PetroFrontier Corp (PFC)

[JB3729]

PFC.V/PFRRF - Share price looks to have bottomed!

The share price decline to .72, down from 4.40 last year, seems way overdone. PetroFrontier resembles Africa Oil, in that both companies are elephant hunting!

Formed in 2009, PetroFrontier has amassed 13.6 million acres in the Southern Georgina Basin (net 85.5% operated working interest). PetroFrontier launched its drilling campaign in 2011 in pursuit of both unconventional and conventional targets with locations based on world-class seismic and geophysical techniques and referencing minor exploration work conducted decades ago. A known petroleum system exits. An independent report, the Ryder Scott Resource Report (November 2010), estimated recoverable oil resources of 27.5 billion barrels (P50, gross average) on PetroFrontier's lands.
http://www.petrofrontier.com/index.php?page=company_profile

PetroFrontier plans to frac and test 3 promising horizontal wells before the rainy season hits (around 11/1). These are their first wells.

PetroFrontier Corp. provides "Owen-3" drilling update in Southern Georgina Basin, Australia
CALGARY, Aug. 9, 2012 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is very pleased to announce that the vertical section of the "Owen-3" horizontal well has been drilled to a measured depth of 1,180 metres. Drilling of the horizontal sidetrack is underway and is expected to reach up to 1,000 metres in approximately three weeks. This will be PetroFrontier's third horizontal exploration well in the Southern Georgina Basin, Northern Territory, Australia.

A total of 32.5 metres of core was cut and retrieved from the Lower Arthur Creek "Hot Shale" and Thorntonia Carbonate formations. PetroFrontier is very encouraged by the initial assessment of the cores which seeped oil upon retrieval and had extensive florescence throughout. The well was also wire line logged with equally encouraging results indicating over 25 metres total vertical depth ("TVD") of hydrocarbon bearing formation.

Completion operations are expected to commence later in August. PetroFrontier intends to conduct ten-stage fracture stimulations at each of its three wells: MacIntyre-2H, Baldwin-2Hst1 and Owen-3H. In order to maximize operational efficiencies, the wells will then be flow tested after all wells have been fracture stimulated.

PetroFrontier is encouraged by the results to date and the fact that there are now three wells that have shown very encouraging oil and gas indications in the Lower Arthur Creek "Hot Shale". These results have the potential to add significant value for PetroFrontier shareholders.

PetroFrontier was dogged by delays, mostly weather, in early and late 2011 and again in early 2012. Also, a bought deal went bad:
http://www.petrofrontier.com/en/news/press_release_-_july_11-2012_-_final.pdf

Update - Statoil Farm-in:
http://www.petrofrontier.com/en/news/pfc_june_25_2012_macintyre_td_final.pdf

PetroFrontier positives:

Obviously, Statoil likes what they've seen.

Enough cash to last thru the end of the year.

Only 10mm needs to be raised to carry them thru 2016.

All 3 wells have shown encouraging oil and gas indications.

Safety and attractive operating enviroment provided by Australia.

Only 70mm fully diluted shares O/S.

IMO, share price could explode from this low entry point with successful flow testing!

GL,

JB