Member Info for cannyscot2

Cheers

Can understand various theories. Free is expecting results on T45. I was hoping they would publish Dino 2 early results. We all have a different take on things. Lovely day in sunny Scotland.

1 calendar month tomorrow from extended well test began at UD2, in cleanup stage when Ops Update written for release on 8th May so could be a couple of weeks anyway before results. It is quiet because they do not have results of larger frac yet. End of.. Dino 2 fracking started on 7th May so approximately 2 weeks spent at UD2 including a few days travel and setup etc. Agree the only thing that appears to be out of kilter is the s/p but once again the shorters would see a gap in news ahead when last update was released and whatever has gone on with these cancelled trades will have had an effect on investor confidence and s/p too. Apart from that we are still awaiting results within expected time-frame so why is everyone so jittery about results. Dino 2 has proved it can flow for 9+ years from Zone 9 with small frac. We now know Zones 14 and 15 can naturally flow 270 bopd with bigger frac. Results due in next few weeks. T39 results likely in July. Then there's the GAS!! So looks like results of Dino 2 and UD2 in June. All bets for theories on the gas off until results known. Let's deal in facts!!

From the sun and from investors. Just hoping the mozzies in Southern Russia have not reached Taribani in the same numbers. People and animals staying indoors. Probably Mr P will blame Georgia for them too.

jmo

Lots of talk about funding over the last few weeks. If they wait till Aug/Sep/Oct to drill Niko i ((so long as completed before winter too far advanced, time needed to plan anyway) no reason why it cannot be paid mostly from oil revenue if 3 wells producing minimum sustained flow of 270 BOPD each, T45 from sometime in April, Dino 2 May and T39 should be June, assuming all produce at similar level. Possibility of adding Z9 and 13 when Niko done. If 45 days settlement from leaving the rail head then regular decent income flow should begin very soon. Arbitration award received as well plus saved on cost of drilling. A bit of organic growth would be good to see and pay YA monthly as suggested. Further 3d seismic etc once cost of Niko 1 covered. Profit from oil sales over the winter could pay a good portion of next year's drilling programme if wells continue at circa 270 BOPD. 3 wells producing at this level at current price of brent over only 3 months is around $3.5m at $50 profit per barrel. And that is only for 3 months. By Sept T45 should have been producing for 5 months. Taking into consideration that all costs during drilling would be factored into the price per well then profit should be higher than $50pb if they could produce oil at a profit if it was only selling at $25pb and it is now touching $80pb. No reason why shareholders should be stumping up again with a fund raise and further dilution. Crawl is morphing into a walk and by next year they should be jogging along if they concentrate efforts on Taribani. What's another year when it has taken 20 to get to this stage!! Get the reserves onto the balance sheet and produce before serious large borrowing again. $400m spend over 20 years averages out at $20m per annum. Fair enough they have firstly been an exploration company but................ I appreciate this could appear to be a simplistic view but they should be looking to be cash positive so they never get into the same situation as last year again and borrow more when income can support it and 2020 debt falling due is taken care of. First rule of borrowing. I really believe in FRR but not if they keep spending like they have done in the past without income. We all know why but now they have a great opportunity to seriously produce if they do not spread themselves too thin. All this is assuming BIG OIL does not knock on the door and ask to come in. Unless the BoD know different they should assume the same for now. By 2020 this could be a totally different oil producing company with a fair market value and all shareholders including SN and Zaza with their large stake could reap the benefits with new wells added as per their plan. If UD2 results make it commercially viable and prove up the gas then that will be even better and provide a fantastic opportunity for BIG OIL AND GAS to develop the gas side via whatever deal can be agreed. Time to accumulate. The past was for speculating!! All

Personally, I think it is because they put the word "THE" in both tweets. The word "THE" is a gamechanger.

And for whatever reason the s/p is opening up by over 3%. You couldn't make it up!!

Not forgetting these two. When has there ever been so much going on in Block 12 to create value? All as at 9th May. Another week of progress and another week nearer to results. Taribani Complex, Well T-45 Extended well stimulation and testing program commenced on 8 April 2018. 6m (3m of Zone 14 and 3m of Zone 15) out of the identified 98.9m combined pay interval from Zones 9, 14 and 15 of the Eldari reservoir has been perforated, mechanically stimulated and flowed together. The well naturally flowed light, sweet crude oil at a stabilised flow rate of 270 bbls per day. The intention is to continue to test the combined flow of Zones 14 and 15 and, within a period of approximately 60 days, perforate and stimulate Zone 9 and produce from all zones together. As previously announced, in addition to these target Zones, a 14.9m pay interval has been confirmed in Zone 13. The Company is also considering the perforation and stimulation of Zone 13 in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course. Taribani Complex, Well Dino-2 Extended well stimulation and testing program commenced on 7 May 2018. 6m (3m of Zone 14 and 3m of Zone 15) out of the identified 78.8m of combined pay interval from target Zones 9, 14 and 15 will be perforated, mechanically stimulated and flow tested together. Zone 9 is intended to be perforated, stimulated and produced together with Zones 14 and 15 within a 60-90 day period from the commencement of testing of Zones 14 and 15. As previously announced, in addition to these target Zones, a 20m pay interval has been confirmed in Zone 13. The Company is considering the perforation and stimulation of Zone 13, in addition to the original Zone 9, 14 and 15 targets. The market will be updated about the final decision in due course.

