CALGARY, July 9, 2012 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is pleased to announce the spudding of its third horizontal well, "Owen-3", in the Southern Georgina Basin, Northern Territory, Australia. Owen-3 is located in the eastern part of Exploration Permit ("EP") 104 where PetroFrontier currently holds a 100% operated working interest and is included in the recently announced joint venture area with Statoil Australia Oil and Gas AS ("Statoil"). Statoil is crediting PetroFrontier with exploration expenditures already incurred in 2012 and will contribute 50% of the costs associated with this project.
Owen-3 will test the unconventional potential of the primary target zone, the Lower Arthur Creek "Hot Shale", in the Toko Synclinal area. Owen-3 will be drilled as a high angle pilot hole to an estimated depth of 1,280 metres, through the Lower Arthur Creek "Hot Shale" Formation and into the Thorntonian carbonate Formation. PetroFrontier will core the Lower Arthur Creek "Hot Shale" Formation and then log the well. The core will provide valuable technical information to enhance PetroFrontier's understanding of the lithology of this formation, which will aid in optimizing the frac design and reservoir modeling. Owen-3 will be plugged back a short distance and then deviated horizontally for approximately 1,000 metres into the primary target zone. Drilling of Owen-3 is expected to take four to five weeks.
Fracture Stimulation Update
Following the drilling of Owen-3H, PetroFrontier intends to conduct a ten-stage fracture stimulation program at each of its three wells in the following order: MacIntyre-2H, Baldwin-2Hst1 and Owen-3H. In order to maximize operational efficiencies, the wells will then be flow tested in the reverse order. The Lower Arthur Creek "Hot Shale" Formation is an unconventional play requiring the use of advanced horizontal drilling and completion techniques in order to properly test for economic flow rates. PetroFrontier will provide market updates on the frac operations as results materialize and definitive results will be confirmed once PetroFrontier can flow test all of these wells, which is expected to occur over the next few months and prior to the onset of the local Australian wet season.
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. 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 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.
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