Mr. Steve Hanson reports
IFR JV REACHES TOTAL DEPTH AT TEC-11 AND PROVIDES TECOLUTLA OPERATIONAL UPDATE
Tonalli Energia, International Frontier Resources Corp.'s joint venture (JV) with Mexican petrochemical leader Grupo IDESA, has reached total depth at its first conventional horizontal well (TEC-11) on its onshore Tecolutla block.
The TEC-11 field development horizontal well has been drilled to a measured depth of 3,283 metres. The well was landed horizontally in the Cretaceous-aged El Abra formation limestone. A total of approximately 670 m of measured length of Cretaceous limestone was drilled before the total depth was reached. Oil shows were encountered during drilling.
A 4.5-inch production liner has been set and cemented to 2,865 m MD. Based on logging while drilling (LWD) gamma ray and sonic log tools and drill cuttings descriptions, the cased portion of the TEC-11 well Is interpreted to be in an interval similar to what was produced in the offset TEC-2 well.
Tonalli is currently planning a perforation, stimulation and flow-testing program for TEC-11. This program is expected to commence in the new year following which Tonalli will provide a comprehensive update on the results of the production test.
Tonalli has now received its first payment from PEMEX for oil shipped from its Tecolutla field. Tonalli's TEC-10 producing well averaged 156 barrels of oil per day in October and November at an approximate average crude sales price of $64.73 (U.S.) per barrel. Initial operating costs averaged $17.39 (U.S.) per barrel with an expectation that these costs will continue to be reduced as production moves from rented equipment to permanent facilities, improved water handling and operational efficiencies. Operating netbacks for the two months averaged $20.12 (U.S.) per barrel.
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 superbasin.
Through its JV with Grupo Idesa, International Frontier was one of the first foreign companies to participate in Mexico's historic reform of the oil and gas sector. The Tecolutla block was awarded to Tonalli as part of the first round and third call of Mexico's oil and natural gas mature fields bid round (round 1.3).
About International Frontier Resources
International Frontier Resources is a Canadian publicly traded company with a demonstrated record of advancing oil and gas projects. Through its Mexican subsidiary, Petro Frontera SAPI 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.
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