CALGARY, Oct. 10, 2014 /PRNewswire/ - (TSX-V:
PFC) - PetroFrontier Corp. ("PetroFrontier") announces that
Statoil Australia Theta B.V. ("Statoil"), PetroFrontier's joint
venture partner and the operator of the 2014 work program and
budget has completed testing operations at the OzDelta-1 well. The
OzDelta-1 well was perforated at 737.5 and 736 meters using an
abrasion jetting tool within the Lower Arthur Creek Hot Shale
formation. A small water based hydraulic stimulation was
successfully completed and a total of 122 m3 of
water and 16.5 tonnes of sand were pumped into the well. Testing
operations, utilizing a coiled tubing conveyed jet pump were then
carried out. A total of 129 m3 of water was produced
with no measurable volume of hydrocarbons. The water recovered was
of low salinity, suggesting it to be primarily completion fluid
pumped into the well. No oil or gas was produced and the
Operator is now in the process of abandoning the well.
These test results, along with those of the OzBeta-1 well
suggest insufficient reservoir permeability to allow hydrocarbon
flow. This is clearly disappointing considering the positive
hydrocarbon indicators measured while drilling and subsequently
derived from log data. This activity completes the drilling and
testing plans for the 2014 Work Plan & Budget.
Statoil Amended Farm-In Agreement
Upon completion of the current Phase 2A of the Amended Farm-In
Agreement ("A-FIA"), Statoil is to serve notice to PetroFrontier
that the agreed work has been completed, and then has 120 days to
elect to move forward with the next Phase 2B and commit to spending
an additional amount of approximately $30
million US or elect to relinquish the majority of its'
working interest back to PetroFrontier. Should Statoil elect
to relinquish, they will remain as operator and hold a 30% working
interest in EP 103 and EP 104, with PetroFrontier holding 70%. For
EP 127 and EP 128, and not accounting for the dilution in Baraka
working interest due to its election not to participate in the 2014
Work Program and Budget, Statoil will retain 22.5% (plus the
diluted Baraka portion), PetroFrontier 52.5% and Baraka will retain
25% (less the diluted portion).
2014 Work Program & Budget
Statoil is the registered operator of the work permits and is
obligated by the regulator and the farm-in agreement to
satisfactorily abandoned and reclaim all wells and seismic lines.
It is anticipated that the abandonment of the Baldwin and Macintyre
wells will be completed prior to year end. Completion of surface
reclamation work and final certification from the regulator will
likely not occur until 2015.
2015 Work Program & Budget
Should Statoil elect to move to the next phase of the farm in
agreement (Phase 2B), then a Work Program and Budget will be
proposed and an Operating Committee meeting would be held to review
and approve it. The timing of this is uncertain if it occurs at
all.
Research & Development Tax Claim
PetroFrontier has recently filed for a Research &
Development tax incentive with the Australian Taxation Office for a
claim that could net PetroFrontier up to $4,196,203 (Australian Dollars). The outcome of
this tax filing is uncertain and is expected to be resolved prior
to year end.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas exploration
company engaged in the exploration, acquisition and development of
both conventional and unconventional petroleum assets in
Australia's Southern Georgina
Basin where, subsequent to its Amended Farmin Agreement with
Statoil Australia Theta B.V., it holds a net carried 20% working
interest in approximately 13.1 million gross acres.
PetroFrontier's head office is based in Calgary, Alberta and its common shares are
listed on the TSX Venture Exchange under the symbol
"PFC".
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. 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.