Apr 26, 2017
International Frontier Resources Announces 2016 Fourth Quarter and Year-End Financial and Operating Results
Calgary, Alberta -- April 26, 2017 -- International Frontier Resources Corporation ("IFR" or the "Company") (TSX-V: IFR) (OTCQB: IFRTF) is pleased to report its financial and operating results for the three months and year ended December 31, 2016. Selected financial and operational information is set out below and should be read in conjunction with IFR's December 31, 2016 audited annual financial statements and the related management's discussion and analysis ("MD&A"). In addition, the Corporation today announces the filing of its Annual Information Form ("AIF") for the year ended December 31, 2016, which contains the Corporation's reserves and other oil and natural gas information, as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The AIF, financial statements and MD&A are available for review at www.sedar.com and on the Corporation's website at www.internationalfrontier.com. All figures are in Canadian dollars.
2016 was a transformative year, with IFR achieving several strategic objectives. With an increased focus on Mexico's Energy Reform, IFR successfully executed on its strategy to be a first mover and built a solid foundation from which to emerge as an energy leader in Mexico together with joint venture company Tonalli Energia.
IFR's achievements in the fourth quarter and year ended 2016 include the following:
Financial Highlights - Fourth Quarter 2016 and Year Ended December 31, 2016
IFR's joint venture company, Tonalli Energia, has made significant progress towards obtaining the regulatory approvals required to begin to resume production operations and to implement development activities at Tecolutla. Tonalli is currently engaged with regulatory agencies in Mexico including CNH, SENER and ASEA, to obtain the major permits and authorizations required to commence field operations.
IFR intends to submit the final applications for these permits and authorizations by the end of April 2017. Once submitted, each application will undergo a final review process by the applicable Mexican regulatory authority. Although this initial regulatory process has been intensive thus far, we have been satisfied with our interactions with the Mexican authorities. Approval of these applications will also allow Tonalli to obtain the drilling permit for the first well to be drilled at Tecolutla since 1973. Tonalli expects to commence drilling operations at Tecolutla in Q3 2017, subject to regulatory approvals. In the near term, however, we expect to conduct wellhead servicing in preparation for the workover of an existing well.
Tonalli continues to engage service and equipment suppliers in Mexico. All services required to drill, complete and equip wells are available in Mexico at competitive rates. We expect all capital costs to remain within budgeted estimates.
All required field work has been completed and reviewed by independent technical groups. Tonalli has finalized surveying of the extensions of the existing drill sites to accommodate new drilling and has minor road upgrades underway. A logistics and measurement plan has been developed to move production from the Tecolutla asset through existing infrastructure in Mexico's Poza Rica area. A measurement skid is currently being engineered and going through a procurement process for its construction.
Our internal technical evaluation continues to confirm our original assessments that Tecolutla has the potential to be a highly economic project at current commodity prices. Tonalli believes that improved drilling technology and production techniques will enable it to increase the recovery factor of its Tecolutla asset.
As per the press release dated January 19, 2017, Tonalli has accessed the CNH data room for the onshore third tender of round two of Mexico's oil and gas energy reform. Tonalli is in process of analyzing and assessing block data and intends to finalize the prequalification application in early May. The Mexican government announced the third tender of round two on November 14, 2016, which will be the eighth upstream bid round in Mexico since the energy reform began. Fourteen onshore blocks, averaging 185 km2 (72 sections) are available nationwide: six in the Southeastern Basin, four in the Burgos Basin, three in the Veracruz Basin and one block in the Tampico-Misantla Basin, which offsets the Tecolutla Block. Covering a total of 2,595 km2, these development and exploration blocks contain 25 oil and gas fields with existing 3D or 2D seismic coverage. The Mexican government has estimated that together the blocks contain prospective exploration resources of approximately 251 million barrels of crude equivalent and remaining original extraction volumes of approximately 328 million barrels of crude oil equivalent.
About International Frontier Resources
International Frontier Resources Corporation (IFR) is a Canadian publicly traded company with a demonstrated track record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera) and strategic joint ventures, it is advancing the development of petroleum and natural gas assets in Mexico. The Company also has projects in Canada and the United States, including the Northwest Territories, Alberta and Montana.
The Company's shares are listed on the TSX Venture, trading under the symbol IFR and on the OTCQB under the symbol IFRTF. For additional information please visit www.internationalfrontier.com.
For further information
Steve Hanson -- President and CEO
Tony Kinnon -- Chairman
Forward Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively "forward-looking information") within the meaning of applicable securities laws relating to the Company's plans, strategy, business model, focus, objectives and other aspects of IFR's anticipated future operations and financial, operating and drilling and development plans and results, including, expected future production, production mix, reserves, drilling inventory, net debt, cash flow, operating netbacks, decline rate and decline profile, product mix, capital expenditure program, capital efficiencies, commodity prices, tax pools and targeted growth. In addition, and without limiting the generality of the foregoing, this press release contains forward-looking information regarding: anticipated cost savings and operational efficiencies; anticipated capital cost estimations; the focus and allocation of IFR's 2017 capital budget; anticipated production rates, available free cash flow, management's view of the characteristics and quality of the opportunities available to the Company; and other matters ancillary or incidental to the foregoing.
Forward-looking information typically uses words such as "anticipate", "believe", "project", "target", "guidance", "expect", "goal", "plan", "intend" or similar words suggesting future outcomes, statements that actions, events or conditions "may", "would", "could" or "will" be taken or occur in the future. The forward-looking information is based on certain key expectations and assumptions made by IFR's management, including expectations concerning prevailing commodity prices, exchange rates, interest rates, applicable royalty rates and tax laws; capital efficiencies; decline rates; future production rates and estimates of operating costs; performance of existing and future wells; reserve and resource volumes; anticipated timing and results of capital expenditures; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the timing, location and extent of future drilling operations; the state of the economy and the exploration and production business; results of operations; performance; business prospects and opportunities; the availability and cost of financing, labour and services; the impact of increasing competition; ability to market oil and natural gas successfully and IFR's ability to access capital.
Statements relating to "reserves" are also deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future.
Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because IFR can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature they involve inherent risks and uncertainties. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that the Company will derive there from. Management has included the above summary of assumptions and risks related to forward-looking information provided in this press release in order to provide security holders with a more complete perspective on IFR's future operations and such information may not be appropriate for other purposes.
Readers are cautioned that the foregoing lists of factors are not exhaustive. Additional information on these and other factors that could affect IFR's operations or financial results are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).
These forward-looking statements are made as of the date of this press release and IFR disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility or accuracy of this release". The Company seeks Safe Harbor.
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