Exactly zib to both comments! Sorry cannot agree that drones to SPY on operations should even be considered. Market sensitive for a start. Hope it was a joke. Here is where we were at on 9th and they will progress from this point and update us in due course. Taribani Complex, Well T-39 Drilling (sidetracking) operations at this third well of the current three-well drilling campaign in the Taribani complex commenced on 5 May 2018. The drilling operations are expected to be completed within the month of May, reaching a total target depth of 2800m. Following completion of the drilling operations, testing of the well is expected to commence and, as previously announced, it is the intention that Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together in due course. Taribani Complex, Well Niko-1 The Company has submitted the drilling/sidetrack permit application to the State Agency of Oil and Gas for approval and is expecting to receive the permit by 21 May 2018. The intention is to sidetrack and drill Niko-1 well to a target depth of 2800m, stimulate Zones 9, 14 and 15 and produce them together in due course. Mtsare Khevi Gas Complex, Well Ud-2 Extended testing program commenced on 21 April 2018. The Company perforated and mechanically stimulated 9.5m out of gross interval of 27m situated between 2519m and 2446m of Middle Miocene aged Zone. At the moment the well is in the clean out phase and, once stable natural gas flow is established, the Company will update the market in due course. PATIENCE, PATIENCE, PATIENCE

It can be a 1b company but if it is personal then it is billionaire. I think he said a friend asked him when he was going to be a billionaire. We cannot do anything about these 2m trades except chill I for one would give Zaza four years to make me a millionaire. Question is would I be able to hold out. Would have to chew at the icing before then but the herd would have arrived so it would not matter. Big oil could arrive long before then and so long as we get fair value for the block I would be happy.

Not forgetting that Zaza said he planned to be a billionaire in 5 years which was a year ago. He has a plan to reach that status and if we are in we can hope to increase our share value in proportion. Bentleys all round for the large holders maybe .. If they need to prove up more then plans are afoot to do just that with CORRECT funding package. A few hurdles to cross but look at the progress in last 12 months. T45 on test Dino on test UD2 on test following bigger frac T39 will soon be on test. Should be drilling to very bottom of Z15 if not into 16 at 2800m? Z13 was the one that gave them a few scary moments. Producing oil at very profitable margins. Selling oil UD2 is not giving up the motherload as easily as we would like but they have not given up on it. Just hit it harder. Improved cashflow now and even better in next couple of months. Zaza bought more shares. Dustin has bought shares and added more. YA got their whole allocation of shares with just over �2m owed which can be paid monthly from oil revenue with NO INTEREST if that is the path FRR wants to take.. 2 years production with further wells planned to achieve some organic growth to pay off debt due in 2020 with careful management of funds and work programme will lead to a stronger FRR. This time last year we were wondering if there was a future. Best we can do is give them time to get on with it. We are still in very news rich period and they have done a cracking job so far this year. Just a few thoughts.

432000 should be 468000 as I worked it out on 1200 bopd to start with

on 8th May "The Company announces the retirement of Mr Andrew Szescila from the Company's Board of Directors, following more than twenty years of dedicated service to the Company. A successor non-executive director is planned to be named in due course". The BoD will possibly have known for some time of AS's retirement. Not inconceivable that a new non-exec director has not been announced as if we knew who it was to be it could be VERY telling! Just a thought. It would be easy to set up an EGM even by video link to ratify a new appointment. On another note, if we reach even 1300 bopd pumped production from zones 14 and 15 with zone 9 still flowing small quantity naturally only at 3 wells for easy counting at profit of $50pb (should be more at current prices) for 360 days (allowing 5 days maintenance downtime) the annual income would be $23.4m. Each extra $1pb would give an extra $432000 of annual profit To have a m/cap of 69m based on these figures with zone 9 proved to flow with small frac for 9 years. This m/cap values FRR at around 3 times annual income. WHI have increased their fair present value per share with no gas production included at .82p which is almost double today's share price. If the GRQ crowd have gone to make a fast buck elsewhere this could explain drop in s/p. or it is being manipulated as suggested by a few posters or is it being manipulated by others. Perhaps there is not a huge appetite for a further placing and Zaza will be well aware of the fact . None has been announced. Hope FCA are looking at cancelled trades. If borrowing to fund next well it will take time to arrange finance with borrowing agreeent and security etc to be put in place as well as possibly at least one further flow test (Dino2) to prove concept and income stream. Paying off YA did not seem to be of huge concern to Zaza suggesting that he/we could pay them off or private funders have offered the money. Zaza will no doublt look at what is best for FRR out of all options available. Jmo

Hope that extra proppant is squeezing it out then. Even 1-2 scuffs would pay back cost of a pipeline in relatively short time but if they prove can get it out of ground in this old oil well.....................................it will be big boys entering the picture. Not long till we will know one way or the other.

Cheers Mole. Maybe just pushing the boundaries a little so they can test a wee bit more in the deeper zone. Well done all for posting your thoughts. Good to see how people are thinking. I was reading RNs and watching podcast about a similar co with smaller mcap and less income and far far less resources which just shows what an asset FRR have in Block 12

click on 2nd line where it says presentation and slides will be there

click on media on their website

Operations update RNS says they are drilling it to 2800m? Will that take them into Zone 16? Dino 2 and T45 were drilled to 2700m.