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A green line at 22.57 yesterday
Gotta love the filter button.
Maybe he was another Anthony Blunt?
What I don’t get is that Zaza is no friend of Georgia Dream given his TV interviews, and yet the speculation here is that the two are in bed together. It doesn’t make sense.
Loyalties chaneg daily in places like Georgia. Zaza has clearly sold you down the river to save his own skin.
Those assets are lost and gone forever amd the US courts will not be able to do a thing about it.
Mmmm, 'Green Capital', very close to the 'Greensill Capital' David Cameron is involved with!!
If proved, what can be done if all is in Georgia? This looks very much like back office govt ownership where Zaza has gone to govt with a profit sharing plan. Thus a big win for the East and big loss for the West.
With Russia flexing muscle in vicinity of Ukraine, Nato must show strength, if not what faith will these countries have in us protecting them from mother Russia?
If Russia does what it wants then Georgia will see Russia as the friend as not a good enemy to have, if Russia are held to account then maybe Georgia will see Russia as a threat that the West can protect them from. We literally are at that crossroads. Who is protecting us in FRR, ZAZA or Outrider (or new bod) ?
or are they all just a bunch of sharks.
Thank god for cryptocurrencies and profit to make up for mistakes here
Mole, good to hear from you again. I am suspicious that the award of B12 to Green Capital is more than a hint at a bit of favourable local treatment. What proof has GC provided to GOGC and the Georgian authorities that it has the financial assets, expertise and O&G experience to develop and exploit 5060 sq km? Also, why has GC been awarded the whole of B12 when FRR lost 99% of it after the arbitration? Add to that the links Zaza has with the owner of GC and my suspicions grow further. Like you I am perplexed how GC managed to secure a production sharing contract and a security interest directly in the operating assets and I find it inexplicable that it could have been approved by the BoD. If here has been "illicit activities" as the reported message from Frontera Resources mentioned, we can but trust the US court case will uncover them and hope the outcome is in favour of shareholders.
Welloiled you have followed the same journey I have done around the documents.
The key bit I think was the bit in the arbitration report that confirmed FTI did not replace the FRR directors in the Georgian companies they got the shares in. That means it is very likely Zaza remained on FEGL and FRCC and FRGC management/boards even when FTI had taken control of the shares - hence why in Court. The FRR US farmout went through legally in FRR own corporate due process - it was the only asset transfer that was blocked by the Georgians - the arbitration confirmed approval by Georgians was required. That has left the share in Georgian under FRGC - FRR could not remove Zaza from FRGC as that was under FTI control. FRR attempted the transfer again just before the court case but it was swiftly rejected yet again. Yet the Green case was processed in record time with no such issues raised.
That in itself is baffling and hints at a bit of favourable local treatment. The puzzle then is why. Why was that waved through but FRR US blocked - especially if Zaza is related to Green in some way - given Zaza protracted war of words with Georgia then its even odder. FTI might not have known but should have.
We are still none the wiser about how Green gained a security and how it relates to FRR US - but I take its a charge on the assets. Like Outrider they could have picked up a secured debt. Welloiled if you look at the list of charges - prohibitions and seizures you do see Green appear mid 2020 as a Prohibition. However, the reply by FRR I think raises serious questions about whether any royalty or consideration has been paid. My comment on FTI and Zaza being potentially linked remains - it can't be ruled out until we know more. He was left in place, but what was the Green secured debt and why FTI visited the judge in Cayman to sanction an action they planed to take - that action remains unknown to us. That being so as of today I'm assuming the only asset has been moved and we currently own shares in a company with >$50m of debt and no real assets. On balance FTI seem not to be linked in here - but I suspect the New York discovery they were doing is key here.
If that is the case one can expect a response by FRR and FTI (Outrider). That might be the acid test and the moment of truth here as of today it appears its FRR with Steve (by default the mainly PI investors (there are no large corporates in my opinion), YA, Outrider and FTI vs Georgian interests made up of Green (with Zaza) and GOGC. Effectively East vs west interests. There are other debtors owned money and they could include larger corporates.
