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Frontera Res Share Chat (FRR)



Share Price: 0.775Bid: 0.75Ask: 0.80Change: 0.00 (0.00%)No Movement on Frontera Res
Spread: 0.05Spread as %: 6.67%Open: 0.775High: 0.775Low: 0.775Yesterday’s Close: 0.775


Share Discussion for Frontera Res (FRR)


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Nobull
Posts: 90
Off Topic
Opinion:No Opinion
Price:0.77
Username
25 Jul '14
Sorry for the delayed reply. I haven't worked through all the figures you supply, but I take it on trust they are correct. There are a few errors I made (I estimated the debt level changes between 2012 and 2013 as being about $10m and assumed the next year's debt level would be about 20% higher (because of new debt being issued to pay interest on the debt). In fact the debt change was about $8.6m. Also I didn't look to see if any of that financed an increase in cash (a point you made). And of course as another poster pointed out we won't be spending $1.4m again on laying another gas pipe (although I wouldn't mind if we did if it is going to double the revenue stream from gas sales to $12m p.a.). You seem to be happy that we don't have a liquidity problem (concerned with cash) whereas I am more concerned we have a proven business model that is sustainable from a profit point of view (concerned with accounting costs as well). Without success at the higher hurdle, I fail to see how we have any negotiating strength (or indeed a share price above $0.25 by August 2016) with the debt holders. I suffered from the last restructuring when we got hit with the $100m inducement charge (a retrospective finance penalty for failing to deliver strong profitability: a sort of "we shouldn't have charged you such a low coupon on the debt, so we want extra now to make up for that" type of charge, and of course it is represented by the difference between the old conversion price and the newly negotiated lower conversion price multiplied perhaps by the number of shares involved that were converted into at the new lower conversion price. As far as I am concerned the whole business of extracting oil an gas is almost completely insignificant in terms of costs and revenues when it comes to the amounts that can be lost in finance charges such as the last inducement charge. Being able to meet bills as the fall due (your concern? something I am not concerned about because I know all Mr Nicandros has to do is issue more shares or more debt to our detriment) has nothing to do with being able to fend off these huge financial penalties that come out of the blue if we don't have a sound business model that gives us a rationale to exist. So I will always be concerned we cover depreciation charges even if the actual cash cost of the depreciation isn't born until many years later. On the actual weekly increase in debt, it may not be quite as high as $250,000 a week but that is the sort of level we ought to be adding value at to make sure we are not going to end up in Chapter 11 style proceedings giving up our shares to the debt holders. I do think it matters whether Mr Nicandros is buying shares or debt in us, as it is indicator of which he thinks is a better bet. He does not have to publish how much debt he has bought until the next set of audited accounts, by which time the information will be useless. Word limit finished.
 
theprodigy
Posts: 1,873
Off Topic
Opinion:Strong Buy
Price:0.77
Happy Friday
25 Jul '14
One and all- no RNS but let's hope for a Coggy FRR iday rally.

ATB
wonderer
Posts: 1,223
Off Topic
Opinion:No Opinion
Price:0.77
Coggy
24 Jul '14
My Sofa supplier are on the front page in the headlines on this website ;)
Coggy
Posts: 6,331
Off Topic
Opinion:No Opinion
Price:0.77
theprodigy
24 Jul '14
lol, no need to apologise mate, I guessed that :)

Great news about the lad from your village, the local will be bouncing tonight :)

atb
theprodigy
Posts: 1,873
Off Topic
Opinion:Strong Buy
Price:0.77
VW
24 Jul '14
Boy from our village just got gold in the 200m breast stroke. Awesome!

Coggy - apologies pal- bloody iPhone!!!

ATB
VWBeetle
Posts: 2,514
Observation
Opinion:No Opinion
Price:0.77
Good evening all :-)
24 Jul '14
I've got a very good feeling in my waters.........and it's got nothing to do with the odd cold amber or three as I'm in work nights again :( Could indeed be a Coggy FFRrrrrrriday given today's trading late afternoon?
Very kind words from tsbs early today, cheers dude :)
Catch everyone later. Theprodigy, cracking show being put on by your country up there in Glasgow - nice :)
ATVB. VW
Coggy
Posts: 6,331
Off Topic
Opinion:No Opinion
Price:0.77
wiltshireman
24 Jul '14
For the gas, there are two options to get big volumes of gas to market:

1) Somebody (GOGC, not FRR as it's too big a job) builds a gas processing plant in Georgia, with all the related facilities (but on a big scale) in order to export "in spec" gas into the trans Georgian pipeline, for sale into Europe.

2) Somebody, possibly FRR, lays pipes from all their well heads to an existing gas processing plant, in neighbouring Azerbaijan, for processing, boosting in pressure and exporting into the pipeline for Europe.

Option 2 would be the cheapest. However, I doubt FRR will want to do this, as it is not in their business model i.e. becoming a large scale operator.
Coggy
Posts: 6,331
Off Topic
Opinion:No Opinion
Price:0.77
the porridgey
24 Jul '14
Sticks and stones may break my bones...............hahaha

Come on you FRR, let's have a super, duper FRR Friday rally...............Doh!
Coggy
Posts: 6,331
Off Topic
Opinion:No Opinion
Price:0.77
wonderer
24 Jul '14
I know how you feel old chap, very frustrating isn't it? hahaha, shouldn't laugh, but for the sake of a few days, I had to pay 40% more for this FRR :(

Who is your sofa supplier anyway? I'm fresh out :)
wiltshireman
Posts: 2,004
Research
Opinion:Buy
Price:0.77
View Thread (2)
RE: Evening all
24 Jul '14
Thanks for the info ref pipelines. I knew that in Kashagan in Caspian there were plans to ship oil through Baku and on to Turkey using BP pipeline but seems since I was there they use rail links which is not a satisfactory solution but then all that may have changed. Either way relying on rail link to Black Sea is I guess secure even though slow but when it comes to gas if there is pipeline capacity available it would be great. Everything there is very political but nevertheless with such massive reserves around getting it out will sooner or later become easier after a great deal of wheeling and dealing. Someone will grasp the nettle, after all it took alot of effort to get the initial Baku pipeline up and running. GLA.



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