In the long term, I believe the only way to fully benefit from the MK field will be exporting the gas out to greater Europe, ..which of course is much further down the road.
As far as things are now, where they're just selling it into the local market, in addition to being a "new competitor", I wouldn't be surprised if they've had to give some sort of a hometown discount, ...if nothing else, just for 'political purposes', if you know what I mean.
The bottom line is, we shouldn't be having to try to piece it together ourselves. It would be much better if FRR just gave us the information straight up.
If they were getting multiples of North American selling prices, I would think that they would gladly share this information. But they haven't. I think their silence on the issue is rather telling.
Sure, things can change in the future, but for now, I strongly suspect that FRR is receiving substantially less money for their gas than many people may think. The recent announcement of nearly 200 million shares of dilution may be further evidence of this.
Sorry mate haven't got a clue but rest assured they will not be giving the gas away - competitive yes but it's Georgian gas and I'm positive the country will want Block 12 to work and to break away from imported gas, thus the gas will be being sold at a fair market price IMO :) Have you considered contacting FRR (PR?) to ask what the gas is being sold at? ATB. VW
Does anyone know what price FRR is getting for their gas? Anyone?
Sure, we may know what others get, or what the prices generally are in the region, or what FRR had "planned" on getting for the gas. But what are they ACTUALLY getting for the gas?
The reason I ask is that in FRR's RNS from Sept. 30th, they say.."As a new competitor in the local gas market.....". Emphasis on the word "competitor" ...(i.e. competition).
When companies enter a new market, and are attempting to gain market share, they often do so on the basis of price. This happens in many industries, be it automobiles, cell phones, whatever. They try to sell it lower than the others to bring in new customers, and draw existing customers away from the other guys.
So once again, does anyone know what FRR, as a "new competitor", is actually getting for their gas?
In their latest financials, I noticed FRR conveniently left out this important piece of information.
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