This is an unmitigated mess - the like of which I have never seen before. The next move is going to be interesting. US Court case docet update next?
I've just gone through the .djvu files that accompanied Frontera's application to transfer the PSA from FRGC to FRUS under the Farmout Agreement and there is no mention of Green Capital. I'd have thought that if a production sharing contract had been signed with Green Capital which also granted a security interest directly in the operating assets at the time of the transfer application, it would have been important to declare it.
Ziggy and JimSlade, I have a copy of the Farmout Agreement of April 13, 2019 and there is no mention of Green Capital.
3.0 Agreement to Assign
3.1 Subject to the conditions of this Agreement and in exchange for the consideration set forth in Article 6 below, FRGC hereby assigns to FRUS an undivided 100% Participating Interest in the PSA with respect to the Farmout Area and its entire Operating Company Interest. FRUS agrees to accept such assignment
3.2 The assignment pursuant to Article 3.1 above shall become effective on the Effective Date.
3.3 As of the Effective Date, the respective Participating Interests of the Parties with respect to the Farmout Area and the corresponding Operating Company Interest shall be as follows: FRGC 0% FRUS 100%
4.0 Government Notice of Assignment
4.1 As soon as reasonably possible after the Effective Date with respect to the assignment under this Agreement FRGC shall submit to GOGC a notice of assignment In accordance with Section 27.3 of the PSA. That notice shall include a statement by FRUS that it (a) has the technical and financial ability to perform the obligations to be assumed by it under the PSA; and (b) as to the interest to be assigned, accepts and assumes all of the terms and conditions of the PSA.
It is a mystery to me that only a couple of weeks later on 02/05/2019 the US court Case 3:19-cv-01996-RS Document 23 it stated "Additionally, Outrider has learned that Frontera has approved a production sharing contract through operating company FRGC, which improperly grants unknown party Green Capital LLC a security interest directly in the operating assets, in violation of the OMF loan agreement. Despite numerous requests by Hope, both in his capacity as secured creditor and board member, Frontera has refused to provide meaningful basic detail regarding the Green Capital transaction".
Coggy - There's only one way of telling whether they're Goodie's. They will wear flat caps, carry long fierce-looking Black Puddings and be Masters in the martial art of Ecky-Thump.
I miss everyone everyone matters
Are you stalking me Fatty?
No one owns enything foggy they ****ed it all up
So who owns what now and are they a Goodie or a Baddie?
Found the NY docs page 28 on Mads archive . Does not mention Green as I thought but says ...
47. Pursuant to an agreement dated April 13, 2019 (the “Farmout Agreement”), just a few
weeks before the voluntary liquidation commenced and the Liquidators were appointed as JVLs, FRGCpurported to assign all rights, obligations and interests in the PSC to Frontera Resources US, LLC(“FRUS”), a Texas limited liability company that is an affiliate of FRGC (the “Assignment”).7
48. The Liquidators did not learn of the Farmout Agreement until nearly a month after the
commence of the voluntary litigation, when they received information from Akin Gump. The FRCC
Directors subsequently provided a copy of the PSC and the Farmout Agreement.
49. The Farmout Agreement and accompanying documents provided information in relation
to the consideration for the Assignment. Based on the limited information provided, the Liquidators cannot determine whether these transactions were arms’ length for fair value, or potentially a questionable transfer of the assets of FRGC (and thus FRCC) to a related party, all concurrent to thevoluntary liquidation of FRCC. I should note there is a significant difference between FRGC’s Counterclaim in the Arbitration of $3.5 billion and the consideration FRUS purportedly paid for 95%of FRGC’s rights and interests under the PSC under the Farmout Agreement.
However earlier in the docs FTI state they have reviewed various court docs submitted in various Cali cases leading on from the Caymans cases. No doubt this would include the ref to Green Capitol Llc as shown in Jims 16.40 post today .
eraxxel, strictly speaking the Tbilisi City Court (acting on behalf of Georgia) didn't transfer the licence but that was the effect of the decision as these paragraphs from the translation show:
3. To grant "Green Capital" Ltd the exclusive rights on Dedoplistskaro, Signagi, Sagarejo, Gurjaani, Marneuli and Gardabani territory (Geological allotment area on the plan – 5060 (5 Thousand Sixty) sq. m.) to operate on production of oil and gas granted to "Frontera Resources Georgia Corporation" from 27 August, 1997 to 27 August, 2022, by an agreement on the share distribution of products and the study of a processing plant.
