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Black Sea Shelf - Dolphin area and Frontera

lse:frr

#71

Hi D
Thanks for information.
My question is why political presence/pressure
Not applied diplomatically
Why this issue is managed in the open?
As always FRR has managed most of the time secretly
Regards


#72

Lots of questions Ramco but perhaps the biggest is how the company is staying afloat since suspension. We know from the court docs that the oil flows from Dino and T45 were not great so either T39 is a gusher or the directors have been funding the company for the past 10 months. Have the company simply frozen operations and cut salaries to reduce outgoings? Moreover, have YA been paid?


#73

Would expect if ya havent been paid something would have either leaked out via the shorters or have been found in the public domain by now.


#74

Dont think the shorters will take an interest now they have been paid out


#75

Dunno like, people like tw and others will probably keep harping on and on, type of people who like theyre own voice n backslapping each others to massage each others ego


#76

All valid questions Fozzer, but according to the most recent information from Zaza (the Ukraine ‘tell and all’ article as you kindly posted above), in 2018, FRR produced around 500,000 barrels, underscoring a profit of $1.2M. Now, if the 500k barrels is to be believed, this works out around 1.3k barrels a day. But hold on, we knew that up to July 2018, production was at best couple of hundred barrels. So, between August and December, how did they get the annual daily average up to over 1,369 barrels a day? Working on rudimentary logic, lets say between August to December (150 days), production suddenly went up to 2,500 barrels per day, this works out 375,000. Does this mean they finally struck a gusher in T39, or did they return to deepen Dino-2 & T45? Perhaps BHGE continued working because we know from H1 2018 accounts, money owed to creditors shot up to around $20m (cant be bothered to recheck). Or the alternatives could be that they reworked the other 3 wells with minimal outlay or found some investors to drill just the Niko as originally planned last May. But if daily stabilised production is c.1,500 per day, well that would be great news on two counts 1) for the arbitration hearing next month (seeking declaration of commerciality) and 2 for the money situation to pay the army of lawyers (lol).

But honestly, we could do with an operational update for Georgia but this may be deliberately held back until arbitration hearing is over.

On the Ukraine situation, I think FRR may be disappointed with the decision to re-tender the block because according to the rules, FRR should have been awarded after Trident was ‘deselected’. But again we don’t know what’s been said or agreed behind political closed doors.

The most interesting ‘variable’ right now is the YA debt. These guys were quick call a default last time and the fact nothing has come out, makes me believe me it was settled. Remember last September non payment was leaked by the cabal before FRR officially told us mushrooms. So, if the cabal have not leaked and our super sleuthers have not uncovered, may be it was settled(?).

So, our passive collective focus now moves to Sweden for the arbitration hearing(s).


#77

It’s a mystery SB that’s for sure. Personally I take the 500,000 barrels for 2018 with a pinch of salt. However, the business appears to be being funded somehow so perhaps oil flows have increased substantially and we know from the accounts that FRR have some very supportive vendors.

The political clout FRR have is impressive and enabled to UKR tender to be overturned, you would have to think FRR have a fair chance 2nd time around. It’s safe to assume the same political pressure is being applied to the Georgian gov.

I’m hoping Zaza will reach out to shareholders for an update in the not too distant future as he appears to have surfaced.

Like you have said previously, despite the de-listing and court cases, there’s still reasons to stay positive.


#78

Just to add, IF FRR do manage to get through the arbitration and the OMF court wrangle then assuming FRR have the financial/JV backing I do see a relist on the cards in the not too distant future. I am surprised IG paid out without waiting the full 12 months to lapse as FRR is certainly not dead in the water as judging by the UKR re-tender. As it stands I can’t see how a JV or finance package can be implemented without the legal issues resolved. I’m sure there’s lot’s going on behind the scenes that we’re just not privy too though so who knows.

Suspect the shorts side was bombarding IG with daily emails asking to be paid out.


#79

Fozz it has been alluded by madpunter over on lse that paying out the shorters was part of the ADR ongoing settlement agreement with hope??


#80

Hi Mick, I think that’s a ridiculous idea mate.
If Zaza had that kind of dirt on Hope, we’re talking serious bird time and it would be a slam dunk for FRR’s lawyers.

My worry is how do FRR agree a JV/finance package with the legal troubles on going. It’s a tricky situation the company are in. Stuck between a rock and a hard place comes to mind.

The 3.5b usd compensation FRR would seek from the Georgian government is certainly a big incentivsier to make the Georgian gov tred very carefully though. If history has proven anything it’s that the company has a knack of surviving but will shareholders ever see their investment returned?

I’m still hopefully but there’s some massive hurdles to overcome.


#81

Looking back to the Nov RNS FRR planned to mobilize a rig to drill Eldari B at T-16, T-24 and T-31 well sites. If FRR did drill these wells then perhaps FRR are generating sufficient revs to turn a profit. However, some of the sleuths over on the LSE suggested that there has been no drilling since Dec. What to believe!!!

