The initial price reaction does seem rather curious. On the one hand FRR will be avoiding ~$3m /yr interest payments. which must handy! But whilst it may seem a bit futile to waste money, suing FRR. I guess the CLN holdetrs could seek the equivalent of a CCJ. This may give them a chance of recovery of debt if FFR flourishes. But also make the chance of FRR raising more money absolutely zero, if it wasn't already. Apart from a few tracker type funds. I assume that the only investors left small pi's, the mngt and the 'strategic suppliers'. I think FOF were claiming that their members had >30%. In any event it is difficult to see any new investors wanting to enter the fray until we have some real news and not just the periodic SN platitudes.
It seems to be a different story when bond holders have security and take over the company at the expense of the shareholders as at GKP.....FRR need to start pumping oil and gas, once the cash starts to roll in the landscape will change , IMHO of course. Holding my shares but not buying more right now. Gla
SN hits production targets and revenues are on the up this can change very quickly.
Of note, the Company is pleased with the results of well stimulation operations at the Niko #1 and Dino #2 wells at the South Kakheti Gas Complex as early results have produced flow rates consistent with designed expectations and, most importantly, continue to validate the technical basis for the Company's ongoing work programs. The Company expects that this year's work, as well as the previously announced workover, stimulation, drilling and infrastructure expansion programs for 2017, should be completed as planned. Further updates will be made as the programs advance.
Further procurement of additional oil field equipment to expand the Company's current fleet in order to undertake larger well-stimulation completions in the planned work programs is in progress.
The Company expects that this program will lead to an increased production of oil and gas and, as such, will result in increased revenue from exploration related pilot production programs for oil and gas.
Steve C. Nicandros, Chairman and Chief Executive Officer commented:
"As we continue to progress our work in Georgia, as well as our other Greater Black Sea initiatives, we are very encouraged by ongoing results from our operations and, because of this, we remain focused to implement the work programs which were supported by shareholders at the recent General Meeting on June 28th. I look forward to sharing updates as all of our work continues to advance in the weeks and months ahead."
I think that we are so deep in s��� that strategically we can only try to generate meaningful revenue and prove up in doing so then farm out or sell. We were never going to be able to take this forward ourselves. Given the previous track record this is a long shot but the only one I can see.
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