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Black Sea Shelf - Dolphin area and Frontera

lse:frr

#41

I agree Pophead. I’m not saying he’s lying - I honestly wouldn’t have a clue either way. How would I? Like you say, nothing to really base an opinion on.
I’ve got a substantial amount (for me) in FRR but if, at some future point, it’s gone, there’s f all I can do about it. So I’m not losing sleep! It was always a binary bet, to some extent (a ‘value play’, I told myself…).

I ain’t gonna be suing anyone, throwing good money after bad. Is what it is.

I still reckon there’s a real possibility Putin would roll in and nick it all anyway!

Either way, I’ll be in good company. Just an expensive subscription for a great message board…


#42

I suppose it depends how much you have ‘invested’ here and how much as a percentage of your total worth that is?!
I want the black swan
I want Zaza’s beatification
I will sulk miserably if this does go tits up
I do not yet think that it will
Too much interest from Uncle Sam methinks


#43

I am still concerned about the total lack of comms with the shareholders from FRR. This is consistent with the company in the Steve Nicandros days and seemed to improve a little once Zaza took over the healm but the underlying feeling is that us shareholders are nothing but a nuisance to FRR. With the total lack of comms or respect for our position, I am increasingly concerned that we will be the ultimate losers in this. Scrapping around for information on the internet is not a good sign!


#44

FRR is my biggest position. By a factor of three. I’ll be first in the queue to kiss Zaza’s ring if he pulls this off.

Looking on the bright side, scouring the internet does at least tell us they’re fighting like a cornered badger 🦡


#45

Why & Will there be queue kiss Zaza ?


#46

No direct comms since January is something I don’t believe FRR was anticipating when they told us that they would continue to inform shareholders via RNS-Reach service and hold regular investor meetings. So what’s changed? I think the case in Cayman was mishandled by our legal team, and when it became clear to SN+ZM, that their team had been infiltrated by the enemy, they legged it to California. Perhaps that is why they are holding back the payments to them? I speculate of course. But just to be balanced, Judge Kawaley was also hoodwinked and his initial judgement did us no favors. However my theory has some credence because FRR declined to Appeal in the Cayman’s, which would have been the natural process but didn’t choose to because they could not trust anyone in the Caymans.

Nevertheless, this prolonged silence has created doubt and frustrations amongst the faithful, which is completely understandable. Against this, we know that company is still fighting on many fronts: 1) In California where it has secured more time to complete its due diligence via the Discovery Order. And 2) In Ukraine where is has officially lodged a complaint in the local court and escalated it to a number of US Authorities. These are signs of life and therefore, we need to let them get on with it until such time, they feel they can engage with the shareholders. When will that be? I really don’t know. But I think FSHG should continue to politely ask for a 1-2-1 with Zaza when he is passing through.

Anyway, the big significant unknown is the situation with the US$2.2M debt that was owed to YA by 1st July. Just getting some indication that this has been dealt with, could be a massive positive on many fronts. I do believe YA are the linchpin to the ‘illegal interference’ claim and market manipulation that took place back in late Sept and October. I definitely recall the unexplained big volume days – c.800m exchanged hands in a matter of few days; did Hope jettison 500m shares that we was expecting from Mssrs SN and ZM?

On a final note, seeing the increased troll activities across a number of BBs, in what is supposed to be a very quiet period, says a lot……


#47

Thanks SB Great post and always one to give us an injection of hope! :pray::clap:

eyeson


#48

Not forgetting we have had an ejection of hope.


#49

If the payment hasnt been made, how long do we think it would take before YA launch any debt recovery actions through the courts to recover the money?
Given the previous history between FRR and YA, I’m not overly sure they would want to go down this avenue but my thinking is more than if we dont hear anything no news is good news.


#50

Thanks Symore_Bottoms always look forward to yours and Devex comments.

Be interesting to know what ‘indication’ you are just receiving.


