Was this paragraph always at the bottom of the Governance page?
"The Companys articles do not contain provisions equivalent to the UK City Code on Takeovers and Mergers. A takeover of the Company would not be subject to the UK City Code on Takeovers and Mergers, as such does not apply to the Company."
Hi PB, its been a painfully journey for many on this board, and I sympathize with freedom who requires an sp of 10p to break even. I bought my first share here at 80p sold some at £1.20 then kept adding shares on the way down to 40p. For 4/5 years I just watched them drop until I was 97% down on my investment. I read every scrap of information I could find about Frr and every post on this and lse board. Not once did I ever consider throwing in the towel
I was thankful that I had the money to average down, so from 2014 onwards I did just that, and my average price today is 0.39 after transferring most of my trading account into my ISA 2 weeks back.
97% of my investment is now in my ISA which was the amount I was down all those years back.
How very nice to see lazyjacques is still invested, like SB a name from the very distant past.
Good news just around the corner.
Remember you have not lost or gained a penny till you sell them.
We are all speculating on when the real news emerges - place your bets! However I do think there a few pointers and conditions.
First - we may get more progress reports and twitter feeds first. Their way of saying we are still at it. and things are going to plan, whilst we await the main event. However we also know that Zaza is in town on 9th May - just two weeks tomorrow. Now I am sure that he is in London for more than just the PI event, but he didn't have to call another meeting at this point. And he knows exactly what is expected - so one assumes he must be pretty confident.
On the other hand I am sure he is still bruised by some reactions at, and certainly after, the last event. The team and advisers will have candidly reviewed what happened, and I think they will have decided to be far more careful with words. So dropping hints on flow rates ahead of a reasonable test period will be very unlikely. Also explains some of the less "colourful" RNSs in the last 2 months.
We also know that the Caspian Energy Forum takes place in Tbilisi on May 8th, to be opened by the Georgian PM. Will Zaza attend? (He is not a speaker - they all seem to be politicians). And will he want to make announcements to coincide with this roadshow? Don't know - and I have tried to access the delegate list (300 expected) without success
And one further thought. Despite the Arbitration possibility Zaza will not only want to involve the GOGC/SAOG in any test confirmations - I would be pretty sure he would have to supply significant data to them first before going public. In similar vein the Nomad will want clear evidence of any significant claim - and if necessary request an independent view before signing off (they have a team of O&G experts they can refer to). The degree of scrutiny would be of course tailored to the degree of likely market reaction.
Finally - you can be very sure that a whole series of larger operations are waiting in the wings of awaiting the first test results. Zaza will be well aware of the widespread interest, and will want to actively manage news for this audience as well
All on a day when there are predictions that oil will soon hit $100 per barrel and that the US "frackers" are rapidly moving towards a supply and demand shortfall (see my post earlier today for the link).
Well the charts are nicely balanced to go either way - a sink to .4p or a surge up are both in there as possibilities so I am out for now.
The fine balance leads me to think that folks are expecting imminent news and that may decide the direction - sticking my neck out - news this week or very early next - fingers crossed for all those holding here - your faith should be handsomely rewarded if there is any justice - heaven knows this company has put some of you through the mill - time for payback - good luck.
Having said that I think this prospect is mothballed - I can't remember the last time it was even mentioned. I suspect they have a fair bit of data though - and would resist any give up here simply because the data itself has a value to the right explorer/developer
Separately good to see Kent's roll call - a few names we don't see often there
Hi ken still here, I have 7.3M,my first buy was £6,000at 1.3p bought many more at .9 .8 .7 .4 and my last buys about .1 I need about .8 to get even, been there once or twice but not sold. I was at the last meet in London and had the chance to speak to zaza, he is either
the world bigest bs artist or he is a good man. I said many of us pi were in very deep to deep really, and was he going to do right by us he looked me in the eye and said yes, shook my hand and said again yes definitely I want let you down.so im holding till the fat lass sings. I am hoping for it to come good for all the good people here and on lse.Im going to the meet on may 9 hope to see some of youfolk there.
Just re-read all the prospect info on FRR website and the potential is truly mind boggling. But notably absent is anything re. BE-A. Wonder why...unless I can't see it. Anyone point to Basin Edge A info?.
Yes KNEES, my "right off draw" [write-off drawer].
Considering that the shares owe me OVER 10p EACH, after AVERAGING DOWN, this investment is indeed a write-off from my point of view.
Let's just say I'm a lot older and wiser than when I bought into this giant dinosaur stool. I have kept my FRR shares all this time, as a constant reminder of what happens when you buy and average down without having done any research, which is what I did here.
Some people would have just binned the shares off and tried to cover up their mistake. I chose to use it as a way of making sure i didn't make the same mistake twice.
Two belting posts in this thread just now.
Personally I prefer all the current Wells testing very positively, for the market before we get a suspension on a deal.
I expect there to be lots of market action on a series of great news items that are promising here.
T45 testing results 800-1000 bopd, U2 stimulation and gusher announced flow rates delayed on Exxon instructions, Dino2 stimulation and 800bopd, T39 gusher 800-1000 bopd.
