International Frontier Resources Announces 2016 Fourth Quarter and Year-End Financial and Operating Results
International Frontier Resources Corporation ("IFR" or the "Company") (TSX VENTURE:IFR)(OTCQB:IFRTF) is pleased to report its financial and operating results for the three months and year ended December 31, 2016. Selected financial and operational information is set out below and should be read in conjunction with IFR's December 31, 2016 audited annual financial statements and the related management's discussion and analysis ("MD&A"). In addition, the Corporation today announces the filing of its Annual Information Form ("AIF") for the year ended December 31, 2016, which contains the Corporation's reserves and other oil and natural gas information, as required under National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities. The AIF, financial statements and MD&A are available for review at www.sedar.com and on the Corporation's website at www.internationalfrontier.com. All figures are in Canadian dollars.
2016 was a transformative year, with IFR achieving several strategic objectives. With an increased focus on Mexico's Energy Reform, IFR successfully executed on its strategy to be a first mover and built a solid foundation from which to emerge as an energy leader in Mexico together with joint venture company Tonalli Energia.
IFR's achievements in the fourth quarter and year ended 2016 include the following:
Financial Highlights ‐ Fourth Quarter 2016 and Year Ended December 31, 2016
IFR's joint venture company, Tonalli Energia, has made significant progress towards obtaining the regulatory approvals required to begin to resume production operations and to implement development activities at Tecolutla. Tonalli is currently engaged with regulatory agencies in Mexico including CNH, SENER and ASEA, to obtain the major permits and authorizations required to commence field operations.
IFR intends to submit the final applications for these permits and authorizations by the end of April 2017. Once submitted, each application will undergo a final review process by the applicable Mexican regulatory authority. Although this initial regulatory process has been intensive thus far, we have been satisfied with our interactions with the Mexican authorities. Approval of these applications will also allow Tonalli to obtain the drilling permit for the first well to be drilled at Tecolutla since 1973. Tonalli expects to commence drilling operations at Tecolutla in Q3 2017, subject to regulatory approvals. In the near term, however, we expect to conduct wellhead servicing in preparation for the workover of an existing well.
Tonalli continues to engage service and equipment suppliers in Mexico. All services required to drill, complete and equip wells are available in Mexico at competitive rates. We expect all capital costs to remain within budgeted estimates.
All required field work has been completed and reviewed by independent technical groups. Tonalli has finalized surveying of the extensions of the existing drill sites to accommodate new drilling and has minor road upgrades underway. A logistics and measurement plan has been developed to move production from the Tecolutla asset through existing infrastructure in Mexico's Poza Rica area. A measurement skid is currently being engineered and going through a procurement process for its construction.
Our internal technical evaluation continues to confirm our original assessments that Tecolutla has the potential to be a highly economic project at current commodity prices. Tonalli believes that improved drilling technology and production techniques will enable it to increase the recovery factor of its Tecolutla asset.
As per the press release dated January 19, 2017, Tonalli has accessed the CNH data room for the onshore third tender of round two of Mexico's oil and gas energy reform. Tonalli is in process of analyzing and assessing block data and intends to finalize the prequalification application in early May. The Mexican government announced the third tender of round two on November 14, 2016, which will be the eighth upstream bid round in Mexico since the energy reform began. Fourteen onshore blocks, averaging 185 km2 (72 sections) are available nationwide: six in the Southeastern Basin, four in the Burgos Basin, three in the Veracruz Basin and one block in the Tampico-Misantla Basin, which offsets the Tecolutla Block. Covering a total of 2,595 km2, these development and exploration blocks contain 25 oil and gas fields with existing 3D or 2D seismic coverage. The Mexican government has estimated that together the blocks contain prospective exploration resources of approximately 251 million barrels of crude equivalent and remaining original extraction volumes of approximately 328 million barrels of crude oil equivalent.
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, Alberta 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.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.