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PetroFrontier Corp. announces successful drilling of Baldwin-2 horizontal well in the Georgina Basin, Australia

October 11, 2011

CALGARY, Oct. 11, 2011 /PRNewswire/ - (TSX-V: PFC) – PetroFrontier Corp. (“PetroFrontier”) is pleased to announce that it
has successfully drilled Baldwin-2Hst1, Australia’s first horizontal
well in the Lower Arthur Creek “Hot Shale” Formation in the southern
Georgina Basin in the Northern Territory, Australia. Baldwin-2Hst1 is
located in the southwestern part of EP 103 in the Southern Georgina
Basin. PetroFrontier has a 100% working interest in EP 103 and is the
operator. EP 103 covers 3.16 million gross acres and accounts for
approximately 27.2% of PetroFrontier’s net acreage in the Northern
Territory, Australia.

The “Hot Shale” formation is comprised of interbeds of shale, silt, sand
and carbonate, is slightly radioactive and is easily identified on
gamma ray logging tools. The “Hot Shale” is petroliferous, up to 40
metres thick and extensive in area. The “Hot Shale” is geologically and
mechanically analogous to major unconventional oil plays in North
America such as the Bakken and Eagleford. These unconventional oil
plays require the use of advanced horizontal drilling and completion
techniques to be economic.

Baldwin-2Hst1 reached a total measured depth (“MD”) of 1,948 metres and
remained within the main target zone in the Lower Arthur Creek “Hot
Shale” for 875 metres while directionally drilling up a regional dip of
1.7 degrees. Positive hydrocarbon indications were recorded along the
entire length of the horizontal section, with elevated gas readings and
evidence of heavier hydrocarbons present.

“PetroFrontier’s long range exploration planning includes accurately
defining the regions of oil and gas maturity within the basin to help
target our exploration efforts,” stated Paul Bennett, CEO of
PetroFrontier. “We believe that within our lands the full range of
hydrocarbon maturation is present and this will allow PetroFrontier the
flexibility to chase the best economics for the play, whether it is
pure oil or various mixtures of oil and gas.”

The plot attached is a vertical cross section showing the vertical holes
at Baldwin-1 (drilled in 1990) and Baldwin-2, the successful horizontal
leg (Baldwin-2Hst1) and the plugged back horizontal section.
Baldwin-2Hst1 was kicked off from Baldwin-2 above the field of view in
the plot. The color variation along the well path shows the recorded
gamma ray log with green indicating low gamma values (sands or
carbonates) and blue indicating high gamma ray values (shale). The red
values along the well paths show the variation in total gas values.

Delays in drilling occurred when the bit tracked into the underlying
Thorntonian Limestone Formation after encountering an unexpected fault.
Every effort was made to redirect the bit upwards back into the Lower
Arthur Creek “Hot Shale”, but the bends in the hole became too severe
for an effective future well completion. The new horizontal section
kicked off along the regional dip established by the plugged back
portion of the well and was successfully steered through the Lower
Arthur Creek “Hot Shale”. Total gas recorded in Baldwin-2Hst1 averaged
240 units over the entire horizontal section, commonly peaking above
1,000 units with maximum recorded values over 2,500 units. The gas
recorded contained heavier hydrocarbon fractions up to pentane (“C5″)
over much of the horizontal section. Conventional gas ratio analysis
indicates very wet gas to oil for the most of the well with occasional
definite oil signatures in places. However, this interpretation may be
biased to gas due to the nature of the reservoir being intersected.

Following the interpretation of the full suite of logs acquired in the
pilot hole, a mechanical earth model was constructed with very positive
indications for the ability to fracture stimulate Baldwin-2Hst1.
Fractures developed in the vertical plane of the well, transverse to
the horizontal well path, are predicted by the model, with excellent
containment indicated from the bounding layers both above and below the
possible pay zone. In addition, natural fractures were observed. These
will assist in the initiation of the stimulation fractures and aid in
growing the complexity of the fracture treatment. This should have a
positive impact on flow rates.

X-ray diffraction (“XRD”) analysis has shown little presence in samples
of clay minerals often associated with sensitivity to water-based frac
fluids. The XRD results, combined with further confirmation in
laboratory sensitivity tests, have given PetroFrontier the confidence
to fracture stimulate with water, which is an important factor in
keeping the stimulation costs as low as possible.

Although these findings are encouraging, this well remains a high-risk
exploration venture and yet to be proven. Readers are cautioned that no
reserves or production has been proven by this well.

PetroFrontier will suspended Baldwin-2Hst1 and then move Major’s
TXD-SS2018 rig to the second location in the current program,
MacIntyre-2, located in the northeastern corner of EP 127,
approximately 60 km to the northwest of the Baldwin location. The rig
once released is expected to commence drilling the MacIntyre well in
approximately three weeks following minor rig modifications.
PetroFrontier has redesigned and re-engineered the MacIntyre-2 well to
be drilled as a deviated pilot hole kicking off to a horizontal in the
Lower Arthur Creek “Hot Shale”. This new well design is expected to
result in greater drilling efficiencies and substantial cost savings.

PetroFrontier will issue its next update once a date has been determined
to spud the MacIntyre-2 well.

Once MacIntyre-2 has been drilled, PetroFrontier intends to frac and
complete the well using multi-stage open hole techniques. Final results
will then be released from MacIntyre-2 and the completions crew will
subsequently return to Baldwin-2Hst1 to conduct a similar completion
program there. It has always been PetroFrontier’s strategy to frac
MacIntyre-2 and Baldwin-2 back to back in order maximize cost controls.

PetroFrontier intends to use Schlumberger, the Australian
representatives of Packers Plus, to run the multistage open hole
completion string and conduct the fracture stimulation program.
PetroFrontier is the first company to introduce to Australia these open
hole horizontal and multi-stage fracing technologies to unlock
unconventional oil potential. These technologies have been widely
successful in unlocking North American unconventional oil reservoirs
such as the Bakken formation. The use of these technologies is expected
to give PetroFrontier every chance of establishing commercial
production.

About PetroFrontier Corp.

PetroFrontier is an international oil and gas company engaged in the
exploration, acquisition and development of both conventional and
unconventional petroleum assets in Australia’s Southern Georgina
Basin.  PetroFrontier’s common shares are listed on the TSX Venture
Exchange under the symbol “PFC”. Founded in 2009, PetroFrontier is one
of the first companies to undertake exploration in the Southern
Georgina Basin in Australia’s Northern Territory.  PetroFrontier’s head
office is based in Calgary, Alberta and operations office is in
Adelaide, South Australia.

Forward-Looking Statements

This press release may contain forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of PetroFrontier, including, without limitation,
statements pertaining to management’s future plans, drilling program
and operations.  All statements included herein, other than statements
of historical fact, are forward-looking information and such
information involves various risks and uncertainties. There are no
reserves, economics or results associated with the well. There can be
no assurance that such information will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such information.  A description of assumptions used to
develop such forward-looking information and a description of risk
factors that may cause actual results to differ materially from
forward-looking information can be found in PetroFrontier’s disclosure
documents on the SEDAR website at
www.sedar.com.  Any forward-looking statements are made as of the date of this
release and, other than as required by applicable securities laws,
PetroFrontier does not assume any obligation to update or revise them
to reflect new events or circumstances. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.

SOURCE PetroFrontier Corp.

Image with caption: “PetroFrontier Baldwin-2Hst1 PLOT, Southern Georgina Basin, Northern Territory, Australia (CNW Group/PetroFrontier Corp.)”. Image available at: http://photos.newswire.ca/images/download/20111011_C2382_PHOTO_EN_4311.jpg


Source: PR Newswire