The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
https://twitter.com/TomWinnifrith/status/1076074321515372544
The FCA is investigating FRR. I think its very likely that the company will have to issue an RNS explaining the situation now. 1) What is the FCA investigation about, 2) What is happening with the Outrider case.
RNS later this PM I guess.
I am a holder, I havent decided what to do with the offer. How many here are looking to take it or reject?
It would be interesting to have the court date for when the court will hear Outrider view on why the injunction should be lifted. If its lifted it looks like its game over for Frontera.
I know a lot of Sound holder have invested substantial amount in the stock and lost significant parts of their investments. Its a bit embarrassing that Sound Energy IR Sarah Dee is posting picture yday from some investor gala for reconvincing some price for investor relations. //twitter.com/sarahdees1/status/1065019424132993024 . She looks very happy.
I wonder at what level AST will raise cash if the shareholders approves the capital increase provision at the AGM?
Never thought I was going to say this, but the stock is down to much, closing short and going long.
KP2 had $11m in the bank by end of Q3. The company is estimating that Q4 cash burn will be $5.7m (in 30 Oct RNS).
Cash will decrease to app.$5m by the end of the year. With similare cash burn in Q1 next year the company will have no cash towards the end of that quarter.
The company is most likely looking to raise well before the cash balance is burnt down. Probably even before Christmas. Their CEO was in London recently road showing, probably a warm-up for a capital increase.
Feels like the exchange or Sound broker will soon force the company to come with an update on TE-9 considering how the stock is trading. All participants should have the latest and same information now, considering that the TE-9 well is incredible important for Sound. Brian Mitchener said in recent fire side chat that TE-9 is that best prospect so if that fails the hope for Te-10 and Te-11 will be very weak.
That reserve valuation is no longer correct as Sound share count has increased with 200% since that statement was made.
The 650 bcf in gas in place or 371 bcf of recoverable resources is probably worth less than 20p per share. Taking into account the delayed FID of the project and lack of gas sales agreement the value may be even less.
I wonder if TE-9 results will be the same as the TE-8 results, from Sound webpage:
"Third well (TE-8): Drilling commenced at this well on 19 February 2017 and completed in April 2017 with gas shows in the TAGI reservoir and deeper Paleozoic. This was an exploration / appraisal well some 12 kilometres to the Northeast of TE-7."
The management didnt have enough dignity to say it was a non-commercial duster.
I wonder why there is no update on the PSC process and possible drilling time?
Where will the share price be if TE-9 is a duster?
Low 20p?
Macqui, I was told by T May that EU will accept her Brexit offer ;-)
How many times can Frontera Resources announce an agreement with Baker Hughes as new?
- Frontera Resources CEO has been writing in RNS‘s and saying at investor presentation since early September that they are working on a possible farm-out with an industry major.
- Today it was announced that there was no farm-out and only an service agreement with Baker Hughes.
- What is very odd is that its at least the third time Frontera Resources announce an agreement with Baker Hughes and its for the same field / wells, Taribani.
- Already in 2005 Baker Hughes announced "Master Services Agreement" with Baker Hughes for the Taribani field and today again its time for a MOU with Baker Hughes.
- Frontera Resources has been saying that they have been sharing data with "industry majors" for the past months, this sounds a little bit odd as Baker Hughes have experience from working on the Taribani field for the past 13 years.
- A big question mark which arises today is that Frontera is announcing a similare agreement with Frontera today with BH as they did in 2005, so what have FRR and Baker been doing over the past 13 YEARS with the Taribani field?
2005 announcement
https://fronteraresources.com/frontera-resources-announces-award-master-services-agreement-well-services-baker-hughes-georgia/
2017
https://www.investegate.co.uk/frontera-resources--frr-/rns/taribani-update--conversion-of-convertible-shares/201712151147125191Z/
2018 announcement
https://www.investegate.co.uk/frontera-resources--frr-/rns/frontera-signs-mou-with-industry-major/201810290700073966F/
It is what it is. Zaza said that he was looking for a farm-out and now he signed an service agreement with Baker who they already work with. Not positive.
All the farm-out speculation out of the window.
- Angus Energy cash balance should be around £574k by 30 Sep 2018
- SG&A and operating cash burn around £182k/month. Which means that the company will need to raise cash within three months unless they get fairly significant revenue asap.
- The strong share price gives Mr Vonk the opportunity to tap the market ahead of a Brockham test. And its the prudent thing to do considering that if the Brockham test fails and Angus havent raised cash, the company will be in very bad spot.
Cash flow estimate in tweet.
https://twitter.com/EasyBrent/status/1052904362115301377
What approvals are still outstanding before the deal could be completed?
And what is the timing for the possible closing of the deal?
pa_richards, FRR mgmt isnt a regulator or a court, its not up to them to decide if YA has done something illegal.
In any case this discussion is a bit pointless, as most people seem to fail to see what position FRR is in.
1. Arbitration with host country.
2. Legal issue with largest lender (Outrider)
3. Legal issue with YA who has been the last resource for cash over the years.
4. Based on H1 cash burn rate, the company should have almost no cash.
I would be surprised if the company survives another month.
When this is all over Zaza could maybe apply to become Texas Sheriff and go after Outrider, YA etc.
Timster,
FRR used the same communication tactics in yday RNS as they did with YA to direct the focus of its shareholder to something else than what’s really important. And Timster you are taking the bite like starving fish.
YA - First RNS YA had sent them a default notice. Second RN,S Frontera is investigating YA for illegal short selling moving the focus which is totally irrelevant. If YA is doing that its a case for the FCA and not FRR mgmt. The original problem still remains they are in dispute with YA.
Outrider - First RNS legal problem with Outrider. Second RNS, Frontera is going after Mr Hope because he failed on his duties as a board member. This is obviously only a way for FRR mgmt to distract its shareholder who cant see whats important.