Fremont Petroleum Corporation Ltd (ASX: FPL) (‘Fremont’ ‘the Company’) is pleased to report that is has executed an
option to acquire an additional 1,660 net acres in Colorado bringing the leasehold position of its 100%-owned Pathfinder
Field to approximately 21,500 net acres or covering an area of ~23km x ~14.5km.
The option agreement was secured on favourable terms based on future exploration commitments and royalty payments,
with commencement of activity not required until 2020. Terms are confidential given the Company is securing more leases.
The accompanying map shows the new acreage and the Company’s total land position (Figure 1) in Colorado’s DenverJulesburg (DJ) Basin.
Fremont now has a much larger, continuous footprint across the Florence Oil Field which has produced 16 million barrels
of oil from the shallower Pierre Formation. As well as future production from the Pierre, Fremont is targeting the oil & gas
deposits in the deeper Niobrara and Greenhorn Formations which are contiguous across the field and yet to be developed.
As previously reported, Gustavson Associates has been engaged to conduct an independent oil and gas Reserves &
Resources Report of the Pathfinder Property. This report is expected to be finalised in coming days but does not cover the
new 1,660 acres of leases.
President and CEO of Fremont Timothy B. Hart said: “Current oil production and recent gas flow rates give us every
confidence that Pathfinder has considerable short cycle production upside. As such, we are intent on locking up more
acreage to grow our reserves and resources. Leasing is another prong in our growth strategy which includes maintaining
and growing oil production and bringing our gas to market with binding sales agreements.
“We look forward to reporting quarterly production shortly and releasing the updated independent Reserves & Resources
report.
FPL Price at posting:
1.2¢ Sentiment: Hold Disclosure: Held