#51

Just getting, could be
I think SB was saying it would be encouraging just to find out that this had been settled!
:grinning:


#52

Posted on LSE Looed

Ukraine TenderToday 01:58
More on the Ukraine lawsuit. I note the comment that FRR have spent “time and resources in Ukraine”

Frontera Resources makes formal complaints to US government agencies, in particular the US Department of Energy, the US Department of Commerce, the US Department of the Treasury, and the Office of the US Trade Representative for violations in determining winners of the PSA competition for the Dolphin site.
This was stated in a letter to Taylor English Duma to the Minister of Energy Igor Nasalik. “The law firm Taylor English Duma LLP notes that Ukraine will receive substantial benefits by observing transparent and fair public competitive procedures, such as those that were first announced in the Dolphin site.
It was with this promise that Frontera Resources decided to take part and spend their time and resources in Ukraine. Unfortunately, if the procedure associated with such a public competition is not followed in accordance with established internationally recognized standards of integrity and transparency, and in return an advantage is given to local participants with dubious qualifications and backgrounds, US oil and gas companies will not be interested in introducing them in the future investments and technologies in the oil and gas sector of Ukraine. We hope that the Commission will nevertheless properly consider the results of the tender for the Dolphin site, and the Government of Ukraine will make a final decision on September 12, 2019, ”the document says.
Recall that on August 7, Frontera Resources Ukraine LLC filed a lawsuit in the Kyiv District Administrative Court , demanding that it cancel the results of the tender for the development of the Dolphin hydrocarbon section on the Black Sea shelf. It was previously reported that Trident Black Sea won the competition for Dolphin.

From kosatka dot media website


#53

Maybe there is still life in the old dog yet! :grin:


#54

Atlantic Council Tweet
UkraineAlert—For the first time in the Ukraine’s history, one political party has a majority in parliament and also controls the presidency. Will this break up the countries oligarchic system?


#55

Posted on LSE this morning

https://www.epravda.com.ua/rus/publications/2019/09/10/651021/


#56

Thanks PopHead do we have a rough translation for this, good or bad? I suppose it shows we’re still alive or Zaza at least


#57

Put the link into Google Chrome Browser and you can translate. It’s lengthy and raises a few questions. Extended interview with ZAZA. Dated today.


#58

From Chris572 earlier

ill paste the link but here is a few comments from zaza

Q-Why did Frontera leave the London Stock Exchange in 2018?
A-“For one reason.” We were underestimated on the stock exchange, so we decided to leave. When the market evaluates us accordingly, then we will return if we want. If not, we will continue to work as a private company.

Q-The relationship between the signing of the agreement and the growth in the value of the shares implies that Frontera is not working to produce gas, but to use the money of its external investors.
A- Probably the most correct answer - I personally invest my money in these projects. Invested a substantial amount.

  • How many of your personal funds have been invested over the years?
  • Lot. More than tens of millions of dollars.

Q-When Frontera lost the Dolphin contest, eight congressmen came out in its defense. How to explain the imbalance between Frontera’s modest results and large political support in the United States?
A - This is not a disproportion. How can financial results be bad when only one deposit has been evaluated by international appraisers at $ 620 million?
And we have three or four more such deposits. In Georgia. These investments bring concrete results. Competitors want us to look from a very bad side. What are the bad financial results? Show me another company that created the value that we created.
For the first time in the history of Georgia, we have confirmed reserves of 350 billion cubic meters of gas. Some 300 billion cubic meters of this volume are recoverable reserves. This has not happened in the history of Georgia. This is already the cost.

Q -How to correctly understand the interest of eight congressmen in defending Frontera? Did you turn to them to speak in your support?
A- “No, but they know us well.” They know very well what we do, who we are, what results we get. When we first came and started working in Azerbaijan, people didn’t have money there to go to the store to buy food, but look what is happening there now. These people know us from that moment.
Now the same thing begins in Georgia. In ten years you will come to Georgia and do not recognize this country at all. It will be an independent country with its oil and gas resources. And the same thing will happen in Ukraine.


#59

Economic truth
Co-owner of Frontera Zaza Mamulashvili: we understand why the Ukrainian government was critical of us
TUESDAY, SEPTEMBER 10, 2019 08:10 - DMITRY RYASNOY
2

A graduate of Tbilisi State Medical University Zaza Mamulashvili told EP about his path to American business, an investigation by the Georgian prosecutor’s office against his company’s management, litigation with the EBRD, and a possible renaissance in hydrocarbon production in Ukraine.
Translated from Spanish, frontera means “border”, but the owners of the American company of the same name - Georgian Zaza Mamulashvili and Greek Dino Nikandros - do not seem to have it. This is directly indicated by the portfolio of assets of Frontera Resourses scattered around the world, but more - the image of the company.

