LOWER INDUS BASIN

Click for larger image

The Badin IV North and Badin IV South Blocks are situated in the main oil and gas province of Sindh in the onshore Lower Indus Basin and cover an area of 620,571 acres net to Frontier. The Badin IV North and Badin IV South Blocks have been carved out of the previous Badin Block which until recently was operated by British Petroleum. The previous Badin Block contains 59 oil and gas discoveries that have been developed under separate D&P Leases (1.62 Tcf and 225 MMbbl of original recoverable reserves). The main producing reservoirs are Lower Goru Cretaceous sands.

Exploration Licences

BLOCK NO. 2468-6 (BADIN IV NORTH)

Frontier's Interest 27.5% (Other Interests: PEL 47.5%, GPX 25%)

The Badin IV North Block covers an area of 307,900 acres, (excluding the separate D&P licenses mentioned above), and is situated within the province of Sindh in the Lower Indus Basin. The established reservoirs are the various sandstones of the Lower Goru Formation, predominately the Upper Sands and Middle Sands although the more recently proven Basal and Massive Sands are now established exploration targets and will be the main focus of the exploration effort. The nearby Makhdumper Deep, Turk Deep and Khorewah Deep Fields produce gas and condensate from the Basal Sands.

In October 2007, a 301 kilometer 2D seismic program was acquired over the Jamali Deep area. The data has been processed and interpreted. Additionally, 982 square kilometers of existing 3D seismic data were purchased during 2008 and have subsequently been interpreted. Several leads and drillable prospects have been identified and mapped.

The Company commenced drilling of the Jamali Deep-1 exploration well on December 31, 2008, and drilling and testing were completed on June 4, 2009. The well was drilled to a total depth of 3,872 meters to test the Lower and Upper Basal and Middle Sands of the Lower Goru Formation. Although logs indicated several gas-filled sands worthy of testing, the main target sand that produces in the offset wells was absent, either due to non-deposition or being faulted out. From the sands that were tested, no measurable quantities of gas flowed during test and the well has been temporarily suspended pending completion of analysis of the test results. Indications are that the tested sands have low permeability and options for remedial work will be reviewed.

The Company plans to commence drilling the Wahid-1 well in Badin IV North during the second half of 2010. The well’s drilling program calls for a total depth of 2,300 meters. The Wahid prospect is located within the main hydrocarbon fairway of Badin and is only 6 kilometers away from the producing Khaskeli oil field.

The license has a term of five years and expires in January 2011.

BLOCK NO. 2468-5 (BADIN IV SOUTH)

Frontier's Interest 27.5% (Other Interests: PEL 47.5%, GPX 25%)

The Badin IV South Block covers an area of 312,670 acres, excluding the original Badin Block D&P licenses, and lies in a similar geological setting to Badin IV North and has similar exploration targets. It is adjacent to the Ghungro, Golarachi, Bhatti and Nakurji gas fields.

A 2D seismic survey was acquired in the first quarter 2008 consisting of 554 kilometers of data. Processing of the data is complete and interpretation is ongoing. An additional 624 square kilometers of existing 3D seismic was purchased during 2008 and has been interpreted. Several leads and drillable prospects have been identified and mapped. The Company is currently evaluating which of the mapped prospects to drill; four wells are planned to fulfill the work commitment. The first of these wells will be the Gharahi-1 well, which is scheduled to commence drilling in the latter half of 2010. The well will be drilled to a total depth of 2,625 meters. The license has a term of five years and expires in January 2011.