NEWSInt'l Frontier increases interest in EL-423 to 15%
International Frontier Resources Corp (C:IFR)
Shares Issued 40,520,215
Last Close 10/3/2007 $0.71
Thursday October 04 2007 - News Release
Mr. Pat Boswell reports
INTERNATIONAL FRONTIER RESOURCES CORPORATION: EXPLORATION PROGRAM UPDATE
International Frontier Resources Corp. is releasing an update on the company's exploration programs in the Central Mackenzie Valley of the Northwest Territories and on the U.K. sector of the North Sea.
Central Mackenzie Valley
Keele-Summit area in the Northwest Territories
The company has agreed to increase its interest in a two-well drilling program located on EL-423 in the Summit-Keele area. The first well, Haywood B-20, will evaluate prospects identified in Devonian- and Silurian-aged reservoirs. IFR has increased its working interest from 5 per cent to 15 per cent for all of EL-423. The second well, Cloverleaf L-52, will evaluate an oil prospect identified in the upper Cretaceous. The company has a 15-per-cent working interest in this well. The drilling of the two wells will fulfill the work commitment on EL-423 and the licence will be extended for a second term of four years. The wells are scheduled to commence drilling in first quarter 2008. Husky Oil Operations is operator of the project.
The operator, on behalf of partners, has filed a significant discovery application (SDA) with the National Energy Board covering the Stewart D-57 discovery located in the Summit-Keele project area. The company anticipates a significant discovery license (SDL) will be issued in first quarter 2008. The operator also plans to submit a significant discovery application covering the Summit Creek B-44 discovery area prior to year-end. The Summit Creek B-44 well production tested at combined rates of 20 million cubic feet per day and 6,000 barrels per day of 55-degree API oil from two intervals in the Devonian formation.
The company holds interests ranging from 5 per cent to 25 per cent in four exploration licences and eight freehold parcels in the Keele-Summit project area.
Colville Hills in the Northwest Territories
A 200-kilometre, 2-D seismic survey has just been completed and the data are being interpreted to identify drilling location(s). The company has budgeted for one well in first quarter 2009. BG International Ltd. (75 per cent) is the operator of the Colville Hills project. The company holds a 25-per-cent interest in three exploration licences in the area.
North Sea -- UKCS
Ridgewood prospect (block 12/17a)
The operator, Lundin Petroleum A.B., plans to commence drilling operations in late October or early November, 2007. The well will evaluate a prospect identified in the upper Jurassic Volgian reservoir. If the Volgian yields commercial hydrocarbons the well will be deepened to evaluate a lower target in the middle Jurassic Beatrice reservoir. The company will pay 15 per cent of the well costs to retain a 25-per-cent interest in the well and in block 12/17a.
Bowmore prospects (quad 15)
A 3-D seismic survey was acquired in second quarter 2007. The data are currently being interpreted to identify drilling locations on the licence. The work program bid for the Q15 blocks consists of two firm wells and two contingent wells plus seismic. The company holds a 10-per-cent interest in the project and has budgeted for one well in 2008 and one well in 2009. Nippon Oil Exploration and Production U.K. Ltd. is the operator of the project area.
Laurel Valley prospect (quad 14)
In an effort to determine the prospectivity of the remaining acreage, the company has agreed to participate for its 10.45-per-cent share of the cost to acquire an electromagnetic (EM) survey on the licence. If the continuing modelling studies are shown to be effective and subject to weather and equipment availability, the survey will be shot in fourth quarter 2007. Oilexco North Sea Limited is operator of the project area.
The company does not have any funds invested in asset-backed securities. At Aug. 31, 2007, the company's working capital position was approximately $32-million.
© 2007 Canjex Publishing Ltd.