For this structure, long-entrenched status of the partner of international governmental agreements, and for its owners - the experience of participation in the most influential forums of the world such as the Atlantic Council ( The Atlantic Council ), where speakers often speak American presidents.

It would seem that in this situation, Frontera Resourses interest in developing one of the most promising oil and gas sectors in Ukraine, the Black Sea Dolphin Square, is a great success for the country. Optimism is besieged only by statistics.

For 25 years of work in the international arena, Frontera could not rise from the bottom of the niche of participants in venture risk projects. As a result, the company’s annual hydrocarbon production does not exceed 100 thousand tons, and financial results balance between losses and symbolic profit.

In general, what is the investment climate in the country, such are the investors. However, Frontera Resourses insists that the company is already at the initial stage capable of attracting tens of millions of dollars into the development of Dolphin.

Apparently, the desire to emphasize the financial viability of the American company was precisely the main motivation of Zaza Mamulashvili in the decision to meet with the EP. During the conversation, he did not miss the opportunity to express support for Frontera from international financial institutions.

However, the secret of the company’s longevity may be different: according to sources of electronic information, the origins of its creation are retired American politicians, headed by Bill Clinton, the deputy head of the US Department of Energy, Bill White .

Democrat White did not find a place in the Republican administration of Donald Trump, but his position is still strong in the center of the United States oil and gas industry, where Frontera is headquartered, Texas.

This is enough for eight American congressmen to fit in for Frontera Resourses, who lost the competition for Dolphin. According to sources of electronic information, the other day they sent a corresponding official letter to President Vladimir Zelensky. However, judging by the fact that the US ambassador to Ukraine is distancing himself from the American company, the chances of Frontera are not very great.

Below is how Zaza Mamulashvili, a graduate of Tbilisi State Medical University, became an American businessman, an investigation by the Georgian prosecutor’s office against his company’s management, litigation with the EBRD and a possible renaissance of hydrocarbon production in Ukraine.

  • You are a native of Georgia. Who are you by education and what is your first position?

  • I graduated from a medical university in Georgia. He worked as a doctor for a couple of years and in 1989 left to study in the USA to continue his medical career.

These plans coincided with the collapse of the USSR. Then everyone started looking for business contacts with the West. So I began to connect the two sides. This resulted in the fact that I began to communicate with business circles in the USA, who had an interest in the former Soviet Union. So I ended up in business.

  • What was your first position or company where you worked?

  • These were two trading companies. Metex exported steel and non-ferrous metals, MTA ltd imported oil from Russia and Kazakhstan to the United States. By the way, we also worked in Ukraine: with Kryvorizhstal and Zaporizhstal.

  • Who owned Metex and MTA?

  • There were several private investors: I and several American partners. With them, we created this business about 30 years ago.

  • Who was your main business partner in the USA?

  • These people were known in business, then in politics, then together we created Frontera. Let’s say there were the US Treasury Secretary and the US Department of Energy executives.

  • There were many heads of these ministries. What are the last names?

  • This is confidential. ( According to EP sources, we are talking about the ex-Minister of Finance, the late Lloyd Bentsen , the former Deputy Minister of Energy Bill White and the former Minister of Energy Charles Duncan ).

We started working together 30 years ago. This then resulted in Frontera Resourses, where now my official partner is Dino Nikandros .

  • How did these people become your partners? Are you united by medicine?

  • Not. Medicine has allowed me to open so many doors in the United States.

On the one hand, I started doing business, on the other, I started raising money for investments in Georgian medicine. We created several programs, sent students. I knocked on many doors so that business would help raise that money. Initial contacts from this began.

  • How did you get the idea to create Frontera?

  • One fine time, I exported East European and Central Asian oil to Western markets. Bill White, representing President Clinton, drew attention to Eastern European countries.

Interest dwelt on Azerbaijan, because in the sea, where a lot of oil and gas is being extracted now, Azerbaijan was not given the opportunity to produce - it could not share the Caspian Sea with Iran and Russia.

Then the Clinton administration allocated Bill White to solve this issue, and he decided it: Azerbaijan began oil production in the Caspian Sea.

After that, the question arose of how to remove this oil. The development of the Baku-Supsa pipeline project began , through which oil could be delivered to international markets. This became an even bigger bone of contention - Russia was not interested in this. She wanted to pick up oil through Russian ports.

