May 17, 2006
International Frontier announces a second Discovery in Northwest Territories
International Frontier Resources Corporation ("IFR" TSX-V) announced today results of the consortiums winter exploration program in the Central Mackenzie Valley, Northwest Territories, Canada.
The D-57 exploratory wildcat well was drilled 26 kms east of the Summit Creek B-44 discovery. The well was drilled to a depth of 3,147 meters and cased to total depth. Two drill-stem tests were run in the shallow primary objective, the Cretaceous Little Bear Formation, yielding a combined flow rate of 5 million cubic feet per day of sweet gas. The Company estimates the D-57 hydrocarbon column to be a minimum of 164 feet (50m) and could be as large as 328 feet (100m) therefore drill-stem tests effectively tested between 13% and 33% of the total postulated hydrocarbon column. The Company's initial estimates indicate up to 85 feet (26m) of gas pay in the Cretaceous within a closed structure of 9.5 square kilometers. The secondary objective, the Devonian, was not present at the D-57 location.
Commenting on the discovery, Company President Pat Boswell said the well, which tested the eastern side of the consortium's acreage portfolio has confirmed the presence of an active petroleum system in the Cretaceous, and as such, has opened up a second play fairway in addition to the Devonian system encountered in Summit Creek area. To fully evaluate this discovery, appraisal - delineation drilling and further production testing, is required to accurately estimate reserves and deliverability. IFR holds a 7.5% interest in D-57 and TDL parcel M-38.
A second well in this winter's exploration program, Summit K-44, was drilled, cored, drill-stem tested and cased to a depth of 3,140 meters; due to operational problems encountered in the shallow section of the well the projected total depth of 3,600 meters was not reached. The well has been suspended in such a fashion to allow for production testing of the Devonian carbonates, and or deepening, to evaluate the Ordovician exploration target. The Company is integrating results of the K-44 well into its geological and geophysical models; preliminary interpretation indicates two porosity systems are present in the Summit Creek structure and to fully evaluate K-44 the well needs to be completed and production tested in the prospective reservoir identified on logs and drill-stem tests. In the Company's opinion a 3D seismic survey is required to gain a better understanding of the size and complexities of the Summit structure. IFR holds a 5% interest in the Summit Creek B-44 and K-44 wells.
The Company also reports that the consortium was awarded CMV-6 at the May 9, 2006 land sale for a work commitment of $10.5 million over the next four years. With the addition of CMV-6 the Company increased its acreage position from 592,640 gross acres to 809,280 gross acres in the Summit -- Stewart area. Parcel CMV-6 flanks the eastern boundary of EL-397 where the Summit Creek and Stewart discoveries are located. The Company has identified multiple prospect leads on CMV-6 that require additional seismic to mature to drill ready status. IFR holds a 7.5% interest in CMV-6.
The Company has agreed to participate in a 200 km 2D seismic program that will commence in Q3, 2006. The majority of the seismic will be shot on EL-423 were the consortium has an outstanding work commitment of approximately $24.5 million. Subject to gaining an access agreement, and partner approval, additional 2D seismic maybe acquired on CMV-6 this summer. The new seismic data will be used to identify future drilling locations.
The operator has not yet provided firm recommendations for next winter's program. The Company has budgeted for the drilling of up to three wells, and conducting completion and testing operations on wells drilled to date to assess the commercial viability of this new frontier hydrocarbon basin. The Company will fund its share of future programs from existing working capital.
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. The Company seeks safe harbor.
You can return to the main News Releases page, or press the Back button on your browser.