Frontera Resources (LON:FRR) shares advanced as the company confirmed plans for drilling operations at the Tarbani field, in Georgia, in the early part of 2015.
In a statement today the company said planning and procurement activities are progressing ahead of drilling, which is part of the first phase of work tied to a farm-out agreement with Varang Exploration.
The three-well, US$17mln programme is expected to last 18 months.
"With the addition of near term new drilling and ongoing frack operations at the Taribani Field we expect to continue to see increased positive financial impact of this work as we progress into 2015, resulting in a strong balance sheet for our company as we move into the future,” said chief executive Steve Nicandros.
Also in the first quarter of 2015 the company anticipates the completion of an independent assessment of the Mtstare Khevi gas complex, which has already been estimated internally by the company to contain 9tln cubic feet of recoverable gas.
At the same time work is ongoing at Mtstare Khevi to expand the existing facilities, up to 7mln cubic feet per day during the first quarter. Also the latest well, #34, is being prepared to go into production after some delay. It is expected to be connected to infrastructure before the end of December.
On AIM, Frontera shares were up 0.18p, 30%, trading at 0.74p.