CALGARY, Alberta, Aug. 07, 2018 (GLOBE NEWSWIRE) -- International Frontier Resources Corporation (“IFR” or the “Company”) (TSX-V: IFR) (OTCQB: IFRTF) is pleased to announce the results of the extended testing operation of the TEC-10 well drilled by its joint venture, Tonalli Energia (“Tonalli”) at Tecolutla onshore oil and gas block in Mexico.
On August 6, 2018, Tonalli completed an 18-day flow test of the primary zone interval with the following results:
- Daily oil production of the TEC-10 well increased throughout the extended production test from the initial low flow rates observed on July 23, 2018 to more than 175 barrels of oil per day (“bopd”) at the end of the production test on August 6, 2018.
- Over the last 72 hours of the extended well test, the TEC-10 well produced an average of 154 bopd and 300 barrels per day (“bpd”) of total fluid (51% crude oil by volume).
- During the last 24 hours of the extended well test the TEC-10 well produced 178 barrels of crude oil and 305 barrels of total fluid (58% crude oil by volume).
- During the 18-day test period the TEC-10 well maintained a consistent daily flow rate of 285-315 barrels of formation fluid while flowing through a restricted 12/64” surface choke.
- Flowing wellhead pressure increased from 260 psi on July 23, 2018, to more than 900 psi at the end of the testing period on August 6, 2018.
- The initial bottom-hole pressure data indicates that the TEC-10 well production capacity is significantly higher than the restricted flow rates observed during the extended testing operation.
“IFR is encouraged by the economic results obtained over the extended production test including the increase in oil production and the high deliverability of the TEC-10 well,” stated Steve Hanson, President and CEO of IFR. “The results from TEC-10 are a significant improvement from the initial figures released and show great promise for development of the field.”
The data obtained during the extended well test are consistent with Tonalli’s technical model where the existing vertical wells have only partially depleted the El Abra reservoir at this interval depth in the South-Western portion of the Tecolutla Block.
A graphical depiction of the test results since perforation can be accessed by clicking on the following link: http://www.internationalfrontier.com/i/pdf/TEC-10_Testing_August-7-2018.pdf
Perforation and stimulation operations of the TEC-10 well commenced in late June targeting multiple zones over 138m of gross El Abra reef. Initial results of the TEC-10 flow tests from the lower intervals and the upper zone target, Interval C were released on July 23, 2018.
The TEC-10 well has been shut-in to record pressure data that will provide additional information to be used for the full development of the asset. The pressure build-up period is expected to last between two to three weeks. Tonalli is continuing to work with service providers in Mexico to allow for the TEC-10 well to resume production testing operations after the shut-in period.
Tonalli intends to recommence the well testing operations in order to monitor the performance of the TEC-10 well before permanent production and water disposal facilities are installed. Tonalli’s technical team will continue to evaluate the test data to determine the optimum production rate for the TEC-10 well to maximize hydrocarbon recovery.
TEC-11 Horizontal Well Planning Underway
Tonalli is planning to commence construction of the surface pad site for the first horizontal well (“TEC-11”) within the next few weeks and expects drilling operations to commence in late Q4-2018, subject to final regulatory approvals. The TEC-11 horizontal well will be drilled in the Northern extension of the Tecolutla block targeting a portion of the El Abra reservoir that has not been accessed due to surface topography.
This new well will be drilled from the existing TEC-2 surface location and utilize the knowledge obtained during the drilling and completion of the TEC-10 directional well. Tonalli expects that the reprocessed 3D seismic data and application of horizontal drilling will mitigate the risk of encountering localized geological features that limit well performance. The TEC-11 Horizontal well is designed to maximize the contact of the Horizontal leg of the wellbore with the upper portion of the prolific El Abra reservoir.
Please see the Tec 11 drilling map by clicking on the following link:
http://www.internationalfrontier.com/i/pdf/Map_of_Tec_11_for_Press_Release.pdf
Through its joint venture, IFR was one of the first foreign companies to participate in Mexico’s historic reform of the oil and gas sector. The Tecolutla block was awarded to Tonalli as part of the first round and third call of Mexico's oil and natural gas "mature fields" bid round ("Round 1.3"), the first in almost 80 years.
About International Frontier Resources
International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has projects in Canada and the United States, including the Northwest Territories and Montana.
The Company’s shares are listed on the TSX Venture, trading under the symbol IFR and on the OTCQB under the symbol IFRTF. For additional information please visit www.internationalfrontier.com.
For further information
| Steve Hanson – President and CEO | or | Tony Kinnon – Chairman |
| (403) 215-2780 | (403) 215-2780 | |
| shanson@internationalfrontier.com | tkinnon@internationalfrontier.com | |
Forward Looking Statements
This press release contains forward‐looking statements and forward‐looking information (collectively "forward‐looking information") within the meaning of applicable securities laws relating to the Company's plans, strategy, business model, focus, objectives and other aspects of IFR's anticipated future operations and financial, operating and drilling and development plans and results, including, expected future production, production mix, reserves, drilling inventory, net debt, cash flow, operating netbacks, decline rate and decline profile, product mix, capital expenditure program, capital efficiencies, commodity prices, tax pools and targeted growth. In addition, and without limiting the generality of the foregoing, this press release contains forward‐looking information regarding: anticipated cost savings and operational efficiencies; anticipated capital cost estimations; the focus and allocation of IFR's 2018 capital budget; anticipated production rates, available free cash flow, management's view of the characteristics and quality of the opportunities available to the Company; and other matters ancillary or incidental to the foregoing.
Forward‐looking information typically uses words such as "anticipate", "believe", “indicate”, "project", "target", "guidance", "expect", "goal", "plan”, "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward‐looking information is based on certain key expectations and assumptions made by IFR's management, including expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; decline rates; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully and IFR's ability to access capital.
Statements relating to "reserves" are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.
Although the Company believes that the expectations and assumptions on which such forward‐looking information is based are reasonable, undue reliance should not be placed on the forward‐looking information because IFR can give no assurance that they will prove to be correct. Since forward‐looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward‐looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward‐looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward‐looking information provided in this press release in order to provide security holders with a more complete perspective on IFR’s future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect IFR's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
These forward‐looking statements are made as of the date of this press release and IFR disclaims any intent or obligation to update publicly any forward‐looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
“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 or accuracy of this release”. The Company seeks Safe Harbor.