CALGARY, June 25, 2012 /PRNewswire/ - (TSX-V: PFC)
- PetroFrontier Corp. ("PetroFrontier") is pleased to announce that
it has successfully completed the drilling of its second horizontal
well ("MacIntyre-2H") in the Southern Georgina Basin, Northern
Territory, Australia.
MacIntyre-2H is located in the northeastern part of EP 127,
approximately 60 km from the Baldwin-2Hst1 well, which PetroFrontier
successfully drilled in late 2011.
MacIntyre-2H reached a total measured depth of 1,916 metres and
stayed within the primary target zone, the Lower Arthur Creek "Hot
Shale" Formation, for approximately 1,080 metres, recording
positive hydrocarbon indications along the entire length of the
horizontal section. A multistage open-hole completion string
will now be placed in the well before the drilling rig moves on to
drill PetroFrontier's third horizontal well, Owen-3.
Thereafter, a fracture stimulation program is expected to be
carried out at each of Baldwin-2Hst1, MacIntyre-2H and Owen-3H.
Although the drilling results from MacIntyre-2H are encouraging,
this well remains a high-risk exploration venture. Readers are
cautioned that no reserves have been proven by this well.
Update - Statoil Farm-in
Pursuant to the recently announced joint venture /Farm-In
Agreement with Statoil Australia Oil & Gas AS, a wholly owned
subsidiary of Statoil ASA of Norway ("Statoil"), Statoil and PetroFrontier
will each contribute US$25.0 million
to PetroFrontier's current 2012 - 2013 Phase 1 exploration
program. PetroFrontier is being credited with exploration
expenditures already incurred in 2012. Upon completion of
Phase 1, Statoil may elect to commit to Phase 2 or withdraw
completely whereupon Statoil will have earned no working interest
in the lands.
Upon committing to Phase 2, Statoil must pay US$25.0 million to PetroFrontier and commit to
spend 80% of the next US$100.0
million in the Phase 2 program. Only at that time,
will Statoil have earned a 25% interest in PetroFrontier's
acreage. In summary, to complete Phase 2, Statoil must spend
US$50.0 million and commit to spend
an additional US$80.0 million to earn
an initial 25% interest in the lands.
During Phase 2, which is scheduled to occur during calendar
years 2014 and 2015, PetroFrontier's US$20.0
million exploration contribution will be funded out of the
US$25 million paid to it by
Statoil. Furthermore, if Statoil elects to proceed with Phase
3 which is expected to occur during calendar 2016 and beyond,
PetroFrontier will not be required to contribute any additional
funds until Statoil has spent the next US$80.0 million. Since PetroFrontier's net
exploration costs to the end of Phase 3 will only be US$20.0 million (during which time Statoil's
commitment will be US$210.0 million),
PetroFrontier will not require additional equity funding to meet
its obligations under the Farm-In Agreement to the end of Phase
3.
Statoil's involvement validates PetroFrontier's understanding of
the exploration potential of the Southern Georgina Basin and will
allow PetroFrontier to more rapidly explore and develop its
exceptionally large acreage position of over 14 million
acres. Statoil brings exceptional technical capabilities,
being currently heavily involved in North American unconventional
resource plays, such as the Bakken, Marcellus and Eagle Ford.
"With success, the full value of this Farm-In Agreement will be
captured and we are committed, in partnership with PetroFrontier,
to realizing the potential of the Southern Georgina Basin. We look
forward to the possibilities", said Vidar Skjaeveland, Statoil's
Vice President, New Ventures.
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.
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 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.
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.