Value Microcaps Junior Energy

[Regis999]

My Write Up

Australian Bakken Play ---PetroFrontier teamed with Norwegian Statoil (Acquirer of Bakken Brigham Exploration October 2011 $ 4.4 Billion) on June 20, 2012

PetroFrontier is an international oil and gas company engaged in the exploration, acquisition and development of both conventional and unconventional onshore petroleum assets in Australia’s Southern Georgina Basin.

PetroFrontier’s common shares are listed on the TSX Venture Exchange under the symbol “PFC” or in U.S. "PFRRF" Petrofrontier holds 75% to 100% interest in Georgina exploration permits EP 103,104,127 and 128, in addition to pending exploration permits. totaling over 14 million acres.


PetroFrontier Corp. –Enormous Australian land position averaging 87% working interest on 14.1 million acres. Will use horizontal drilling and multistage frac technology.

PetroFrontier teamed up with International oil company Statoil recently on June 20, 2012 in farm-in arrangement. The 67% owned by Norwegian government Statoil is the world leader in shale resources such as PetroFortier’s South Geogina Basin.

Where are Statoil’s shale resources Marcellus/Eagle Ford/Bakken?
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/where.aspx

The ink was barely dry on the transaction and Statoil with a $ 74 billion market cap was talking about Australia:
http://www.ogj.com/articles/print/vol-110/issue-07/general-interest/statoil-plans-to-triple.html
“Separately, Statoil announced plans to partner with Canada's PetroFrontier Corp. on four exploration permits and two exploration permit applications in the southern Georgina basin in Northern Territory, Australia (OGJ Online, June 20, 2012).
Statoil said its Australia shale activities will rely on unconventional expertise it has developed in the US where it has leases in various shale plays.”


See Statoil video on shale and tight rock resources
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/theimportanceofshaleforstatoil.aspx



Statoil enters Australian Shale Play
http://www.statoil.com/en/NewsAndMedia/News/2012/Pages/20Jun_Australia.aspx

Other Article: http://tinyurl.com/86efdoh



PetroFrontier headed up by fomer ExxonMobil geologist Paul Bennett
Stock of PetroFrontier is near 52 week lows.

Of interest: PetroFrontier has drilled three vertical wells and is in process of completing the horizontal legs of these three wells. Fracing will occur over next few months. When PetroFrontier was searching for a farm-in partner all the data and logs associated with these three wells was available to prospective partners including Statoil.

Shallow target depth: 2,000 to 4,000 feet (600 to 1200 meters)

Founded in 2009, PetroFrontier is one of the first companies to undertake onshore exploration in the Southern Georgina Basin in Australia’s Northern Territory. PetroFrontier’s head office is in Calgary, Alberta and its operations office is in Adelaide, South Australia.

On June 20, 2012, the Corporation issued a press release announcing the execution of the Farmin Agreement and the Offering. Pursuant to the terms of the Farm-in Agreement with Statoil Australia has the option to earn up to 65% of the Corporation's working interests in the EPs and EPAs, in exchange for Statoil Australia's contribution of up to US$210,000,000 in exploration program related payments and carried costs over three phases of the Farmin Agreement. See articles and press releases

Ryder Scott, geological and reservoir engineers, assigned 26.4 billion barrels of gross prospective resources to PetroFrontier’s unconventional shale resource and 1.1 billion barrels to the conventional resource. Both management and Ryder Scott believe PetroFrontier’s shale resource is analogous to the Bakken in North Dakota or South Saskatchewan. This is a pure exploration company with all the resultant risks associated with it. Target is both light oil and natural gas.

http://finance.yahoo.com/q?s=PFC.V

52 week Price Range $ 4.24 ro $ .67

Price $.75
Market Cap $ 48 million

Cash on hand $ 17.35 Million
Shares Outstanding 63.998 million

Major Shareholders 62% Institution ownership

As of 10/13/11 per Proxy George Soros Quantum Partners 9,850,000 shares 15.4% Heritage Oil PLC 8,832,000 shares 13.8%
On July 14, 2011 Heritage Oil (HOC TSX), an international independent upstream exploration and production company , prior to start-up drilling by PetroFrontier, announced in a press release that they had acquired 10.4% interest in PetroFrontier via public market purchase (paid over $ 2.50 share).
http://www.heritageoilplc.com/
http://www.heritageoilplc.com/pdf/Heritage_Oil_April_post_2011_results.pdf