However, the pipeline was implemented and made Azerbaijan independent. Under Clinton, the US government took an active part in the negotiations.

I also actively participated in negotiations with the governments of Azerbaijan, Georgia, and Turkey. In the end, the first line of the pipeline from Baku to Supsa was built, and then a second line appeared.

  • You took part in these negotiations like who?

  • As a negotiator between the three governments. I have advised all these governments in the negotiations. The largest connecting part was Georgian. She connected Turkey on one side and Azerbaijan on the other.

  • At that time, did you already have influential ties in Georgia?

  • I do not know how to determine the influence of communication.

  • For example, did the then Prime Minister of Georgia identify you?

  • I then spoke at the level of the president. The President of Georgia was Eduard Shevardnadze . I spoke directly with him, the project was developed at his level.

  • He perceived you as a representative of the US government?

  • No, I was a representative of a private business, which was connected to this process with the aim of bringing together the positions of the governments of these three countries and companies. They spoke different languages. This was something new for governments.

The contract stipulated that the international consortium AIOC (Azerbaijan International Operating Company. - EP ), which included seven or eight companies, would become the managing operator of this pipe . A few years later, BP became the main shareholder of this project .

  • In the early 2000s, you were chairman of the board of directors of Trans Power Systems. Whose company is it and what did it do?

  • It was a state Georgian company.

I came to the state of Georgia with a project. He proposed to separate a part of the energy system into a separate structure, to connect it with the Azerbaijani and Turkish energy systems in order to use this channel as an independent branch for export and import of electricity. Today, this part of the energy system operates as an export line and belongs to Georgia.

  • How did you end up at Trans Power Systems?

  • The government of Georgia has asked me. It was a period when the prime ministers were Niko Lekishvili , Avtandil Dzhorbenadze .

  • These were members of the Shevardnadze team. He invited you to this project.

  • Yes. With that structure, he made all decisions. I did everything during those two years and left there.

  • In 2001, you headed the American Chamber of Commerce in Georgia . Was this the stage at which Shevardnadze’s feat also took you?

  • Not. The new US ambassador to Georgia, Kenneth Yalowitz, arrived . He asked me to create this organization.

  • What business in Georgia then belonged to you?

  • At that moment I was already engaged in the oil and gas business, Frontera Resourses occupied the largest part.

  • Did something belong to you in Georgia itself?

  • At that time in the region, in Georgia and Azerbaijan, they were very actively engaged in the exploration and production of oil and gas.

  • Is it true that you own 39% of Rusmetali ?

  • Yes, I forgot.

  • Who was your main partner in this company?

  • One of the local Georgian businessmen. I don’t even want to mention him. I have legal proceedings with him today. ( According to sources of electronic information, we are talking about businessman Mindie Mindeli ).

  • A few years ago, the Georgian prosecutor’s office accused Rusmetali of laundering GEL 2.4 million. What was it about?

  • Somewhere in 2009-2011, the general director of this company (Timur Miminoshvili. - EP ) issued cash 2.5 million lari - about $ 2 million. When they started asking him questions, he answered: “I don’t remember.” Here we stopped. These are all official documents that are in the prosecutor’s office today.

  • Was it the management of your business partner for this company?

  • Management entered into a conspiracy with one of the shareholders. They did it together.

  • That is, they stole this money from the company?

  • Yes, but not only these 2 million. There are more. When the investigation began, it turned out that tens of millions were stolen there. Over time, it all grows . There are some schemes. Some kind of horror is happening. Most importantly, the CEO entered into a conspiracy with the shareholder and they did it together.

  • Since then, you have not increased your stake in Rusmetali?

  • It remains. Although this case is in court, it smells of crime, rather large, sooner or later we will determine it too.

  • In 2016, Frontera Resourses won a competition in Moldova for oil and gas production on an area of ​​12 thousand square kilometers …

  • ( Breaks off ) There was not 12 thousand sq km, but somewhere around seven with a little.

  • Since then, 2.5 years have passed. What has been done on this site?

  • This is a very sensitive issue. I do not mind sharing this with you, but I do not want our competitors to hear this. For several years, we have been engaged in geology, geophysics, and processing of all data on this site.

  • That is, geological research. Drilling work started?

  • We have not yet drilled. Now we are engaged in the digitization of all geological material, analysis and processing. This is a huge material.

