International Frontier Resources Corporation provided an operations update on its onshore oil and gas block Tecolutla, and its Mexican joint venture, Tonalli Energia. Tonalli was granted the right to operate, develop and produce hydrocarbons at Tecolutla through a licensing contract with the Mexican government. The Tecolutla block was awarded to Tonalli as part of the first round and third call of Mexico’s oil and natural gas bid round, the first in almost 80 years. Each of the blocks offered in Round 1.3 attracted multiple bids. The producing carbonate oil reservoir in the Tecolutla block is the El Abra formation at a depth of 2,340 meters. To date, 1.9 million barrels of oil have been recovered from four previously producing wells at Tecolutla. The wells at Tecolutla were drilled by PEMEX between 1956 and 1972 and had initial production rates up to 473 barrels per day. Drilling permit: Tonalli has secured the drilling authorization permit from Mexico’s National Hydrocarbons Commission for its TEC-10 directional development well. TEC-10 will be the first Tecolutla well to target new locations within the reservoir with the advantage of 3D seismic that was recently completed by the previous operator and has been reprocessed by Tonalli. Based on interpretation of the 3D seismic, company believe the Tecolutla field has been significantly underdeveloped. Tonalli intends to initiate its new Tecolutla development program utilizing modern drilling and completion techniques to increase productivity and recovery from the reservoir. In addition, offsetting field data obtained by Tonalli in Round 2.3 indicated reservoir properties and well productive capabilities of the El Abra that increased confidence in the economic viability of the Tecolutla block.