4. “Green Capital” Ltd. shall be recognized and registered as a party of "Agreement on the Distribution of Products and the Study of the Processing Plant", dated June 24, 1997.
5. To register “Green Capital” Ltd. (ID 402052372) as a 50% stakeholder of “Frontera Eastern Georgia” Ltd (ID 204905674) instead of “Frontera Resources Georgia Corporation”
“Green Capital” LTD (ID 402052372), hereinafter referred to as – “Trustor”, empowers Giorgi Kishmaria (P/N 62006053441), as a “Trustee” to protect the interests of the LTD.
Trustee is authorized to represent the Trustor at the National Agency of Public Registry and within the representation to submit an application/request on registration of “Green Capital” ltd (ID 402052372) as the 50% stakeholder of “Frontera Eastern Georgia” Ltd (ID 204905674) instead of “Frontera Resources Georgia Corporation”.
Trustee is entitled to represent the Trustor in Oil and Gas Corporation and within the representation request to grant "Green Capital" Ltd the exclusive rights on Dedoplistskaro, Signagi, Sagarejo, Gurjaani, Marneuli and Gardabani territory (Geological allotment area on the plan – 5060 (5 Thousand Sixty) sq. m.) to operate on production of oil and gas granted to "Frontera Resources Georgia Corporation" from 27 August, 1997 to 27 August, 2022, by an agreement on the share distribution of products and the study of a processing plant
The Trustee is authorized to address Oil and Gas Corporation to recognize and register “Green Capital” Ltd. as a party of "Agreement on the Distribution of Products and the Study of the Processing Plant", dated June 24, 1997.
Please note where it states 5060 (5 Thousand Sixty) sq. m.), I believe (and some other members here) it is an error and it should be 5060 (5 Thousand Sixty) sq. km.) which is the correct area of B12.
Didn’t know the court did the transfer?
There's no doubt about the identity of the Green Capital company the court transferred B12 to, as laid out in the transcript posted by Looed on 09/04/2021 @1:54, and these documents provide proof:
Last one was written by Mole
I've spent too much time in last 24 hours trying to make sense of all this.
On the transfer:
para 27.2 of PSA talks of transfer to 3rd party but 27.3 to affiliates and contractors. 27.2 would apply to a farm out but 27.3 could apply to FEGL to FRR US. The difference is a 27.2 transfer needs approval by state but a 27.3 only needs to be notified by company.
Back to FIG. I'm a little concerned about loose Journalism and the use of Frontera International. That name goes back a long way as part of the group structure from Bill White days! The article can be interpreted a couple of ways but I'd be concerned to hang too much just on that one sentance - as FRR have always had a joint 50/50 operating company with GOGC and that is the shares FRR tried to transfer. Is it the same or a different company turns on almost a single word.
We know from the Outrider court action FRR transferred to FR US its share. That transfer would be under 27.3 as I would say FRR US is an affiliate. They then set up a foreign registered branch. Then we know again they did a transfer to Green and left a 5% royalty. So last proven data points we have seen is 50% of Block 12 PSA is with GOGC and 25% FRR US and 25% Green with a 5% royalty to Outrider probably from FRR US share.
Depending on who Green was it seems likely it falls under 27.2 of the PSA. So where is it? Where is the paper trail? Mind in spite of looking I have not found documents for the other purported transfers like Varang either!
The set-up of the foreign branch of FRR US looks to have been approved again after some paperwork was provided.
So as of tonight I'm none the wiser who owns what in Block 12.
The Batumi article is interesting in gathering the GOGC position in one place. And it is not in conflict with arbitration outcome. The leap from there to now is material breach resulting in GG cancelling the PSA for block 12 with 3 months notice per PSA.
