(Frontera, 24.Mar.2022) — Frontera Energy Corporation (TSX: FEC) has discovered 27.2 degree API light crude oil at the Tui-1 exploration well on the Perico block (Frontera 50% W.I. and operator) in Ecuador.
Orlando Cabrales, Chief Executive Officer of Frontera, commented:
“We are excited to announce a second consecutive light crude oil discovery at the Perico block in Ecuador, this time at the Tui-1 exploration well. Tui-1 well results add to our recent exploration success at Jandaya-1 and increases current gross production to approximately 2,000 boe/d (see footnote 1) from the Perico block. Tui-1 and Jandaya -1 production is among the first from acreage awarded during Ecuador’s 2019 Intracampos Bid Round and we are thankful for the support we’ve received from the Government of Ecuador and the communities near the well-sites. Looking ahead, additional prospects on the Perico block have been identified and are being matured for future drilling.”
On January 28, 2022, Frontera spud its second exploration well, called Tui-1, approximately 7 kilometres from the Jandaya-1 exploration well, in the southern portion of the Perico block. The Tui-1 exploration well was drilled to a total depth of 10,975 feet (3,345 metres) and encountered a total of 125 feet of net pay across seven hydrocarbon bearing reservoirs including the Hollin, Basal Tena, T and U Sandstones, and Limestones B, A and M2. After two days of initial production tests, the Basal Tena formation is producing an average of 1,200 bbls/d of 27.2 degree API light crude oil with a current water cut of 5.2%.
Frontera is now preparing the required permits to move forward with a long-term test at the Tui-1 exploration well for at least six months or a longer period of time if approved by authorities. Additional appraisal activities will be conducted in the near future to confirm size and mid- to long-term production levels for the multiple potential formations.
At the Jandaya-1 exploration well, production tests in the lower Hollin formation have produced 37,674 barrels to date, with current daily production of 798 bbls/d of 27.9 degree API light crude oil combined with a 1.7% water cut, after 54 days of testing. Production from the Jandaya-1 and Tui-1 exploration wells is currently being transferred by truck to the nearby Lago Agrio Facilities at the PetroEcuador fiscalization centre and transported through the SOTE pipeline system to Balao Terminal where the crude is exported.
Frontera holds approximately 16,700 net acres in the Perico and Espejo exploration blocks in Ecuador. The blocks are located near existing production and infrastructure in Sucumbíos Province in the northeastern part of Ecuador, in the Oriente basin.
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Footnote 1: current gross light crude oil production of approximately 2,000 bbls/d consists of approximately 1,200 bbls/d of light crude oil from the Tui-1 exploration well, based on an initial two-day production test and 798 bbls/d of light crude oil from the Jandaya-1 exploration well after 54 days of testing.