Thanks for the cue mMax1 I enjoyed Charlie Daniels classic Queue indeed!!
Seriously, makes you wonder why Exxon would send a 'technical team' to Georgia when there are so many opportunities around the globe, like in Africa, MidEast, Europe and Australasia? Plus, Exxon took a 2.5% stake in the BTC (c1700km pipeline), so they are demonstrating strong regional interest. Is BP in the mix too with Exxon? Would make a lot of sense given BP's interests in Azerbaijan and their O&G investments in pipeLine.
Then there is the issue around the Arbitration Request which came out of nowhere - but why now and why so suddenly? Presently the whole of Georgian O&G industry is dormant so why create turbulence when lil ol FRR is close to operational breakthroughs?
So, to wrap up the whole current situation, worth remembering that SN first told us about strategic partners in the investor call held in late November 2016. But why has this deal not happened? I believe the farmout hinged on FRR securing the production license, but we know the Georgians have been dragging us along despite submitting the Feasibility Study Report back in April 2017. But I don't believe the deal has gone away, probably on hold. So, perhaps this Exxon team is on the ground to get the Georgians on side, and push FRR across the line????
Next few weeks will be important both on operations and the Arbitration hearing. But you get the feeling the request for an Arbitration hearing was hurried as they didnt even submit a 'full statement'.......perhaps because they knew Exxon was coming so this could just be a tactical move.
Finally, if it is Exxon, they are so huge ($260bn Mkt cap), that even if they offered their shares to acquire FRR (like the $36bn XTO acquisition), I would readily exchange my shares but at what price?
But recent Govt actions and progress in the field is all inter-related to Block 12 in my humble opinion.
In the meantime and as we speak, T45 is being tested, Ud is getting ready for a frack and the drill rig is getting ready for T39.
Just catching up after being out and about all day, and have to say I am staggered that we did not see a big rise today on this news and given everything else which is happening. Exxon clearly had a very big team around that table so it wasn't just a 'diplomatic visit' imo. I would hazard a guess that there would have been specialists in geology, reservoir management, well engineering and country risk management there, to put the state agencies on the spot, prior to heading out to the well sites where the action is taking place.
The visit would have been a long time in the planning and its timing with FRR's well testing ops cannot have been just co-incidental imo. Neither is it just a co-incidence that the Georgian state agencies have woken up and realised that there might be an opportunity to earn some brownie points in pressuring FRR to agree to some amendments to the PSA. Plenty of room for compromise there imho, either by surrendering one of the peripheral blocks or agreeing that past expenditures on some of those blocks is written off rather than offset against future revenues from the soon to be highly productive fields. That way the state will be able to receive its share of the revenues at an earlier date than would otherwise be the case.
The Georgians would be extremely foolish to act in an overly bureaucratic way at this juncture. When a company of the stature of Exxon is interested in setting up shop in your country and you have unfriendly neighbours it is like having a division of the US army based there and Uncle Sam will protect it at all costs. I am therefore inclined towards the view that there will be early resolution of the issues, subject of course to Exxon being satisfied by what they see at the well sites.
Still shaking my head in disbelief that anyone in their right mind would be selling today of all days, but hats of to Mr Bugsy for a fantastic discovery.
Just to remind everyone after a clearly "terse" meeting with MOE/GOGC the Ministry made a statement on July 12th 2017 that included the statement: "To support its work program and achieve profitability, Frontera announced in May that it needs to focus on securing a strategic partner. Any assignment is subject to the satisfaction of all the requirements of the production sharing contract."
Now they are making good progress on Tarabani oil - and you can see a self-funded outcome here with each well costing circa $1 million. However outside help would speed things up.
New deep well gas drills come in at around $5 to 7 million to get down to 5000M - way out of FRR reach. U2 is not about revenue in my view - it is about proving. And within around 4 weeks we should have testing that goes some way to prove the point.
Any extra revenue will be a bonus - but my suspicion is that we may see strategic moves long before any pipeline gets hooked up. Meanwhile success on the oil allows Zaza to perhaps play a little hard ball
continued strength in oil price keep improving the economics of FRR assets - effectively all we've done this week is reverse the damage that TW did with his revelations. Can see a really strong finish towards the end of the week as FRR continue to make positive progress on UD2.......hopefully with Exxon looking on keenly.
Better out than in - wouldn't want to be out when the real news comes out! GLTA
That Exxon story is indeed very interesting, well played Bugsey.
The fun we had back in the day re Frr being umbilically tied into the US counter Russia machine might yet prove itself to have some merit.. I wonder if it was Mike Pompeo hovering up those ongoing YA sales via his personal trading account :-)
Good luck to all fellow holders in what are going to be fascinating coming weeks....not least Mike if you're listening in ..
Worth, re-highflying this hugely important sentence from Bugsy-b discovery......"The company's technical team will remain in Georgia for a few days. During these days, ExxonMobil representatives will get familiar with existing geological and geophysical data together with Georgian specialists and jointly plan future prospects."