If there is an out of court agreement of some sort and the 1% is not at risk I'd like to see it and who Green is and what consideration was paid for their share to FRR. But I have to say to date evidence is illusive.
If there is a deal then its beyond disappointing not to inform your stockholders and instead be trading politically charged barbs in the press while we try and work out what has happened. I'll keep poking about but not found a new legal entity yet to pin anything on.
This was discussed 19 May 20
RE: FIG19 May '20
Page 8 of the archive
3 May 2019
Posted by garytrader @ 10:20 :-
The transaction proposed in November—new financing expressly senior to the Note—was approved after excluding Hope’s vote, but ultimately failed. The transaction proposed in April—a farmout agreement with a Frontera entity allegedly not subject to the Outrider Note obligations—was executed, thereby purporting to transfer all of Frontera Resources Georgia Corporation’s (“FRGC”) oil and gas assets in exchange for a 5% royalty interest and debt relief unrelated to the Notes and of highly questionable veracity. With respect to each of these transactions, Hope’s request for basic background and explanation was denied, and his vote as FRC director was excluded in order to achieve the requisite “unanimous” vote. Additionally, Outrider has learned that Frontera has approved a production sharing contract through operating company FRGC, which improperly grants unknown party Green Capital LLC a security interest directly in the operating assets, in violation of the OMF loan agreement. Despite numerous requests by Hope, both in his capacity as secured creditor and board member, Frontera has refused to provide meaningful basic detail regarding the Green Capital transaction.
Posted by daniel1son @ 15:06 and 15:46 :-
Claim, counter claim. Lawyers spinning each sides tale.
FRRs case seems strong. Then Hopes case seems ironclad. Both sides legal teams (obviously) omitting any detail that doesnt paint their clients in a great light.
FRR will have made their current team aware of Caymans, so there must have been a basis to start proceedings in Cali. Hopes team has decided not to include any information about his conduct in the latter stages of Caymans, and rests a lot around the judges initial judgement in Dec (which we all already know).
Great lawyers, spin compelling cases.
The most interesting bit of info, is that Durham doesnt seem to be in play. There seems to have been some sort of Farm In AND a deal struck with Green Capital LLC (would suggest its the more polished, website!).
Anyway, other than Zaza and SN starting to play very dirty, there isnt much in there that we didnt already know.
It'll now be down to the judge and TRO. Although, that is also looking increasingly like a side show, with the new maneuverings.
We sit and wait... still.
Realise doom prophets are gloating, so have added the d9c ror transoarency purposes 'Hopes response'.
Just remember, Doom Prophets are only going from this, nothing from them the other day when we released ours!
There are all sorts of games being played out, lets see what the next doc brings.
Posted by AJamesW @ 17:54 :-
Madpunter, I think it is just a coincidence. Green Capital Ltd was first registered on 09/06/2017 with Sandro Moniava (01024068034) as owner and director with the address N 18a, apt. 5, Gogolauri Street, Tbilisi and on 08/05/2018 the ownership was transferred to Otar Urushadze at 30 Alexander Griboedov Street, Tbilisi with Sandro Moniava remaining as director who was later replaced by Otar on 21/07/2020. As for the BoD carrying out DD on the US GC, it could have done so at some time if Goit's and JimSlade's recollections are correct but I can't imagine that, if and when it came to signing a contract, the BoD didn't notice it was in fact dealing with a different GC company registered in Georgia. There is certainly much more to this story which we as shareholders are unfortunately not privy to but deserve to be at least kept informed by the BoD. My speculation may be well off the mark but as you point out, if a book or film is ever produced about Frontera's journey it will be difficult to believe as factual because it is definitely stranger than fiction.
Welloiled - If it is fraud and invalid, it will still take time to sort out with the courts. Also, if this is the case, it seems highly likely that it would be found out and invalidated. Therefore, it could possibly be another way of delaying things to put more pressure on SH/O's finances. Otherwise, why would Zaza try to take Block 12 in this way? If this ever gets published as a book or made into a film, nobody will ever work out in advance what is going to happen!