Frontier Closes Montana Acquisition and Updates Mackenzie Valley, NWT
13 Juillet 2011 - 8:34PM
Marketwired Canada
International Frontier Resources Corporation ("Frontier" or the "Company") (TSX
VENTURE:IFR) reported today that it has completed the purchase of title to
17,080 fee acres (more or less) located in Northwest Montana as previously
announced in a news release dated May 31, 2011.
The majority of the fee acreage is located in the Blackfeet Reservation, Glacier
County, Montana where Anschutz Exploration (private), Newfield Exploration
(NFX-Z) and Rosetta Resources (ROSE-Q) are conducting exploration and appraisal
drilling programs to evaluate a tight light oil play that is prospective for
stacked zones in the Lodgepole, Bakken, Three Forks, Nisku and Cone reservoirs.
Glacier County Activity
In the period January 1, 2011 to June 30, 2011 the Montana Department of Natural
Resources and Conservation issued the following well licenses in Glacier County.
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Operator Well Location Date Depth Formation IFR Fee
Feet (i)
Lands
(miles)
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Rosetta Buffalo Lake 5-16-36N-9W 2/18/2011 7,419 Bakken 3.5
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Anschutz SW Browning 1-8-32N-11W HZ 2/18/2011 12,552 Cone 1.5
Member
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Newfield Tribal Snowshoe 1-13-36N-11W 2/22/2011 11,639 Bakken 3.5
HZ
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Newfield Tribal Whitesands 1-19-31N- 2/22/2011 12,085 Bakken 3.5
9W HZ
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Rosetta Simonson 1-34-36N-8W 2/28/2011 6,600 Souris 5.5
River
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Newfield Aimsback 1-7-33N-7W HZ 4/11/2011 10,375 Bakken 0.5
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Rosetta Tribal Riverbend 4-7-36N-9W 5/6/2011 10,970 Bakken 3.0
HZ
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Rosetta Tribal Riverbend 13-12-37N- 6/6/2011 9,965 Bakken 1.0
9W HZ
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Anschutz Pine Ridge 2-26-36N-13W HZ 6/21/2011 13,841 Cone 2.0
Member
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Rosetta Simonson Farms 1-34-36N-8W 6/23/2011 10,036 Bakken 2.5
HZ
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HZ - Horizontal Well License (i) closest fee acreage to well location.
The two public companies drilling on the Blackfeet Reservation have reported the
following;
Rosetta Resources
In a presentation dated June 6, 2011 (RBC Capital Markets) Rosetta Resources
stated the following;
-- 300,000 net acres
-- 6 billion barrels oil equivalent (BBOE) hydrocarbon resource in place
-- 1,500 potential locations
-- 11 delineation wells completed, 3 horizontal wells planned (2011)
In a Q1, 2011 update Newfield Exploration (website) stated the following;
-- 280,000 net acres
-- Seven vertical wells drilled, preparing to drill an eighth vertical well
-- Two horizontal wells on production
-- All wells drilled to date have encountered oil
-- Multiple prospective geological formations throughout the acreage are
planned for evaluation
Anschutz Exploration (private) has not announced results on their drilling
program however scouting reports indicate that Anschutz have possibly discovered
hydrocarbons in five wells on their Blackfeet acreage. The most recent well,
Anschutz Browning 1-8HZ, has been drilled, cored and cased, the rig was released
in late June. Frontier holds a royalty on fee acreage currently under lease to
Anschutz, the acreage offsets the Browning 1-8HZ well. The rig that drilled the
Anschutz Browning well is currently drilling a horizontal well for Rosetta.
Frontier also owns royalties on fee acreage located within 1 - 4 miles of the
horizontal well currently being drilled by Rosetta.
In 2010 the play was extended into southern Alberta. In a 3 township x 7 range
area (18 miles north-south by 42 miles east-west) adjacent to the Montana border
Shell Canada have licensed five wells, Murphy Oil six wells, Crescent Point
three wells, DeeThree two wells, Legacy-Bowood one well and Petro-Spirit three
wells. Frontier owns fee acreage in township 37N ranges 8W, 9W, 10W, 11W, 12W,
13W and 14W, the fee acreage abuts the Alberta border and is within 6 - 10 miles
of wells recently drilled in township 1 ranges 18 - 25 W4M.
The majority of the fee acreage that Frontier acquired is under lease to
operators that are currently drilling on the Blackfeet Reserve. The leases
reserve in favor of the Lessor (Frontier) gross overriding royalties ranging
from 12.50% to 18%. The leases on Frontier's fee acreage expire at various times
over the period 2012 to 2016, to fulfill the term of the leases Lessee's are
required to drill a well prior to expiry of the lease or the acreage (100%) will
revert back to Frontier.
Central Mackenzie Valley , NWT ("CMV")
On July 4, 2011 eleven licenses covering 2.2 million acres were awarded for work
commitments of $534 million (see table).
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Parcel Company Acres Bid-Work $/Acre
Commitment
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CMV 1 MGM Energy 204,210 $1,512,121 $7.40
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CMV 2 Shell Canada (i) 217,320 $18,296,208 $84.19
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CMV 3 Imperial Oil (i) 219,544 $21,500,003 $97.93
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CMV 4 Husky Oil 216,825 $188,000,000 $867.05
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CMV 5 MGM Energy 213,994 $1,502,502 $7.02
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CMV 6 Husky Oil 215,061 $188,000,000 $874.17
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CMV 7 Shell Canada 215,266 $18,098,660 $84.00
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CMV 8 ConocoPhilips(i) 216,200 $66,712,035 $308.56
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CMV 9 MGM Energy 210,746 $2,021,212 $9.59
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CMV 10 Shell Canada 65,653 $7,049,269 $107.37
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CMV 11 Imperial Oil 223,951 $21,500,003 $96.00
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Total 2,218,735 $536,000,000 $241.65 Average/Acre
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(i)Denotes Mackenzie gas pipeline applicant.
Frontier's acreage in the CMV is comprised of 6,233 net tested acres, on which
three Significant Discovery Licenses ("SDL") have been granted, and 59,183 net
un-evaluated acres. Husky Oil is the operator of the SDL's and the un-evaluated
acreage.
Since the moratorium on drilling in the CMV was lifted 15 years ago there have
only been 16 wells drilled on the west side of the Mackenzie River. Frontier
participated in 9 of the 16 wells and the exploration program yielded the
discovery of a new hydrocarbon province south of the Norman Wells oilfield (260
MMBOE).
Based on the company's historical drilling costs, which averaged $13 million per
well (gross), and assuming that one-third of the $536 million in work
commitments are seismic related costs there could be an additional 20 - 30 wells
drilled on the west side of the Mackenzie River in the next five years.
The company's shares are listed on the TSX-V trading under the symbol "IFR". For
additional information on the company please visit
www.internationalfrontier.com.
This news release includes forward looking statements, The Company seeks Safe
Harbor.
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