Member Info for Madpunter

Posted by Symore_Bottoms on ii on the 15th November :-

Looks to me like the court case with Hope (both ways) is a stale mate so yes there is the question of who foots the bill but as the entire asset was at stake paying the legal bills but keeping the asset doesn't seem like such a bad deal..

As was posted yesterday this old article detailing the orgional PSA...

http://www.osgf.ge/files/newsletterENG/transparency_background_report_ENG_UiZKc6FJJ.pdf

This comment stands out

"The PSAs of the company should be made publicly available, as well as the documents related to the tender process that granted the company such adventegious terms and conditions for extracting Georgian gas and oil. "

FRR clearly got very good terms on the orgional PSA presumably at the time the GG were trying to lure anyone to come in and prospect.. as it turns out it was a long and arduous process but seems to have borne fruit so now its hardly any wonder the PSA is being renegoitated vigourous, From Zaza last comments (if they are to beleived) this seems to tbe the 'last' stumbling block, how this will be resolved none can say but it does feel like it will be this that brings the conclusion either a good PSA resulting in a deal and the payment of due loans or a bad PSA result which will be the end of the road.
As was posted recently about another arbitration that went very badly against a company (inexplicably and unexpected) it sees the process can be quite haphazard but it does feel like that the arbitration holds the key and that we are going to have to wait.

The company received the revenues of approximately $1.04 million in 2004 from
the Georgian crude oil sales. Considering the terms of the PSA (the company retains
the entire oil profits until the total costs and expenses are recovered, and the
company is exempt from any tax liability), and the stated investment volume of $70
million, the company will not be making payments to the state for a forseeable
future, unless the production of oil raises sharply. The company does not publish
information on the volume of the extracted oil. The monitoring activities of the
company’s operation in Georgia should focus on the size of the actual investement
in the country, and the volume of the extracted oil from each field. The PSAs of the
company should be made publicly available, as well as the documents related to the
tender process that granted the company such adventegious terms and conditions
for extracting Georgian gas and oil.

Posted by Symore_Bottoms on ii on the 15th November :-

Well, a very interesting and plausible theory from oopsi. Worth also noting that Frontera Resources International is registered at that address too. And FRI is a corporate guarantor to the CLNs. Maybe once FTI have exhausted the recoveries in FRCC, they may consider calling on the corporate g’tee? I wouldn’t rule it out.

To me, it’s becoming clearer that all these (legal) tactics was to buy time but ZM et al underestimated Hope’s zeal on the legal front. He has been one step of them all through this process. I think Zaza & SN thought that a small threat of legal action in the Caymans would have made Hope concede and push forward the coupon payment to the maturity date in Nov 2020. Well, that didn’t happen and the rest is history withthings getting out of control; things like employees welfare, multiple resignations and litigation, including Arbitration.

So why did they need the extra time? Was it to build up oil production to repay Hope? Well, if that was the case, they would have made sure those employees were paid to keep the oil flowing. But looking at all those employees protesting outside the US Embassy, well, they hardly looked like rugged oil workers, more like mushroom pickers. I actually think these low paid workers were hired to demonstrate local job creation & CSR?

But given the size of FRR and the huge legal and regulatory challenges, there is someone behind this little outfit giving them professional support and guidance. Also consider the ambition of Ukraine and taking on the Ruskies?

Are we close to a conclusion to this long uncertain period? Well, FRR offering to withdraw the California case is a big clue. Whatever the reason for needing extra time, it appears they have concluded (I would suggest). Come January, we could have a resolution to the Arbitration, closure on the Cali case and Hope repaid?

JMO

Posted by zoff on the 14th November :-

I don't suppose anyone has a copy of the actual 1997 PSA document? The GOGC seem very confident of winning and have already chucked £250,000 in legal fees at it.

Posted by Sycric on the 14th November :-

Read page 6 onwards

http://www.osgf.ge/files/newsletterENG/transparency_background_report_ENG_UiZKc6FJJ.pdf

Posted by Oopsi on the 14th November :-

2 + 2 = 5
Frontera Resources US LLC changed its registered address from 3040 POST OAK BLVD. SUITE 1100 HOUSTON 77056 to 1201 LOUISIANA ST STE 2800, HOUSTON, 77002 on 20 March 2019. Why? Hughes Watters is one of the residents of Total Plaza tower (it wold have been nice if it was Total!!!) that links in to what we needed at the time.

