IFR forms Mexican subsidiary to develop potential oil and gas assets

HOUSTON -- International Frontier Resources Corporation has formed a Mexican subsidiary, Petro Frontera S.A.P.I de CV (Frontera).

The creation of this subsidiary will accomplish three key elements:

• The study of, and bidding on, assets in Mexico's initial oil and gas energy reform bid round in 2015
• The acquisition and participation in services contracts that are currently migrating to exploration and production contracts
• The development of other petroleum and natural gas assets in Mexico.

"We have a strong history in working with government and joint venture partners and we believe Mexico provides excellent growth potential in the current environment,” said Steve Hanson, IFR president. “We are actively working and preparing to participate in the first open bidding rounds expected later this year."

Mexico's historic energy reform, announced in 2014, has established a new legal framework for Mexico's energy industry and is expected to attract billions of dollars in foreign investment.

In August 2014, Mexico’s petroleum authority, SENER (Secretaria de Energia de Mexico), announced that Round One will include:

• 169 blocks, comprised of 109 exploration blocks and 60 production blocks
• 14 blocks under joint ventures with PEMEX.

The tender process commenced in the first quarter of 2015, and production-sharing agreements are expected to be awarded throughout 2015.

Mexico is the ninth largest producer of oil in the world, and the eleventh largest in terms of net exports. It is the third largest oil producer in the Western Hemisphere behind the United States and Canada.

Mexico has the eighteenth largest oil reserves in the world, and fourth largest in the Western Hemisphere behind Venezuela, Canada, and the United States.

The national oil company, Pemex, has reported historical finding development and production costs of less than US$25 per barrel, which places Mexico in the top quartile worldwide.