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Black Sea Shelf - Dolphin area and Frontera

lse:frr

#1

Chris572 on LSE has unearthead this document issued today. I quote his remarks.

"Not later than July 12, the Interdepartmental Commission for the PSA, and subsequently the Cabinet, should determine the winner of the competition on the Dolphin area on the Black Sea shelf.

The first reaction after the experts’ information on the submission of four applications for participation in the competition section of the Dolphin - a real contest will be between the initiator of the competition - the American company Frontera Resources Azerbaijan and Caspian Drilling Company (daughter of national company SOCAR).

However, the introduction of competitive application Frontera Resources showed that the company is currently in a very difficult financial situation, which is one of the important indicators of estimates in determining the overall assessment of the application, and has no experience in offshore (also estimated).

its an interesting 8 page doc that i found and looks like we will get to know the winner before friday

http://www.ukrrudprom.com/digest/CHomu_shelfov_rodovishcha_Delfnu_mogut_vdyti_vrtualnim_nvestoram.html?print


#2

From LSE posters

Caspian and Trident tied on 170 each
The Ukrainian entry got 150
FRR got 120 points

here is a breakdown of the scoring criteria from doc posted earlier.

Each bid will be ranked based on the number of points as per an evaluation of each criterion:

the best work program (with a focus on the comprehensive development of the area and ensuring early production) – 80 points;

efficient utilization of natural resources according to the work program – 15 points;

attractiveness of bids as regards production sharing in favor of the State – 30 points;

the largest amount of investment – 35 points;

efficient environmental protection measures – 15 points;

level of financial security of the proposed work program – 30 points;

previous experience in exploration and production of hydrocarbons, in particular from unconventional sources – 45 points;

and utilization of goods, works and services of Ukrainian origin – 20 points


#3

it would be nice to know where we scored our 120 points. lets hope we got the maximum for “level of financial security” :smile:


#4

Oopsi on LSE

Ukraine contestToday 16:48
Ukrainian gas: Ponomarev has a rival for Dolphin - an American Zaza Mamulaishvili
2 hours ago Economy 99 1
According to " Burilki ", representatives of the American Frontera Resources businessmen Steve Nikandros and Zaza Mamulaishvili came to Kiev. This company was the initiator of the contest for “Dolphin”. Frontera Resources works in Georgia and Moldova, but no major projects have yet been implemented. According to “Burilka”, the company, before launching the competition, went to Igor Kononenko, who was looking at the energy sector, and lobbied it before the Minister of Energy Igor Nasalyk. I was in charge of this process, Vladimir Ignashchenko, adviser to the Minister of Energy. However, in the course of the competition, Kononeko and Nasalik arose interest in Ilya Ponomarev’s company Trident Black Sea. She also won. But. Now Frontera Resources arrives in Kyiv and holds meetings at the US Embassy to help contest the contest. And in the embassy they can help - because Ponomarev does not hide his ties with Soros, and that enemy is Trump. Groisman decided to go away.


#5

Just posted by FinnFCR

Frontera Resources wants to challenge the results of the Dolphin site development competition
This company was the initiator and one of the participants in the competition for the development of hydrocarbons within the Dolphin site
JULY 30, 2019, 11:45
Frontera Resources wants to challenge the results of the Dolphin site development competition
Photo credit: pixabay.com
Frontera Resources (USA) is preparing a lawsuit against the Interagency Commission on Organization and Conclusion of Product Sharing Agreements and the Department of Energy and Coal Industry. The press release is Frontera Resources.
Frontera Resources was the initiator and participant of a competition for the development of hydrocarbons within the Dolphin section of the Black Sea offshore under the Production Sharing Agreement (PSA).

“We are disappointed by Prime Minister Volodymyr Groysman’s ambiguous statement that the Dolphin competition was not representative enough, not competitive enough, and generally did not live up to expectations regarding the entry of Ukrainian producers to the world market of gas producers into the Ukrainian market and therefore he would consider launching a new tender to attract a gas offshore company on the Ukrainian Black Sea shelf, ”said Zaza Mamulaishvili, President and Founder of Frontera Resources.
Four companies have applied for the competition. According to the company, the Interdepartmental Commission violated the procedure of conducting the competition, in particular, the evaluation of participants’ applications, determined by the law of Ukraine “On Production Sharing Agreements”. It is because of these violations of law that one of the contestants - Caspian Drilling International, owned by the Azerbaijan national company SOCAR, even withdrew its application from consideration.
In accordance with the requirements of the PSA Law and the relevant Cabinet resolution, the Interdepartmental Commission was to prepare and submit to the Government conclusions and proposals to determine the winner of the competition no later than July 13, 2019. However, according to the company, these requirements were not properly met. Thus, if the CMU announces the winner of the competition, this decision will be made in violation of Ukrainian law.
“In the event that the PSA contest for the Dolphin site is not canceled, Frontera Resources reserves the right to go to court. In our opinion, the process of preparation of the competition and its conduct are in conflict with international practice, "- says Mamulaishvili.
Frontera Resources is a privately owned oil and gas company founded in 1996 in Houston, Texas. Since its inception, the company has invested in oil and gas projects worldwide, finding and confirming reserves of over 14 billion barrels of oil and over 30 trillion cubic meters of gas.
Earlier it was reported that Trident Acquisitions Corp. was recognized as the winner of the competition for the development of the Dolphin hydrocarbon section.


