Member Info for Looed

Pt. 3

J1 - So, what do they want from you? The company says that Zaza Mamulaishvili, a former employee of Green Capital and Frontera, published a letter related to their unsuccessful attempt to misappropriate Frontera's business in Georgia. It is said that Green Capital is an enterprise with a dubious reputation. In short, there is talk that you are misleading the public and want to harm Frontera. Please explain because it turns out that Frontera has a problem not only with the Georgian government, but also within the company itself.

ZM - The Frontera who published this statement today, by the way I am the largest shareholder and creditor of this company. Earlier this year I applied to the company to repay the debt owed to me. Trust me, this is a pretty solid amount. They did not want to pay this amount and I was forced to go to the Houston court in the USA and start a court hearing on this case. Offended by this, they started this kind of communication with various state bodies.

J1 - Is this company no longer related to you in any way? I was a little surprised by this. Let's read. In addition to having claims against you, "you are trying to mislead the public and harm the Frontera." You are known for criticizing the Georgian government and their foreign policy, and you often come to us as an expert rather than a representative of Frontera. Here is what it says: "This message seeks to portray the Georgian government as hostile to foreign direct investment from the United States." You are reprimanded for this. You are also reprimanded for working against the Georgian government. What group is this? Is this Frontera Resource Georgia? How did the Georgian Dream get involved here?

ZM - These two parties, on the one hand, the Georgian government, which spent GEL 45 million to sue Frontera Resources Georgia Corporation and settle an arbitration dispute and fight each other, now somehow the representatives of our government and the company that is in the stage of bankruptcy and liquidation have united now and spread 1000 absurd statements about us.

J1 - These people write that "Frontera" started legal actions against Zaza Mamulaishvili in the United States and Georgia in order to protect and maintain the long-running business of Frontera in Georgia. I have such a question - who is Frontera, who works in Georgia today? Are you still in dispute and these people are complaining to you that what is in Georgia is theirs.

ZM - No. It is only mentioned in this letter, but there is nothing controversial about it. Three courts in three countries (the International Court of Arbitration in Stockholm, the Grand Chamber of the Cayman Islands Court, the Tbilisi City Court) have ruled over the years that the company has nothing to do with the ongoing oil and gas operations, licenses and projects in Georgia.

Pt. 2

ZM - (contd) We won an international tender announced by the Government of Georgia in 1997 and obtained a subsoil use license. This license cost the company about $ 60 million, which is colossal sum today, not to mention 1997. We have successfully started this project and have successfully invested GEL 2 billion in this project over the last 24 years. We paid several hundred million GEL to the state budget and thousands of people had incomes.

J1 - However, this has been repeatedly questioned by the Georgian authorities. It was said that you did not make much investment and so on.

ZM - Proving this is very simple. For decades, we have been audited not only by the Georgian Oil and Gas Corporation, but also by the well-known auditing company PWC. It can very easily be proven that these numbers I am talking about today are very real and genuine. In addition, the Frontera group included and still includes several different Fronteras, for example: Frontera Resources Georgia Corporation ...

J1 - And who complained to the Georgian government? Who did they have a dispute with?

ZM - The Georgian government has sued Frontera Resources Georgia Corporation.

J1 - However, Frontera also sued the Georgian state-owned company and demanded $ 3.5 billion in damages. This is a bit of a tangled story and I'll try to figure it out with you.

ZM - After the Oil and Gas Corporation and the Ministry of Economy sued Frontera Resources Georgia Corporation, a counterclaim was subsequently filed. That amount was $ 3.5 billion and then, with the goodwill of the company, this counterclaim was withdrawn.

J1 - Where is Frontera Resources Georgia now? Is there still a dispute with the Georgian government? What is the relationship of this Frontera Resources Corporation with the local Frontera that you represent? Please explain. I want to understand the essence of the dispute.

ZM - The main company that conducts oil and gas operations is Frontera Eastern Georgia. Over the years, Frontera Eastern Georgia has attracted investment funds from various companies and invested in oil and gas exploration. Frontera Resources Georgia Corporation has been one of the major shareholders for a period of time, from 1997 to 2021. But when the Georgian authorities began harassing, persecuting and restricting working conditions, it became very difficult for them to work. It is now in the process of bankruptcy and liquidation.

J1 - So, this company is already out from Georgia?

ZM - Yes, correct

J1 - Here, this company made a statement against you today. Frontera Resources Corporation. Is this another company?

ZM - This is another one that has exited from these projects even earlier.