After we process all this, we will determine the part of these 7 thousand sq km where we will do seismic surveys in 2D and 3D. Based on the results, we will drill new wells. Here is a plan.

MEETING OF ZAZA MAMULASHVILI WITH MOLDOVAN PRIME MINISTER PAVEL FILIP
SOURCE: GOV.MD

  • Does Frontera in Azerbaijan have a 450 sq km plot?

  • Not. We had two sections there in the southeast of Azerbaijan, 500 sq km, and several thousand square kilometers in the west of the country.

  • Is it true that you took out a loan from the EBRD to develop these sites?

  • Yes. This was the first time that the EBRD has allocated $ 60 million for oil and gas operations.

(In 1998, Frontera Resources signed a contract on commercial oil production at the Kursangi and Karabagly fields in Azerbaijan. The signing of the agreement was preceded by an official visit of Azerbaijani President Heydar Aliyev to the United States. He met with Bill White, who previously held the post of US Deputy Secretary of Energy. - EP )

  • What are the results of production at these sites?

  • When we took these deposits, there was zero production. After 1.5-2 years, production was already somewhere around 8 thousand barrels (1 thousand tons. - EP ) per day.

  • What is the name of the company that produces on the hydrocarbons you received in the fields of Azerbaijan?

  • Salyan Oil. We no longer own it. We sold it and left there.

  • For what reason did the EBRD sue Stockholm arbitration on a loan issued by Salyan Oil?

  • The answer to this question will touch the Azerbaijani government.

  • You can comment on your own.

  • They were not satisfied with the behavior of the management of the state company Socar.

  • Do you mean that Socar was a partner of Salian Oil on a project financed by the EBRD, and the EBRD still had questions about this activity?

  • Yes. They were scared and did not want to have anything to do. By the way, after that all management at Socar changed.

  • The EBRD has sued both companies?

  • Not. In total, there was not a very attractive investment situation there. On this I will finish commenting on this question.

  • The last question in this regard: how did the arbitration end?

  • Ended up with the fact that some losses Socar had to pay. ( According to the sources of electronic information, as a result of the conflict, the EBRD left this project ).

  • Since 2015, you have been a member of the Board of Directors of the Atlantic Council . Who invited you there?

  • This is a very interesting organization, amazing people work there - very hardworking. For many years I was a member of this organization, I honestly worked with this organization and with these people. Over time, there was more and more cooperation, we began to work closely in many areas, on energy, political, geopolitical projects.

  • Who invited you to the board of directors?

  • It’s hard to answer. The decision is made by a very large group of people. I talked with many and at a certain moment I heard from one, second, third offer and then accepted it.

“Is it true that John Herbst invited you to the Atlantic Council ?”

  • Not. I met him at the Atlantic Council.

  • Herbst is considered a very influential person in Ukraine.

  • He is well versed in all the nuances - geopolitical, economic. He knows Ukraine, the American political and economic system. He has vast diplomatic experience.

  • He advises American business in Ukraine?

  • What I can say for sure: John is very interested in Ukraine developing, very much - politically and economically.

  • In 2015, Frontera Resourses signed a memorandum of cooperation with Naftogaz. Was Herbst’s contribution there?

“No, John has nothing to do with this.” The first documents in Ukraine we signed in 2012. This is Stavitsky was the head of the Ministry of Energy.

We have signed a protocol of intent and confidentiality with the State Geographical Service. The latter implied that we cannot disseminate the geological and geophysical material transferred to us without the knowledge of the State Geological Service.

  • What assets do Frontera own in the world?

  • Our most active position is in Georgia, Moldova and Ukraine.

In Georgia, we produce oil and gas. Here is the geological corridor where we work ( shows on the screen of your computer ). We see the same geological deposits. Since no company has such experience, we are the only company that operates in Azerbaijan, Georgia, Moldova and Ukraine.

  • What production volumes does Frontera operate?

  • The maximum volume was somewhere around 10 thousand barrels per day (1.3 thousand tons. - EP ).

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

  • No, less. To two. In 2018, we produced about 500 thousand barrels (about 70 thousand tons. - EP ). It’s not about how many barrels. The fact is, for what period the production is designed. Will she stop in two months or in 20 years?

At our project in Azerbaijan, which we have already talked about, production is still ongoing. For us, the most important thing is not just to find oil and gas, but to find deposits from where it can be commercially mined for as long as possible.

  • Frontera is already 22 years old. How much has she invested in production during this time?