Who's to say they won't be visiting Block12, the Taribani and MK fields? Remember that tweet from FRR on the 12th April "...Well stimulation operations progressing at T-45, the second busiest well site in Georgia after Dino-2 #FRR"
So, if they need to get "familiar with existing geology" at an advanced stage, why not visit the two busiest drilling sites when you are there? Regardless whether a deal is in the making or not with FRR, just having Exxon in Georgia and meeting senior Georgian delegates will indirectly support this lil US Oil company, #FRR I believe.
Totally agree with WHI's comments this morning, particularly this part.........."The testing operations represent one of the most exciting appraisal drilling programmes being undertaken by an AIM company in 2018, in our opinion. We hold this view because the programme is premised on the successful and established long-term production (circa 9 years) from a single zone, due to the scale of the resource (109 mb recoverable, based on our estimates) and because success would represent a play opener on a massive 100% held land position.
We retain our 0.74p/sh fair value estimate. Our success-case valuation for Taribani (Zones 9, 14 and 15) equates to $484m or 2.2p/sh."
And as Devex rightly says, this valuation excludes the fracking results from the deep gas well Ud, which is happening RIGHT NOW.
Frontera Resources (FRR) £ Corporate £ Dino-2 well logs 78.8m of net pay
Market Cap £86m Price 0.55p
Frontera announced yesterday (circa 9:18 AM) that the Dino-2 well drilled into the Taribani oil field encountered 78.8m of net pay based on drilling and wireline logs. Logging further confirmed that the cement bond holding the steel casing in place is sound, which is a precondition for successful fracture operations. Oil and gas shows were observed during drilling.
This is the second well in a three well campaign at the Taribani oilfield. The objectives of all three wells are identical: to produce comingled production from Zones 9, 14 and 15 after independently fracking each zone. The company is currently preparing to frack the first of the three wells, the T-45 well.
We had anticipated a good log result and cement bond, so the news from Dino-2 is line with our expectations and focuses attention on the critical forthcoming frack operations and production rates thereafter.
The testing operations represent one of the most exciting appraisal drilling programmes being undertaken by an AIM company in 2018, in our opinion. We hold this view because the programme is premised on the successful and established long-term production (circa 9 years) from a single zone, due to the scale of the resource (109 mb recoverable, based on our estimates) and because success would represent a play opener on a massive 100% held land position.
We retain our 0.74p/sh fair value estimate. Our success-case valuation for Taribani (Zones 9, 14 and 15) equates to $484m or 2.2p/sh.
Noting of course that any U2 success is not included in these valuations at all
I must agree that the Exxon story is very interesting (Bugsy posted it on both LSE and ADVFN - obviously joining The Fozzer and others in infiltrating and then taking over the ADVFN FRR board!). A few points to ponder - all of which I find positive.
- Politically these countries are very high on the US interest list. And Exxon is about as political as it gets (noting that Tillerson only left Exxon in early2017. Wonder what he is doing now?). And of course we have various Republican Senators/Congressmen prominently promoting the Georgia/FRR agenda.
- BP are in Georgia and heavily involved in pipelines. Exxon have no interest in the pipelines as far as I am aware. It is another gap in their portfolio
- Meanwhile FRR have a potential spat with the GOGC/SAOG - is this related? And FRR are using twitter to communicate like never before. But the RNSs have become way more "matter of fact". The last time Zaza talked about impact and excitement was on 27th February - the RNSs have changed since then, but the twitter feeds have continued apace. I think the Nomad might have had a word, but behind the scenes discussions might also have reached a stage that demand a lower key approach .
May 9th will be very interesting indeed - wouldn't want to miss that one! As others have said exciting times
Very interesting and potentially substantial development for FRR, probably motivated by US politicals, no doubt. I also think SN may have leveraged political and industry connections (via Atlantic Council and ConocoPhillips) to bring this about. The bigger question is (if we put political motivations aside), why the hell would the biggest oil company would be interested in country like Georgia where oil and gas production at best, is negligible. So, I believe Exxon has seen all the data and log samples and are convinced with B12 potential/geology. Remember, FRR has been saying for a while that our Gareji payzone shares the same maykop formation that is being exploited offshore in Azerbaijan and could have 202TCF. However , the differences are (and they are big differences), first, we are onshore and so much cheaper to operate and 2) there is huge amount infra running through to B12 making transportation convenient. Now, the other big factor that comes in to play and is a MASSIVE sign is the arbitration request which popped out of nowhere. Well, not really. Consider this for a moment: The Georgians would have known for a while about this official Exxon trip and they thought, 'holy sheeiit' something is going down with FRR so better try to claw back some of this prospective acreage, which is completely different to what they were telling us in November when they said you have another 5-yrs of field study.
The more I think about it, the more I believe FRR is inter-connected with high-US political policy to reduce Russia's energy grip on Europe. Remember the next big transformation or energy independence project is Moldova where 'lil on FRR has already secured a 50-yr PSA, followed up with Ukraine. If FRR is clearing/ploughing the road for a Major like Exxon, surely we are made.
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