A post from Jiff just now on LSE:
Link below, on mobile earlier this morning. Similar content, states Frontera turned down an offer at some point. Hopefully a sign that an agreement will be reached between the parties. somewhere between the offer and what Frontera are looking for. which is a positive for me. GLA
Quote: However, a corporation spokesman said the corporation offered Frontera" a settlement, but the company declined the offer.
20.ianvari .2020 13:36
FRONTERA DEMANDS $ 3.5 BILLION IN COMPENSATION FROM GEORGIA - ALL ABOUT THE DISPUTE
Today the Georgian Oil and Gas Corporation (GOGC) is involved in an arbitration dispute - the American energy company Frontera is seeking $ 3.5 billion in compensation from the oil and gas corporation.
Frontera came to Georgia in 1997. In 1997, the Company signed a petroleum exploration and exploration work with the Ministry of Energy of Georgia on the XII License Block in Eastern Georgia.
More specifically, Frontera’s extraction infrastructure is located in the Taribani Valley, in Marechevi and in the village of Mirzaani (outer Kakheti). The company has several wells at each point. In addition to Georgia, the company also operates in Moldova. Frontera
The contract between the state and the private company contains a record of the Profit Sharing Agreement, which makes Frontera liable to the State.
Under Shevardnadze’s name, there is a contract with Frontera - a contract for equity distribution and a study of a refinery - indicating that the company had previously discussed the construction of an oil refinery in Georgia. The document itself is a commercial secret and is not public.
To date, local natural gas and oil production in Georgia accounts for less than 1% of total energy consumption, which is due to the lack of adequate supplies and / or failure to date.
Frontera made the loudest announcement in Georgia on February 1, 2016. Frontera CEO Steve Nicandros told the Atlantic Council that natural gas supplies in the South Kakheti region could amount to 5.3 trillion cubic meters and that Georgia could gain energy independence and become an exporter by shale gas. Soon after the announcement, the value of the company’s shares on the London Stock Exchange rose by 17%, and as time went on it became clear that the company’s statement was untrue. At the time, despite numerous requests from the Ministry of Energy and the Oil and Gas Corporation, Frontera did not provide technical justification for its “discovery”. However, it is important to note that by August 1, 2016, Frontera would have to pay $ 30 million to the State of Georgia under a revenue sharing agreement. In July 2016, it was revealed that Frontera had filed for bankruptcy for the company responsible for this payment .
For the past few years, there has been a dispute between Frontera and the Oil and Gas Corporation, though no publicly announced claims have been made.
This was only publicly announced in the summer of 2019 with the publication of the 2018 Audit Report by the Georgian Oil and Gas Corporation.
Link to full article: