CALGARY, Sept. 4, 2012 /PRNewswire/ - (TSX-V: PFC)
- PetroFrontier Corp. ("PetroFrontier") is very pleased to provide
the following operational and corporate updates.
Operational Update
MacIntyre-2H
Completion operations at PetroFrontier's second
horizontal well, MacIntyre-2H located in EP 127, Northern
Territory, Australia are currently
underway but not yet completed.
Owen-3H
PetroFrontier's third horizontal well, Owen-3H,
located in EP 104, Northern Territory, Australia has successfully reached total
depth. Final measured depth of the well was 2,153 metres, of which
the horizontal section was 966 metres targeting the Lower Arthur
Creek and Upper Thorntonia Formations. A multistage open-hole
completion string has now been placed in the well in preparation
for a completion program targeting the Lower Arthur Creek and the
Upper Thorntonia Formations.
During the drilling of the horizontal section at
Owen-3H, numerous positive hydrocarbon indicators were observed
including:
- Oil staining
- Milky yellow fluorescing cut
- Strong gas recordings of C1 to C5
- Petroliferous odour
- Oil spots in the mud at the shaker
On August 9, 2012,
PetroFrontier announced that a total of 32.5 metres of core was cut
and retrieved from the Owen-3 inclined wellbore. Core evaluations
are ongoing and PetroFrontier is encouraged by the initial
assessment of these cores, which seeped oil upon retrieval and had
extensive fluorescence throughout. The well was also wire line
logged with equally encouraging results indicating over 25 metres
total of vertical thickness of hydrocarbon bearing formations.
PetroFrontier is very pleased by the results to
date and the fact that three horizontal wells (MacIntyre-2H,
Baldwin 2-H and Owen-3H) have shown very encouraging oil and gas
indications. The completion and testing results from these three
wells have the potential to add significant value for PetroFrontier
shareholders. However, readers are cautioned that no reserves have
been proven to date by any of these wells.
Corporate Update
PetroFrontier is conducting a non-brokered
private placement of up to 15,384,615 units ("Units") of
PetroFrontier at a price of $0.65 per
Unit for gross proceeds of up to $10,000,000 (the "Offering"). Each Unit
consists of one common share ("Share") and one common share
purchase warrant ("Warrant"). Each Warrant entitles the holder
thereof to acquire one additional Share upon payment to
PetroFrontier of $0.90. The
Warrants will expire on September 8,
2014 (the "Warrant Expiry Date"), unless the volume weighted
average trading price of the Shares on the TSX Venture during the
10 consecutive trading days immediately prior to the date for which
such calculation is made of the Shares is greater than $1.125 (the "Trigger Event"). If a Trigger
Event occurs, the Warrant Expiry Date shall be accelerated to 30
business days from the Trigger Event date.
The first closing (the "First Closing") of the
Offering is expected to occur on September
7, 2012 and will consist of the sale of a minimum of
6,921,002 Units to arm's length parties for total proceeds of
$4,498,651.30 for which binding
subscription agreements have been entered into. The First
Closing is conditional on PetroFrontier having binding subscription
agreements of at least $1,200,000 in
place for the Second Closing (as defined below) and PetroFrontier
may extend the First Closing to no later than September 12, 2012. No commission, fees, options
or similar compensation will be paid by PetroFrontier in connection
with the Units sold pursuant to the First Closing.
The second closing (the "Second Closing") of the
Offering is expected to occur on September
14, 2012. Officers, Directors and advisors of PetroFrontier
have agreed to participate in the Second Closing by purchasing
approximately 1,846,154 Units (for a total subscription price of
$1,200,000).
Proceeds from the Offering will be used to fund
the remainder of PetroFrontier's 2012 joint capital expenditure
program with Statoil Australia Oil & Gas AS and for general
corporate purposes. The Offering is subject to regulatory
approval, including the approval of the TSX Venture Exchange.
The securities sold in conjunction with the Offering will be
subject to a four month hold period.
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 the completion and timing of the Offering, use of
proceeds and 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.