Mobilization to the next planned location is underway and drilling of well #34 is expected to commence before the end of September. The well will take approximately fifteen days to reach total depth. Well #34 is planned to be drilled to a depth of approximately 400 meters and is designed to continue to explore and expand the identified gas potential associated with the Mtsare Khevi Gas Complex.
Debt issues are YEARS away, management know this and hence big production push on both oil and gas so long before debt becomes relevent the sp will be many multiples of todays price imo. Lgo went from .5p to 5.5p in 6 months just think with our huge resources and gas in production where our sp could be in a few years. We may even have sold out to a larger company by then anyway at a big big premium.
The debt is one of the main concerning factors with long term investment hence the failure to hold any gains in the sp. The other problem is the lack of confidence in regular productive updates. Just my opinion though.
The Taribani Field Complex is an area that encompasses approximately 1,400 square kilometres and includes the discovered yet undeveloped Taribani, Kila Kupra, Bayda and Iori fields within Block 12. Internal preliminary analysis suggests that there could be as much as 18 billion barrels of oil in place throughout this complex. Ongoing work throughout the remainder of this year will continue to study and assess the viability of this analysis and larger scale development potential. Independent assessment of the Company's conclusions are expected to take place in 2014.
Situated within the Taribani Field Complex, the Taribani Field proper is a large oil accumulation with 788 million barrels of original oil in place ("OOIP") independently assessed by Netherland, Sewell & Associates ("NSA") in 2005 for Zones 9, 14, 15 and 19. NSA assigns a 15% recovery factor giving "Technical Possible Reserves" of 118 million barrels for the field. An additional 36 million barrels are assessed as un-risked Prospective Resources in five deeper zones in the field.
From the 1 July 2014 to date, delivery of gas increased to 126 million cubic feet of gas as Frontera's market share developed further. New customer sales and production capability are expected to continue to increase throughout the remainder of this year.
- Frac and workover/stimulation campaign underway at the Taribani Field.
- Plans underway to commence Phase I of the Varang Exploration farmout agreement at the Taribani Field.
- Crude oil production during the first half of 2014 equaled approximately thirty three thousand barrels of oil.
Steve C. Nicandros, Chairman and Chief Executive Officer commented:
"During the first half of 2014 the Company achieved several important value creation milestones associated with our work in the Taribani Field Complex and the Mtsare Khevi Gas Complex. In addition, we have continued to progress our initiatives across the balance of our portfolio. Accordingly, we now expect to see continued increased positive financial impact of this work as we progress through the second half of this year. This is an exciting time for our operations and I look forward to reporting on our continued progress in the weeks and months ahead."
Sounds to me that there are quite a few positive RNSs coming our way. Golden chance to top up at these levels, buy on the dips...... Cant see this staying down long.
Fun and games but onedb1 lets return to reality now
Look at the chart for starters . We've seen how week/1hr charts work well in volatile times so take a look at this double bottom with support at 1.10 , defended well today and I suspect this is it , the 14m volume and the pittance post spike show small volume on the drip drip yet big volumes on the rises. What does that tell you ? Had it been high volume pushing the market down then its clear the bears would be in control , but its not the case at all . Same if you see a spike on poor volume its usually a poor omen of reversal Calls for sub 1p , 0.9 or even 0.8 are ludicrous technically and on fundamentals . Usually made by those who have not bought at that level . But generally scare mongering has always the upper hand on people's minds , so beware as I told you ( again )
Look at the obvious support line and how towards the end of today's session we see the 1.15s coming back strongly . ( hint )
Frankly the fact that the last 2 RNSs are even thought of in a bad way is outrageous . Even trying to persuade others despite the plain English what the RNS clearly spelt out . Shocking. We are now told how to read ..gosh years of education thrown away .how did I survive thus far ?
I am in two camps as frankly am a buyer at this level so any cheaper is a steal but realistically we are worth less than so many peers and despite the many posts to demonstrate it we get fear creeping in again !! We have had successful production , incredible 12 fold gas sales increase from h1 ( so were not part of the $3,3m revenues ) and have a set of operational items coming our way that would send any stock spiralling upwards . I feel sad when i hear "had the stock for 2 days and am down 500 quid ... " seriously now its embarrassing. Anything sub 2p for now is a joke and with the newsflow excluding the CPR anything sub 4/5p in the next 2 months is frankly weird . THis is not day trading you buy a stock to hold for some time , buy on support sell at an obvious chart resistance . 1,3 or 1.4 weren't support nor resistances so for those who sold at that level possibly at a loss , what the hell were you thinking ?
On the mater of valuing resources I just wonder on what page is a certain someone stuck at ? IFRS publication on valuing oil and gas by Pricewaterhouse , any luck with reading that ? doubt it . Do you need the link again ?
So in my view do your homework , look at the amazing last two RNS the first alone took us to 1.85 !! Still a joke for a upto 9TCF recoverable of gas alone . Do you even know the value of that ?
#32 added a daily 700,000 cubic feet too , and added to the validation process of our gas resources , it was a success , yet now from 0.8 to 1.1 we added the beauty of 8m quid extra in market cap ? "you cannot be serious". I get the hint the deramping is due to this , ie buying in as cheap as possible for the greedy ones. Remember a terrible stock doe
I have also thought that gas complex would be offloads & as Frr already have gas production on the go & increasing then that should help get a very nice amount of $/£s that would strengthen Frr to special levels.
Given the amount of news due in the coming weeks and months I too am not really worried about the debt as I firmly believe the sp will take care of it!!
I just wanted to mention that the sp would have to be near the conversion price of 15p to avoid disaster which in turn reduces the time we have before the conversion.
Arsenal, even though the conversion is 2 years away SN and his crew normally put a deal on the table that deals with the debt well in advance. I'm not really sure when the last CLN's were due but they were converted well in advance.
Going back to my hypothesis, I stated last time I expect the sp to be around 10p for Xmas 15 this was due to my belief SN will put something on the table relating to the debt. The CLN's getting paid at 10p gives the CLN holders a free 50% increase in shares. We saw this last time around at 4p when the conversion price was 8p hence why the sp dropped down to 0.39. 1 because they diluted the sp by 100% and 2 because they flooded the market with shares which Henderson Global were happy to sell at any price.
You never know the sp might just climb above 15p giving the CLN holders a bonus.
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