CALGARY, Sept. 4, 2012 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is very pleased to provide the
following operational and corporate updates.
Completion operations at PetroFrontier's second horizontal well,
MacIntyre-2H located in EP 127, Northern Territory, Australia are
currently underway but not yet completed.
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:
Milky yellow fluorescing cut
Strong gas recordings of C1 to C5
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
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".
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.
For further information:
President and CEO
Manager, Investor Relations
Suite 320, 715 5 Ave. S.W.
Calgary, Alberta, Canada T2P 2X6
Telephone: (403) 718-0366
Toll Free: (877) 822-7280
Fax: (403) 718-3888