CENTRAL GAS BASIN ("CGB")

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The Central Gas Basin ("CGB") or Middle Indus Basin is a prolific gas producing area located within the Sargodha and Jaccobabad Khirpur highs onshore Pakistan. Several multi-Tcf gas fields have been discovered in the CGB, some as recently as in the early 1990's. The main producing gas reservoirs are Palaeogene carbonates, e.g. the Habib Rahi Limestone ("HRL"), Sui Main Limestone ("SML"), Dunghan and Paleocene Ranikot Clastics plus the deeper, more recently discovered Lower Cretaceous Lower Goru Sandstones ("Lower Goru"). The multi-Tcf Mari, Miano, Rehmat, Kandhkot and Qadirpur gas fields are adjacent to Frontier's interests.

Development and Production Lease

BLOCK NO. 2768-6 (KANDRA DEVELOPMENT AND PRODUCTION LEASE)

Frontier's Interest 37.5% (Other Interests: Petroleum Exploration (PVT) Limited ("PEL") 37.5%, Government Holdings (Private) Limited ("GHPL") - a division of the Pakistan Ministry of Petroleum and Natural Resources 25%)

The Kandra Gas Field is a multi-Tcf gas resource covering an area of 71,383 acres in the northern region of Sindh province. The field was discovered in 1957 and the Kandra Exploration License was first issued to a subsidiary of Premier Exploration Pakistan Ltd. ("PEPL") and its partners in 1989. PEPL drilled Kandra-1 in 1990 and tested 5.6 MMscfd gas from the SML zone. Kandra-2 was drilled in 1996 and tested the SML zone at 9.6 MMscfd. PEL acquired the lease in 1999 and in 2004 drilled and tested Kandra-3 which tested 7.8 MMscfd of gas from the SML. The field development plan was approved by the Government of Pakistan and the Development and Production ("D&P") lease was awarded in January 2006 for a period of 25 years.

The Kandra SML gas has a high carbon dioxide (CO2) and nitrogen content which yields a low heating value for the gas ranging from 146 to 390 Btu in production tests in the Kandra 1, 2 and 3 wells.

The Kandra field is defined as a large anticlinal structure at the SML level having an area of closure of approximately 43,227 acres and a maximum vertical relief of approximately 90 meters. The field is divided into two lobes by a north-south oriented fault system which forms a graben through the crest of structure. The field is covered by a 2D seismic survey consisting of 362 kilometers of data that were acquired in 2007 plus five older lines. The gas initially in place is 2.4 Tcf (gross) of 160 Btu/scf gas, with over 900 Bcf net to the Company.

PEL and Frontier intend to develop the Kandra gas reserves by selling gas to a power station after partial removal of the CO2 and nitrogen gas. In January 2008, the Company together with its partner PEL, executed a LOI with the Government of Pakistan for the refurbishment of an existing power facility located at Sukkur in the Northern Sindh Province of Pakistan. A detailed engineering study was commissioned however, based on the results of the study, it was concluded that a refurbishment was not feasible and that a new facility should be constructed. An amended LOI was issued in July 2009. As a result of the amended LOI, a detailed engineering study leading to the construction of a new power facility at Sukkur is underway. PEL and Frontier each hold a 50% interest in the project.

Processing and interpretation of the seismic data has been completed and selection of development well locations is underway. The development and production licence area covers 71,383 gross acres. The lease has a term of 25 years and expires in January, 2031.

The logging results of the recently drilled Kandra-4 (Deep) well, which intersected the SML Reservoir in a crestal location, confirm the current interpretation of the SML Reservoir and support the current reserve estimates

Exploration Licences

BLOCK NO. 2768-6 (KANDRA)

Frontier's Interest 35% (Other Interests: PEL 35%, Gulf Petroleum Exploration International ("GPX") 25%, GHPL 5%)

The Kandra development and production lease gives the holder the exclusive right to conduct exploration below the SML reservoir. The main focus of the exploration effort in the Kandra block is the delineation of the Lower Goru Basal and Massive Sands that were penetrated in the Khairpur-2 and Kandra-1 wells in 1957 and 1990 respectively. The Khairpur-2 well encountered gas shows within the Basal Sand/Massive Sand units of the Lower Goru and samples of high Btu gas were obtained. The Kandra-1 well encountered residual gas shows but no gas flowed during drill stem testing, the interpretation being that this well is possibly located near to a gas-water-contact (GWC).

