TSX-V: IFR | OTCQB: IFRTF
International Frontier Resources Corporation

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Nov 22, 2011

Third Quarter Results and Corporate Update



International Frontier Resources Corporation ("IFR" or the "Company" TSXV: IFR) today announced financial results for the three and nine month periods ending September 30, 2011 and provides an update on the company's project areas.

For the quarter ended September 30, 2011 the Company incurred a net loss of $29,550 ($0.00 per share) versus a net loss of $76,380 for the same period in 2010. In the period revenue, net of royalties, was $242,630 versus $111,445 in Q3, 2010. For the nine month period the Company incurred a loss of $375,655 ($0.006 per share) as compared with a net loss of $1,112,475 ($0.019 per share) in 2010. Cash and cash equivalents at September 30, 2011 were $4,106,725 versus $7,037,960 in 2010. At September 30, 2011 the company had 59,578,965 common shares outstanding. The unaudited financial statements and management discussion and analysis have been filed on Sedar.

Southern Alberta Basin ~ NW Montana

In the third quarter the Company entered into agreements to purchase title to 5,600 freehold acres ("fee acreage" or "fee land") located in northwest Montana. The acquisition increases the Company's fee land position in the Southern Alberta Basin tight oil resource play to 22,680 acres. The majority (95%) of Company's fee acreage is located on the Blackfeet Reserve ("reserve") in Glacier County. The fee acreage is under lease to companies that are drilling exploration and appraisal wells on the reserve. The leases reserve in favor of IFR gross overriding royalties ranging from 12.50% to 18.50%, the leases have an average term remaining of 5 years.

In late-2009 a tight oil resource play was discovered on the Blackfeet Reserve. The reserve is located on the eastern fore-front of the Rocky Mountains, it covers an area of 1.5 million acres of which approximately two-thirds is postulated to be in an over-pressured tight oil fairway. In 2009/10 the Blackfeet entered into leasing agreements with Anschutz Exploration Company (private) covering lands on the west side of the reserve, to date Anschutz have permitted ten wells, eight of which have been drilled. Newfield Exploration Company (NYSE: NFX) leased the central region of the reserve, to date Newfield have permitted 15 wells and have drilled seven vertical wells, all of which have encountered oil. Newfield have also drilled two horizontal wells, one of the horizontal wells was partially fracture-stimulated with only one-third of the frack being placed in zone; the well had an initial production rate of 225 Bbls oil per day. The east side of the reserve has been leased by Rosetta Resources (NASDAQ: ROSE) to date Rosetta have permitted 13 wells of which nine vertical wells have tested the Bakken and two wells have tested other tight oil zones. In a Q3 update Rosetta announced that they have increased their horizontal drilling program to seven wells from three wells. The wells are targeting 4,000 foot horizontal laterals with 16 frac stages in the Bakken; the drilling program is scheduled to be finished in Q1, 2012. Rosetta recently updated its Bakken type curve; the company expects gross recoverable reserves of 185,000 barrels oil equivalent, 250 barrels oil equivalent per day on 160 acre spacing which implies a 5% recovery of the estimated 13 -- 15 mmboe per 640 acres.

In Teton County, which is located south of the Blackfeet Reserve, two drilling permits have been issued to Primary Petroleum (TSXV: PIE) for vertical wells in T27N -- R6W, the 16-19-27N-6W well offsets IFR's fee land.

In 2010 the play was extended into south-west Alberta, as companies put together land positions prices went from $50 per acre to as high of $3,000 per acre, with the average being $850 per acre. Since mid-2010 operators have licensed 32 exploration wells just north of the Montana border, in townships 1 to 3 ranges 18 to 25 W4M drilling licenses have been issued to; Antelope Land (1), Crescent Point Energy (3), Connaught Oil & Gas (5), Canadian Coastal (1), Dee Three Exploration (2), Gryphon Petroleum (1), Legacy/Bowood (1), Murphy Oil Company (8) Petrospirit Resources (3) and Shell Canada (7).

There are multiple tight oil zones on both sides of the border that are being evaluated with horizontal drilling and multi-stage-fracking technology. Since the initial discovery well was drilled operators have licensed over 90 wells in north-west Montana and south-west Alberta, the play fairway now spans 135 miles north-south and 50 miles east-west.

The Company's fee land is well situated on the play fairway, to date there have been 16 wells permitted/drilled on the Blackfeet Reserve that fall within one mile of the company's fee land and an additional 11 wells are located within three miles. On the Alberta side of the play operators have licensed/drilled 18 wells located in township 1 range 18 -- 25 W4M. The Company holds approximately 5,600 fee acres in township 37N ranges 5W to 14W adjacent to the Alberta border.

Central Mackenzie Valley, NWT

In third quarter the Minister for the Department of Indian Affairs and Northern Development awarded eleven exploration licenses covering approximately 2,218,735 acres in the Central Mackenzie Valley, NWT ("CMV"). The land sale generated work commitment bids of $534 million, which is the largest dollar amount for work commitments bid at any land sale to date. Six licenses were awarded to proponents/applicants of the Mackenzie Valley gas pipeline. Subsequent to license award ConocoPhillips Canada and MGM Energy have indicated that they plan to drill exploration wells targeting unconventional liquids rich gas resource plays. Husky Oil plan to drill two wells this winter, the wells will test unconventional oil resource plays.

IFR holds an interest three Significant Discovery Licenses ("SDL"), two freehold parcels and one exploration license encompassing 275,080 gross acres, 65,400 net acres. Husky Oil Operations is operator of the company's CMV acreage.

IFR is engaged in the exploration for and development of oil and gas reserves in the Southern Alberta Basin, NW Montana USA, Central Mackenzie Valley, Northwest Territories, Canada and in SE Alberta. For additional information on the company 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 for which the Company seeks Safe Harbor.
 
 

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