I’m sure there was an RNS stating that FRR were to agree a percentage of profit sharing on oil revs with their drilling partner although I can longer find that RNS. Am I going mad?

Sorry to clog the board but it has been kind of quiet for a while.


#82

Hi Fozzer,

Here you go, it expires if still in place on 26th of this month.

RNS Number : 3966F
Frontera Resources Corporation
29 October 2018

29 October 2018

Frontera Resources Corporation

(the “Company”)

Frontera Signs MOU with Industry Major

Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to announce that, on 26 October 2018, its subsidiary Frontera Eastern Georgia Limited signed a Memorandum of Understanding (“MOU”) with Baker Hughes Services LLC, a GE company (“BHGE”), regarding future mutual cooperation with regards to the Company’s Block 12 asset in Georgia. This MOU is a result of previously announced discussions with industry majors.

Under the terms of the MOU, the Company and BHGE will collaborate with the aim to improve efficiency of operations, enhance service capacity and capabilities, and commence in-field drilling and intervention campaign to increase production and recovery of resources in the Taribani, Mtsarekhevi and Mirzaani fields of Block 12 in Georgia. For this purpose, BHGE may provide equipment and products, technical services, project management and other related services on as needed basis (“Work”). This may include, but not be limited to: provision of BHGE expertise, knowledge, process and procedures for agreed areas of collaboration; project management and field engineering services; BHGE digital solutions.

The MOU divides the scope of work into three phases. During Phase I, candidate wells at Taribani will be chosen to work on field program with the aim to increase oil production. During Phase II, the parties will cooperate to work on Taribani field development project that may include, but not be limited to, the Work. During Phase III, the parties will cooperate to work on future projects that includes BHGE solutions and expertise with regards to the natural gas monetisation.

Pursuant to the MOU, the parties will work together towards entering into definitive agreement(s) which may include, but not be limited to, commercial models regarding increasing the field production, BHGE’s provision of services and products, and the Company contributing to the venture via sharing of its oil and gas production. The MOU will remain in force and effective until 26 September 2019 and may be terminated by either side giving 30 days’ notice. The entry into such definitive agreement(s) is subject to the finalization of ongoing due diligence by BHGE.

Zaza Mamulaishvili, President and CEO, commented:

“I am excited to report that the MOU with BHGE has been signed. This MOU sets very important terms and areas of cooperation between the Company and BHGE, who is the one of the best and the largest players in the industry. This cooperation will deliver the best of BHGE’s expertise, knowledge, know-how and services that will be applied towards increase of production and development of our oil and gas fields in the Taribani, Mtsarekhevi and Mirzaani areas of Block 12. We are continuing to work with BHGE with the view to entering into definitive agreement(s) that will define our mutual cooperation, which may include the Company contributing to the venture via sharing of its oil and gas production. We look forward to keeping the market updated as we progress with our work together.”


#83

Cheers mg70,

So Baker Hughes may have still been drilling B12 and no costs attributed to FRR aside from any share of any potential profits. If T39 was commercial and there’s some anecdotal to suggest Eldari B was viable then perhaps Baker Hughes did deepen Dino, T45, T16, T24 and T31 and FRR have been generating a small profit.

In addition I love to know what Hope meant when he mentioned a large jump in FRR’s share price in one of the emails.

Come on Zaza time to throw your loyal shareholders a bone. Never mind doing interviews in a holiday inn with the curtains closed, time to face your shareholders. You owe us that.


#84

This RNS and the fact that BH are potentially on the ground drilling now certainly points to us being able to pay bills and provide a DOS.

Add that to the fabulous work Madpunter has done on potential income and earnings and your mind can run off with some wild thoughts!


#85

In the recent interview the interviewer asked

“Is it true that Frontera produces about 2 thousand barrels per day?”

And Zaza responsed with the following…

“No, less. To two.”

Obviously a dodgy translation but is Zaza suggesting half of 2000bopd so 1000bopd?

1000bopd at 60 bucks is around 1.8m usd a month.


#86

$100 oil? Wouldn’t be a bad thing for FRR at this stage.


#87

#88

How did little FRR get this decision overturned? They have some political backing which bodes very well for Georgia, I only hope that Steve and Zaza’s large shareholding aligns them with us and we come out of this with a re-list early next year. What a ride this has been so far.


#89

Looks like Trident will not participate in the new tender process for Dolphin and Baker Hughes are sponsoring the upcoming Ukraine offshore conference, I think we now know who our fairy godmother has been for the past few years.


#90

I’m cribbing stuff from the LSE but info nonetheless.

Why bother with UK PR if there’s was no intent on coming out of this current Quagmire

Public Relations

Tim Thompson
Flagstaff
Strategic and Investor Communications
1 King Street, London EC2V 8AU

Tel: +44 (0)7710 718 649
Email: frontera@flagstaffcomms.com

Whatever happens in Georgia, if FRR won Dolphin I’d expect a relist/IPO in London to raise some funds.

Best