Production Ramping Back Up to Over 8,600 Barrels of Oil Per Day
TORONTO, Sept. 4, 2018 /PRNewswire/ - Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company"), today announced that repairs have been completed on the NorPeruano pipeline in Peru and it has now resumed normal operations, allowing the Company to restart production from Block 192.
On June 4, 2018, Petroperu S.A. ("Petroperu") declared force majeure on the NorPeruano pipeline, which transports crude oil from Block 192 to the export terminal at Bayovar. Prior to the force majeure event, the Block was producing approximately 8,600 bbl/d net to Frontera. Petroperu began repairing the pipeline in mid-June and the pipeline resumed operations on August 30, 2018. With the reactivation of the pipeline, Frontera has commenced pumping crude oil from storage and will ramp production back up to pre-force majeure levels in the coming days. While the pipeline was shut down, the Company undertook a work-over and well service program which is expected to add additional daily volumes once the Block ramps up to full production. As of September 3, 2018, the gross production level rose to over 10,000 bbl/d and it is projected to be over 12,000 bbl/d in a few days.
Richard Herbert, Chief Executive Officer, commented:
"We are pleased to see the resumption of service on the NorPeruano pipeline and the increase in production from Block 192 in Peru, a very important producing asset for Peru and for Frontera. We look to continue operating the Block in an effective manner for the remaining life of the contract, now expected until September 2019."
Frontera Energy Corporation is a Canadian public company and a leading explorer and producer of crude oil and natural gas, with operations focused in Latin America. The Company has a diversified portfolio of assets with interests in more than 30 exploration and production blocks in Colombia and Peru. The Company's strategy is focused on sustainable growth in production and reserves. Frontera is committed to conducting business safely, in a socially and environmentally responsible manner. Frontera's common shares trade on the Toronto Stock Exchange under the ticker symbol "FEC".
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Cautionary Note Concerning Forward-Looking Statements
This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production and production levels, and the extension of the Block's contract term) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: uncertainty of production estimates and estimated economic return and work programs; uncertainties associated with estimating oil and natural gas reserves; uncertainties relating to the actions of our strategic partners and governmental authorities ; and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual information form dated March 27, 2018 filed on SEDAR at www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE Frontera Energy Corporation