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Excellent post Phil, I have never agreed to this theory that PIs shouldn't rock the boat for whatever reason the believers could think of. As part owners of this Co. we were entitled to know what going on and the lies before and the silence since delisting just shows how easy it has been to fool us all.
That could well be our downfall and our own fault for not kicking off earlier, No doubt someone will now post a " shoos! it'll be all right on the night post"
Although I could be quiet wrong.
On the gas you may be right MP, but somewhere in the stuff that has been dug up, interviews etc they have seemed to suggest we were producing gas. Thing is none of us really know what they have been producing but I get the impression that we have been pumping more oil. While I think some money may have been held back to stop the company going under because if the GG trying to stifle it I also think that oil wells were likely being developed with some of it. It makes no sense that we were producing quite a lot of all but couldn't pay anyone and apparently skint. It is a sound move in my mind though that if you excuse yourself from paying others so that you can develop the field and be free off depending
on needing any further investment in the short term at least then that is better than paying others and not being able to develop the field and then having to go begging to others to invest who will want the lion's share off it all.
Long term there is always a deal with a SM but I reckon FRR would have to be seen to be in a decent shape in order to get a deal of much value to us as otherwise they would see it as us having no choice and them doing us a favour even with a bad deal. So to my mind the BoD have used people who they were supposed to be paying as a kind of credit facility. They know by using this method they will get better terms than any YA/Outrider or any other finance deal. By the time the court cases come up they can settle up before it gets to court paying only the extra on top which by that time a developed oil revenue can easily pay.
If we are now in a reasonably good position which let's face it we should be after a good two years or so (and that is what ZM reckoned we would be a good two years or so back) then we really need to get back to a situation where the company is transparent. We haven't had that since delist and now post Arbitration it's getting to a stage where it's unacceptable for us Shareholders to be in the dark and locked out. Most people in this world look out for themselves and I don't see ZM or SN as any different. Having a situation where they can quietly do what they please (well I assume just SN now) with us Shareholders deaf and blind to it all isn't likely to favour us in my opinion. We're not getting any accounts, no official news from the company/RNS, nothing. Since delist we've been stripped of any power to even know what is going on and we've accepted it. Back then there may have been a good reason because of Hope but now they should be able to deal with him and move on. If ZM & SN go out to find a way if getting a larger slice of the pie I don't think the US will care, after all this company was set up by SN with US interests on board. Now that there seems to be done go in FRR they seem to be all coming out of the woodwork again.
to be honest think it says everything that while we were/are being kept in the dark for two years believing there was no money these crooks had their fingers in the till stealing oil and transferring money without proper records being kept
all the while many were saying shareholders should keep quiet for fear of scuppering a deal
what little submissive poodles we are
Phil - IMHO you're totally wrong here :-
' Someway along the way they have been able to tap into the gas and that apparently brings in a lot of money, way more than the oil at least initially, apparently.'
The gas needs a lot of infrastructure, as it needs separating, scrubbing, condensing, compressing and transporting through pipelines. The oil can just be transported by tanker after separating. If it wasn't for the associated gas in T39, then Block 12 could be monetised quite quickly, as the well is a gusher. The gas can only be flared when well testing as far as I know, otherwise with a flow rate of 250bbls/d through a 3mm aperture, it has the possibility of flowing at over 4kbbls/d at full bore.
As Block 12 will be of significance to the future EU and US energy independence from Russia, I just don't see SN and ZM taking advantage of the situation, while being backed by political heavyweights.
Sounds very feasable lashy . re structure will for sure be painfulmfor holders if it happens .
That’s exactly what I was trying to say Phil. If they are owed lots in pay and potentially lots in loans, a restructure when the company is on its knees could see them take a huge slice of it. Perhaps they will restructure and just keep the loans and lost pay on the books for now and not convert it into equity. I guess we just have to trust that they have good intentions and it won’t be a highly dilutive restructure like the (um) 2011/12 ish one....
I don't know Dulwichman, I'm starting to doubt though whether we can trust either SN or ZM. SN founded the company and probably sees it as his own. I'm starting to think that SN might have went to setup a situation to get rid of ZM once the Arbitration was over. I don't see ZM as necessarily a dishonest guy but he may see it that he was owed money from other sources in the company as the company was not in a good enough shape to pay them, all money had to go into developing the field including not paying others. Now that's never a good way to do it as it looks dodgy and presumably no agreement was ever made to that effect.
My main concern at this point is that ZM is apparently now the biggest creditor, by how much we don't know and also we don't know what SN has been doing. We should be wary I think of who is loaning the company money and on what terms and anything else that may effect debt and hence equity. Are SN and/or ZM out after a bigger Equity stake in the company themselves somehow? Thereby watering down existing shareholders percentage share of the company in comparison? I personally think as Frontera is now apparently US parent owned company (now that the Cayman companies have been liquidated) that we should look to see if there is any internal action we can take as part of US Federal or State law so we can find out what is going on, can we hold an EGM regardless of company terms under US law for example? I don't see Hope as a reason for radio silence now post ARB, but I think that can be used as a reason to keep shareholders in the dark while either SN or ZM, or both suit themselves with what they can get out of Frontera potentially at the expense of all us other shareholders.
