CALGARY, Alberta, July 23, 2018 (GLOBE NEWSWIRE) -- International Frontier Resources Corporation (“IFR”
or the “Company”) (TSX-V:IFR) (OTCQB:IFRTF) today provided an operations update on its Mexican joint venture, Tonalli
Energia (“Tonalli”) and its onshore oil and gas block Tecolutla.
At Tecolutla, Tonalli has finalized the completion of three intervals in its first evaluation well, TEC-10.
Perforation and stimulation of the TEC-10 well commenced in late June targeting multiple zones in 138m of gross El Abra reef.
Production testing is on-going with the following results to date from each interval:
- Interval A was completed between 2433.5 and 2442.5m to test for the presence of oil at the depth where strong oil shows were
encountered while drilling. Interval A recovered a small amount of oil and had limited inflow.
- Interval B was completed between 2394.5 and 2410.5m. Interval B also recovered a small amount of oil and had limited
inflow.
- Interval C was completed between 2349.5 and 2353m in the highest porous interval in the TEC-10 well. For the first
three days of the test, the well flowed at an average rate of 384 barrels per day of fluid at an oil cut of 5% or less. During
the last 12 hours (until approx. 5am MST today) the flow rate has averaged 480 barrels per day of fluid with a 12% oil cut with a
current well head pressure of 300 psi. The entire testing period has occurred through a 12/64” choke. Tonalli will continue to
test to observe flow rates and oil cuts.
Although there was limited inflow from Interval A and Interval B with the minor stimulations, Tonalli
encountered oil at these lower depths which indicates potentially a lower oil water contact and a larger gross rock volume within
Tecolutla that is charged with hydrocarbons. Interval A is approximately 70 meters lower than the lowest previously produced
interval within the El Abra reef at Tecolutla. FMI log data indicates abundant natural fractures at these lower depths that
may connect this tighter Lower El Abra to the higher reservoir quality Upper El Abra.
Since reaching total depth, Tonalli has utilized the modern well logs from TEC-10 to perform a pre-stack depth
migration of the 3D seismic volume (“PSDM Seismic”) to give a more precise image of the top of the El Abra. This PSDM Seismic has
provided an explanation of the TEC-10 well results by identifying localized karsting or sink-hole type features along the top of
the El Abra. These localized karsting features are filled with non-reservoir shales and mudstones that do not contain
hydrocarbons. Tonalli’s interpretation of the PSDM Seismic and the TEC-10 well logs indicate that the directionally drilled
TEC-10 well encountered a small vertical karst feature at the prognosed top of the El Abra formation then exited this karst lower
in the El Abra. This resulted in TEC-10 encountering non-reservoir shales and mudstones at depths where Tonalli expected the
El Abra reef to be structurally high and have good reservoir quality.
The porous Interval C in TEC-10 was encountered after the well exited the karst feature and is structurally
located at a similar elevation to perforations in the offset TEC-6 well. Based on the observed water cut, it is believed that
Interval C of the TEC-10 well encountered a partially depleted portion of the El Abra reservoir which is inside the drainage radius
of this offset well. Future wells in Tecolutla will be planned to be outside the drainage area of existing wells and to avoid
localized karst features. The PSDM Seismic has also given us a more precise image of the reef edge which matches our original
interpretation of the reef edge and further confirms the areal extent of the reef. Tonalli is confident that there is
significant remaining oil in the reservoir that can recovered with horizontal wells that are strategically located.
“The information obtained by drilling TEC-10 has provided the necessary information to develop the remaining
resources of the Tecolutla field with additional wells and workovers,” stated Curtis Hess Vice President of Exploration. “Our
understanding of the El Abra reservoir has greatly improved and Tonalli is in the process of developing a horizontal drilling
development strategy based on this knowledge. “
Tonalli is examining the next steps regarding TEC- 10 and has commenced planning for the drilling of the first
horizontal well (“TEC- 11”) and a workover of the TEC-7 well. Tonalli expects these to take place in late Q4 2018 and Q1 2019
pending regulatory approvals.
Tonalli has recently entered into a crude oil commercialization agreement with Pemex. At this time,
Tonalli does not intend to produce from any wells in the Tecolutla field until appropriate production and water disposal facilities
are constructed and after the next well is drilled successfully.
Through its joint venture, IFR was one of the first foreign companies to participate in Mexico’s historic reform
of the oil and gas sector. The Tecolutla block was awarded to Tonalli as part of the first round and third call of Mexico's oil and
natural gas "mature fields" bid round ("Round 1.3"), the first in almost 80 years.
About International Frontier Resources
International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated
track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and
strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has
projects in Canada and the United States, including the Northwest Territories and Montana.
The Company’s shares are listed on the TSX Venture, trading under the symbol IFR and on the OTCQB under the
symbol IFRTF. For additional information please visit www.internationalfrontier.com.
For further information
Forward Looking Statements
This press release contains forward‐looking statements and forward‐looking information (collectively "forward‐looking information")
within the meaning of applicable securities laws relating to the Company's plans, strategy, business model, focus, objectives and
other aspects of IFR's anticipated future operations and financial, operating and drilling and development plans and results,
including, expected future production, production mix, reserves, drilling inventory, net debt, cash flow, operating netbacks,
decline rate and decline profile, product mix, capital expenditure program, capital efficiencies, commodity prices, tax pools and
targeted growth. In addition, and without limiting the generality of the foregoing, this press release contains forward‐looking
information regarding: anticipated cost savings and operational efficiencies; anticipated capital cost estimations; the focus and
allocation of IFR's 2018 capital budget; anticipated production rates, available free cash flow, management's view of the
characteristics and quality of the opportunities available to the Company; and other matters ancillary or incidental to the
foregoing.
Forward‐looking information typically uses words such as "anticipate", "believe", “indicate”, "project",
"target", "guidance", "expect", "goal", "plan”, "intend" or similar words suggesting future outcomes, statements that actions,
events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward‐looking information is based on
certain key expectations and assumptions made by IFR's management, including expectations concerning prevailing commodity prices,
exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; decline rates; future production rates
and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and
results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the
exploration and production business; results of operations; performance; business prospects and opportunities; the availability and
cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully
and IFR's ability to access capital.
Statements relating to "reserves" are also deemed to be forward looking statements, as they involve the implied
assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated
and that the reserves can be profitably produced in the future.
Although the Company believes that the expectations and assumptions on which such forward‐looking information is
based are reasonable, undue reliance should not be placed on the forward‐looking information because IFR can give no assurance that
they will prove to be correct. Since forward‐looking information addresses future events and conditions, by its very nature they
involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from
those expressed in, or implied by, the forward‐looking information and, accordingly, no assurance can be given that any of the
events anticipated by the forward‐looking information will transpire or occur, or if any of them do so, what benefits that the
Company will derive there from. Management has included the above summary of assumptions and risks related to forward‐looking
information provided in this press release in order to provide security holders with a more complete perspective on IFR’s future
operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these
and other factors that could affect IFR's operations or financial results are included in reports on file with applicable
securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
These forward‐looking statements are made as of the date of this press release and IFR disclaims any intent or
obligation to update publicly any forward‐looking information, whether as a result of new information, future events or results or
otherwise, other than as required by applicable securities laws.
“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 or accuracy of this release”. The Company seeks Safe
Harbor.