Recent PETROFRONTIER Insider Buying
Jun 28/12 Martin, McGoldrick Indirect Ownership Public market buy Common Shares 0.720 - 0.770 100,000 n/a 100,000
Owned 185,000 shares prior to purchase (excludes options outstanding).
Martin P. McGoldrick
Director
Mr. McGoldrick has been a Director at PetroFrontier since its formation on February 6, 2009. With over 30 years of experience in oil and gas investment banking and international oil and gas exploration and development, Mr. McGoldrick has held various senior management positions within the energy industry, including senior roles with Bow Valley Industries Ltd. and TransAlta Corporation. Prior to joining PetroFrontier, he served as Senior Vice President and Director, Investment Banking of Jennings Capital Inc., until his retirement in July 2006.
Mr. McGoldrick graduated with a Bachelor of Electrical Engineering degree from the College of Dublin, Ireland and holds a Master of Business Administration with a specialization in Finance from the University of Calgary. He is a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA).
Date Insider Name Ownership Type Nature of Transaction Security Price ($) Units Change* Account Balance
Jun 28/12 Scott, Earl Patrick Direct Ownership Public market buy Common Shares 0.690 50,000 n/a 50,000
Earl Scott
Chief Operating Officer
Mr. Scott is PetroFrontier's Chief Operating Officer and, as of February 1, 2012, is the newest member of the senior management team. Mr. Scott brings extensive knowledge of drilling, completions, production operations, project management and facilities through 25 years of experience in the oil and gas industry. From 2010 until present, Mr. Scott was a consultant employed as Vice President, Operations for Red Rock Energy and Kurdistan Project Manager for Western Zagros, both in Calgary, Alberta. Prior to 2010, Mr. Scott held various roles including Vice President, Engineering and Operations with BG Canada Exploration Inc., and as a technical consultant to ExxonMobil Canada based in Calgary, Alberta. Mr. Scott has held a range of increasingly progressive technical leadership roles in Malaysia, France, Venezuela, Ecuador and Canada with companies such as Exxon, Schlumberger, AEC International and BG Group.
Mr. Scott is a professional engineer and has a Bachelor of Science degree in Mechanical Engineering from the University of Calgary.
PDF Presentation Note Slide 12 pipeline Darwin LNG
http://www.petrofrontier.com/en/presentations/pfc_-_investor_presentation_may_2012.pdf?PHPSESSID=6iochvq7ql5ekr0rt503hkjn80

Petrofrontier presentation at First Energy May 15, 2012 before Statoil Farm-in on June 20, 2012
http://jetslides.tv/lobby/721
Comparison to Bakken
http://www.petrofrontier.com/en/documents/PFC-2011-03-21-analystcoverage-JenningsCapitalInc.pdf?PHPSESSID=8f6jvqfuiaip6vjmrg675cqua1

More Statoil

Statoil is 67% owned by the Norwegian government and has a market cap of $ 74 billion.

Statoil has stated that development and production of oil from shale and tight rock resources has begun to transform the global energy outlook.

Statoil’s shale and tight gas and oil business began in the US through active partnerships in the Marcellus play along the eastern seaboard, the Eagle Ford play in south Texas, and our own operatorship of tight oil activities in North Dakota and Montana in the Bakken play.


Statoil has farmed into Petrofrontier's four existing Exploration Permits (EP 103, 104, 127 and 128) as well as pending exploration permits (213 and 252) in the South Georgina Basin in Australia's Northern Territories in a Joint Venture project.

This is an early entry at scale into over 14 million acres of immature, but potentially highly prospective play at low cost, with high risk but also with significant upsides.

Through a step-wise exploration programme the partners will potentially drill 10-20 wells by 2017 in three phases to demonstrate prospectivity.

Petrofrontier will operate the first phase of the programme while Statoil has secured options to operate from the second exploration phase in addition to increase ownership interests from 25 to 65% of Petrofrontier's interests.

Statoil has committed to contribute USD 25 million for the first phase of the exploration programme. This figure could escalate to USD 200 million through a phase two and three depending on exploration results.

Statoil Video
http://www.statoil.com/en/ouroperations/explorationprod/shalegas/pages/theimportanceofshaleforstatoil.aspx

"We are very excited to announce this farm-in agreement with Statoil. Statoil is a highly regarded international exploration company, actively involved in major unconventional plays and brings exceptional financial resources and technical capabilities to our new relationship" says Paul Bennett, President and CEO of PetroFrontier. "We believe that partnering with a global leader like Statoil validates the potential of our assets and the exploration work we have completed to date."

PetroFrontier Corp.
Susan Showers
Manager, Investor Relations
[phone] or Toll Free: [phone]
[phone] (FAX)
[e-mail]
www.petrofrontier.com