EARLY DIVIDENDS: REPUBLIC OF GEORGIA BLOCK XII ENVIRONMENTAL BASELINE PROGRAM

Frontera Eastern Georgia Ltd (FEGL) is engaged in an environmental baseline characterization of its Block 12 Lease, Republic of Georgia. The hydrogeologic setting is being analyzed within this semi-arid 1.3 million acre lease in preparation for active oil and gas exploration that includes regional geologic, stratigraphic and tectonic analysis, 2-D and 3-D seismic surveys, drilling of check holes to calibrate seismic data, remediation of Soviet Era oil well sites and the new drilling of deep oil and gas test wells.

Thus far, inventories have located more than 300 water wells and springs used to meet live stock, residential and village water needs. Flow, pH, conductance, specific conductance and salinity data are determined in the field followed by more complete laboratory analysis of soil and water samples. Data are being managed in a first-of-a-kind GIS data base that includes topography, stratigraphic units, structural features including lineaments, data from dedicated monitoring wells and other sources. This is an unprecedented baseline study unknown in other former East Block countries. These data will be made available to the Georgian State Agency for Oil and Gas and the MOE; also will be made available to the public. A report that synthesizes the three years of work to date will be published in the 3rd quarter of 2007.

Early dividends of this work include acceptance of Frontera Resources as partners by Georgians, knowledge of the locations and quality of existing drinking water sources, potential new sources of drinking and industrial water supplies needed to sustain and expand economic activity, suitable sites for the disposal of wastes derived from drilling, development and production of oil and gas, timely decisions obtaining permits to support all phases of exploration and eventually, expanded production. One major structural target was shown to be located within an area with significant topographic relief and structural complexity. The area abounds with landslides of various sizes and ages critical when selecting stable drill sites, planning and designing roads, pipeline routes, work camps, managing stormwater, solid and liquid wastes while also protecting water supplies, far land, wild life and related resources. These data are vital when addressing potential accidental spills.