International Frontier Resources Corporation, (IFR or the Company) today reported a net loss for the twelve month period ended December 31, 2008 of $4,160,220 ($0.07 per share). Revenue in the period was $1,493,775 and expenses net of depletion, depreciation and property impairments were $1,177,665. In the period the Company recorded an impairment charge of $5,231,700 relating to dry hole costs in the Northwest Territories, Canada and in the North Sea.
The Company ended the year with cash and cash equivalents of $9,605,300 and working capital of $9,888,615. At year-end the Company had restricted cash of $925,060 securing letters of credit lodged against refundable deposits on its Exploration Licenses in the Northwest Territories.
Highlights of 2008
- Three Significant Discovery Licenses ("SDL's") were granted by the Department of Indian and Northern Affairs, Canada. The SDL's cover the Summit Creek and Stewart Lake discovery areas located within Exploration License 397. The Summit Creek SDL (8.2331%) covers an estimated productive area of 11,070 acres. As previously reported the Summit Creek B-20 well production tested at rates of approximately 10,000 barrels of oil equivalent per day (6:1 gas to oil conversion). The Stewart Lake SDL's (11.88%) together with TDL Freehold parcel M-38 cover an estimated productive area of 15,918 acres. As previously reported the Stewart Lake L-52 well tested 830 barrels of oil equivalent per day on a drill stem test (6:1 conversion). EL-397 is located 80 kilometers south of Norman Wells in the Northwest Territories.
- In a Contingent Resource Report dated July 1, 2008 McDaniel & Associates Consultants Ltd. "the McDaniel's Report" assigns resources net to the Company's interest in the Summit Creek and Stewart Lake SDL's as follows;
Contingent Resource Estimate Barrels of Oil Equivalent "BE" (6 mcf = 1 barrel)
|
Low Case |
Best Case |
High Case |
Summit Creek & Stewart SDL's |
336,600 |
1,049,200 |
3,777,200 |
The McDaniel's Report also assigns a fair market value for the Company's unevaluated acreage (298,550 net acres) in the Central Mackenzie Valley, NWT of $11,786,932.
- IFR participated in two exploratory wildcat wells in the Central Mackenzie Valley; both wells were abandoned as dry holes. Due to a late start in the winter drilling season, combined with drilling problems encountered in the Dahadinni B-20 well, the well did not reach total depth and its primary objective, the Devonian Formation, was not evaluated. Hydrocarbon shows were encountered while drilling the B-20 well and the operator plans to acquire additional seismic to mature future drilling locations.
- The Company participated for an 11.11% paying interest in the Maria prospect located in block 15/18a in the North Sea. The well encountered 45 feet of oil pay and 15 feet of gas pay; the operator has classified the well as a non-commercial oil discovery. By drilling the well the Company earned an 8.33% interest in block 15/18a, the block contains two fallow Jurassic discoveries. The McDaniel's Report assigns the following Contingent Resource estimates to the Maria Paleocene Prospect.
|
P90 |
P50 |
P10 |
Contingent Resource Estimate |
175,000 |
512,000 |
1,187,000 |
McDaniel & Associates July 1, 2008 Resource Report (6:1 conversion)
- The Company participated for its 25% share in an $11 million seismic survey in the Central Mackenzie Valley, NWT. The data has been processed and interpretation has identified new prospects.
- The Company participated for its 10% share of the cost to acquire 2D and 3D seismic covering the Bowmore license area in the North Sea. Interpretation of the seismic has identified a drilling location at 15/24a-12 ("Alpha Prospect"). The Alpha well is scheduled to commence drilling in June 2009; the well is targeting a deep Jurassic prospect with significant resource potential.
Given the long-lead times required for operations in the Northwest Territories, and in the North Sea, the Company budgets for an 18 month period. The Company estimates its share of firm and contingent capital expenditures in the period will be in the $7 to $10 million range.
International Frontier is a junior oil and gas exploration company exploring in the Northwest Territories, Canada and in the U.K. sector of the North Sea. For additional information please visit
www.internationalfrontier.com or contact;
Pat Boswell
President 403 215-2781
- or -
Mark Powell
VP Exploration
403 215-2783
"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."
Forward Looking Statements
Certain statements contained in this news release constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project","should", "believe", "strategy" "firm", "contingent", "contingent resources" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements are based on reasonable assumptions but no assurance can be given that these expectations will prove to be correct and the forwardlooking statements included in this news release should not be unduly relied upon. These statements are made only as of the date of this news release, additional information on forward looking statements and on the definition of "contingent resources" are included in the Company's filings on Sedar.
Contingent Resources
The resources assigned to the Company's properties have been classified as contingent. The Canadian Oil and Gas Evaluation Handbook (COGEH) Volume 1 defines contingent resources as quantities of oil and gas estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be sub classified based on project maturity and/or characterized by their economic status.
- Low Estimate: This is considered to be a conservative estimate of the quantity that will actually be recovered from the accumulations. If probabilistic methods are used this term reflects a P90 confidence level.
- Best Estimate: This is considered to be the best estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used this term is a measure of the central tendency of the uncertainty distribution (most likely/mode, P50/median, or arithmetic average/mean).
- High Estimate: This is considered to be an optimistic estimate of the quantity that will actually be recovered from the accumulation. If probabilistic methods are used, this term reflects a P10 confidence level.
The Company seeks Safe Harbor.