(the ZM spin machine in all its 'glory') Pt. 1

J1 - We have a government that is not expected in the capitals of Europe and the Western partners and is considered an unwanted guest. The Baltic media also confirms that Irakli Gharibashvili's visit to these countries failed. However, the Georgian government denies it. It was recently reported that Gharibashvili's visit to the United States did not take place. However, the Georgian government denies this. Amid strained relations with the West, how is the Georgian government going to continue its activities when it was opposed by the President of Georgia? Salome Zurabishvili was as critical of the Georgian Dream yesterday as she has ever been. Representatives of the Georgian Dream accuse her of bias, but do not respond with very harsh assessments, as could have done in the case of former President Giorgi Margvelashvili. In short, in such a situation, how the government will go to the elections, we will talk about it in the second and third part of the program with experts. And in the first block of the show - a topic not far from all this. Frontera and Georgia. The dispute continues. What is the matter? Why the Frontera terminal was seized by the Ministry of Economy of Georgia with the help of the Ministry of Internal Affairs and State Security Service. What is new in the dispute between the Frontera and the Georgian government - we will talk about it with Zaza Mamulaishvili. He is the CEO of Frontera Eastern Georgia, however, it was reported today that he is being accused of not being a Frontera representative. Could you please clarify this, Mr. Zaza? I am also a little confused today and I would like to ask you to find out first what is happening to Frontera itself, because Frontera is one of the main factors in the relationship between America and Georgia, first of all, thank you for participating in the show. Many have accused you, with the help of your own lobbyists, of creating an unfavorable background and mood for the Georgian government in Congress and the Senate, providing them with unfavorable information, and Frontera is to blame for everything, and American congressmen and senators are often accused of Frontera lobbying. It is said that this is why they opposed the Georgian government. In short, what happened? I will say what we know briefly. Georgian authorities have defeated Frontera in international arbitration. You have real problems here - the company is failing to meet its obligations, etc. However, today we learn that the terminal has been closed and your oil has been seized. What is actually happening? Who is Frontera? Who are you and what is happening? Let us be brief if you can.

ZM - With great pleasure. First of all I would like to thank you very much for the invitation. I should probably start with the fact that Frontera Eastern Georgia has been working in Georgia for 24 years. I have been the CEO of this company for 24 years.

good memory cymro1864 - that is translation 27.

Zaza - Taribana will make Georgia energy independent, because it is in these rocks and in this area that you are looking at now, at a depth of 4,000 to 5,000 meters, there are 350 billion cubic meters of gas that is extractable.

J2 - This place, about which the president of the oil company "Frontera" speaks, is Georgia, Kakheti, Dedoplistskaro, Karibana Valley. More than 350 billion cubic meters of natural gas will be enough for about 150 years, considering the current consumption of Georgia.

Zaza - Geologically, at this depth, there is up to about 3500 meters there is an oil. And from 4000 to 5000 meters it is a supplies of natural gas. And, it is in exactly the same geological sediments from which BP from Shah Deniz now obtains in Azerbaijan. So that the potential is huge.

J2 - “Frontera” says that the amount of resources in the Taribana Valley, besides them, has also been confirmed by two world-renowned American companies - the NSA and RYDER SCOTT. According to the director of "Frontera", the potential is huge, but they do not have the opportunity to use this potential. The reason is the government's obstruction and the creation of barriers that the company has been facing in recent years.

Here is the link for the brief - https://search.txcourts.gov/SearchMedia.aspx?MediaVersionID=37b1a6e9-42d3-4b68-8a1f-bb2281e828aa&coa=coa01&DT=Brief&MediaID=c6fe8645-49c0-4cbd-bb7a-d4ceadee1d8e

FRR have until 30th Aug to file a Response

I think the court also needs to let FRC file their brief in this as in the Arbitration Appeal both sides filed briefs. If thats the case I assume FRC now have 20 days to file, the same number of days that ZM had.

WHamBoy - 'oral argument not requested' means ZM counsel have waived the right to present testimony to the judge in person, so the judge will likely make the ruling based on the testimony already entered into evidence along with his just-filed brief.

The same thing happened in the Arbitration Appeal - both sides originally stated 'oral argument not requested' but FRC have since said that was incorrect and have requested the right to give testimony in front of the judge.

ZM has now filed his brief stating 'oral argument not requested' The brief should be uploaded soon.

ZiggyZag - those extracts were posted here on 10th May, you also discussed them at the time of posting. We had a lot of document drops around that time so it's easy to forget.

You can search here for all the Cayman rulings, just enter 'frontera' and you can see the 3 Rulings from 10th May '21.
https://judicial.ky/court_search/#

Hopefully we will all have the last laugh here because one things for sure - ZM isn't smiling anymore!

linandy1 - in the same way the message from MontiBurns triggered a memory from the Exhibits, your message did as well.

This is the last letter we got to see (Exhibit 34) from SN to GOGC -

"Extension: In accordance with Article 5(2) of the PSC, please accept and treat this letter as our preliminary request to extend the term of the PSC and Mineral License for additional 5 years in accordance with the provisions of the PSC. We will shortly provide a formal request on extension of the term with all the necessary information and documentation in accordance with the terms and conditions set under the PSC.

In closing, as I have referenced in prior communications, Frontera has prepared itself for continued significant investment in Georgia in the post-COVID-19 environment. Specifically, our US-based banking relationships have secured a US$100 million financial facility for our continued investments in Block 12. This will bring renewed employment in Georgia, increased oil and gas production from the Kakheti region as well as a positive renewal of our partnership with GOGC/SAOG. We sincerely wish to assist and address any and all outstanding issues that may exist such that we can once again become a model for US/Georgia private sector relations."

We didn't get to see how the GOGC responded to that or what has happened between End April (date of the letter) and the recent positive comments made by both sides.

