Member Info for Madpunter

Timster - I see that you write 'tafy' instead of taffy. Are you a Jack or from West Wales?

Dulwichman - I wish you stress free future! An occasional bevvy usually helps, as long as your consultant gives you the thumbs up. I remembered that there was a heart specialist a few years ago that prescribed red wine for his patients as the resveratrol is good for the heart. I've copied the link below :-
https://www.dailymail.co.uk/health/article-2661296/The-cardiologist-prescribes-RED-WINE-Doctor-claims-two-glasses-day-halve-risk-heart-attack.html

Gipps - I suggest you read my post from Thursday re-posted below and Taffy's posts from the same day. If after reading that lot you can think of another way of stopping SH/O then please enlighten us?

Perhaps after reading Taffy's posts other posters will refrain from the queries 'Why didn't we pay the $2m' or 'Why didn't we give SH/O shares?' It is obvious to anyone reading the aforementioned posts that SN and ZM have been operating with both their hands tied behind their backs. Also, they've had to deal with the invasion of Georgia; the drop in the POO; the difficult geology of Block 12 (the Permian in Texas took decades to crack); the arbitration with the GG; plus the time and money constraints of proving up a vast resource. Furthermore, this has all been achieved with 'strong commitment to ensuring the health and safety of our employees and contractors; responsible stewardship of the natural environment; and recognition of the importance of the communities in which we operate.'
https://fronteraresources.com/csr/#environmental
IMHO this doesn't look like a badly run company that some posters have referred on here previously.

Read from Thu 08:51 in the link below for Taffy's posts :-
http://www.lse.co.uk/view-general-chat-thread.asp?forum=commodities-and-mining&thread=41C7D130-7E51-4344-82E7-83B697F53322&page=10

Star - See Hopes Response Page 4/21 Lines 1 -8. He is a note holder to FIC and the balance is over $30m. He is not the only note holder under that agreement. The same paragraph states 'payment default since at least September 2018' which is 7 months. How does that equate to $8m in interest? Furthermore, when court cases or defaults are triggered I'm not sure that interest keeps on accumulating (one for the lawyers on here).

Star - We had this argument on the 12th May. The other $8m is owed to the other holders of the loan notes, ZM and SN. SH/O is owed $22.9m.

Gipps - Your missing the point. IMHO as FRR required SH/O off the board, they gave him the opportunity to liquidate FRCC, which first required his resignation. IMHO this was the risk to FRR in allowing the liquidation process to be initiated. If FRR get as far as the trial, then IMHO they will have shown that they can pay the $22.9m within 12 months or they will have paid it already into Escrow. As long as FRR are certain the debt owed to SH/O is covered, then even if they lose the case against SH/O there is no risk of losing Block 12. IMHO the trial is then just about winning damages off SH/O, with the only risk to FRR being to lose and have to pay the court costs.

Gipps - The risk of FRR losing the lot is prior to a jury trial and the risk of SH/O losing the lot starts with the jury trial. IMHO if FRR get an injunction or pay $22.9m into Escrow, then they have no need for an OOCS.

Part 2

This is a war to the end NOW, either it’s bye bye Outrider or bye bye FRR, no middle ground. Shame they couldn’t see a win-win situation. But what is clear from the submissions is that Hope was cheer leading for FRR to fail so he could exercise his plan.

JMO

I think it is important to note that FRR has always been in a precarious financial position and this is not a new phenomenon that Hope’s lawyers are trying to portray now. As an early O&G junior explorer, this is the modus operandi not just for FRR but for nearly all small oil companies. So for over 20-yrs, these incumbent long term Directors have balanced the books by honouring their fidicuary duties to employees and creditors (I can’t recall any legal action been brought against them, so great track record). In fact, historically speaking, they have personally financed the company when there was no other finance option available, which was subsequently converted to ordinary equity at a premium. How much Director RPNs converted? $26m. This is Directors level of commitment to their stakeholders. Then we know that Zaza offered a personal loan of $5m, but what did Hope offer? Sweet FA. Infact, Hope lawyers go back to claiming that Hopes actions were to protect Outrider and other creditors and therefore fulfilling his fiduciary duties. And this is going to be crux of the legal argument. Well, that cant be true, because if it was, he would have started raising these issues as soon as became the Director of FRR back in Feb 2017 and not from April last year. There are clear cut legal cases where a Director should excuse himself from Board discussions when he is conflicted, not use his veto power to protect his own position. This vulture is now arguing that he vetoed the proposals to protect creditors but did he then offer superior terms for his own $2m loan?

As far as Judge Kawaley’s comments are concerned on the financial state of FRR (and this shows how little he understands the early explorer industry), FRR has been in this financial state for over 20-yrs without any creditor not getting paid. Infact you could argue that over the 18months, FRR made more progress with new equity raised, progressing drilling operations and securing discussions with international heavyweights. I can also name at least half a dozen AIM O&G companies that have a similar financial position to FRR. And what about the Regulators such LSE who continually monitor these small companies.