  • The company is almost 25 years old. They invested more than 1.5 billion dollars. This is not only in Georgia, Azerbaijan and Moldova. We had projects in Bolivia, Colombia. We in Venezuela almost signed a contract. Hugo Chavez came and it was all over.

  • The amount of gas produced over the period of the existence of Frontera has blocked at least half of the amount of money invested by it, that is, at least $ 700 million?

  • More than 700. Azerbaijan and Bolivia were profitable projects. In Georgia, we are still in the red: we invested about $ 500 million, and we extracted $ 100-120 million. However, what we found there will cover the investment by orders of magnitude.

  • What are the financial results of Frontera for 2018?

  • Somewhere 1.2 million dollars in profit.

  • In 2017, Frontera held negotiations with the Ministry of Energy on the development of oil and gas areas. You submitted an application for the development of two sections: one on the land part of the Odessa region, and the second on the Black Sea shelf. You wanted to master two sites or what will give?

  • We studied all the regional seismic lines in Moldova, which are not only on land but also at sea. We have drilling data on deposits that show the same reservoirs throughout this region.

  • So you wanted to master both the land and sea parts?

  • It does not matter for us where the political border is, where is the sea, and where is land, because we are hunting for deposits of oil and gas.

  • When applying to the Ministry of Energy of Ukraine in 2017, your then application included areas of the Odessa and Bezymyanny fields, which are now operated by Russia that occupied Crimea. How did you imagine the work in this part of the territory?

  • In the oil and gas business, there are many examples where oil and gas exploration and production take place in such conflict areas.

  • So you felt in yourself the strength to agree with the Russians?

  • Of course, but I don’t know, perhaps, “agreeing with the Russians” is a wrong phrase.

  • Well, not in the sense of a bribe, but in an official way.

  • We feel very confident that there are good prerequisites. They justify our optimism that we will work there without question.

  • What are Frontera’s investment plans for the Dolphin site ?

“We plan to drill seven wells there over five years.” One well will cost $ 15-20 million.

  • In addition to these costs, you will need to build a pipeline from wells to land with a length of about 130 km. How much more money is this?

  • Another about 250-300 million dollars. However, it is too early to talk about the pipeline. It all depends on what will be the capacity of the productive zone.

“Even if you do not take into account the costs of the pipeline, seven wells are $ 140 million. Where will Frontera get so much money?”

  • We have a large and strong group of private investors who are interested in investing with us. We will raise money and invest in Dolphin.

  • The distrust of Frontera from the Ukrainian authorities and competitors is explained by the fact that this company is not known in the Ukrainian market. Let’s try to refute the information that you do not have money. Name one or two potential investors willing to give you money.

  • Probably the best counterargument is what we have already invested. I have already said that in Georgia we invested $ 550 million. Where did this money come from? In Azerbaijan, we invested somewhere around $ 450 million. Where did this money come from?

Everyone knows how this money appears. If you have a good project, then you can attract good money. We did this and will continue to do it. Money can be raised in the stock market, in the private capital market.

When we became a public company, Morgan Stanley brought us to the London Stock Exchange. This was then considered a very successful IPO. In addition to Morgan Stanley, we work with other banks, for example, with JP Morgan , Evercore , Jefferies .

  • That is, these financial institutions are ready to give you money?

  • Yes.

  • Why did Frontera leave the London Stock Exchange in 2018?

“For one reason.” We were underestimated on the stock exchange, so we decided to leave. When the market evaluates us accordingly, then we will return if we want. If not, we will continue to work as a private company.

  • Is it true that Frontera annually holds exchange agreements, that is, attracts external money on an annual basis?

  • No, this does not depend on the calendar year, but on the availability of the project.

  • They say that Frontera lives from project to project: it signs agreements with governments, its shares fly up, it attracts money, but in the end the project does not implement, and then the cycle repeats.

  • Let those who talk about this call at least one example when we signed an agreement and our shares went up. This has never happened before.

By the way, in 1999 or 2000, we started drilling at one field in Georgia. The then president Shevardnadze arrived there. There was a ceremony, everyone was happy. Then someone wrote that Frontera brought the president, their shares went up and they “took off” a lot of money.

And then we were not even quoted on the exchange. This is a fairytale. Not a single person will show that when we signed something, this affected the growth of our shares.

