PetroFrontier Corp. (TSX: PFC) has provided an update in regard to its Australian operations as well as announced a proposal for a 20 well program.

Planned EP Well Activity/20 Well Program

PetroFrontier and a co-owner each own a 50% working interest in EP 103 and EP 104 (comprising approximately 5.71 million gross acres), Northern Territory, Australia. PetroFrontier and the co-owner are also parties to a joint operating agreement (JOA) governing their operations in EP 103 and EP 104, under which PetroFrontier is the operator.

Additionally, PetroFrontier has proposed a 20 well horizontal multi-stage fracturing drilling program designed to test the regionally distributed unconventional Basal Arthur Creek shale zone on EP 103. PetroFrontier has been advised that the co-owner has elected not to participate in the 20 well program. Therefore, PetroFrontier will take steps to carry out the 20 well program as an exclusive operation.

As a result, PetroFrontier will pay 100% of the costs of the 20 well program and will be entitled to 100% of the production from any resulting discovery, unless the non-participating co-owner wishes to reinstate its rights therein by paying its share of all liabilities and expenses incurred in the exclusive operations plus a premium of 400% on the co-owner's 50% share of the cost of drilling and testing.

First Two Wells to be Drilled in Northern Territory, Australia

The first well to be drilled by PetroFrontier will be the first horizontal well (Baldwin-2) on EP 103 to be drilled as a part of the 20 well program. Baldwin-2 will be a twin to the existing Baldwin-1 well. Baldwin-1 will be the pilot hole for the horizontal leg of Baldwin-2 into the Basal Arthur Creek shale zone. Baldwin-2 also includes conventional targets above the Basal Arthur Creek shale zone.

The second well expected to be drilled by PetroFrontier (but not part of the 20 Well Program) will be a horizontal well (MacIntyre-2) in EP 127, Northern Territory, Australia where PetroFrontier holds a 75% working interest and is also the operator. MacIntyre-2 will be a twin to the existing MacIntyre-1 well.

MacIntyre-1 will be the pilot hole for the horizontal leg of MacIntyre-2 into the Basal Arthur Creek shale zone. MacIntyre-2 also includes conventional targets above the Basal Arthur Creek shale zone.

PetroFrontier's co-owner in EP 103 and EP 104 has no interest in EP 127 or in the adjacent permit, EP 128 (where PetroFrontier also has 75% operated working interest). EP 127 and EP 128 comprise approximately 7.85 million gross acres.

About PetroFrontier Corp.

PetroFrontier is an international oil and gas company engaged in the exploration, acquisition and development of both conventional and unconventional world-class onshore petroleum and natural gas assets in Australia's South Georgina Basin.