Jul 28, 2011
Frontier increases its fee acreage position in NW Montana to 22,680 acres
International Frontier Resources Corporation ("Frontier" or the "Company" IFR-TSX-V) today reported that it has entered into binding letter agreements with six vendors to purchase title to the vendor's oil and gas rights covering 5,600 freehold acres (more or less). Frontier has agreed to pay the vendors $186.33 per net acre for a total consideration of up to $1,043,448. The final purchase price will be determined by the number of net acres owned by the vendor's upon completion of the Company's title opinion.
The fee lands are located in the Blackfeet Reserve, Glacier County NW Montana where Anschutz Exploration (private), Newfield Exploration ("NFX") and Rosetta Resources ("ROSE") are currently conducting exploration, appraisal and development drilling programs. The drilling programs are designed to evaluate multiple stacked reservoirs within the over-pressured Bakken petroleum system of the Southern Alberta Basin. This emerging tight-rock-light-oil play extends from NW Montana into SW Alberta where Companies are using horizontal drilling and multi-stage-fracking technology to evaluate the play.
Upon closing the purchase Frontier will have increased its fee acreage position from 17,080 acres to 22,680 acres (more or less) and increased its ownership of fee acreage in 42 townships to 51 townships (a township = 6 sq. miles). To date there have been 34 wells licensed, or drilled, in townships where Frontier owns fee acreage, the wells are being drilled by Anschutz, Newfield and Rosetta.
The majority of the Company's acreage is currently under lease to operators drilling in the Blackfeet Reserve, the leases reserve in favor of Frontier gross overriding royalties ranging from 12.50% to 18%. The operator's leases expire at various times over the period 2012 to 2016, to continue a lease beyond the expiry period the operator is required to establish production from the lease. Frontier's fee lands do not expire.
For additional information on the company please visit www.internationalfrontier.com or contact;
"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 of this release". The Company seeks safe harbor.
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