IFR Joint Venture Commences Tecolutla Oil Shipments and First Cash Flow
Calgary, Alberta -- September 13, 2018 -- International Frontier Resources Corporation (“IFR” or the “Company”) (TSX-V: IFR) (OTCQB: IFRTF) is pleased to announce that its joint venture (JV) Tonalli Energia ("Tonalli") has commenced trucking of oil produced at its Tecolutla block for sale to PEMEX.
“Achieving crude oil sales and first cash flow is a major milestone in the ongoing development at the Tecolutla field,” said Steve Hanson, President and CEO of IFR. “The efforts of our team and partners have validated IFR’s investment at Tecolutla, and now we look forward to maximizing the returns from Tecolutla and demonstrating our ability to operate successfully in Mexico.”
Operations Update for Tecolutla:
Oil produced during the well testing phase is being trucked to PEMEX’s Ezequiel Ordonez facility, approximately 35 kilometers from the Tecolutla block. As announced on July 23, 2018, Tonalli recently entered into a crude oil commercialization agreement with PEMEX.
Portable production equipment necessary to produce from the TEC-10 well has been procured and will be moved on-site to re-commence production, scheduled to start late September 2018.
Encouraged by the surface flowing pressure of over 900 psi observed during testing of the TEC-10 well, Tonalli intends to analyze the feasibility of producing at a higher fluid rate to enhance well productivity. On August 6, 2018, Tonalli completed an 18-day flow test of the primary zone interval producing 178 barrels of crude oil during the last 24 hours of the extended well test.
TEC-11 Horizontal Well
Tonalli is in the final stages of procurement planning for the upcoming TEC-11 well, the first horizontal well to be drilled at the Tecolutla block. Construction of the expanded TEC-2 pad, the drilling site for TEC-11, is nearing completion. Tonalli expects to spud TEC-11 in Q4 2018, pending final logistics and regulatory approvals.
TEC-11 will be drilled in the northern extension of the Tecolutla block targeting a portion of the El Abra reservoir that has not been accessed previously due to surface topography. The well is designed to maximize contact of the horizontal leg of the wellbore with the upper portion of the prolific El Abra reservoir.
Through its JV with Grupo IDESA, IFR 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 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 2018 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", “indicate”, "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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