May 23, 2006
North Sea Exploration Well Planned
International Frontier Resources Corporation ("IFR"-TSX-V) announces that letter agreements have been signed with Palace Exploration Company (E&P) Limited ("Palace"), Oilexco North Sea Limited ("Oilexco" TSX: OIL LSE- AIM: OIL), Gulf Shores Resources Ltd. ("Gulf Shores" GUL TSX-V) and Eternal Energy Corporation ("Eternal" EERG - OTC) under which Oilexco, Gulf Shores and Eternal will drill a test well to evaluate the Laurel Valley prospect located in Quad 14 in the Outer Moray Firth area of the UK North Sea. The Laurel Valley #1 well will evaluate two prospective Jurassic oil targets and the Lower Cretaceous section identified on a 255 square kilometer 3D seismic survey. Drilling costs will be funded by Oilexco 75%, Gulf Shores 12.50% and Eternal 12.50%.
Drilling operations, using the Sedco 712 rig currently under contract to Oilexco, will commence on or before December 31, 2006. After drilling, working interests in the blocks will be held Oilexco - 45.00% (operator), Palace & Challenger - 26.00%, International Frontier - 10.4375%, Eternal - 9.1875% and Gulf Shores - 9.3750%. The agreement is subject to approval of the UK Department of Trade and Industry and execution of formal farm-in agreements.
The Company also reported today that a seismic review - farm-in option letter agreement has been executed covering blocks 21/8, 21/14 and 21/15b located in the Central Graben area of the North Sea. Under the agreement International Frontier, Oilexco, Gulf Shores and Eternal have until July 15, 2006 to elect to drill a farm-in well on the Quad 21 acreage held by Palace and Challenger Minerals (North Sea) Limited.
Commenting on the agreements company President, Pat Boswell, said the company is pleased to partner with Oilexco who have gained the reputation of being one of the most innovative and aggressive exploration companies in the UK sector of the North Sea. Oilexco had the foresight to contract a drilling rig under a long term arrangement when demand for rigs in the North Sea has reached record levels. Having a rig under long term contract allows Oilexco to develop any exploration successes in a timely fashion.
For additional information visit the Company's website at www.internationalfrontier.com or contact;
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release. This news release is not intended for distribution to US news wire services or for dissemination in the United States and does not constitute an offer of the securities described herein.
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