The Kawa-1 Exploration Well Offshore Guyana has Spud

Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company") today announced the spudding of the Kawa-1 exploration well, offshore Guyana. CGX Energy Inc. ("CGX") (TSXV: OYL), Frontera majority-owned subsidiary, and its joint venture partner (collectively, the "Joint Venture") in the Demerara and Corentyne blocks, also separately announced an update on spud of the Kawa-1 well. Additionally, the Joint Venture has exercised its option to drill a second well with Maersk Drilling Holdings Singapore Pte ("Maersk") through the use of Maersk Discoverer.

Gabriel de Alba, Chairman of Frontera's Board of Directors and Co-Chair of CGX's Board of Directors commented:
"Today is an important day for Frontera and CGX as we continue to make substantial progress in realizing the value of our investments in Guyana. The Joint Venture has spud the Kawa-1 well, which we believe is one of the most exciting exploration wells in the world. The Joint Venture has also exercised its option to drill a second well offshore Guyana under similar terms and conditions. I am pleased with this major operational milestone for Frontera and CGX and appreciate the ongoing support of the Guyanese government, our employees, and our other various partners as we work together to maximize benefits for all of our stakeholders."

Kawa-1 Well Spudded
On August 22, 2021, the Kawa-1 well spudded. The Joint Venture expects the Kawa-1 well to reach total depth in the first half of December 2021.

The Kawa-1 well is located in the northeast quadrant of the Corentyne block, approximately 200 kilometers offshore from Georgetown. The water depth is approximately 355 meters (1174 ft) and the expected total depth of the Kawa-1 well is 6,685 meters (21,932 ft).

With multiple opportunities based on internal geological studies, the Kawa-1 well targets light oil in combination structural-stratigraphic traps in large Santonian and Campanian slope fan complexes. The primary target is a Santonian sand with updip and lateral pinchout of the reservoir, as well as counter-regional dip and structural closure. The Kawa-1 well is also expected to penetrate secondary objectives in a shallower Campanian sand and a deeper Santonian sand with the expectation of targeting additional hydrocarbon potential. The stacked targets in Kawa-1 are considered analogous to the discoveries immediately adjacent to the Corentyne Block, in Block 58 in Suriname.

Additionally, the Kawa-1 well is expected to de-risk multiple other prospects on the block which also have stacked reservoirs and similar structural geometries. Proximity of the Corentyne block to the Cretaceous Berbice Canyon sediment source is interpreted to have concentrated sandstone reservoirs in the North Corentyne area. Channelized, stacked internal fan geometries evident on 3D seismic are indicative of thick, stacked, coarser-grained sand reservoirs.

Drilling Team
The Joint Venture has assembled a highly-qualified and experienced team for the drilling campaign, with extensive deep water drilling expertise from operations around the globe, including the Guyana Basin, which includes:

• Kevin Lacy (41 years' experience with Chevron, BP, Talisman - former Global Drilling Manager with Chevron and Talisman) as Drilling Director;
• Todd Durkee (33 years' experience with Anadarko and Kerr McGee - previous role VP Deep Water Drilling with Anadarko) as Senior Drilling Advisor;
• Juan Pinzon (29 years' experience with BP, BHP, Occidental, Nabors, and Schlumberger) as Drilling Director for Frontera;
• Karlin Costa (40 years' experience with Noble, Cobalt, BP and ConocoPhillips – previous role Director Offshore Wells – Noble) as Senior Drilling Superintendent;
• Jonathan Shipley (35 years' experience with Apache, Devon, ConocoPhillips - previous role DW Operations Superintendent with Apache in Suriname) as Senior Drilling Superintendent;
• Rick Ysa (30+ years' experience with Repsol, Chevron, Devon, Kerr McGee – previous role Drilling Project Manager Americas with Repsol) as Senior Drilling Engineer;
• Marcus Summers (30 years' experience with ExxonMobil, Noble, Amoco – previous role Senior DW Drilling Engineer, ExxonMobil) as Senior Drilling Engineer;
• Brad Koskowich (30+ years' experience with Repsol, Nexen, CNR, Suncor) as Senior Health Safety and Environment Advisor;
• Regan Palsgrove (30+ years' experience in several North and South American basins including at Talisman Energy) as Head of Exploration for Frontera;
• Duncan Nightingale (30+ years' experience globally including with Gran Tierra Energy - previous role as interim CEO) as Corporate Vice President, Field Development, Reservoir Management, and Exploration for Frontera;
• Michael Stockinger (40+ years' experience including Anadarko Petroleum, Kerr-McGee and ConocoPhillips) as Vice President of Operations for CGX;
• Jennifer Budlong (20+ years' experience in domestic and international basins worldwide including Shell, BHP, Maersk Oil and Venari Resources) as Exploration Manager for CGX.