Frontera Resources progressing with Block 12 in Georgia

The AIM-traded firm said the Eldari A reservoir contained a number of stacked pay zones, with it first drilling the Dino-2 vertical well targeting Zone 9 in Taribani in 2008.

“Following stimulation, this well has provided the company with a long term production history from which it can more accurately model further wells,” the board explained in its statement.

“Now the company intends to stimulate multiple pay zones in a vertical well - targeting zones 9, 14 and 15.”

Total thickness of those zones was a multiple of Zone 9, the board claimed, and - based on the Eldari A reservoir modeling - it expected that the stacked nature of the pay zones should substantially increase productivity per well when compared the historical production from the Dino-2 well.

“With crude oil at $50/bbl, the directors estimate that well cost could be recovered in less than one year from the commencement of production on the basis of a successful workover of an existing well.”

For the remainder of the year 2017, the company said its ongoing work programme would be focused on sidetracking and drilling the Dino 2 well, which would be drilled to a target depth of 2700m.

“It is intended that Zones 9, 14 and 15 will be stimulated and produced together.”

Frontera said drilling contractor selection was in progress, and the board expected to complete that in early September.

The Dino 2 Drilling permit was expected to be approved in October, it added, with drilling operations to commence in November and well testing to start in December subject to there being “no unforeseen circumstances”.

In January, Frontera said it intended to start deepening the T-45 well, to a target depth of 2650m, in order that Zones 9, 14 and 15 could be stimulated and produced together.

It said it expected that the drilling permit would be approved in November, and well testing would be able to commence from February.

“Based on the Netherland, Sewell and Associates resource estimate, Zones 9, 14 and 15 of the Eldari A reservoir are estimated to contain about 700 million bbls of oil in place, with expected ultimate recovery of about 100 million bbls.”

At Mtsare-Khevi, Frontera said it would continue its work-over operations in the Ud-2 well of the Mtsare Khevi gas complex.

“The bridge plug will be set at 3340m and three gas-bearing intervals located between 2620m and 3320m will be perforated and tested,” the board said.

“Of these intervals, two are in the Gareji formation and one interval is in the Oligocene age source rock (Maykop).”

Workover operations were expected to be completed by end of September, subject to there being no unforeseen circumstances, followed by perforation and testing in October.

Based on the Netherland, Sewell & Associates resource estimate, Frontera said the Gareji and the Oligocene formations of the Mtsare-Khevi gas complex were estimated to contain 8.3 TCF of Gas in Place, with 6.15 TCF considered to be recoverable.

“This is a very exciting time for the Company to focus on Taribani operations,” said Frontera president and CEO Zaza Mamulaishvili.

“As a result of many years of advances along the learning curve of drilling, completion and stimulation, coupled with long-term production tests, the company is now hoping to substantially increase well productivity by utilizing multi-zone frac completions successfully used in US and worldwide.”

Mamulashvili said that additionally, the company was “very optimistic” about testing gas-bearing intervals of the Udabno-2 well.

“Successful testing will prove up the tremendous natural gas reserves estimated by Netherland, Sewell & Associates and will initiate transformational development for the Company and, in time, the country as well.”