Based on the figures I was using (which are probably nowhere near FRR'S costs to be honest), 2200boe per day would net Frr a cool 2M-2.5M per month, possibly to help keep the company afloat while they prove up their 202TCF asset.
How much does it cost FRR to produce a barrel of oil. Also, what is their profit margin on this? I read they were meant to start producing 2200boe per day November sometime, however I haven't seen an RNS confirming this. Possibly may come out very soon? SP should fly as a result.
July 2011 was when frr held their last restructure. They issued shares at 4p to convert debt to equity. Since then they have not raised any new debt finance outside the RPN or YA drawdowns. After that Outrider acquired a chunk of the $30m remaining loan notes that were not converted at a heavy discount and hold them to this date buying from a distressed seller who held the notes. All the loan notes that were converted had suffered substantial losses and that includes Steve. After the restructure alot of former note holders had equity positions that they exited and this was a major drag post 2011 as they sold into any rise. Once they had exited we ended up using the SEDA with YA and that has put further pressure on the share price. Outrider sold the equity they acquired as did DDJ the other major holder.
This has been a big problem for frr as it has restricted the amount of cash raised in the SEDa placings and has put the share under constant pressure while revenue remains illusive. The recent CLN rollover is simply the latest chapter in the restructure started in 2011.
I strongly recommend any new holders to read the AIm admission documents and the RNs from mid 2011.
Liz Williamson used to be the communications director but she abruptly left mid 2016 when budgets were tight and since then the roll has not been filled by abchurch are playing more in the space now.
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