On the current PSA, the same letter also states -

"...we rightfully expect that the referred period 19 March 2020 until today will be added to the term of the PSC and accordingly the expiry date of the initial term of the PSC will be extended until force majeure is lifted, instead of 25 June 2022"

Thanks MontiBurns.

I should have added that it might go some way to explaining why the company appear unconcerned, if not dismissive, about OMF as can be seem in other parts of the testimony.

Thats a nice, succinct summary MontiBurns.

You asked about Outrider. Not sure on the state of their fund today but one of the Texas exhibits (ZM Exhibit 45), which is a liquidation update report from FTI, states the following -

"F. Lack of funding
Outrider has provided an amount of USD 90,000 to date for the fees of the joint voluntary liquidators and JOLs of the Company. This funding has, or shortly will be, fully extinguished by the JOLs fees to date. Outrider has confirmed that it is not in a position to provide further funding in respect of the PSC and there is currently no other funding available to the JOLs."

The report is dated Feb 2021 and so after Outriders (last ditch?) attempt to persuade the GG to pass the license to OMF.

Pt.2 (and final part)

J2 - Of particular interest is the involvement of State Security Service in this lawlessness process. An agency that is used by the government as a political police force, and it is especially incomprehensible to involve this particular institution in this case, when there is a specific commercial dispute and there is an American investor on one side and a state energy company on the other side. Once again, American investors are talking about an illegal decision made by a court. And, they also talk about the fact that these specific decisions and actions of the government threaten not only the investment environment, but also the environment, because it is clear that the transportation, confiscation and disposal of this large amount of raw materials requires some responsibility, including ecological, which in this case is natural. And it is unclear who is responsible for all this. As for the facility that was seized, this license block is located in Dedoplistskaro, which has been the operating unit of Frontera Eastern since the spring of 2021, which shareholder is not Frontera Resources, but Green Capital. However, the government does not seem to be indifferent towards the new investor and pursues specific interests in this case as well.

https://mtavari.tv/news/52588-terminali-dalukes-navtobi-daaqadaghes-pronterasa

(keep in mind this is a pro-ZM channel) Pt. 1

J1 - The government's struggle against American investment continues. Georgian Dream once again confronts Frontera Resources and accuses it of trying to appropriate business. The offices of Frontera and Green Capital have been seized and sealed so far. What is the Georgian Dream`s plan this time? Misha Sesiashvili is working on this topic. You are live, Misha.

J2 - Yes, it seems the fight against American investment continues and saga of the Frontera Resources also continues. The point is that after the relations of the American company with the Georgian Dream government became significantly tense and practically impossible to implement, the company's investors made a decision and left Georgia. The assets in Georgia were given to the American company "Green Capital". However, although the name has changed, the approach of the government and state-owned companies to American energy companies does not seem to have changed. Specifically, this decision, the decision to transfer assets between 2 investors, was stopped by the Georgian Oil and Gas Corporation, and a few days ago, with the help of State Security Service, law enforcement and other law enforcement agencies, confiscated the crude oil extracted in Frontera Eastern. I remind you that Frontera Eastern is no longer Frontera Resources. Now it is only Green Capital and the Georgian Gas and Oil Corporation with a 50/50 percent stake. And the reality is that now both the former investor, Frontera Resources, and the current Green Capital are both talking about continuing struggle against American investment using Bolshevik methods and expropriation.

Giorgi Kishmaria, Lawyer of Green Capital / FRGC - As of now, I can say that Frontera Resources Georgia Corporation left Georgia reaching the settlement with Green Capital. The court seized, at the request of the agency and the corporation, oil and gas from both Green Capital and Frontera Eastern Georgia, as well as the Frontera Resources branch in this case. Frontera Resources Oil is no more in this case. Oil is property of Green Capital and Frontera Eastern. Frontera Eastern is represented by State and Green Capital. This is outrageous. We are not allowed to sell oil and gas, they have carried out some special operation, sealed the wells, banned us from selling it with Eastern, and most importantly - made an unbelievable decision where the debtor is not Eastern at all and is actually the owner.

ZM - When shareholders change, it is not the state’s business. A few days ago, high-ranking government officials, accompanied by the Ministry of Interior and State Security Service, arrived at the company's oil terminal and sealed it. The crude oil was expropriated and taken away and dumped in the state reservoirs neglecting every law, every contract, every court that came into force. They do not have such a right. In practice, they stop the company's activities completely illegally.

I believe it is sheer desperation and the need to avoid letting the courts decide. Or he has access to your stash.

It's from ZM.

It does feel like he is in free-fall right now.

I have forwarded the message and a screenshot of the FB page to the Ministers email address.

“Natia Turnava spread another lie to our company today and once again demonstrated that she doesn’t even know what she’s talking about. Mrs. Minister better figure out what to talk about then come out in public”
Facebook.com/zaza.mamulaishvili.52

new 30m interview - have sent to translator

"Waiting for an Answer in Washington - Why the Government Resists the American Company "Frontera" - Zaza Mamulaishvili"

https://www.youtube.com/watch?v=CJssbcGt3Fs