The company, which has wells in Georgia, told investors it had entered into non-disclosure and data exchange agreements with two parties with which it is currently progressing technical work and commercial discussions for a possible partnership deal.
“Whilst these discussions are at an early stage, they have taken a significant step forward with both interested parties having attended extended site surveys and management meetings,” Frontera said.
“As a result of these discussions and to assist with data analysis, the company has been conducting extended well tests to better establish production capabilities.”
Frontera noted that it has continued to see consistent oil and gas delivery from its wells but it is not yet in a position to report volumes until such time as the long-term tests are completed.
Zaza Mamulaishvili, Frontera chief executive, said: “Due to the current technical and commercial discussions with industry majors, which may lead to a farm out or joint operating arrangement in specific areas within Block 12 with respect to both oil and natural gas, the company has changed the initial well testing program such that the current production test from Zones 14, 15 and 19 will continue for a longer period of time than what was anticipated before and additional tests could potentially be performed.
“We look forward to updating the market as we progress with our work."
By late afternoon trading, Frontera shares had jumped nearly 83% higher to 0.43p each, easily the London market's biggest gainer.
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