Frr.l Share Chat (FRR)

what a bloody mess

think the guy with one post to his name hit the nail on the head first pop

Zibrahimovic it seems to depend on which translator you use. Risors, Risoriz, Rissorz and Risorsiz are all thrown up but I think Risorsiz is correct.

Mole, there's more:
Right to pledge/leasing of moving items and intangible property
Pledge/Leasing Registry: R19125407 25/03/2019 18:34:57
Creditor : Bank of Georgia (Georgia) 204378869
Owner : Frontier Risorsiz Georgia Corporate Branch in Georgia (Georgia) 204931431
Subject: Intangible Property Goods: Balance existing inventories both existing and future
Ground: pledge agreement, CAP000326892, National Agency of Public Registry, 25.03.2019
Registry of debtors: not registered

It's this section that makes me suspect there is a move to recover whatever they can from FRGC as it indicates there is a pledge agreement dated 25/03/19 with the Bank of Georgia as creditor. However, as you say, these documents are difficult to understand because of the translation.

With regard to moving the FRGC's 50% ownership of shares in FEGL to FRUS, I haven't seen any document to support this as the last FEGL entry on https://enreg.reestri.gov.ge/ was dated 18/11/2019 which identified FRGC. If the transfer had taken place, I would expect it to be documented there.

Probably just a play on words Zib.. I've seen Frontera Istern Jorjia over the years...

Frontera Risorsiz keeps cropping up recently. Is it a new entity or just a play on words. What was the company that Zaza junior set up?

Goit: thank you for the correction.

Well oiled have looked at the document again. Saw this the other week and agree it relates to Frontera Georgia Foreign registered branch (a further Georgian company registration of the Cayman subsidiary that Frontera Caucasus held shares) that used to hold the 50% in FEGL but Zaza moved into FRR US.
It looks like some sort of charge/interest on the company register - the same documents show a mortgage/lease with JSC bank who also have a charge. Always hard to read these documents.
There appears to be two dates 25/03/19 for the JSC mortgage/lease and 19/11/2019 for the other entry , N00640586, 19.11.2019, Revenue Service. Quite what that is and who is behind it is hard to tell. But if you trace the request on 11th May 2020 back to the company registration page it was made by JSC bank to extract from the register.
Maybe its JSC who are concerned about whatever their interest is?

FEGL s in the hands of the PSA termination. If its a 100% termination FEGL would be wound up.

As to the fate of the transfer to FRR US. That seems to have been a matter of debate in the arbitration. Hence why FIT started the litigation in New York potentially to unravel the transfer. The entry is as likely related to that as anything by the the State. To work out what the charge/mortgage interest was you need to try and get behind the bit:

Tax lien / mortgage: 102019424904 19/11/2019 10:33:41
Branch of a foreign enterprise (representation) Frontera Risorsiz
Georgia Corporation Georgia Branch S / N 204931431
Subject: whole property, whole property
Grounds: Notice, N00640586, 19.11.2019, Revenue Service

Oil has been hammered between the drop off in demand through the Coronavirus and the KSA/Russia price war. However, now demand is increasing as lock downs are eased, plus production cuts by OPEC are slowly reducing the glut, and the US shale industry is experiencing declines. Brent is currently trading over $37/bbl.

Credit Suisse: The Worst Of The Oil Collapse Has Passed
https://oilprice.com/Latest-Energy-News/World-News/Credit-Suisse-The-Worst-Of-The-Oil-Collapse-Has-Passed.html

Oil Holds Gains As Demand Continues To Rise
https://oilprice.com/Energy/Energy-General/Oil-Holds-Gains-As-Demand-Continues-To-Rise.html

Oil And Gas Rig Count Falls For Ninth Straight Week
https://oilprice.com/Energy/Energy-General/Oil-And-Gas-Rig-Count-Falls-For-Ninth-Straight-Week.html

Oil Markets Could Soon Face A Devastating Supply Crunch
https://oilprice.com/Energy/Oil-Prices/Oil-Markets-Could-Soon-Face-A-Devastating-Supply-Crunch.html