It just so happens that Steve Shurn of Hughes Watters (see bio below) played in a band with Larmar Mckay of BP (see link below). Larmar (see bio below) is responsible for, amongst other things, the legal function. He has also said BP should move to natural gas in the long term (link below).

I think I’ve just made 2+2 equal 5

Hughes Watters
www.hwa.com/Practice_Areas/Business_Bankruptcy/
Preferences and Fraudulent Transfers
HWA has vast experience in handling matters involving both the prosecution and defense of preferences and fraudulent transfers under Chapter 5 of the Bankruptcy Code. There are limitations and defenses to these actions, and HWA successfully navigates these rules and exceptions on behalf of its clients.

Pre-Bankruptcy Planning and Restructuring
Hughes Watters Askanase has represented countless creditors and debtors in pre-bankruptcy planning and restructuring negotiations involving sales, lending and equity investments. From a thorough pre-bankruptcy analysis to a plan that is both fair and aggressive, Hughes Watters Askanase has the people and processes in place to identify, eliminate and exploit issues before they arise.

https://www.bizjournals.com/houston/morning_call/2012/05/southern-slang-wins-2012-hbj-battle-of.html
http://www.hwa.com/Attorneys/Steven_D_Shurn/
Steve focuses his practice on reorganization and workouts for businesses and individuals with complex problems. He also provides representation of secured creditors, representation of entities that seek to acquire assets out of bankruptcy cases, and representation in bankruptcy related litigation, often involving preferential and fraudulent transfers. In addition, he routinely represents Chapter 7 and Chapter 11 trustees.
https://www.bp.com/en/global/corporate/who-we-are/board-and-executive-management/executive-team/lamar-mckay.html
Lamar McKay is accountable for group strategy and long-term planning, group economics, safety and operational risk, group technology and the legal function. In addition to supporting the group chief executive, he also focuses on various corporate governance activities including ethics and compliance.

https://www.bizjournals.com/houston/news/2017/06/01/lamar-mckay-bp-production-to-move-toward-natural.html

Posted by Gipps51 on the 14th November :-

As always eloquently written by Mole.

All ... and I mean all of our problems go away with money either from oil and gas sales which we have no idea of , a loan which we seemed to be on the brink of at the end of last year which was blocked by Hope or a JV or FO . I’m not going to say too much about a TO as that’s huge wishful thinking with so little of the block explored.

The initial well production figures that were released nearly two years ago were excellent and they were with no artificial lift. Production from T-39, T-45 and Dino could have gone up considerably with the help of BH and then there’s the associated gas.

As for a loan I seem to remember we had two that were being worked on one for $60 million and one for $150 million both at the time fell through because of Hope. It’s been 6 months since Hope resigned. We could well have gone back to those lenders.
Nico we had done a deal on, someone saw enough to fund that well again that deal seemed to be put on hold possibly because of what was going on with a SM .

Hope was strangling us to a slow death, possibly shorting the company (personally I don’t believe that ) but certainly blocking finance. Even he said in one of his emails that he thought the SP might be going higher soon or words to that effect.

We needed Hope off the board . That could be what this was all about. We have achieved that. Job done.

As for arbitration if what we are led to believe is so the last piece of the puzzle is the length of the PSA. Not a problem in my mind.

The main positive in my mind is the USA interest in the region , they want it tied down that’s clear. Georgia has nothing to offer the US except it’s natural resources.

In summary I disagree with Mole , positive steps have been made since April .

GL to all the LTH.

Posted by DevonianExile on the 14th November :-

Many thanks Mole - and I can confirm that we have spent an inordinate amount of time trying to establish a line of communication. For anyone who doubts what has been said about the practicalities of forcing a general meeting please read Paragraph 75 of the Memorandum of Association:

"Members shall not have the power to convene meetings of the Company, whether being a special general meetings or the annual general meeting, of the Company, save only at any time when the Board of Directors of the Company is vacant and then only in accordance with the Law."

So any talk of shareholders forcing such a meeting - even if we knew how to effectively serve notice - is a non-starter. Like Mole I sit and watch most of the time - but if and when the opportunity arises we are able to instantly attempt to influence things with close to 30% of shares now on the database. I am sure Zaza is fully aware of this - and I would add that the two things that shareholders have to be consulted on are director contract extensions and any change to approved share capital.

We sit and wait

Posted by OneDayRodney1 on the 14th November :-

GOGC confirmation or ongoing arbitration
Good morning all
I contacted GOGC a while ago asking for an update on the arbitration process and have just received this reply:
"In respect of confidentiality provisions of the Production Sharing Contract and Refinery Study (“PSC”) dated June 25, 1997, and the expectation of confidentiality in the arbitration process, we do not consider it appropriate to comment further on what is fundamentally a commercial dispute that is the subject of adjudication. Commenting publicly would not only be disrespectful to the arbitral tribunal, but may also potentially constitute a breach of contract.
Please be advised in this regard that the arbitration proceedings are currently in progress."

Which pretty much confirms what we already knew ... but good to get it from GOGC rather than a Zaza quote!
GLAndular

Posted by CF73 on the 14th November :-
Firstly, great work ODR!

Secondly, I continue to find it interesting that every time we get a piece of information, folks we even more doomed than every before. All I see from ODRs post is that tge case is ongoing, just as we all knew (thinking about that possible Jan 2020 deadline, according to ZMs comments posted by other trusted holders).

The arbitration process is applying pressure in both ditections - remember, it's not GG overseeing arbitration, they are no thte judges. We are no more closer to losing the license now than we were there weeks ago. As far as I am concerned, FRR have a strong argument for stating that GG haven't been supportive, indeed, obstructive, thinking about arguing over the tax rebate, the return of historic costs sunk by FRR etc.

It seems - at least to me untrained eye - that we are at a stage now where some finer details are being hammered out and that there is a date by which a result will be reached.

Posted by Moleinahole on the 14th November :-

Phil whilst you might think that is an easy option with a Cayman registered private company and the company articles as they are it is not.
The board should have come back to shareholders voluntarily to ask for support of some kind but have chosen to neither communicate publicly or put forward any proposals as to how to resolve the current obvious issues. We can't call a meeting unless the board no longer exist through incapacity or disqualification.
The guys have tried repeatedly to establish contact but the company as you have seen with lawyers delivering summons when they don't want to communicate they are hard to establish. The next opportunity it would appear is in 2020 on the anniversary default AGM date. But quite what would happen in the current circumstances at that meeting or whether it happens is moot. However, a some point the board terms of office will have expired so maybe an opportunity exists via that route in time. Steve must be over due by now.
The problem is that with so much litigation already flying about with the company continuing it's line of silence we remain in a catch 22 situation. The purpose of the group was to engage and communicate with the company not litigate.
Personally I'm pleased that the fiduciary case is running out of steam. I have never agreed with it and don't like it. However, it should have ended in April and an accomodation reached with Outrider. That has not happened and instead both sides escalated matters which has left us and it seems the employees where we are now.
I have not seen anything since April I would regard as remotely positive. To me everything looks like a company that is having the life squeezed out of it. But it is not dead largely due to the actions the board continue to take to stall and thwart process. They may yet have a grand plan but if they do this is a very messy way of going about it.
I'll add one comment on the workers. Are these the employees of frontera or the service companies. Uniserve perform alot of the work in the field. Also it's worth remembering FRR had $25m of other current liabilities as at last accounts. The lack of cash may be due to other debts being paid or other creditors having secured cash from the company outside the activities of the liquidators.
The reality has always been that the funding gap was always filled by YA loans or placings paid for by shareholders. With no listing that source was closed. With a likely continuing deficit even with higher oil production they would have struggled and been forced to juggle debtors. You can only do that for so long. Ultimately nothing has changed the company needs to be recapitalised either through a farm in or a large replacement loan on better terms. Both are possible but made more difficult by the arbitration and the other litigation. The optics remain terrible here and I personally find it best to watch and say little.

Posted by theprodigy on the 12th November :-

Lots of frontera links for our Mark
Mark Nesbitt
Commissioning and Start Up Manager at BP
Georgia 387 connections... People also viewed.. Keti Karchava
Logistics Coordinator at Frontera Resources Corporation.. Siradze Marina
geologist-petrophysics at Frontera Resources Corporation
Pavle Tavadze
manager – Frontera Resources Corporation
https://www.linkedin.com/in/mark-nesbitt-8698a517?trk=public_profile_browsemap_profile-result-card_result-card_full-click

Posted by BezzyBushFire on the 12th November :-
"I have been working in the Oil & Gas industry on major projects for over 28 years. My career has mainly focused on Commissioning and Start Up in the Execute phase. My current role is Commissioning and Start Up Manager for BP. I have achieved year on year recognition of high performance with BP, with back to back project successes, leading to my selection for the next major project of strategic importance for BP in the AGT region."

Well, I like that.... a lot!!

AGT Region = Azerbaijan Georgia Turkey Region

Nice find Prod

Bezzy

Posted by regdik on the 13th November :-
Sorry to dampen your enthusiasm but Mark is in the Execute stage of the project (BP use CVP method) so it looks to me like the Pipeline and pumping station project to me which is in this phase. Plus he is not connected to Ann which I would expect.

Posted by B-2-0 on the 12th November :-
Shorters are an organisation
I don't usually post anything outside of fundamental research and obtained knowledge. So will continue to do so, I am aware very aware that the shorters have in their employ an organisation of posters who infiltrate various media forums - this is very well known and has not gone in noticed. All I can say is remain focused on the events taking place and the fundamentals B20

Posted by bugsy-b on the 12th November :-

https://www.interpressnews.ge/ka/article/572323-amerikis-saelchostan-kompania-prontera-istern-jorjiashi-dasakmebulebi-akcias-martaven/

Posted by theprodigy on the 12th November :-

Georgian tv news - 51 minutes
More than 10 protestors ....

Glass still half full although I truly feel for the employees

Link. https://youtu.be/xixp3OFKpDA

Posted by regdik on the 12th November :-

Lots of negative news surrounding Frontera (as usual) and you can never put a positive spin on people being made redundant and having no money for several months.
If their contract were with FRCC would it not be the liquidation company doing this as they control the company. If is the case any move from the other part of FRR would show the court that if fact this is one company and not separate offshoot.
This is as clear as the mud coming up with the oil. So all we have is what we find or glean from sources that may themselves not have the full story even those that work on the coal face.
If BH are still around they would be doing their own thing and not relying on the locals.
As of every day we cannot change what is and what will be with this share.

If we have no money, no workers, no production then we have no company so why are we not seeing GG taking back the licence as it looks a slam dunk that we cannot deliver to the licence requirements. So what do they know that we do not?

Posted by CF73 on the 12th November :-

All this news recently is only adding noise to a picture we already know - i.e. that its messy.

Whatever slant folks want to take, positive or negative, is clear that FRR are still in the fight. And we if were going to fold any time soon, then we would've folded already in my view. We have political support, not just in terms of general Givernment-to-Government cooperation, we have been lobbying quite a number of senior US officials and have previous strong links to the Atlantic Council etc

As far as I am concerned, we are inching our way towards something eventually positive.

Posted by Arigarosa on the 12th November :-

One more:

Employees of Oil Company Fronera Eastern Georgia Demand Salary Debt

14:20, 12.11.2019

Employees of the Frontera Eastern Georgia oil company are holding a rally outside the US embassy demanding a 10-month payroll.

According to them, the company managers cite financial problems as the reason for the debt.

Protesters say they have been trying to get their salaries for several months now.

Employees of the company ask the US Embassy for help.

tv.ge/news/navtobkompania-frontera-istern-jorjias-tanamshromlebi-sakhelfaso-davalianebis-anazghaurebas-itkhoven/

Posted by Arigarosa on the 12th November :-

Fresh news
12.11.2019 / 13:57

Employees of Frontera Eastern Georgia Hold Protest Rally at US Embassy

Employees of Frontera Eastern Georgia are holding a rally outside the US embassy, ??demanding a 10-month debt from the US-Georgian oil company.

According to them, the company carries out oil production, drilling, loading and sale as usual and those working in heavy industries have to work in extreme conditions without a health policy.

