CALGARY,
Nov. 29, 2011 /PRNewswire/ -
(TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") today
released its financial and operating results for the third quarter
of 2011. A copy of PetroFrontier's unaudited condensed consolidated
financial statements and related management's discussion and
analysis ("MD&A") can be accessed either at www.sedar.com or on
PetroFrontier's website.
Third Quarter 2011 Highlights
- On August 3, 2011, PetroFrontier
began drilling its first exploratory well, "Baldwin-2Hst1". This well 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.
- On September 9, 2011,
PetroFrontier announced the closing of the sale of its non-core
Canadian petroleum and natural gas properties in Saskatchewan and Alberta for a cash purchase price of
approximately $6.8 million. This sale
represents the sale of the Canadian properties owned by Texalta
Petroleum Ltd. when PetroFrontier acquired it on May 31, 2011.
- During the three and nine months ended September 30, 2011, capital expenditures incurred
totaled $10.0 million and
$15.0 million respectively and
related primarily to seismic acquisition and drilling in the
Southern Georgina Basin.
- With current working capital of $34.9
million and no debt as at September
30, 2011, PetroFrontier is fully funded to continue with the
execution of the exploration program and for general operations
well into 2012.
Subsequent Events
- On October 11, 2011, the
horizontal section of Baldwin-2Hst1 reached a total measured depth
of 1,948 metres and drilling remained within the main target zone
in the lower Arthur Creek "Hot Shale". Positive hydrocarbon
indications were recorded along the entire length of the horizontal
section with elevated gas readings and evidence of heavier
hydrocarbons present. A Packers Plus string was then placed in the
horizontal section of this well and the well is now ready for
frac'ing early in 2012.
- On October 28, 2011,
PetroFrontier began drilling its second exploratory well,
MacIntyre-2. MacIntyre-2 is located in the northeastern corner of
EP 127 in the Southern Georgina Basin approximately 60 km northwest
of Baldwin-2Hst1. PetroFrontier
has a 75% working interest in EP 127 and is the operator.
- On November 21, 2011,
MacInctyre-2 had reached a vertical measured depth of 930 metres.
Elevated hydrocarbon shows were recorded throughout the Arthur
Creek "Hot Shale" formation with sustained and peak levels
generally two to three times greater than those seen in the
vertical pilot hole at Baldwin-2Hst1. PetroFrontier is very
encouraged by the significant oil and gas shows in its first two
wells located 60 km apart in the Southern Georgina basin.
- Due to the imminent onset of the wet season in the Northern
Territory, the drilling rig at MacIntyre-2 has been demobilized and
the drilling of the horizontal portion of the well has been
deferred until early 2012. Further to that, PetroFrontier will
continue with the frac and completion of Baldwin-2Hst1 once MacIntyre-2Hz has been
completed.
- PetroFrontier's strategy is to mobilize the frac'ing equipment
when the drilling of the horizontal leg of MacIntyre-2 is near
completion. MacIntyre-2 would then be frac'ed, followed by
Baldwin-2Hst1.
- On November 10, 2011, the
Shareholder Rights Plan (the "Rights Plan") previously adopted by
the Board of Directors was approved by PetroFrontier's shareholders
at its Annual and Special Meeting.
Additional Information
PetroFrontier has recently updated its Investor Presentation
with results from the recent drilling activity in the Georgina
Basin and it is available for viewing on its website at
www.petrofrontier.com.
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 PetroFrontier's drilling plans, capital expenditures 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 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.