Frontera Resources soars amid assets expansion in Georgia

Oil and gas developer Frontera Resources Corporation said its assets in Georgia look set to increase production in 2015.

The group said that it has completed expansion of its gas processing and sales facilities as well as successfully drilling well number 34 on the Mtsare Khevi gas complex in Georgia and said it would continue its drilling programme.

The firm said it expects the new well, which is being prepared ready for production, to deliver a return similar to that of well number 32, which produces approximately 700m cubic feet of gas per day.

The group added that well number 37 is due to be completed during January, while gas production will be increased by the arrival of a second rig, which is expected on the site at the beginning of 2015.

"These parallel operations will continue to provide enhanced gas-production and revenue generation from the area and will serve to further delineate gas reserves," the company said in a statement on Thursday.

The group added that it plans to begin operations at the Georgia-based Taribani field complex in the first three months of 2015.

In April, Frontera farmed out 50% of the project to Varang Exploration and as part of the agreement, phase one of the project requires the completion of three existing wells, at an estimated cost of $17m over the next 18 months.

"During the second half of 2014 the company has continued to enhance its value proposition at the Taribani Field Complex and the Mtsare Khevi gas complex,” said group chairman and chief executive Steve Nicandros.

“In particular, we continue to realize meaningful advances in the evolution of our growing gas business and the identification of significant gas resources within our Georgia portfolio.

"With the addition of near-term new drilling and ongoing frac operations at the Taribani field we expect to continue to see increased positive financial impact of this work as we progress into 2015.”

Frontera shares soared 26.02% to 0.71p at 12:05 on Thursday.