“We are protesting that we have accumulated 10 months of debt for 4 years, which we have not received. We are demanding the remuneration of our salaries for which we have worked, worked and have not received to date. Everybody standing here is an employee of this company and they all have the same problem, ”rally participant Iveri Tsiklauri said.

Protesters will move from the nearby embassy to the government administration.

interpressnews.ge/ka/article/572323-amerikis-saelchostan-kompania-prontera-istern-jorjiashi-dasakmebulebi-akcias-martaven/

Posted by Madpunter on the 12th November :-

IMHO the SM's are interested in the oil and I think it is nonsense to think otherwise. Block 12 contains some of the best quality oil on the planet, which is also some of the cheapest to extract (see my post from the 8/11/18 below copied from the Frontera Resources link P2 at the bottom of the post).

FRR's sweet crude of 41.5 API would be to the right of Brent and WTI on the chart in the link below. In fact only the Algerian Sahara Blend and the Malaysia Tapis are of higher quality looking at the chart. Top quality oil that can be extracted for less than $12/bbl, no wonder the super majors are interested.
https://www.energyandcapital.com/resources/brent-vs-wti-crude-oil-what-is-the-difference/17

Then factor in the future oil prices and the fact that Block 12 will produce for decades (see my post from the 12/11/18 below copied from the Frontera Archive link P3 at the bottom of this post).

Future oil prices
Oil Price forecast 2025 and 2050
By 2025, the average price of a barrel of Brent crude oil will rise to $85.70/b (in 2017 dollars, which removes the effect of inflation). By 2030, world demand will drive oil prices to $92.82/b. By 2040, prices will be $106.08/b (again in 2017 dollars). By then, the cheap sources of oil will have been exhausted, making it more expensive to extract oil. By 2050, oil prices will be $113.56/b, according to Table 12 of the EIA's Annual Energy Outlook's Reference Tables. The EIA has lowered its price estimates from 2017, reflecting the stability of the shale oil market.
https://www.thebalance.com/oil-price-forecast-3306219
While a lot can happen to alter the price of oil, hence the recent volatility in the market, diminishing cheaper oil reserves bodes well for FRR's cheap sweet crude.

Finally, if the SM's don't want oil why did BP buy oil that's not of as good quality as Block 12; costs less than $50/bbl compared to Block 12's less than $12/bbl; and only as recent as last year, when the meeting was with Zaza? IMHO the SM's wanted the oil, but just wanted to negotiate a better price.

https://www.lse.co.uk/chat/general/commodities-and-mining/frontera-archive-41C7D130-7E51-4344-82E7-83B697F53322.html?page=2
https://www.lse.co.uk/chat/general/commodities-and-mining/frontera-archive-41C7D130-7E51-4344-82E7-83B697F53322.html?page=3

Let's not forget that if the SM's want gas only, then they will get the 12.9 TCF (OGIP) of which 9 TCF is recoverable listed in FRR's website. However, if they want both oil and gas, then the gas available to them increases to 30 TCF of reserves, as most of the gas in Block 12 is in the Eldari B and it's associated gas. Therefore, if they want the much larger deposit they have no choice about accepting the oil as well. Furthermore, the 202 TCF will also contain recoverable gas that won't be classed as reserves with today's prices, but with decades of extraction from Block 12, will be in the future.

Posted by Madpunter on the 11th November :-
Minister of Defense on Engaging Misinformation from Kremlin
http://georgiatoday.ge/news/18092/Minister-of-Defense-Speaks-about-Engaging-Misinformation-from-Kremlin

US Secretary of State Reasserts Position on Foreign Threat and NATO
http://georgiatoday.ge/news/18097/US-Secretary-of-State-Reasserts-Position-on-Foreign-Threat-and-NATO

Secretary General of the Council of Europe: The main objective of my visit is to prepare Georgia for the Presidency of Council of Europe
https://www.interpressnews.ge/en/article/104503-secretary-general-of-the-council-of-europe-the-main-objective-of-my-visit-is-to-prepare-georgia-for-the-presidency-of-council-of-europe/

