SOURCE: New Frontier Energy, Inc.

June 24, 2008 09:13 ET

New Frontier Energy, Inc. Boosts Gross Production 61% at Slater Dome Field, Revenues Increase 97% in May 2008 Period

DENVER, CO--(Marketwire - June 24, 2008) - New Frontier Energy, Inc. (OTCBB: NFEI), a natural resource company engaged in the exploration, acquisition and development of oil and gas properties in the United States, announced today that gross production at the Slater Dome CBM Field increased 61% to 43.4 million cubic feet for May of 2008, compared to 26.9 million cubic feet produced in the May 2007 period.

New Frontier Energy holds a 66% working interest in the Slater Dome CBM Field.

Revenue based on NFEI's working interest for the month of May 2008 was $108,185, representing a 97% increase compared with $55,016 received during the same period in 2007. The Company received an average price of $8.76 per MCF during May 2008, compared to $7.18 per MCF received during the May 2007 period, a 22% increase.

Gross production for May of 2008 increased 17% compared to April 2008, which totaled 37 Million cubic feet. NFEI's monthly revenue for May 2008 increased by $26,692 compared to April 2008, representing a 33% sequential increase. The Company received an average price of $7.73 per MCF during April 2008.

"We achieved record levels of production and cash flow during May," said Paul Laird, President of New Frontier Energy, Inc. "The ongoing dewatering of the Slater Dome CBM Field is improving our average production per well. This synergy is quite common in CBM production, and will accelerate our ability to attain positive cash flow."

The production profile of a typical CBM well will normally rise during the initial four to seven years before leveling off, and producing on a slow decline curve for a 20 - 25 year period.

About New Frontier Energy, Inc.

Based in Denver, CO, New Frontier Energy, Inc. is an independent natural resource company engaged in the exploration, acquisition and development of oil and gas properties in the United States. New Frontier Energy has interests in four properties, the Slater Dome Field, located in northwest Colorado and south central Wyoming; the Flattops Prospect located in southwest Wyoming; the Amber Waves Prospect in the Denver Juelsburg Basin located in northeast Colorado, and has entered into a farm-out agreement to acquire a 74% working interest in the Focus Ranch Federal Unit, located in Routt County, Colorado adjacent to and southeast of the Slater Dome Field.

New Frontier Energy is focused on expanding CBM gas production at the Slater Dome Field, and exploring the adjacent Focus Ranch Unit and Flattops prospects. The Slater Dome Field is a coal bed methane development project located in the Sand Wash Basin or Atlantic Rim area near the Colorado and Wyoming border, and is a sub-basin of the Greater Green River Basin. The company owns controlling interest in an 18-mile pipeline that delivers gas from the Slater Dome Field to a regional transportation hub in Baggs Wyoming. The Company is in the process of marketing the Amber Waves Prospect to industry drilling partners. New Frontier Energy's common stock is listed on the over the counter bulletin board under the symbol "NFEI." Additional information about New Frontier Energy, Inc. can be found at the Company's website

Forward-looking Statements

The statements contained in this press release which are not historical fact are forward-looking statements that involve certain risks and uncertainties including, but not limited to, decreases in prices for natural gas and crude oil, unexpected decreases in gas and oil production, the timeliness, costs and success of development activities, unanticipated delays and costs resulting from regulatory compliance, and other risk factors described from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. No assurances can be given that these statements will prove to be accurate. A number of risks and uncertainties could cause actual results to differ materially from these statements. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Contact Information

  • Investor contact:
    BC Capital Partners
    Bill Conboy
    (303) 415-2290

    For further information contact:
    New Frontier Energy, Inc.
    Paul G. Laird
    (303) 730-9994