This is the nature of exploration

“To be a part of the major discoveries, we must also be a part of the drillings that doesn’t come out with the results we were hoping for. This is the nature of exploration,” says Yngve Vassmyr, CEO of Front Exploration AS. Front Explorations license partners in the Heilo-project, Rocksource and North Energy, announced today that the drilling in the Barents Sea so far has not revealed commercial deposits of oil or gas. There is still some drilling in deeper reservoirs to be done before the final results are ready.

New exploration drilling in October
As soon as the drilling rig has finished at Heilo, it will move on to the
Zappfe-prospect, located some 30 km west of Goliat, in which Front
Exploration AS has a 20 per cent holding. Vassmyr expects that drilling on
this prospect will begin in mid-October.
In September Front Exploration AS applied to the Norwegian Ministry of
Petroleum and Energy for new licences on the Norwegian continental shelf
in connection with this year’s allocation of pre-defined areas (TFO 2011).
“With so many exciting elements in store we have every reason to keep
our spirits up and focus on the future,” says Vassmyr.

Prepared for the future
Each of the two majority shareholders, SpareBank1 Nord-Norge Invest AS
and Troms Kraft Invest AS, recently injected NOK 100 million in new
equity into Front Exploration AS. This will provide sufficient capital to fund
planned activities until the end of 2014. “Our new capital provides a
platform for the future, and makes the company less dependent on shortterm
drilling success. Nevertheless, we believe that we can make a
commercial discovery on the Zapffe-prospect, and we have submitted an
interesting application to the Ministry of Petroleum and Energy regarding
the activity in the coming years,” says Vassmyr.

See also the enclosed factsheet on Front Exploration and Heilo
For further information, please contact:
CEO Yngve Vassmyr, mobile: +47 952 11634, email:
yngve.vassmyr@frontx.no

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