The 362 kilometer program referenced above also covered the Lower Goru Basal and Massive Sands at Kandra. This data formed the basis for the selection of the location of the Kandra-4 (Deep) well.

The Kandra-4 (Deep) well, which commenced drilling on August 16, 2008, successfully reached TD and was tested from October through to December 2008. The well was drilled to a total depth of 2,221 meters primarily to test the Lower Goru Basal and Massive Sand closures with the underlying Chiltan Limestone being a secondary target. Both the Lower Goru and the Chiltan produced uncommercial quantities of gas on test; gas samples taken from the Chiltan indicated a high calorific value of 809 Btu/scf. There are indications that the Chiltan Limestone is fractured at this location and the mapping of the new seismic data indicates that updip structural potential exists from the Kandra-4 (Deep) location. The test results are being investigated further with a view to assessing the future potential for hydrocarbon accumulations in these formations.

The logging results of the Kandra-4 (Deep) well also confirmed the current interpretation of the shallower SML Reservoir, which the well intersected in a crestal location, and supports the current reserve estimates for this reservoir.

In the event of a discovery, the Pakistan Government has the right to increase its participating interest from 5% to 25% which would reduce the Company's net interest to 27.5%.

BLOCK NO. 2769-9 (MIRPUR MATHELO)

Frontier's Interest 35% (Other Interests: PEL 35%, GPX 25%, GHPL 5%)

The Mirpur Mathelo Block covers 254,577 acres and is located adjacent to several giant producing gas fields in the CGB, including the multi-Tcf Mari, Miano, Rehmat, Qadirpur and Kandhkot Gas Fields.

Mirpur Mathelo lies within a proven play fairway comprising two established reservoir formations, (i) the Eocene carbonates of the SML, the Sui Upper Limestones ("SUL"), and the Habib Rahi, and (ii) the Lower Cretaceous Basal and Massive Sandstones of the Lower Goru. The Habib Rahi, SML and Pirkoh Limestones produce gas from the Mari Field while the SUL and SML produce gas from the Qadirpur and Chachar fields. The deeper Lower Goru Basal Sands produce gas from the adjacent Rehmat Field 18 kilometers to the southeast of the block boundary, Mari Deep in the east of block and from the Miano and Sawan fields to the South.

A 254 kilometer seismic program was acquired and processed and 1,161 kilometers of existing data was reprocessed. Interpretation of the data was completed and a number of leads and one drillable prospect, Rafay, were identified.

The Company commenced drilling the Rafay-1 exploration well on February 24, 2009, and drilling and testing were completed on June 8, 2009. The well was drilled to a total depth of 3,671 meters to test the Basal and Middle Sands of the Lower Goru Formation. During drilling, good gas shows were encountered and logs indicated several gas-filled sand units. However, no measurable quantities of gas were flowed during testing and the well has been temporarily suspended pending further study of the test results. Indications are that the target sands have low permeability and options for remedial work will be reviewed.

The joint venture partners have conducted a pilot seismic inversion study over parts of the Mirpur Mathelo block with a view to better predicting reservoir quality for future exploration wells. The results of the inversion pilot are being reviewed and, if encouraging, a more comprehensive study will be completed later this year.

In the event of a discovery, the Pakistan Government has the right to increase its participating interest from 5% to 25% which would reduce the Company's net interest to 37.5%.

BLOCK NO. 2769-13 (SALAM)

Frontier's Interest 37.5% (Other Interests: PEL 37.5%, GPX 25%)

The Salam Block covers 49,454 acres and is situated adjacent to the Mirpur Mathelo block next to the giant producing gas fields of the CGB, including the multi-Tcf Mari, Miano, Rehmat, Kandhkot and Qadirpur Gas Fields.

The exploration targets in Salam are the proven SML carbonates plus the Cretaceous Pab Sandstones and the Lower Goru Sandstones.

An 88 kilometer seismic program was acquired in April 2007 and processing and interpretation of the data has been completed. An attractive exploration prospect at SML and Basal/Massive Sands levels has been identified which is situated underneath an island within the River Indus; an evaluation of drilling feasibility is ongoing.