Georgia needs to find peace to evolve, former Swiss ambassador says
https://www.georgianjournal.ge/politics/36087-georgia-needs-to-find-peace-to-evolve-former-swiss-ambassador-says.html

German President arrives in Tbilisi, welcomes dialogue between Georgian, Russian FMs
https://www.georgianjournal.ge/politics/36091-german-president-arrives-in-tbilisi-welcomes-dialogue-between-georgian-russian-fms.html

Anders Fogh Rasmussen offers Georgia a way to join NATO
https://www.georgianjournal.ge/politics/36070-anders-fogh-rasmussen-offers-georgia-a-way-to-join-nato.html

Posted by EkXoc on the 11th November :-
I can't accurately compare Azers resrves with Georgia proposed reserves, however we they equal (or even Gerogia are greater) then consider this Azer already had Majors working on its soil and had a very long hsiotroy of oil exploitation and even then 11 companies from 6/7 countries were involved

"Following ratification of the PSA the Azerbaijan International Operating Company (AIOC) was formed to implement the agreement on behalf of the foreign shareholders working in partnership with SOCAR and the government of Azerbaijan. Originally AIOC comprised 11 major foreign oil companies (BP, Amoco, Unocal, LUKoil, Statoil, Exxon, TPAO, Pennzoil, McDermott; Ramco; Delta Nimir) representing six countries: UK, USA, Russia, Norway, Turkey and Saudi Arabia."

Little old Georgia has no such history no established SM interest.. I suspect its gunna take a little time to iron it all out.. tbh if the FRR resrves are accurate then BP will not be able to handle this alone surely.. maybe the reserves are being split over a larger playing field?

Posted by Contra on the 11th November :-
https://www.bp.com/en_ge/georgia/home/who-we-are.html

Posted by EkXoc on the 11th November :-
BP is present in managing transit pipelines not as a prioducer. My point is Georgia is not currently producer but is about to be and in s big way, that transition needs to be managed so as not to destabilise the region

Sweden's 100 explosions this year: What's going on?
One hundred and sixty two explosions in 2018, yes 162 and 97 in the first 9 months of this year, yet this is the first I've heard about this problem. Seems like another case of keeping the information from us in case it damages the reputation of the EU's immigration policy. Two years ago they tried to cover up the rapes by immigrant gangs, which sounds strangely familiar to what has happened in places like Rotherham and Cologne.

https://www.bbc.com/news/world-europe-50339977
https://www.spectator.co.uk/2016/01/its-not-only-germany-that-covers-up-mass-sex-attacks-by-migrant-men-swedens-record-is-shameful/

Posted by Madpunter on the 10th November :-

Rep. Kinzinger advocates for his bill--H.R. 598, the Georgia Support Act--on the House Floor

https://www.youtube.com/watch?v=VoMkqLk9dV8

10.22.19 Chairman Engel H.R. 598 Remarks

https://www.youtube.com/watch?v=YpWJg51-OQE

Slean - The Robert Stuart video is pretty convincing in highlighting fake BBC news and is well researched. However, I found his delivery awful and it took me almost a week to watch as I lost concentration pretty quickly.

Posted by B-2-0 on the 9th November :-

Georgia BP deepen their investment
i will say first and foremost what I discuss here is in the public domain. The deal is ground breaking for FRR for many reasons. Succinctly it requires a duration of more than 7 years to payback - this is not evidentially a loan, it is a farm in or otherwise capital investment from a foreign counterpart. Most importantly is the approval for the extended period, although no duration is given it aligns with greater strategic investment and development program of the Black Sea energy alliance. FRR workers will be greatly rewarded for their dedication in realising this historic Georgian moment. Georgia ???? we salute you. B20

Posted by Zibrahimovic on the 9th November :-

It’s an article written by a journalist for maximum effect there’s no direct quotes from Zaza it’s all from these supposed starving workers ffs you can’t starve in Georgia you can’t go homeless their benefits are better than ours since 2005 they’ve reformed and are far more proactive at looking after their population.

It’s an emotional tug of war by the company and the GG to pay the VAT rebate...

Do you really think people will work 10 months without pay LMOA...

They’re playing the game on behalf of the company probably with the knowledge that when it delists they’ll all get plenty of shares free or are the holders already of plenty... look at the bigger picture here...