International Frontier Resources Corporation (TSXV:IFR,OTCQB:IFRTF) (“IFR” or the “Company”) is pleased to announce that in partnership with Mexican petrochemical leader Grupo IDESA, Tonalli Energia (“Tonalli”) has spudded its first evaluation well, TEC-10, at its onshore Tecolutla block.
- The TEC-10 directional evaluation well will be drilled to target the El Abra formation at a depth of 2,490 meters (8,169 feet).
- The expected timeline from spud date to reach total depth is under three weeks.
- Tonalli will implement a modern core and logging program to re-evaluate the properties of the reservoir and to optimize both the completion of TEC-10 and future development of the Tecolutla field.
“TEC-10 will be the first Tecolutla well to target new locations within the reservoir utilizing 3D seismic and modern technologies to increase productivity and oil recovery,” said Steve Hanson, President and CEO of IFR. “Following the release of the drilling rig, a thorough completion and testing program will be conducted to evaluate the TEC-10 well.”
The Tecolutla field is located within the Tampico-Misantla basin which has multiple reservoirs with diverse play types and access to existing infrastructure, market, service sector providers and an established supply chain. In 2017, IHS Markit identified the Tampico-Misantla Basin as a potential “super basin”.
Tecolutla is in close proximity to existing PEMEX measurement points and pipeline infrastructure. This strategic position of the block should enable Tonalli to efficiently bring oil to the market. Existing pump stations and oil effluent pipelines are both located approximately 30 kilometres (18.6 miles) north of the TEC-10 well. Oil produced at Tecolutla will be trucked to this existing facility and metered before entering the existing pipeline system. These are connected to the central processing facility at Poza Rica. This favourable location provides Tonalli with significant optionality for marketing and transportation of the much-needed oil to the domestic market in the event of a commercial oil find.
The existing four wells at Tecolutla were drilled by PEMEX between 1956 and 1972 and produced 1.9 million barrels without the use of artificial lift. Based on Tonalli’s interpretation of the 3D seismic, the Tecolutla field has been significantly underdeveloped.
IFR was one of the first foreign companies to participate in the historic reform of Mexico’s oil and gas sector when Tonalli was granted the right to operate, develop and produce hydrocarbons at Tecolutla through a licensing contract with the Mexican government. The Tecolutla block was awarded to Tonalli on May 12, 2016 as part of the first round and third call of Mexico’s oil and natural gas “mature fields” bid round (“Round 1.3”), the first in almost 80 years. Each of the blocks offered in Round 1.3 attracted multiple bids.
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 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.