#6

Apart from how is a supposed dead company taking on yet more court dealings I like the sentence ‘Since its inception, the company has invested in oil and gas projects worldwide, finding and confirming reserves of over 14 billion barrels of oil and over 30 trillion cubic meters of gas.’ Reserves eh, now that is a first.


#7

A song (not two) for you all
Alive and Kicking :wink:


#8

Posted on the LSE site, dated 25 July.

https://www.offshorealert.com/frontera-resources-caucasus-corp-cayman-islands-liquidation-supervision-petition.aspx


#9

Oh dear looks like you clowns are finally screwed. it will be great to see all you dumb suckers lose.


#10

Will it really Booster? Take a long hard look a your self. You are a sorry piece of work.


#11

What a truly objectionable specimen of the human race you are proving to be.


#12

From sycric LSE

Screenshot
Imgur


#13

Sycric LSE cont.

Linked to this, set up 3 years ago.

https://opencorporates.com/companies/us_tx/0802558654

Well that’s a Texas company and not a cayman islands company for a start…
linked to the new Georgian company, under the impression the old Georgian company is being liquidated.
They all flip over to the new one, which is linked to Texas?


#14

Thanks Pop, I suspect this new company is linked to the “Frontera related” farm-out entity which was referred to in the court docs. FTI have now figured this mess out and are applying to the courts for supervision to enforce immediate payment of OMF debt. The court docs suggest the farm-out was dubious but possible legal. This farm-out is probably the reason Hope is suing Steve and Zaza in Texas.

Where we go from here I don’t know but Steve and Zaza may have outsmarted Hope on this one. We all know they are crafty operators when it comes to the corporate side.

It may be a possibility that Zaza and Steve are attempting to end all association with the Cayman islands.

As ever, clear as mud!!!


#15

Posted by Chris572 on LSE:

"FRONTERA DISPUTED THE RESULTS OF THE COMPETITION OF THE PSA ON THE UKRAINIAN SHELF

Posted 05/08/2019 - KWAKUHA
On 1 August, Frontera Resources (USA, Houston) contested in the District Administrative Court the results of a competition to conclude a production sharing agreement (PSA) for the development of the Dolphin hydrocarbon segment on the Black Sea shelf.

This is reported by Epkogg with reference to the OASK.

Frontera Resources stated interim measures, prior to filing a claim in essence. The defendants are the Interdepartmental Commission on PSA and the Ministry of Energy of Ukraine. The Cabinet also involved other participants in the competition - Trident Acquisitions Corp and Ukrnefteburenie.

Frontera Resources was the initiator of the PSA contest for the Dolphin site, but losing its ego.

Frontera Resources Corporation was founded in the USA in 1996. The company is engaged in the exploration and production of gas and oil. In 2016, she signed memoranda of cooperation with Ukrgasdobycha and established a representative office in Ukraine. The main assets of the company are concentrated in Georgia.

On April 12, 2019, the Ukrainian government announced a competition for the development of the Dolphin site for a period of 50 years. According to the terms of the competition, the deadline for submitting applications for participation in it was 60 days, which is 30 days less than the time allowed for submitting applications for the competition in 12 areas on land. Four companies filed applications: US Trident Acquisitions Corp, US Frontera Resources Corporation, controlled by the State Oil Company of the Azerbaijan Republic (SOCAR) Caspian Drilling International Ltd and one of the largest private gas producing companies in Ukraine, Ukrnefteburenie.

The CEO and one of the shareholders of the American Trident Acquisitions Corp Ilya Ponomarev on July 26 reported that the interdepartmental commission recognized the company he headed as the winner of the competition. The final decision must approve the Cabinet.

On July 27, Prime Minister Vladimir Groysman announced his intention to invite the government to consider the possibility of announcing a new competition for the development of this site. His initiative was supported by the Secretary of the National Security and Defense Council, Alexander Danilyuk.

Recall that in 2012, a tender was held to conclude an agreement on production sharing for the Scythian section on the Black Sea shelf; in the face of the Romanian “daughter” Petrom (15%) and NAK “Nadra Ukraine” (10%).

