company Naftogaz of Ukraine, whereby an engineering FEED study is underway related to the possibility of bringing liquefied natural gas (LNG) to Ukraine. Similar studies are in progress related to other trans-Black Sea markets as well as contemplated regional pipeline routes.