CALGARY, Nov. 21, 2011 /CNW/ - (TSX-V: PFC) - PetroFrontier Corp. ("PetroFrontier") is pleased to announce that the "MacIntyre-2" inclined pilot hole has been drilled to a measured depth ("MD") of 930 metres.
MacIntyre-2 was drilled as a high angle pilot hole through the Basal Arthur Creek "Hot Shale" formation and into the Thorntonian carbonate formation. Elevated hydrocarbon shows were recorded throughout the entire Basal Arthur Creek "Hot Shale" formation with sustained and peak levels generally two to three times greater than those seen in the vertical pilot hole at Baldwin-2Hst1.
The logging results for MacIntyre-2 are very positive showing approximately 22 metres of true vertical depth ("TVD") pay with porosities varying between 5 - 11%. Studies completed by two independent petrophysical companies indicate that the Basal Arthur Creek "Hot Shale" zone in MacIntyre-2 may be oil bearing, although natural gas is present as well.
A drill stem test ("DST") was conducted in the high angle pilot hole over a 35 metre interval. Although a significant flow was not expected and did not occur as the formation is an unconventional oil shale, positive results were received as both the shut in pressures and the flow pressures increased throughout the test.
Due to increasing rains and a continued heavy rain forecast in the Northern Territory, the drilling rig is being demobilized and the horizontal portion of MacIntyre-2 will be completed in early 2012 after the rainy season.
PetroFrontier continues to maintain its strategy of completing and frac'ing MacIntyre-2, followed immediately by the frac'ing of Baldwin-2, in order to minimize capital expenditures. This will now occur in early 2012.
PetroFrontier is in the process of completing the Ross Infill 2D seismic survey over the northern portion of EP 103 and expects it to be completed on time and within budget. The crew is currently recording the final line of the survey adjacent to the Sandover Highway as it leaves the area. The 378 km survey was required to delineate drilling targets in the area. Additional seismic acquisition is also planned in EP 104 and EP 128 after the wet season in 2012.
Paul Bennett, Chief Executive Officer and President, commented:
"We had strong hydrocarbon indications while drilling through the Basal Arthur Creek "Hot Shale" in MacIntyre-2. There was evidence of oil and effervescing gas (up to C5) in the samples. Definitive results will be confirmed once we frac and flow MacIntyre-2H and Baldwin-2Hst1. We are extremely encouraged by our results to date and by the fact that we now have two wells over 60 km apart that have shown very encouraging hydrocarbon indications in the Basal Arthur Creek "Hot Shale. These results are an extremely positive sign and have the potential to add significant value for our shareholders. These two wells take us closer to confirming our original belief that PetroFrontier is about to unlock a significant unconventional resource in the Basal Arthur Creek "Hot Shale". We look forward to announcing further results once both wells have been frac'd in early 2012."
MacIntyre-2 is located in the northeastern corner of EP 127 in the Southern Georgina Basin, Northern Territory, Australia approximately 60 km northwest of PetroFrontier's first location, Baldwin-2Hst1.
About PetroFrontier Corp.
PetroFrontier is an international oil and gas company engaged in the exploration, acquisition and development of both conventional and unconventional 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 exploration in the Southern Georgina Basin in Australia's Northern Territory. PetroFrontier's head office is based in Calgary, Alberta and operations office is in Adelaide, South Australia.
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 and whether the MacIntyre-2 well will result in a commercial discovery. 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.