Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So this takes me back to my message last night about looking at the last operational update and the subsequent financing update to see what news we can expect.i think we can only expect T-16, T-24 and T-31 to be cleaned up ready for money to come in (hopefully) from the loan to fund the drilling campaign. Saying that though, they say no new news to release but we haven't had the results of the extended well tests, which will be finished now. I think they would be closer to truth if YJ just came out and said no news until the court case is over. Perhaps they're not allowed to say that though.
YJ must see a future for Frontera in Georgia. Good news I'd say. Thanks for highlighting positive regional news. Maybe post it as that next time if you want to avoid the backlash from angry Frontera investors that are tiring during the wait for news :-)
I've sometimes wondered if Frontera were intentionally bad at what they were doing. As shown by Block, it's very easy to write an RNS that includes all the info investors require. It has felt like in the past that Frontera were holding back. Go back to the SN days and it was like the guy didn't want to market the company at all and was as vague as possible when it came down to declaring meaningful facts and especially figures. Also,if all Frontera needed to do is go a little deeper, why an earth didn't they try that long ago? The cost to go a little deeper on a side track is little extra in the grand scheme of things. If the well clean up for the old part was successful and the initial side track successful, once you have meaniful data from that section just go a little deeper. Could it be they felt they needed to keep exploring And collecting data whilst not quite making it as the climate for large scale production in Georgia wasn't there at that time. It's worth remembering Block probably couldn't do what they're doing now so easily if it wasnt for the changes in the political climate for investment in Georgia that SN has helped brimg about. Perhaps that's wishful thinking, but when you read Block's RNS it's hard to understand how Frontera could be so poor in comparison without it being intentional.
And you're in with the second, Zib:-D One too many zeros, but impressive nonetheless
It might be worth looking back at where we were operationally prior to the delisting and the news blackout to get an idea of where we might be heading. The last operational update on 26/11/18 said, The Company has successfully completed a technical study of Taribani wells drilled by a previous operator and has selected the following wells for workover operations: T-16, T-24 and T-31. The intention is to clean these wells and check well integrity for future sidetracking/drilling operations in order to drill and complete the wells in the Eldari B reservoir." Then the Financing Update on December 12th said, "Frontera Resources Corporation (AIM: FRR), the European-focused oil and gas exploration and production company, is pleased to announce that on 11 December 2018 it signed a term sheet (the "Term Sheet") with a New York, U.S.A.-based fund seeking to secure a loan of up to $60,000,000 (the "Transaction"). The Term Sheet is not a commitment letter, nor a commitment to providing financing to the Company. This funding would be deployed for the operations at the Company's Block 12 license area in Georgia in the year 2019. Pursuant to the Term Sheet, the loan would be on a delayed senior secured basis and the initial availability would be $45,000,000, of which up to $20,000,000 could be used to retire the Company's existing debt." And "We are pleased to have signed this term sheet that sets basis for the new capital inflow in 2019. These funds would be used to accelerate our work programs in the Taribani field as well as throughout Block 12, and would be instrumental in reaching our goal to achieve commercial development of Block 12 in Georgia"
So we have heard operations have been continuing on the ground as normal, but I am not sure we can expect them to have done anything more than cleaned up and prepared for side tracking of wells T-16, T-24 and T-31. The money to drill them was likely coming from the loan, which was undergoing due diligence, part of which would have been the extended well tests, but also it would have been linked to the outcome/proceedings of the court case. Positive results/proceedings from the court case and extended well tests, which they'll already know, would likely make the loan a goer which would then bring into play the Baker Hughes deal that would also have been waiting on the same things but also the alternative access to funding by Frontera rom the loan. I don't find it fanciful to think that if the court case goes in our favour we could all of a sudden gain access to the loan, complete the deal with Baker Hughes and commence a fast tracked drill campaign as per the Financing update, which included this interesting part about the purpose of the loan, " to accelerate our work programs in the Taribani field as well as throughout Block 12". Not sure that alone will take us to multiple pennies, but that's where BP and the gas could come change things very quickly. Any deal there and we're off to the races.
