With so much going on here now I am surprised that companies such as Beaufort Securities have not given a speculative buy rating on FRR. Are FRR really still so much under the radar? Surely there has to be some interest being generated soon........???
I pulled this out of the Dec 11th 2014 rns and the last sentence from SN maybe about to happen. I have a good feeling about the next half of this year.
In this context, I am extremely pleased with the focused dedication of our technical and commercial efforts as we continue to forge new, important and transformational breakthroughs in our work. These advances are similar in nature to the sustained, dedicated technical efforts that have proven instrumental in transforming significant value from portfolios in the North American unconventional reservoir boom of the past decade. Our work in Georgia has many similarities and has continued to follow a similar progression. Because of this, I strongly believe that it will bring great value to our company as it continues to progress.
It' all a bit superfluous really but I did get a response from Liz Williamson
Thanks for your interest in Frontera and in our safety performance. Explanation found below in answer to your question.
· Frontera experienced an occupational injury (a lost time injury) on March 15, 2008. · We worked injury free until experiencing an injury (a lost time injury) on June 20, 2013. During that period (from 2008 until 2013) we worked nearly 2.8 million hours. · The June 20, 2013 injury “started the clock” again and by June 14, 2015 we had worked 1 million hours injury-free. · Therefore from March 16, 2008 through June 14, 2015 we had worked 3.8 million hours (“nearly 4 million hours over the past 7 years” per website article) with only the one (June 20, 2013) injury.
I hope that this provides the explanation to your question. Again, we appreciate your interest in Frontera’s HSE programs and performance. We would refer you to the HSE section on our website for additional detail, including the most recent annual Health, Safety, Environment, and Community report.
http://www.ener2i.eu/page/34/attach/0_Georgia_Country_Report.pdf Not sure if this link will work but in this report it states that the natural gas reserves in Georgia were very limited so to my mind the proven FRR reserves must be the ones being exported as per the recent figures. There has also been a in USAID project report on gas infrastructure between 2010-2015. With all the rest going on and the bro political background I am becoming more and more confident of the future of FRR and look forward to the next update
IG. I posted similarly to you on iii last week - and agree with everything you say bar the timetable. And you may be right there as well, but I think the drive here will be the readiness of the behind scenes commercial discussions.
There is no doubt in my mind that we are now watching a well developed plan being played out - and this has probably been kicking around for at least 18 months. Hindsight is a wonderful thing but the CPR was the key. It was requested not for us but for one or more potential partners. FRR didn't ask for shallow field resource data because our friends know, or are in the process of knowing, everything about the shallow. And the CPR was only ever about the deep because that is where the costs go through the FRR roof. In my view the MK CPR prospective resource estimates are therefore likely to seriously understate the MK reserves - because they ONLY talk about the deep fields (as Bugsy was the first to spot).
And you quite rightly talk about the MOU. An MOU is not some casual maybe/maybe not process, and at this level still require considerable due diligence and a degree of open book reporting by both parties. And the pre-curser is clear demonstration of adequate accessible funding in the event of moving to action and contract. It wouldn't even surprise surprise me if the third party wasn't represented in the background at the signing process (and it certainly wouldn't surprise me if they already had some shareholding below 3%, probably bought at 0.80P, as a kind of sign of "intent"
IG - I can think of no other reason for the headroom than the one you state. You could argue that the shares are actually for the third party to buy, but why would SN want to do that?He actually dilutes his own equity by 25% in that scenario, and ceases to be the largest shareholder. He and ZM will (in my opinion quite rightly) want their shares maximised before the new world comes into play.
As for getting reserves onto the balance sheet. Well thy might make a token gesture at some point, but if I was SN I would only do this in phases, and only after a deal is done. And if I was the "third party" I would be insistent on this - otherwise they can't offset the costs with the emerging positive balance sheet (assumes some form of JV).
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