The Shale Bust Has Arrived
https://oilprice.com/Energy/Energy-General/The-Shale-Bust-Has-Arrived.html

Egyptian billionaire Naguib Sawiris sees oil at $100 in 18 months, says he would buy airlines
https://www.cnbc.com/2020/05/06/egyptian-billionaire-naguib-sawiris-oil-prices-and-airlines.html

On 11/05/2020 from what I can deduce from https://bs.napr.gov.ge/GetBlob?pid=400&bid=boVlyOwlsX3qmYsntmLmFOVTl7XUU3VuyGKAyKrhRrJhMyeEbpOYT7btZUE5iqJH it appears the state has taken steps to ensure the payment of tax (and possibly other) arrears from FRGC. Does this mean that FRGC is being liquidated (or is in the process of) and if so, what is happening to FEGL and does it have a future?

On 18/11/2019, FEGL was reincorporated with 50% owned by Frontera Risors (or Risoriz) Georgia Corporation (FRGC), CR 72227 / USA (address Tbilisi, Vake-Saburtalo district, Paliashvili str., No12) and 50% owned by the JSC Georgian Oil and Gas Corporation (ID 206237491); Zaza is the General Director and FEGL’s areas of activity are the search and extraction of oil and natural gas and its address is Gorgasali str., No15, Dedoplistskaro. Why base FEGL in Dedoplistskaro when the owners are based in Tbilisi? Dedoplistskaro lies just to the north east of Taribani (80 km2, approximately 1.6% of B12), Oil: 1,033 MMbbl (OOIP) of which 155 MMbbl is recoverable; Natural Gas: 4.6 TCF (OGIP) of which 3.2 TCF is recoverable (https://fronteraresources.com/operations/georgia/taribani/).
Was FEGL intended to exploit Taribani and if so, what happens now? Assuming that GOGC wish to extract the oil and gas from Taribani then it makes sense to continue the partnership as Frontera understands the geology and has done all of the work to unlock its potential.

On 04/06/2019 Maples certified that FRGC (Incorporation Number 72227) based solely on the Register of Members of the Company maintained at the Registered Office, the issued share capital is $100 and the shareholder is Frontera Resources Caucasus Corporation (IN 97554, FRCC). The IN of Frontera International Corporation (FIC) is 71338 and for Frontera Resources Corporation (FRC) is 256380. Based solely on the Register of Members of FRCC maintained at the Registered Office, the sole shareholder of FRCC on 13/04/2019 was FIC. Based solely on the Register of Members of FIC maintained at the Registered Office, the sole shareholder of FIC is FRC.

From this, FRGC is owned by FRCC which is owned by FIC which is owned by FRC.

The farmout agreement of 13/04/2019 FRGC assigned to Frontera Resources US, Texas (FRUS) an undivided 100% Participating Interest in the PSA with respect to the Farmout Area (Block 12) and its entire Operating Company interest. FRUS is owned by FRC. FRGC had ownership title to 50% of share capital of FEGL, this was to be transferred to FRUS by Leva Bakhutashvili and George Janiashvili. Has it?

Rodney I emailed BH a while back and they said they don't publish data for Georgia, although the person I spoke to neither confirmed or denied there being any rigs in Georgia at the time, I think Ukraine went from 0 to like 80 odd rigs on the first month they published data for there (this is all from memory so might not be accurate)

1 post: ‘Zaza should be in jail.’ Hmm

ODR the BHRC doesnt take in Georgia

He is a criminal businessman as he took all the shareholders money and didn’t bother to send a single letter to us. He should placed in Jail.

Surprised no one has responded to what DomFok found. GD are getting slowly squeezed by uncle Sam choose between Oligarch (Russia) or West US and Europe it's up to the Georgian people. Ratcheting up the pressure on the GD. Good find DF

as you say Gippo, he fights on.
Cool as cucumber :-)

Zaza will be aware of everything Mole has mentioned today. He will know about all the debt that's outstanding, the political issues and the arbitration findings..

