125 Feet Of Net Pay Encountered Across Seven
Hydrocarbon Bearing Reservoirs
Long Term Test Expected To Begin In
April 2022
Second Consecutive Discovery On The Perico
Block
Current Gross Light Crude Oil Production From
the Perico Block Is Approximately 2,000 Bbls/d
CALGARY, AB, March 24, 2022 /PRNewswire/ - Frontera Energy
Corporation (TSX: FEC) ("Frontera" or the "Company")
today announced that it has discovered 27.2 degree API light crude
oil at the Tui-1 exploration well on the Perico block (Frontera 50%
W.I. and operator) in Ecuador.
Orlando Cabrales, Chief Executive
Officer of Frontera, commented:
"We are excited to announce a second consecutive light crude
oil discovery at the Perico block in Ecuador, this time at the Tui-1 exploration
well. Tui-1 well results add to our recent exploration success at
Jandaya-1 and increases current gross production to approximately
2,000 boe/d1 from the Perico
block. Tui-1 and Jandaya -1 production is among the first from
acreage awarded during Ecuador's
2019 Intracampos Bid Round and we are thankful for the support
we've received from the Government of Ecuador and the communities near the
well-sites. Looking ahead, additional prospects on the Perico block
have been identified and are being matured for future
drilling."
On January 28, 2022, Frontera spud
its second exploration well, called Tui-1, approximately 7
kilometres from the Jandaya-1 exploration well, in the southern
portion of the Perico block. The Tui-1 exploration well was drilled
to a total depth of 10,975 feet (3,345 metres) and encountered a
total of 125 feet of net pay across seven hydrocarbon bearing
reservoirs including the Hollin, Basal Tena, T and U Sandstones,
and Limestones B, A and M2. After two days of initial production
tests, the Basal Tena formation is producing an average of 1,200
bbls/d of 27.2 degree API light crude oil with a current water cut
of 5.2%.
Frontera is now preparing the required permits to move forward
with a long-term test at the Tui-1 exploration well for at least
six months or a longer period of time if approved by authorities.
Additional appraisal activities will be conducted in the near
future to confirm size and mid- to long-term production levels for
the multiple potential formations.
At the Jandaya-1 exploration well, production tests in the lower
Hollin formation have produced 37,674 barrels to date, with current
daily production of 798 bbls/d of 27.9 degree API light crude oil
combined with a 1.7% water cut, after 54 days of testing.
Production from the Jandaya-1 and Tui-1 exploration wells is
currently being transferred by truck to the nearby Lago Agrio
Facilities at the PetroEcuador fiscalization centre and transported
through the SOTE pipeline system to Balao Terminal where the crude
is exported.
Frontera holds approximately 16,700 net acres in the Perico and
Espejo exploration blocks in Ecuador. The blocks are located near existing
production and infrastructure in Sucumbíos Province in the
northeastern part of Ecuador, in
the Oriente basin.
____________________________________________
|
1 Current gross light
crude oil production of approximately 2,000 bbls/d consists of
approximately 1,200 bbls/d of light crude oil from the Tui-1
exploration well, based on an initial two-day production test and
798 bbls/d of light crude oil from the Jandaya-1 exploration well
after 54 days of testing.
|
About Frontera:
Frontera Energy Corporation is a Canadian public company
involved in the exploration, development, production,
transportation, storage and sale of oil and natural gas in
South America, including related
investments in both upstream and midstream facilities. The Company
has a diversified portfolio of assets with interests in 34
exploration and production blocks in Colombia, Ecuador and Guyana, and pipeline and port facilities in
Colombia. Frontera is committed to
conducting business safely and in a socially, environmentally and
ethically responsible manner.
If you would like to receive news releases via email as soon as
they are published, please subscribe here:
http://fronteraenergy.mediaroom.com/subscribe.
Advisories:
Cautionary Note Concerning Forward-Looking
Information
This news release contains forward-looking information within
the meaning of Canadian securities laws. Forward-looking
information relates to activities, events or developments that the
Company believes, expects or anticipates will or may occur in the
future. Forward-looking information in this news release includes
statements regarding the Company's expectations with respect to the
long-term tests to be conducted at Tui-1, including timing and
required approvals; the Company's expectations with respect to a
related environmental impact assessment and additional appraisal
activities; and the anticipated timing and progress of additional
exploration projects on the Espejo block. All information
other than historical fact is forward-looking information.
Forward-looking information reflects the current
expectations, assumptions and beliefs of the Company based on
information currently available to it and considers the Company's
experience and its perception of historical trends, including
expectations and assumptions relating to the receipt of required
permits; the anticipated results of a related environmental impact
assessment and additional appraisal activities; commodity prices
and interest and foreign exchange rates; the current status of the
Covid-19 pandemic and future waves and any associated policies
around current business restrictions; the performance of assets and
equipment; the sufficiency of budgeted capital expenditures in
carrying out planned activities; the availability and cost of
labour, services and infrastructure; and the development and
execution of projects.
Although the Company believes that the assumptions inherent
in the forward-looking information are reasonable, forward-looking
information is not a guarantee of future performance and
accordingly undue reliance should not be placed on such
information. Forward-looking information is subject to a number of
risks and uncertainties, some that are similar to other oil and gas
companies and some that are unique to the Company. The actual
results may differ materially from those expressed or implied by
the forward-looking information, and even if such actual results
are realized or substantially realized, there can be no assurance
that they will have the expected consequences to, or effects on,
the Company. The Company's annual information form dated
March 2, 2022, its management's
discussion and analysis for the year ended December 31, 2021, and other documents it files
from time to time with securities regulatory authorities describe
the risks, uncertainties, material assumptions and other factors
that could influence actual results and such factors are
incorporated herein by reference. Copies of these documents are
available without charge by referring to the company's profile on
SEDAR at www.sedar.com. All forward-looking information speaks only
as of the date on which it is made and, except as may be required
by applicable securities laws, the Company disclaims any intent or
obligation to update any forward-looking information, whether as a
result of new information, future events or results or
otherwise.
Oil and Gas Advisories
Reported initial test average flow rates may not be
reflective of future production rates. Future production rates may
differ materially from the reported initial test average flow rates
reflected in this news release due to a number of factors.
Boe Conversion
The term "boe" is used in this news release. Boe may be
misleading, particularly if used in isolation. A boe conversion
ratio of cubic feet to barrels is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In this news
release, boe has been expressed using the Colombian conversion
standard of 5.7 Mcf: 1 bbl required by the Colombian Ministry of
Mines and Energy.
Definitions:
bbl(s)
|
Barrel(s) of
oil
|
bbls/d
|
Barrel of oil per
day
|
boe
|
Refer to "Boe
Conversion" disclosure above
|
boe/d
|
Barrel of oil
equivalent per day
|
Mcf
|
Thousand cubic
feet
|
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content:https://www.prnewswire.com/news-releases/frontera-announces-27-2-degree-api-light-crude-oil-discovery-at-the-tui-1-well-in-ecuador-301510531.html
SOURCE Frontera Energy Corporation