  • The relationship between the signing of the agreement and the growth in the value of shares implies that Frontera is not working to produce gas, but to use the money of its external investors.

  • Probably the most correct answer - I personally invest my money in these projects. Invested a substantial amount.

  • How many of your personal funds have been invested over the years?

  • Lot. More than tens of millions of dollars.

  • When Frontera lost the Dolphin contest , eight congressmen came out in its defense. How to explain the imbalance between Frontera’s modest results and large political support in the USA?

  • This is not a disproportion. How can financial results be bad when only one deposit has been evaluated by international appraisers at $ 620 million?

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And we have three or four more such deposits. In Georgia. These investments bring concrete results. Competitors want us to look from a very bad side. What are the bad financial results? Show me another company that created the value that we created.

For the first time in the history of Georgia, we have confirmed reserves of 350 billion cubic meters of gas. Some 300 billion cubic meters of this volume are recoverable reserves. This has not happened in the history of Georgia. This is already the cost.

  • What is the name of the company in Georgia, which is developing these four fields in the interests of Frontera Resourses?

  • Frontera Eastern Georgia.

  • Frontera has more political weight than money. Why?

  • Do you think there were no people in Georgia who wanted to stop us? There were such things too. One way or another, now it is being realized. Therefore, the fairy tale that someone wants to portray us as a company with problems is all part of the strategy. I can provide you with all ratings and reports.

  • How to correctly understand the interest of eight congressmen in defending Frontera? Did you turn to them to speak in your support?

“No, but they know us well.” They know very well what we do, who we are, what results we get. When we first came and started working in Azerbaijan, people didn’t have money there to go to the store to buy food, but look what is happening there now. These people know us from that moment.

Now the same thing begins in Georgia. In ten years you will come to Georgia and do not recognize this country at all. It will be an independent country with its oil and gas resources. And the same thing will happen in Ukraine.

  • On the one hand, congressmen are supporting Frontera, and on the other, during the week of your presence in Kiev, the US ambassador to Ukraine has not met with you. Moreover, they say, he distances himself from you. Why?

“I don’t know, to be honest.” I never tried to meet him. In any case, I met with many officers from the economic department of the embassy. I was even pleasantly surprised how friendly they are.

  • Perhaps it is more correct to say that Frontera has local support in Texas, where do most of your partners come from, and not in the USA?

  • I do not know. I’m even uncomfortable. I don’t even know if it’s real that someone at the embassy thinks positively or not positively. In all countries where we worked, all embassies always supported us, and we are very grateful to them.

  • Have you met with Vladimir Groisman? Was there an opportunity to convey to him the position of your company on Dolphin?

  • Not. The only time I met him was when he was on a visit to the United States. Then in Washington there was a meeting with business circles.

  • How do you explain the critical attitude of the Cabinet of Ministers to Frontera?

  • We very clearly understand why this attitude has developed. As soon as the authorities announced a contest, they brutally attacked us with lies in the press.

  • Who are the customers of these messages?

  • As far as I am told, these are our competitors.

  • On “Dolphin” claimed “Ukrneftebureniye”, Trident and Socar.

  • It was not Socar.

  • The circle narrowed to two.

  • At a certain stage, it seemed to us that this was the beginning of Ukrnefteburenie, and then Trident picked it up. It seems that now they are united.

  • These companies have different goals.

They say that Ukrnefteburenie participated only in order to obtain the status of the subject of the tender in order to have reason to challenge it in court.

Trident must have entered the competition to start developing Dolphin. This project is the company’s last chance: the term of use of the $ 200 mln raised by it expires on December 1.

  • Probably, but, as far as I know, until they announced a competition for Dolphin, Trident did not even know about the existence of this project.

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  • “Dolphin” is located not far from the occupied Crimea and, in the event of hostilities, falls into the conflict zone. Why are big western companies afraid to come to such projects, and Frontera not?

  • Firstly, neither large nor small companies like it when there is a conflict situation.

Secondly, this project is reconnaissance. You need to take a chance and invest in intelligence. If intelligence confirms that there is a commercial field, then you need to find out what it is. Companies like us come to such projects.

Thirdly, in Ukraine, unfortunately, it is not such a transparent and easy system that all companies come and submit applications for participation in the competition. The complex of these problems makes many stay far away.

OIL GAS PRODUCTION US GOVERNMENT

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#60

Stranger than fiction!!!