Am I right in thinking that because we are no longer a listed Company the "Concert party"rules no longer apply? This could be important if we ever want to act as a cohort of share holders? one for the legal beavers I think
So far I'm getting the impression that the restructure doesn't involve any outside investment of any significance. It looks to me like they may just be plowing in profits from the oil & gas back into the field and building up the oil field slowly like that. Someway along the way they have been able to tap into the gas and that apparently brings in a lot of money, way more than the oil at least initially, apparently. It could have happened that way as a result of not paying others, BH involvement etc over the last couple of years. Part of my concern was that FRR would just sit on their hands these past two years and do nothing and just stick with the wells it had developed until the Arbitration etc had played out. I rather hoped that would not be the case as I know a couple of years or so ago they said it would only take to around now for this site to be bringing in good money.
I'm personally thinking that is how it has played out as until FRR gets a decent offer from a SM or an large investor both will probably want too much share for their buy in. If they see a largely undeveloped field they will know that they 'need' their money to develop it, or it will at least look that way and they'll want way more than their fair share in return in equity. As both ZM & SN are both major shareholders among others I doubt they want their shareholding diluted down as like the rest of us their would be no point in that, might as well carry on and build it up slowly ourselves sort of thing until a good offer comes in. Otherwise just press on, on that front I reckon.
If so, they would probably ask “Do you want to have 5% of something or 100% of nothing?”
If as part of the restructure shareholders were offered a small dividend, say 1 cent for every share that we presently own, then it would go through IMO. The problem would be if they want a restructure without any payment to shareholders.
Lordlash as previous mentioned the restructure will need to be voted on there is absolutely know way around that, there's only "1 billion" ish in head room shares so they can't go that route so if it's a GKP XEl etc "1 for 20" type deal it's a hard NO from me not having these low life's profit while us long suffering holders are being forced into a "this is the best offer for you" type deal.
Personally think it's time for the share holder group to remind the company how many shares we hold "in a block vote" and that while we want FRR to succeed that doesn't mean voting for massive dilution.
If there is a restructure how much will the company be worth at the moment? This will be key if there is a debt for equity as part of the restructure. Am I alone in thinking this restructure will probably be bad very for us. TBH, most things FRR at the moment are so worrying that I have given up worrying!
I once invested and lost my a$$ in a project in which the founder had invested his entire net worth (he lives with his kids now). I thought no one would take that kind of risk unless they were absolutely certain of success. Wrong. There could be other reasons, including arrogance, pride, an "I'll show you" mentality, that keeps SN throwing his father's money into this thing. Or the resource could really be there. No one will know until a competent, well funded team takes over.
not so sure whamboy as steve nicandros appears to be a guy the guarantees everything and honours nothing
WhamBoy
Agree that we need some form of statement soon from Frr would hope on some detail on the restructure of Frr.
There must still be value here. SN’s personal guarantees, originally to Hope and now for the PPP loan, and the continuing and expensive court cases, could only be justified if there was considerable value in the ground. No one would continue to throw money at this unless the risk/reward analysis was heavily in their favour. I just hope we all get to hear about the proposed restructuring before too long: otherwise stress, Covid or old age will get the better of some of us! So please JJCarter, give us some more news ASAP.
(just a rehash of recent events)
The founder of the US energy firm Frontera, Steve Nicandros, as well as two other members of the board of directors of the organization, Luis Giusti and Tyler Nelson, accuse the former president and CEO of Frontera Zaza Mamulaishvili of stealing oil.
The case is being heard by a Texas Harris County Court and is a counterclaim against a lawsuit filed by Zaza Mamulaishvili in January 2021. Mamulaishvili himself accuses the founder of Frontera of mismanagement of large sums of money, as well as fraud and covert lobbying expenses. In the counterclaim, the defendants point to the alleged misconduct and violations that took place during Zaza Mamulaishvili’s presidency.
Mamulaishvili held the post of President and CEO of Frontera from June 2017 to August 2020. According to court materials, thousands of barrels of crude oil and equipment disappeared from the company’s Georgian depots in 2019. Steve Nicandros, Tyler Nelson and Luis Giusti point out that Mr. Zaza Mamulaishvili did not make a proper effort to find the lost oil, moreover, they suspect that the president of the company also saw personal benefits from the “disappearance” of the oil.
Zaza Mamulaishvili himself categorically denies this accusation, saying in an interview with BMG that the counterclaim filed by the defendants is completely unfounded. The document also talks about the funds, which, according to the chairman of the board, were illegally transferred from the company to the personal bank account of Zaza Mamulaishvili.
I would like to remind you that Frontera Resources Corporation and Georgian government had a lengthy dispute in the International Court of Arbitration. Georgian government has indicated that Frontera had not fulfilled its obligations under the 1997 Investment Agreement. The Arbitration Court upheld Georgia’s appeal in April 2020, ordering the transfer of Frontera’s license on oil and gas extraction back to the state.
After the decision from the International Court of Arbitration, a USA-based investment firm Outrider Management LLC, which was one of the investors in the Frontera Resources Corporation has asked Georgian government to award them with the license of producing oil in the region that was previously owned by Frontera. The Investor also pointed out that they are also involved in dispute with “Frontera”.
https://www.youtube.com/watch?app=desktop&v=SJ69yrszLGU