Jul 13, 2011
Frontier closes Montana acquisition and updates Mackenzie Valley, NWT
International Frontier Resources Corporation ("Frontier" or the "Company") reported today that it has completed the purchase of title to 17,080 fee acres (more or less) located in Northwest Montana as previously announced in a news release dated May 31, 2011.
The majority of the fee acreage is located in the Blackfeet Reservation, Glacier County, Montana where Anschutz Exploration (private), Newfield Exploration (NFX-Z) and Rosetta Resources (ROSE-Q) are conducting exploration and appraisal drilling programs to evaluate a tight light oil play that is prospective for stacked zones in the Lodgepole, Bakken, Three Forks, Nisku and Cone reservoirs.
Glacier County Activity
In the period January 1, 2011 to June 30, 2011 the Montana Department of Natural Resources and Conservation issued the following well licenses in Glacier County.
The two public companies drilling on the Blackfeet Reservation have reported the following;
In a presentation dated June 6, 2011 (RBC Capital Markets) Rosetta Resources stated the following;
In a Q1, 2011 update Newfield Exploration (website) stated the following;
Anschutz Exploration (private) has not announced results on their drilling program however scouting reports indicate that Anschutz have possibly discovered hydrocarbons in five wells on their Blackfeet acreage. The most recent well, Anschutz Browning 1-8HZ, has been drilled, cored and cased, the rig was released in late June. Frontier holds a royalty on fee acreage currently under lease to Anschutz, the acreage offsets the Browning 1-8HZ well. The rig that drilled the Anschutz Browning well is currently drilling a horizontal well for Rosetta. Frontier also owns royalties on fee acreage located within 1 -- 4 miles of the horizontal well currently being drilled by Rosetta.
In 2010 the play was extended into southern Alberta. In a 3 township x 7 range area (18 miles north-south by 42 miles east-west) adjacent to the Montana border Shell Canada have licensed five wells, Murphy Oil six wells, Crescent Point three wells, DeeThree two wells, Legacy-Bowood one well and Petro-Spirit three wells. Frontier owns fee acreage in township 37N ranges 8W, 9W, 10W, 11W, 12W, 13W and 14W, the fee acreage abuts the Alberta border and is within 6 - 10 miles of wells recently drilled in township 1 ranges 18 -- 25 W4M.
The majority of the fee acreage that Frontier acquired is under lease to operators that are currently drilling on the Blackfeet Reserve. The leases reserve in favor of the Lessor (Frontier) gross overriding royalties ranging from 12.50% to 18%. The leases on Frontier's fee acreage expire at various times over the period 2012 to 2016, to fulfill the term of the leases Lessee's are required to drill a well prior to expiry of the lease or the acreage (100%) will revert back to Frontier.
Central Mackenzie Valley, NWT ("CMV")
On July 4, 2011 eleven licenses covering 2.2 million acres were awarded for work commitments of $534 million (see table).
Frontier's acreage in the CMV is comprised of 6,233 net tested acres, on which three Significant Discovery Licenses ("SDL") have been granted, and 59,183 net un-evaluated acres. Husky Oil is the operator of the SDL's and the un-evaluated acreage.
Since the moratorium on drilling in the CMV was lifted 15 years ago there have only been 16 wells drilled on the west side of the Mackenzie River. Frontier participated in 9 of the 16 wells and the exploration program yielded the discovery of a new hydrocarbon province south of the Norman Wells oilfield (260 MMBOE).
Based on the company's historical drilling costs, which averaged $13 million per well (gross), and assuming that one-third of the $536 million in work commitments are seismic related costs there could be an additional 20 -- 30 wells drilled on the west side of the Mackenzie River in the next five years.
The company's shares are listed on the TSX-V trading under the symbol "IFR". For additional information on the company please visit www.internationalfrontier.com or contact;
Pat Boswell (403) 215-2781
"Neither 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." This news release includes forward looking statements, The Company seeks Safe Harbor.
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