Mining did not start because of the Russian occupation of the Crimea."


#16

FRontera Press Release:


#17

Another hilarious spoof & fantasy from Zaza!I “almost” feel sorry for Nicandros who is going to have to pick up the personal guarantee claims as debts run up in Cayman cannot be claimed in Georgia where Zaza is likely to remain.


#18

The provenance of this press release is not known yet for sure. What is know is if it’s genuine then it’s great news for share holders and terrible news for shorters/TX2. I fully understand your concerns TX2.


#19

Just posted by Looed on LSE:

UKRAINE TO REPEAT TENDER?

Hi All,

Long term holder / sufferer here but never posted until now. Just came across this article which seems an update to the previous news about the Ukraine tender -
London-traded oil company Trident Resources recently won a contest for exploration rights to more than 9,500 square km of acreage in the Black Sea, although the government has suggested it may cancel the award.

Authorities in Kyiv launched a tender in April offering a 50-year production-sharing agreement (PSA) to the Dolphin area spanning the northwest of Ukraine’s Black Sea shelf. A government energy commission voted in favour on July 26 of awarding the contract to Trident – a company founded and led by former Russian opposition politician Ilya Ponomarev.

“It was a difficult struggle, but our application was significantly more profitable for Ukraine,” Ponomarev, who was granted Ukrainian citizenship earlier this year, wrote on his Facebook page on July 26 confirming the win. “We promise not to let you down and to do everything possible to start production as soon as possible.”

The deal is controversial and while some have hyper it, saying it will attract as much as $1bn in investment, other commentators believe it will attract no more than $50mn.

Ponomarev is a controversial figure. A child prodigy who started his career at the Institute for Nuclear Safety of the Russian academy of sciences at the age of 14, he went on to become an executive at Yukos oil company and then a Russian Duma deputy. He was the only Russian MP to vote against a decision to annex the Crimea in 2014. However, he fled Russia after getting caught up in a corruption scandal when it transpired he was paid hundreds of thousands of dollars by the state controlled innovation fund of the Skolkovo Fund for a series of lectures that reportedly he never gave. He left Russia after the Russian Investigative Committee opened a criminal investigation into the case and has been a vocal critic of the Kremlin while in self-imposed exile.

Ukrainian PM Volodymyr Groysman suggested on July 27 the government might repeat the tender, however, as it failed to attract any major international oil companies.

“When we announced this competition, we counted on the participation of world leaders of the likes of Shell and Exxon,” Groysman said in a Facebook statement. He said results indicated the competition “was not competitive enough and generally did not live up to expectations regarding the arrival to our market of players from the world’s top league of gas producers.”

Groysman’s concerns echo those previously voiced by Ukraine’s gas lobby group, the Association of Gas Producers (AGPU). That APGU’s head Roman Opimakh revealed to NewsBase, a bne IntelliNews company, in June that the association had asked the government to delay the tender to “allow increased competition and bring international players with proper competencies to Ukraine.”

Besides Trident, the Dolphin contest also attracted bids from Uk

Besides Trident, the Dolphin contest also attracted bids from Ukrnaftoburinnya, one of Ukraine’s largest private gas producers, and Frontera Resources, a small Texas-based company focused on Georgia and Moldova. Caspian Drilling, a unit of Azerbaijan’s SOCAR also filed an offer but later withdrew it – a decision Ukrainian energy minister Igor Nasalik has claimed was because of pressure on Azerbaijan by Russia.

The offer from Frontera, which had requested the PSA contest, drew particular concern, not least because of the company’s less than stellar operating record in Georgia. It has held rights to gas assets in the west of the country for more than two decades. But despite claiming to have found several trillion cubic metres of gas, it is yet to follow through on plans to launch commercial production.

Frontera entered a 50-year deal to search for oil and gas in southern Moldova in 2017, pledging to invest $500mn, but has not reported conducting any activity in the country since then.

Ponomarev has responded to Groysman’s indication that the award will be rescinded by suggesting that Trident seek out a large international company as partner for the Dolphin area.

He has also made lofty claims about the project’s potential, suggesting it could unlock $1bn in foreign investment. Under the terms of the Dolphin PSA, however, its chosen operator will be required to spend only UAH1.5bn ($55.5mn) during an initial exploration phase, which will involve the completion of at least five wells.

In an August 1 statement on Facebook, Ponomarev went on to say that Dolphin’s development could lead to an increase in Ukrainian gas production by 10-15%, citing its 40-50bn cubic metres of potentially recoverable gas resources. But the area does not contain any proven commercial gas fields, making its value difficult to gauge until drilling has been undertaken.

A final decision on the contract award will be taken by Ukraine’s cabinet.


#20

Do Frontera have a large as yet undisclosed international partner behind them?