Zaza clearly thinks it's worth fighting on.

It took him 8 days to do a reply to the arbitrational findings in that time he would have taken legal advice of the highest order. They would have read the 152 pages and advised him we have a case !

We seem to have good political backing , most of which we wont be aware of atm . Domfolks post earlier shows how high the USAs interest goes in Georgia and it's not because they are producing a few bottles of wine.

As for the debt , yes the oil and gas price is low atm but it will rise. Our extraction costs are low with infustruture to supply not far away. We could have a resource to last many decades .

Zaza said a while back we had 30tcf that had been verified by 5 American companies over 18 months . The minimum price per TCF is $1 billion, up to $3 billion.

If we have a $100 million debt it's a drop in the ocean if we do have 30 TCF.

Like I said at the start of this post Zaza will know about everything Mole has mentioned and he fights on ...

Phil_2018: Just to add to Jonathan's valid point. I have been monitoring Baker Hughes' rig counts and they have had none in Georgia.

State agency would issue the license. So that is where I would expect to find a termination published. As it's legal I would expect it to be detailed as well and not open to interpretation.
Bugsy I thought has mailed the Georgians before. So there is the option of asking them!

Looed don't you have PayPal?

Phil. I don't think we've been getting much revenue from oil, as I seem to recall the GG in order to cripple the company, deemed the railtrack unfit to use.

its his adversary

Mole catcher invested 350k in Avacta, has now £2M paper profit and is very optimistic about the future.

https://www.google.co.uk/amp/s/www.thesun.co.uk/news/11752491/mole-catcher-2million-investing-coronavirus-tests-treatment/amp/

The GOGC statements also refer to "LEPL “State Agency of Oil and Gas”" which I have also searched. The only reference I can find to FRR is statements from 2016-17 (but when you click on the link there is no statement to read)

http://energy.gov.ge/index.php?lang=eng and http://www.economy.ge/?page=home (Both show as being 'LEPL')

Looed cancelling 100% would be a political calculation. The cautious political move would be the 99% unless FRR have lost their political cover or really burnt all bridges. The main reason to cancel the PSA would be to wipe out the cost recovery pool.
I would have thought the termination would have to be published somewhere. But don't know which state agency site to search for that - it will be in Georgian.

The thing is, is that in the time since delisting and radio silence we don't know how much more of the oil field got developed. Last we heard Baker Hughes was working with FRR to finish off the research and then there was some agreement as to a split of the revenue for Baker Hughes drilling rigs I believe. Anyway, before delisting I believe we had pretty much just finished the last of the research needed to satisfy Baker Hughes/possible SM/Finance, etc. Presumably we were all set for a program of oil wells to be sunk.

Then the delisting/radio silence occurred and all we eventually got wind off were court shenanigans, manoeuvres, and some evidence to suggest that FRR were hard up, possibly from all the debt and court cases. Though we know that Lawyers went unpaid, apparently workers and debt put off as in the case of Hope. YA it seems were presumably paid.

So aside from that the big question remains of whether the oil field was actually development with more oil wells? A lot more wells perhaps?

The gas we don't know much about since that presumably would take deep pockets so unless someone came in to focus heavily on that since delisting then the gas might be less likely.

Now Zaza was forecasting a year or two back that by now we would be bringing in good money from the expected development of this oil field. Did all the court stuff get in the way of that? Who knows. My thought would be that Zaza would know that the salvation of FRR would lie in further developing the oil field from the three or whatever oil rigs we had on it at delisting. So I would imagine that he would press for the development of the oil field with whoever. Sitting with just the three oil wells churning out would leave the company as a sitting duck likely to eventually succumb to debt or whatever. Only if there was no avenue open to developing the field would nothing happen.

If we can find out whether the oil field was developed as intended that could tell us a lot about the state of FRR. I'm of course hoping that work has been done and that FRR are in not so bad a position as they were. If the situation is better than we think and if this matter with the GG can be alleviated then things might be better than they seem.