CALGARY, Jan. 7, 2014 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is pleased to announce that the
Joint Venture Operating Committee has approved the 2014 Work Plan and
Budget (the "2014 WP&B"). The 2014 WP&B includes the drilling of up to
five vertical test wells. All wells will include an extensive coring
and open hole evaluation program and up to three of the wells will be
hydraulically fractured and production tested.
"This program reflects the synergies of having Statoil technical staff
imbedded in PetroFrontier's former Adelaide office for over a year,"
stated Earl Scott, PetroFrontier's President and CEO, "Statoil and
PetroFrontier staff were able to quickly achieve alignment and Statoil
staff have diligently developed their "in country" operating
capability. Both Statoil and PetroFrontier are keen to move forward and
further test the oil production potential of the Southern Georgina
Basin, which the 2014 WP&B will provide for in a capital efficient way.
Depending on government approvals, weather and service company
availability, we hope to see drilling results in Q3 and testing results
in Q4."
Under the terms of the Amended Farmin Agreement between Statoil
Australia Theta BV ("Statoil") and PetroFrontier (the "Amended Farmin
Agreement"), Statoil has committed to spend a minimum of US$50 million
in Phase 2A, which includes the Amy 2D seismic program completed in
August of 2013 and the new vertical test wells.
Also included in the Amended Farmin Agreement is Statoil's commitment to
bear the cost of abandonment and reclamation of surface lands as well
as the existing three wells at no cost to PetroFrontier. These
operations are also planned for 2014 to capture operational and cost
efficiency. Statoil (the "operator") does not believe material new
information will be obtained from testing the Macintyre-2H well, as the
presence of H2S is believed to be an indication of water in the
wellbore area, as was seen in the Owen-3H well. The new wells have been
selected to avoid vertical faulting, which is believed to be the
primary source of water and with it, H2S, at the Owen-3H and
Macintyre-2H wells. The Baldwin-2Hst1 well with its casing failure is
considered by the operator to warrant permanent abandonment.
Baraka Energy & Resources Ltd ("Baraka"), a 25% working interest owner
in EP 127 and EP128 is disputing the 2014 WP&B on these blocks.
PetroFrontier does not see merit in Baraka's objections and both
Statoil and PetroFrontier are keen to move forward with the work plan
announced. The joint operating agreement ("JOA") among the parties does
provide for the potential dilution of Baraka's 25% working interest
should it refuse to pay its cash calls. Statoil and PetroFrontier
together hold 75% of the working interest and have voted to approve the
2014 WP&B in accordance with the JOA. These issues may result in a
realignment of the actual work performed on EP127 and EP128 but are not
expected to have a material impact on the overall technical results of
the 2014 work program and information gathered.
Upcoming Investor Presentations
On January 19 and 20, 2014 PetroFrontier will participate, in
conjunction with Proactive Investors, at the Vancouver Resource Investment Conference. This will be followed by a series of Proactive Investors One2One
forums in Vancouver (January 21), New York (January 22), Toronto
(January 23) and Montreal (January 24). To find out more details and to
register for any of these events, please go to Proactive Investors.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas exploration company
engaged in the exploration, acquisition and development of both
conventional and unconventional petroleum assets in Australia's
Southern Georgina Basin where, subsequent to its Amended Farmin
Agreement with Statoil Australia Theta B.V., it holds an average net
carried 17% working interest in approximately 13.5 million gross
acres. PetroFrontier's head office is based in Calgary, Alberta and
its common shares are listed on the TSX Venture Exchange under the
symbol "PFC".
Forward-Looking Statements
This press release may contain forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of PetroFrontier. All statements included
herein, other than statements of historical fact, are forward-looking
information and such information involves various risks and
uncertainties. There can be no assurance that such information will
prove to be accurate and actual results and future events could differ
materially from those anticipated in such information. A description
of assumptions used to develop such forward-looking information and a
description of risk factors that may cause actual results to differ
materially from forward-looking information can be found in
PetroFrontier's disclosure documents on the SEDAR website at www.sedar.com. Any forward-looking statements are made as of the date of this
release and, other than as required by applicable securities laws,
PetroFrontier does not assume any obligation to update or revise them
to reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE PetroFrontier Corp.
