IFR Joint Venture Provides Operations Update at Tecolutla - Earns into License Contract
V.IFR | 4 days ago
Calgary, ALBERTA, June 06, 2019 (GLOBE NEWSWIRE) -- International Frontier Resources Corporation (“IFR” or the “Company”) (TSX-V: IFR) (OTCQB: IFRTF) today provided an operations update on its joint venture (JV), Tonalli Energia ("Tonalli") and its Mexican onshore oil and gas block Tecolutla.
Tecolutla Block Earn-In
Tonalli has been informed by Mexico’s Comision Nacional de Hidrocarburos (“CNH”) that it has completed its minimum work commitment required to earn-in on the Tecolutla Block in its 35-year license agreement. To date US$1,534,000 of Tonalli’s total Account Performance Security Guarantee (APSG) that was posted with CNH to ensure completion of the minimum work commitment has already been returned. Tonalli is now in the process of applying for the return of its remaining US$1,764,000 APSG.
“Completing our minimum work commitment is an important milestone for Tonalli and IFR and demonstrates our team’s abilities to execute and perform to the Mexican government, our partners and industry,” stated President and CEO Steve Hanson. “ The completed work units required were performed thru core studies, seismic reprocessing, well workovers and drilling activities.”
TEC-11 Horizontal Well
Tonalli is finalizing preparations to commence the perforation and stimulation of the TEC-11 horizontal well. Tonalli experienced delays in this operation due to problems with availability of certain services and tools, which have now been rectified. Tonalli expects to finalize this operation in late June and will then commence production testing.
TEC-2 Workover
In May 2019 Tonalli re-entered the TEC-2 well and performed further downhole operations. As a result, a new production test is currently ongoing. The first 12 days of this test has yielded a result of 62 barrels of oil per day (BPD) of oil on average at a 43% oil cut.
TEC-7 Workover
Tonalli is also preparing to move a service rig onto the recently upgraded TEC-7 well pad to conduct a workover, which will be followed by a production test. The TEC-7 well has not produced since 2006 and a workover has not been performed since 1971.
TEC -10
Tonalli is continuing to produce TEC-10 through rental equipment as a single well battery. Production from TEC-10 averaged 89 barrels of oil per day (BPD) during Q1 of 2019.
IFR will advise on the results of production of TEC-11, TEC-7 and TEC-2 after the tests are finalized. Tonalli is expecting to construct pipelines to connect the Tecolutla wells to centralized production equipment. This work is expected to occur during the summer and fall of 2019. The use of centralized production facilities as opposed to single well batteries is intended to result in lower operating costs for the field.
The Tecolutla field is located within the Tampico-Misantla basin, which has multiple reservoirs with diverse play types and access to existing infrastructure, market, service sector providers and an established supply chain. In 2017, IHS Markit identified the Tampico-Misantla Basin as a potential “Super Basin”.
Through its JV with Grupo Idesa, IFR was one of the first foreign companies to participate in Mexico’s historic reform of the oil and gas sector. The Tecolutla block was awarded to Tonalli as part of the first round and third call of Mexico’s oil and natural gas “mature fields” bid round (“Round 1.3”).
About International Frontier Resources
International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has projects in Canada and the United States, including the Northwest Territories and Montana.
The Company’s shares are listed on the TSX Venture, trading under the symbol IFR and on the OTCQB under the symbol IFRTF. For additional information please visit www.internationalfrontier.com.
