CALGARY,
Oct. 11, 2011 /PRNewswire/ -
(TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is
pleased to announce that it has successfully drilled Baldwin-2Hst1, Australia's first horizontal well in the Lower
Arthur Creek "Hot Shale" Formation in the southern Georgina Basin
in the Northern Territory, Australia. Baldwin-2Hst1 is located in the southwestern
part of EP 103 in the Southern Georgina Basin. PetroFrontier has a
100% working interest in EP 103 and is the operator. EP 103 covers
3.16 million gross acres and accounts for approximately 27.2% of
PetroFrontier's net acreage in the Northern Territory, Australia.
The "Hot Shale" formation is comprised of
interbeds of shale, silt, sand and carbonate, is slightly
radioactive and is easily identified on gamma ray logging tools.
The "Hot Shale" is petroliferous, up to 40 metres thick and
extensive in area. The "Hot Shale" is geologically and mechanically
analogous to major unconventional oil plays in North America such as the Bakken and
Eagleford. These unconventional oil plays require the use of
advanced horizontal drilling and completion techniques to be
economic.
Baldwin-2Hst1
reached a total measured depth ("MD") of 1,948 metres and remained
within the main target zone in the Lower Arthur Creek "Hot Shale"
for 875 metres while directionally drilling up a regional dip of
1.7 degrees. Positive hydrocarbon indications were recorded along
the entire length of the horizontal section, with elevated gas
readings and evidence of heavier hydrocarbons present.
"PetroFrontier's long range exploration planning
includes accurately defining the regions of oil and gas maturity
within the basin to help target our exploration efforts," stated
Paul Bennett, CEO of PetroFrontier.
"We believe that within our lands the full range of hydrocarbon
maturation is present and this will allow PetroFrontier the
flexibility to chase the best economics for the play, whether it is
pure oil or various mixtures of oil and gas."
The plot attached is a vertical cross section
showing the vertical holes at Baldwin-1 (drilled in 1990) and Baldwin-2, the successful horizontal leg
(Baldwin-2Hst1) and the plugged
back horizontal section. Baldwin-2Hst1 was kicked off from Baldwin-2 above the field of view in the plot.
The color variation along the well path shows the recorded gamma
ray log with green indicating low gamma values (sands or
carbonates) and blue indicating high gamma ray values (shale). The
red values along the well paths show the variation in total gas
values.
Delays in drilling occurred when the bit tracked
into the underlying Thorntonian Limestone Formation after
encountering an unexpected fault. Every effort was made to redirect
the bit upwards back into the Lower Arthur Creek "Hot Shale", but
the bends in the hole became too severe for an effective future
well completion. The new horizontal section kicked off along the
regional dip established by the plugged back portion of the well
and was successfully steered through the Lower Arthur Creek "Hot
Shale". Total gas recorded in Baldwin-2Hst1 averaged 240 units over the
entire horizontal section, commonly peaking above 1,000 units with
maximum recorded values over 2,500 units. The gas recorded
contained heavier hydrocarbon fractions up to pentane ("C5") over
much of the horizontal section. Conventional gas ratio analysis
indicates very wet gas to oil for the most of the well with
occasional definite oil signatures in places. However, this
interpretation may be biased to gas due to the nature of the
reservoir being intersected.
Following the interpretation of the full suite
of logs acquired in the pilot hole, a mechanical earth model was
constructed with very positive indications for the ability to
fracture stimulate Baldwin-2Hst1.
Fractures developed in the vertical plane of the well, transverse
to the horizontal well path, are predicted by the model, with
excellent containment indicated from the bounding layers both above
and below the possible pay zone. In addition, natural fractures
were observed. These will assist in the initiation of the
stimulation fractures and aid in growing the complexity of the
fracture treatment. This should have a positive impact on flow
rates.
X-ray diffraction ("XRD") analysis has shown
little presence in samples of clay minerals often associated with
sensitivity to water-based frac fluids. The XRD results, combined
with further confirmation in laboratory sensitivity tests, have
given PetroFrontier the confidence to fracture stimulate with
water, which is an important factor in keeping the stimulation
costs as low as possible.
Although these findings are encouraging, this
well remains a high-risk exploration venture and yet to be proven.
Readers are cautioned that no reserves or production has been
proven by this well.
PetroFrontier will suspended Baldwin-2Hst1 and then move Major's TXD-SS2018
rig to the second location in the current program, MacIntyre-2,
located in the northeastern corner of EP 127, approximately 60 km
to the northwest of the Baldwin
location. The rig once released is expected to commence drilling
the MacIntyre well in approximately three weeks following minor rig
modifications. PetroFrontier has redesigned and re-engineered the
MacIntyre-2 well to be drilled as a deviated pilot hole kicking off
to a horizontal in the Lower Arthur Creek "Hot Shale". This new
well design is expected to result in greater drilling efficiencies
and substantial cost savings.
PetroFrontier will issue its next update once a
date has been determined to spud the MacIntyre-2 well.
Once MacIntyre-2 has been drilled, PetroFrontier
intends to frac and complete the well using multi-stage open hole
techniques. Final results will then be released from MacIntyre-2
and the completions crew will subsequently return to Baldwin-2Hst1 to conduct a similar completion
program there. It has always been PetroFrontier's strategy to frac
MacIntyre-2 and Baldwin-2 back to
back in order maximize cost controls.
PetroFrontier intends to use Schlumberger, the
Australian representatives of Packers Plus, to run the multistage
open hole completion string and conduct the fracture stimulation
program. PetroFrontier is the first company to introduce to
Australia these open hole
horizontal and multi-stage fracing technologies to unlock
unconventional oil potential. These technologies have been widely
successful in unlocking North American unconventional oil
reservoirs such as the Bakken formation. The use of these
technologies is expected to give PetroFrontier every chance of
establishing commercial production.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas
company engaged in the exploration, acquisition and development of
both conventional and unconventional petroleum assets in
Australia's Southern Georgina
Basin. PetroFrontier's common shares are listed on the TSX
Venture Exchange under the symbol "PFC". Founded in 2009,
PetroFrontier is one of the first companies to undertake
exploration in the Southern Georgina Basin in Australia's Northern Territory.
PetroFrontier's head office is based in Calgary, Alberta and operations office is in
Adelaide, South Australia.
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, including, without limitation, statements
pertaining to management's future plans, drilling program and
operations. All statements included herein, other than
statements of historical fact, are forward-looking information and
such information involves various risks and uncertainties. There
are no reserves, economics or results associated with the well.
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.
Image with caption: "PetroFrontier Baldwin-2Hst1 PLOT, Southern
Georgina Basin, Northern Territory, Australia (CNW Group/PetroFrontier Corp.)".
Image available at:
http://photos.newswire.ca/images/download/20111011_C2382_PHOTO_EN_4311.jpg