Anyway, I think this is why FRR want a Jury trial because when the facts are heard, and Hope is exposed for the vulture that he is and how he has taken advantage of the opportunistic purchase of heavily discounted company debt. When the facts are finally presented, then you could see his motivations which resulted in him not honouring his fiduciary duties.

Will the preliminary injunction be granted? I don’t know. It will depend on the hearing on the 6th June; it will all come down to the persuasion of the argument from the respective lawyers. But as it is FRR who has brought this action, they should be given their day in the court I believe.

ODR - While that was an option, it doesn't mean rule out FRR killing two birds with one stone by transferring Block 12 and settling the arbitration.

Timster - Who else could have leaked about the arbitration to TW et al? Also, if YA weren't naked shorting why did they settle with FRR on terms more beneficial to FRR? Greed can result in cautious intelligent people doing stupid things.

ODR - IMHO the GG have helped FRR survive by allowing the transfer of Block 12 in exchange for the 5% PSA, which equates to the $400m sunk costs (see my post from 9th May copied below). If this has happened, it is quite possible that the tax rebate was agreed to be paid as part of the bargain.

The arbitration request by the GG that was reported by ShareP....'s (fill in the blanks as you see fit), started what appeared to be an orchestrated shorting attack on FRR. The leak is assumed to have come from SH/O, as the modus operandi of SH/O is to target distressed companies and restrict their funding capabilities. The subsequent naked shorting by YA and shorting by TW et al greatly restricted the avenues for funding. Thus, SH/O possibly saw the arbitration as FRR's Achilles Heel. Move on year and IMHO the Achilles heal has turned into a Trojan Horse. SH/O may have assumed that due to the following two points, the assets were unlikely to be moved :-
1) The request for arbitration by the GG.
2) The fact that if Block 12 was moved from FRCC without the approval of the GG it reverted to the GG.
IMHO due to the previous points and a window of opportunity between the two court cases, then SH/O tried to take control of the assets, by resigning and trying to liquidate FRCC. IMHO the arbitration appears to have been a lever in the negotiating of the sunk costs between FRR and the GG, which are about $400m. These costs are recoverable from production under the PSA, prior to the 51% (GG share) and 49%(FRR share) split in production. The price of the 1% in ground value of Block 12 (26.7kMMbbls x $60/b = $16bn) halved for FRR's share = $8bn. Therefore, the 5% royalty equates to $400m of the $8bn, the same amount as the sunk costs. Thus the arbitration request may have allowed the deal with the GG, which removed Block 12 from the clutches of SH/O's cronies. At the same time this facilitated his removal from the board and his veto of a possible loan with GC. Therefore, the arbitration turned from being an Achilles Heel into a Trojan Horse. All conjecture, but the theory fits.

1) Revenue from oil and gas (the amount from the productivity testing could be considerable).
2) A loan from Zaza + 1).
3) The tax rebate owed by the GG + 1).
4) The tax rebate owed by the GG + 2).
5) Money from the $150m PSA with GC.
6) Money from a deal wit the super majors.
IMHO there are plenty of options to pay and the timing will dictate which option FRR chose.

Perhaps someone could post all the relevant information concerning the loss of the Azerbaijan assets as a starting point.

and possibly for FRR to consider?
After some of the recent information I have have a few questions which may or may not be relevant.
1) Why was the third party's (LN holder who sold to SH/O) finances in a distressed state?
2) Was there any pressure on the third party (LN holder who sold to SH/O) from those linked with the problems FRR have faced?
3) After looking at the links with AK and the Azeris, did SH/O contact them or was it the other way around, maybe even before he had any contact with FRR?

Perhaps after reading Taffy's posts other posters will refrain from the queries 'Why didn't we pay the $2m' or 'Why didn't we give SH/O shares?' It is obvious to anyone reading the aforementioned posts that SN and ZM have been operating with both their hands tied behind their backs. Also, they've had to deal with the invasion of Georgia; the drop in the POO; the difficult geology of Block 12 (the Permian in Texas took decades to crack); the arbitration with the GG; plus the time and money constraints of proving up a vast resource. Furthermore, this has all been achieved with 'strong commitment to ensuring the health and safety of our employees and contractors; responsible stewardship of the natural environment; and recognition of the importance of the communities in which we operate.'
https://fronteraresources.com/csr/#environmental
IMHO this doesn't look like a badly run company that some posters have referred on here previously.

RR - This is the part including the shareholders :-
'14. Since then, OML and its founder, Mr. Hope, have aggressively sought 4 to leverage that discounted acquisition of debt into a controlling position over 5 FRC, and the Frontera entities, and the valuable oil and gas rights throughout their 6 operations, to the detriment of FRC' s shareholders and other creditors of FRC and 7 the Frontera entities.'

RR - As shareholders we're not third parties as we're directly linked to FRR.

SH/O wanted 500m shares from SN and ZM instead of cash. Now we see another attempt by SH/O to get shares. I wonder if SH/O or some of his cronies have been shorting FRR or was it just a ploy to get a larger chunk of FRR?

Timster - The thread started with the links between AK, SH/O and FRR with posts by bugsy and Ivy. Bugsy posted about the tax evasion by AK and TrekMadone replied.