Yes, agreed Gipps. It's worth remembering when Outrider previously wanted to engineer a take over of Frontera, using their contacts and insider information, Frontera were not anywhere near as advanced with the oil production. However, at that time Frontera had been talking about the potential for there to be a 202tcf gas field in the block. I think this is what outrider really wanted then and likewise now. A strategic asset that could make billions. I presume that's also why BP have been sniffing around.
It's a shame we haven't heard anything from Frontera yet, so I wonder if what has changed is not so positive that Frontera feel the need to gleefully announce it, but also not so negative that the TW gang want to gloat about it either.
It's late, typos.... So it relates to Frontera's case against Outrider, as they are listed as the plaintiff, so Frontera want to ammend the summons they served against Hope. Does this mean they are amending their statement of claim as announced in the 22nd Nov RNS? This stated: "On 19 November 2018, in accordance with applicable procedures, the FRC and FIC (collectively, the "Company") filed with the Grand Court their Statement of Claim in the Action. In the Statement of Claim, the Company states that defendant Mr Hope is in breach of his fiduciary duties as a director of FRC and these breaches include, inter alia, attempting to deprive the Company of assets for his own benefit and/or for the benefit of OMF, failing to act in the best interests of the Company and its shareholders, failing to exercise independent judgement, and unlawful interference with the business of the Company. The Statement of Claim alleges that OMF conspired with Mr Hope in relation to the above matters. The Company claims damages against Mr Hope and OMF in the aggregate amount of US$56,287,800." I guess there is quite a.lot to choose from that could be amended, as the case has proceeded and as new evidence has come to light.
So it relates to Frontera's case against Outrider, as they are listed as tbe plaintiff, and I Frontera want to ammend the summons they served against Hope.
It says this is for amending summons. Could this mean Frontera is amending their complaint against Outrider? Could be due to an oocs, or another reason unknown to us. Any law types out there able to provide a professional opinion?
Cheers guys.
How about you Coggy? Ever think you'll make it into woolies window?
Hi Sir Coggy. Little lady is donig very well thanks. Such an adorable squishy hug monster. Giving out smiles too now. As if life isn't crazy enough with 3 under 3, going through consulatation for my job, funds tied up here, we thought we'd throw a last minute wedding into the mixer too. Booked a venue last week so busy now. We'll be married by the end of June and finally "the Mrs" really will be a Mrs. Something to look forward to and who knows, maybe by then if Zaza proves he's a man of his word we might even afford a honeymoon. It's all very exciting!
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What's $20m when you could get your hands on a potential $Billion asset, assuming they could cut some kind of deal with GOGC. Maybe they thought they'd try their luck but also thought if they don't win they could probably still get there $20m anyway, in an out of court settlement.
Not like you to make such wild speculation before knowing the real facts Fire ;-)
It's clear the judge believes more information has come to light since the initial hearing in December and that taking this into account the appeal has a chance of success. The judge wrote "on the other hand accepting that the Plaintiffs’ core appellate complaint that it was not properly open to me to reach that conclusion at the interlocutory stage, had realistic prospects of success before the Court of Appeal”. I'm not sure, but does this mean the judges ruling would be overturned and there would need to be another hearing with the evidence from the discovery included. Or does mean the case could be possibly be concluded at the appeal? My laymen interpretation is there would need to be another hearing with all the discovered information included, but that the judge still recommends an out of court settlement. I presume though, he w9nt have seen any of this new information but is aware it exists. Only my assumptions as a layman.
That doesn't really answer the question though Puddy. Why did he go to the effort of the last meeting, when as you say he will have been aware of what was really going on and about to happen? He didn't need to go to the bother to catch us out as we were already caught out. There was no begging bowl that came out after the meeting so he didn't need to go to the bother to talk the good talk to convince people to buy more share in e.g. a placing.
I don't understand why he would do that though Puddy. Clearly he didn't need to hoodwink any private investors into buying shares in placements to raises funds, as this didn't happen after the meeting. With your thinking that he just has caught us out, why did he even need to do it?
Hopefully it's more like being in purgatory...
Enjoy what's left of your birthday weekend Bomber. I hope you aren't too jaded for work! Hopefully one day we can jack in the day jobs :-)