PetroFrontier Corp. provides operational update and comments on Central Petroleum Ltd - Total SA farmin agreement
CALGARY, Nov. 9, 2012 /PRNewswire/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is very pleased to provide the following operational updates.
Operational Update
Owen-3H
At PetroFrontier's third horizontal well, Owen-3H (located in EP104, Northern Territory, Australia), a high capacity jet pump has been installed, along with the necessary surface tankage and piping to conduct the cleanup and production testing on this well. Like the MacIntyre-2H well, Owen-3H encountered nuisance levels of hydrogen sulphide in the initial flow back of the stimulation fluid. PetroFrontier was able to accelerate the purchase and assembly of the hydrogen sulphide resistant testing equipment planned for MacIntyre-2H and has installed it at the Owen-3H well. This testing has now commenced and is anticipated to take up to 6 weeks depending on weather, equipment reliability and the nature of the recovered fluids.
MacIntyre-2H
As previously reported, the MacIntyre-2H well encountered nuisance levels of hydrogen sulphide while in the initial phases of post stimulation cleanup and flow back and the well was subsequently suspended. Engineering and procurement work on a hydrogen sulphide scavenging system was completed ahead of schedule and the required equipment has been assembled for use at the Owen-3H well. Following completion of the cleanup and production testing of the Owen-3H well, this equipment will be moved to the MacIntyre-2H well to perform its cleanup and production test, the timing of which is now earlier than previously announced. PetroFrontier intends to conduct field operations continuously barring weather interruptions, equipment availability and government approvals.
PetroFrontier Comments on the Recent Farmin by Total SA in Georgina Basin Lands Owned by Central Petroleum Ltd.
On November 6, 2012 Central Petroleum Ltd ("Central") (ASX: CTP) announced that the French supermajor Total SA ("Total") had agreed to a multi-staged farmin on four of Central's application permits in the Georgina basin onshore Northern Territory and Queensland, Australia. The farmin lands cover application area EP(A) 132 in the Northern Territory as well as application areas ATP(A)s 909, 911, and 912 in northwestern Queensland and is subject to approvals from Queensland state and Northern Territory regulators and Australia's Foreign Investment Review Board. These farmin lands are adjacent to PetroFrontier's lands in the Northern Territory.
Central reported: "The exploration will start with an investment by the joint venture of US$60 million for stage one, and, at Total's election, US$130 million for stages two and three. Should Total continue and fulfill its funding obligations for stages 2 and 3 Total will earn in increments to a total of 68 percent in the permits. Total is required to fund 80 percent of exploration and appraisal costs over four years to which Total has committed the first US$48 million of expenditure for stage one after which Central will fund the next US$12 million."
PetroFrontier is very pleased to see another major global energy company commencing exploration in the Southern Georgina Basin. This farmin arrangement has confirmed again the play potential that PetroFrontier has identified and is currently developing in the Southern Georgina Basin.
About PetroFrontier Corp.
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, covering approximately 13.1 million gross acres of exploration acreage. 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. PetroFrontier's 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, including, without limitation, statements pertaining to management's future plans and operations. 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.
Source: PR Newswire (November 9, 2012 - 9:00 AM EST)
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