Frontera is to drill a sidetrack for a well in Georgia targeting nearly 800million barrels of oil.
The AIM listed firmed said work towards commencement of sidetracking/drilling operations at Dino-2 well in November 2017 is progressing as planned.
The prospect is in the Taribani complex of Block 12.
The firm said in a statement this morning that the drilling permit application has been submitted to the State Agency of Oil and Gas and is expected to be approved by the end of October.
Selection processes of contractors to provide drilling services, well logging services, cementing services and procurement services for tubulars, drilling fluids, mud and chemicals has been completed.
Contract discussions are in progress and expected to be finalised by October 15.
Dino-2 will be drilled to a target depth of 2,700m and zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together.
Drilling will be completed in December and the well will be tested before the end of the year.
Resource estimates, zones 9, 14 and 15 of the Eldari reservoir in the Taribani field contain 689 million bbls of oil in place, of which 103.5 million bbls considered to be recoverable.
The Eldari reservoir contains a number of stacked pay zones.
The company first drilled the Dino-2 vertical well targeting zone 9 of the Eldari reservoir in 2008.
Following stimulation, this well has provided the company with a long-term production history from which further wells have been modeled more accurately.
Now the firm intends to stimulate multiple pay zones in a vertical well (targeting zones 9, 14 and 15).
Total thickness of these zones will exceed approximately four times the thickness of zone 9.
Based on the Eldari reservoir modeling, it is expected that the stacked nature of the pay zones should substantially increase productivity per well when compared the historical production from the Dino-2 well.
With crude oil at $50/bbl, the company estimates that well cost could be recovered in less than one year from the commencement of production.
Zaza Mamulaishvili, president and chief executive officer, said: “After a successful capital raise, we now are fully funded to sidetrack and test Dino-2 well in Q4, which will be followed by deepening and testing of well T-45 in Q1 of 2018.
“Oil processing and export infrastructure of the Taribani complex can handle production of 10,000 bbls per day, allowing Company to monetise all produced crude oil upon the commencement of production.”
He added: “With successful drilling operations, the Company will further prove up and start to unlock the tremendous oil and gas potential of the Taribani complex which in turn should substantially increase current valuation of the asset. I look forward to updating shareholders in due course.”
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