Good post and I largely agree with your view. I'll be adding next week when funds permit. A fair way to go to get t back to my average but i still think this will turn around and that the necessary people have their positions now. Hopefully the CLNs will be erased from the balance sheet come year but before that we hit or nearly hit pilot production targets. Hopefully the last weeks of pain, the sooner we have some positive RNSs the better. Before that I'll take more risk and add, well will add next week when able.
In addition to the specific work programs that were scheduled to begin this month (advanced well stimulations, Udabno testing, etc.), we're now in the 4th quarter and heading towards the end of the year.
SN had given estimated production targets for the end of 2016. From the Sept. 5th RNS:
"Overall, the Company is on track to achieve its previously announced year end pilot production rates of 2,200boe per day."
Of course, FRR's projections have historically not been very good, but I figure if they even get half way there, that'll still be a significant improvement. Coupled with the increase in oil prices (Brent Crude nearly doubling off it's 2016 lows), that should put FRR on a firmer financial footing.
Furthermore, with the elections over, a new Energy Minister in place, and Georgia being accepted into higher-level EU energy circles, I think there's now a much better chance of getting our gas operations back on track.
At the very least, I think we have a much better chance now of having the brakes lifted on our gas production operations, in which FRR has indicated we have around 7mmscf/d of production that's essentially ready to go.
If nothing else, I can see Georgia giving us the green light for this as an act of 'goodwill' to show the EU that Georgia is opening up their natural gas resources to free market forces. I feel this can really happen at any time, and will quickly lead to a significant increase in FRR's revenues.
The share price seems to be stabilizing around these levels, therefore, I have recently added to my FRR position in anticipation of more positive price action going forward through the 4th quarter.
Companies shall submit information for preparation of forecast balance of natural gas of Georgia to the Ministry of Energy of Georgia and/or JSC “Georgian Oil and Gas Corporation” by October 25, 2016, pursuant to Article 13 of the Natural Gas Market Rules.
Bugsy-do I recall right that you posted this about a week ago- interesting to see if FRR figures are made public
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