CALGARY,
Nov. 1, 2011 /PRNewswire/ -
(TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is very
pleased to announce the spudding of its second horizontal well,
"MacIntyre-2", in the Southern Georgina Basin, Australia on Friday
October 28, 2011, where it is currently cementing the
surface conductor. MacIntyre-2 is the first follow up well to
PetroFrontier's recently drilled Baldwin-2Hst1 well. PetroFrontier has also
been re-evaluating its current operational program due to the
upcoming wet season in Northern
Australia.
Drilling Program - "MacIntyre-2"
MacIntyre-2 is located in the northeastern corner of EP 127 in
the Southern Georgina Basin approximately 60 km northwest of
PetroFrontier's first location, Baldwin-2Hst1. After drilling this well,
PetroFrontier will have earned a 75% working interest in EP 127 and
is the operator.
As with Baldwin-2Hst1, the
primary target in MacIntyre-2 is the unconventional Basal Arthur
Creek "Hot Shale", with a conventional secondary target being the
Dolomitic Shoal above the Basal Arthur Creek "Hot Shale".
PetroFrontier has re-designed and re-engineered the MacIntyre-2
well based on lessons learned from drilling the Baldwin-2Hst1 well. MacIntyre-2 will be
drilled as a high angle (75 degrees) pilot hole to an estimated
vertical depth of 900 meters, through the Arthur Creek "Hot Shale"
unit and into the Thorntonian carbonate formation. The well will
then be logged and drill stem tested ("DST") if well conditions
permit.
The well will then be plugged back a short distance and then
deviated horizontally into the Basal Arthur Creek "Hot Shale" for
approximately 1,000 metres. Drilling is expected to take
approximately four weeks. Once drilled to its total horizontal
distance, MacIntyre-2 will be evaluated with an extended leak off
test if well conditions permit. This test is expected to provide
valuable reservoir data that will be used to calculate the most
efficient frac program. This new well design is expected to result
in greater drilling efficiencies and cost savings.
Modified Georgina Basin Exploration Program
In early 2011, management of PetroFrontier implemented an
exploration program to drill horizontal wells at Baldwin-2 then MacIntyre-2 in the Basal Arthur
Creek "Hot Shale", with the installation of a Packers Plus
multi-stage frac completion string in each. These completions would
be similar to those being used in many North American formations,
such as the Bakken formation in Saskatchewan, North
Dakota and Montana. With
very high mobilization costs PetroFrontier's plan has been to
mobilize the frac'ing equipment when the drilling of MacIntyre-2
was nearing completion. MacIntyre-2 would then be frac'ed, followed
by Baldwin-2Hst1. Thereafter, all
of the frac'ing and drilling equipment would be released before the
onset of the wet season, as this is an area where the rains can
effectively shut down operations for an extended time period.
Having experienced significant delays that occurred earlier this
year due to the severe wet season experienced in Northern Australia, PetroFrontier's management
has had to consider changes to this plan as the onset of this
year's rains may occur within the next few weeks. Indeed, the
Australian Government Bureau of Meteorology has forecast an
increased probability of heavier than normal rains again this
season.
As a result, PetroFrontier is evaluating the potential
mobilization of a service rig to the Baldwin-2Hst1 well (about 3,000 km) to arrive
approximately one week before drilling operations at the
MacIntyre-2 well are completed. Management is also in discussions
with the two available frac'ing companies in Australia to secure equipment for back-to-back
fracs of the two wells for the corresponding time period.
However, readers are cautioned that a number of factors will
come into play before this revised plan can be successfully
implemented, including the availability and mobility of frac'ing
equipment and the actual timing of the onset of the wet season. If
this revised plan cannot be accomplished, it is probable that
frac'ing and completion operations of the two wells may be delayed
for as long as four months due to the wet season, potentially
causing a delay of such operations until March of 2012.
PetroFrontier's capital program remains focused on exploratory
drilling opportunities around existing wellbores and it will
continue to invest in its extensive land base, with plans to
acquire an additional 378 kilometers of 2D seismic in EP 103.
Additional seismic acquisition is also planned in EP 104 and EP 128
(subject to Northern Territory government clearances) after the wet
season in March 2012.
Financial Update
Current net working capital is approximately $35.75 million. After drilling and completing the
two horizontal and two vertical wells and the current seismic
acquisition program, PetroFrontier is expected to still have
approximately $12.5-$15.0 million of
working capital.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in
the exploration, acquisition and development of both conventional
and unconventional petroleum assets in Australia's Southern Georgina Basin.
PetroFrontier's common shares are listed on the TSX Venture
Exchange under the symbol "PFC". Founded in 2009, PetroFrontier is
one of the first companies to undertake exploration in the Southern
Georgina Basin in Australia's
Northern Territory. PetroFrontier's head office is based in
Calgary, Alberta and operations
office is in Adelaide,
South Australia.
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.