Member Info for Bigun2

Why would the dow jones have any baring on the restructuring of FRR?

bigdouble

You're right, the probability of a negative outcome out weighs the positive based on historical data ie other delisted companies on AIM going back to year dot. But that is the problem, we don't have all the data and FRR's history and circumstance seems to be somewhat unique don't you think.

In my mind RR's positive opinion has as much merit as your negative opinion. I know which one I'd prefer to read.

Anyway time will tell and imv we will know well before the end of the year whom is right so that you can buy ALL shareholders a drink at the 50p party...

IMHO :-)

All will be revealed in Q2 then...

It was only an opinion, JR didn't include any facts, how could anyone take it otherwise?

One thing is for sure MP there shall have to be a number CV's (Co Ventures rather than Joint Ventures - more typical for Oil and Gas projects ). What is underneath block 12 is potentially double the size of the Shah Deniz field allegedly.

https://www.bp.com/en_az/azerbaijan/home/who-we-are/operationsprojects/shaheniz.html

The problem then becomes getting everybody to agree...

Please read the beginning of this thread for my idea of the expected divi if offered...

Correct yes, about a third of £500m hence my statement of FRR being worth at the bare minimum of 1p. It is the "to access skills and capabilities" that FRR provides their worth to the JV. What is your opinion of FRR's worth going forward in such a JV or a total buyout?

Please do not mention politics in your messages else a bundle of threads will get deleted again like last weekend. Some good discussion points were brought up in those threads as well from what I can remember.

"A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to access a new market, particularly emerging markets; to gain scale efficiencies by combining assets and operations; to share risk for major investments or projects; or to access skills and capabilities" https://en.wikipedia.org/wiki/Joint_venture

So any JV with FRR will be to do with "to access skills and capabilities"

Also note the section entitled "Shareholders' agreement" on the same page.

The sp will depend on how much money the joint venture company or companies bring to the table. My thoughts are that it will take a bare minimum of £500m to kick this off properly to start getting the O&G out as quickly as possible. Land rigs can cost around £20m possibly more for deeper drills. It may not be possible to use all the old Russian wells. Also there's all the infrastructure that needs to be built; roads, utilities (water, electricity etc).

Based on the assumption that JV will be split equally between FRR, GOGC and a SM then the sp should be equivalent to around 1p if FRR relists. Therefore I can only see a 1p div been offered if the JV is invested with in excess of £1b.

However it is going take hell of a lot more investment even than £1b in total. The following link is a document that details a proposal for the expansion of the Shah Deniz field in 2016 to include a further 26 wells. Note the Caspian is shallow so there is not the same costs as drilling new wells in the North Sea.

https://ewsdata.rightsindevelopment.org/files/documents/02/ADB-49451-002_ZN2nFzc.pdf

https://www.investopedia.com/ask/answers/061115/how-do-average-costs-compare-different-types-oil-drilling-rigs.asp

Therefore when you take everthing into account I can only see a JV with FRR in the very short term i.e. on a consultancy basis only so I believe the BOD will be restructuring the company to make it attractive as possible for a total buyout.

...are IG's brokers. They paid all shorts off. It will be interesting how they act if FRR does get relisted on any of our exchanges.

How much have you made on your gambles in the last year Bobby?

"Many people have been spouting the SM theory, some well-intentioned, some with darker motives. Claims of ‘US$20Bn / US$15bn / US$10bn imminent’, ‘Deal done once Opposition wins election’ and other claims from people ‘in the know’. The historical accuracy of such posts is clear to see and should be kept in mind should they post again."

I will hold my hand up looed and profess to extolling the theory about an SM or SM's buying out/taking over FRR. If this is not the case whom else will provide the money and resources to get such quantities of oil and out of the ground in as short a time period as possible? Or is there not as much down there as previously thought?

Further investment in the ADC company is a no brainer in my view both morally and economically.

https://www.adcreview.com/the-review/antibody-drug-conjugates/what-are-antibody-drug-conjugates/

That's bloody true Raz!

Over to you Madpunter...

Depends when the deal making started don't you think?

An announcement could be made tomorrow, next week, next month or next quarter. We will not have a clue when, it will just happen.

These are probably vehicles for creating bargaining chips to establish a bigger slice of the pie whilst a deal is being developed.

Only when everybody is happy with their slice will the deal be done.

Get ready for the black swan to come out of the blue... :-)

Totally agree with you there MP. All happening sooner that I'd expected though. My thoughts were Q2 but I guess it all needs to be out of the ground and feeding Europe asap if not sooner!

...6.6p today then.

I predict multiples of this though by the end of the year.