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Zaza must know we are scrambling around trying to decifer what he said . No reason now for him not to do an interview in English for us TODAY .
I have cut him alot of slack personally over the last year. Its payback time.
I dont believe that we have been pulling out the ground what MP believes. I do.however believe that those number could be achieved in the future. Or why the fight ?
Why would we go to the effort of getting as much out the ground as possible when we knew it would only be going to Hope- Outrider... as they control the FRCC bank accounts
I would not be breaking my back if I were in a similar situation.
$1.831 Million
MP..
The last set of accounts for the six months to June 2018 showed only $1.831 in income from oil and gas. How does this fit in with your forecasts ?
So I have !
Syric has just put the PSA agreement in the what's app group . I cant see any mention at all of a "cost stop" at all however I have asked him to post the PSA on here and hopefully Oopsi will give a view of he sees it.
I also read we have the option of extending the PSA afurther 25 years ... I must be reading that wrong though..
I still feel that the point we need to get to the bottom of is what is the aquision area. The contract area will be the whole of block 12 , the aquision area for me is where a SM might be in the wings to get involved in ...
Just thinking out loud
To clarify ... if a cost stop was agreed at say $400 million we would have to have got around the table with the GG and agreed a new amount . My gut feeling is that no cost stop was put in the contract . Infact I would put money on it.
I just had a quick google of a PSA agreement. Usually a clause is put in called a "cost stop" that's the amount agreed between the host government and an exploration company on how much can be spent before making another agreement if it looks like it's worth carrying on exploration. That's a very short explanation.
What I would say is that the "cost stop " would either be in the PSA or not...
On another note the PSA contract I found was 106 pages !
ODR. Arsenal .....as requested ....
Zaza Mamulashvili CEO of the company said, there is progress in the dispute over the company with the government. According to him, virtually all the issues are resolved positively, except for one related to the contract between the state and the company. The company has a contract until 2027, the company promises to extend the contract after 2027, otherwise the well will be useless and there will be no time left for the investor to return the investment. He said that after discussing the issue an negotiating with the state it will be possible to sign an agreement with investment banks and conclude a new financing agreement. This will automatically result in the company continuing to operate in the old fashion and delivering employees salaries over time (the exact timing is still unknown !). The crisis period , he said , is until the end of January 2020, after which positive changes are expected both in relations with the state, as well as with investment banks and the company. (The exact time is also unknown there ). End.
Not sure what he means by the old fashion . No mention of SM just financing packages but I would not have expected him to come out and say a SM is waiting.
Arsenal.
It's a shame you are not on facebook. I have often thought about how we could set up a group with people like yourself , ADR, Madpunter, Coggy, Earsbern, Ziggy , Regdik Chris, Westham, looed,Free,Bomber , Bugsy etc etc...a what's app group would have been good. Just somewhere where all the shat is filtered off.
If people were up for it we should do it so let me know.
I just revisited the aquision area- contract area information from December and did a little research. They are two totally different areas in my opinion and that the arbitration is not over the whole of Block 12. The PDA conditions didn't have to be met until the middle of this year at least.
If there is someone in here that has seen the screenshot I posted that was a quote from Zaza back in November perhaps they could post it across. What I would say is it's very positive IMO
ODR,
if you are in the Frontera Resources Fan Club Facebook group see my post from yesterday.
Regdik .
Excellent summary. The arbitration was started way before any workers were not paid so is about the license.
They are beating us with the workers are not getting paid stick however it seems largely irrelevant to me to the final outcome.
Acquisition meaning...
An Aquision is when one company purchases most or all of another companies shares to gain control of that company.
Could it be we have done a deal on the aquision area with the GOGC and a SM and that's why we set up a 50-50 company with them and that the arbitration is now over the basins edge and shallow fields that we have not touched. Perhaps we have only broken the part of the PSA that is outside of the aquision area.
We know that the 84 workers have been doing work in the field and that train loads of oil have been sold. That does not sound to me like we have broken any PSA terms and conditions.
Also within the above article it was written....
"According to the contract,the contractor is required to return 100% of the contracted area outside the aquision area until the second phase of the search is completed. "
We never got to the bottom of what the difference was between the contracted area and aquision area however it certainly sounds like they are not disputing the ownership of the aquision area. If we could find out what that Is it might be comforting.
I screen shot a press report on 27th Dec . Within the article its reported FRR are owed $3.5 million in VAT and excise taxes.
It's been said before that if we had that money paid to us we could then pay the employees. The GG are withholding this money and using it to their advantage. If the employees had been paid what would they have to bash FRR with ?
It's also been said that the liquidation of FRCC could be another reason why they have not been paid , the bank accounts could have been frozen and are now in complete control of the liquidators, again the arbitrators will know this.
The Arbitrators will certainly know that FRR are owed this money. Zaza does not need to come out and say this.
It's clear oil and gas has been coming out the ground most of last year and that the wells are producing commercially. If the wells had dried up this would have been over long ago .
If theres a SM in the background it's highly likely that a deal will be done . Could it be BP ? Reading Bugsys post below it could be !
Thanks Pyro,
The Arbitration was started well over a year before the non payment of workers which suggests possibly that their non payment will have nothing to do with the arbitration decision ..... or will it ? We are guessing why they have not been paid. I would think the arbitrators will know exactly why they haven’t been and that’s the main thing, if it’s relevant.
In summary what seems to be one of our biggest worries , the non payment of the workers might not have any relevance at all to arbitration as serious as it sounds and could just be noise created by the GG to cause a stink !
Regdik,
Thanks , that does make sense. I think they will find it just as hard though to get the asset moved back into FRCC, in fact I think they would find that harder. FRCC clearly didn’t have enough money in its accounts to pay the liquidators and OMF let alone anyone else . They must be wishing they had never taken the job on. Will they go after the other companies under the Frontera banner , I can’t see that even though they have been granted access too. They might make a few noises though for a while that they are doing so.
This non payment of workers is baffling. I think it could turn out to be a red herring. The only logical reason I can think of for the non payment is that Zaza knows that the state owe $6 million approximately and does not want to pay them out of his own pocket in case the arbitration ruling goes against us. This would allow the GG to exploit the situation in the press. The baffling thing for me is why does Zaza not come out and say we are owed the $6 million and when we are paid we will immediately pay the workers. Perhaps he doesn’t have too. As long as the arbitrators have seen evidence to prove that we are owed that amount that’s good enough and would work in our favour when they make their decision.
The last we heard was we had T39, T45 and Dino on test , firstly would that need 84 employees to run those wells , secondly would those 84 employees actually be employed by Frontera , I just don’t see that. It would make much more sense to have contractors on site. I would have thought the oil workers in the region would want the freedom to move around too.
The press releases for me are the GG goading the company, trying to get them to say something that they can use against them. I’m sure we have taken legal advice to not say a word.
I think the liquidators would be interested in setting up a company. No oil and gas no income and less money for the creditors. With OMF alone owed up to a possible $46 million according to star they surely would want to fill the FRCC coffers as much as possible. So IMO the non payment of the workers is nothing to do with the liquidators.
On a more positive note it sounds like oil has been coming out the ground .
Chris, probably are laws against it however there would be ways around it .
The congressmen that we pay lobbying fees to are very likely big shareholders. I dont think I would put my reputation on the line for $1000-$3000 a year which they have done . The congressmen we dont pay lobbying fees too are very likely to be shareholders too. They will all talk to each other . Texas has 36 congressmen alone .