Member Info for Madpunter

Posted by regdik on the 9th November :-

Guy’s it Saturday night go out have a pint or two maybe a meal its more than some of the workers can do.
Remember journalist are there to sell the paper and as we see every day they are prone to focus on the extreme and not the mundane. I would not trust a journalist to distribute any fund (may be tempted to use to buy a story) that may be raise but instead I suggest that one of the LTSH travel with the monies and meet with the workers reps. I would suggest someone who has been over before.
Is all this true – haven’t a clue
As an aside I was aware of the financial people no longer are with FRR (or what ever letters) as I’m on Linked-in with a few of them. George has been working for Woodcraft for the last four years whist still showing FRR on his profile. What is interesting as they are connected to me I see their contacts (some familiar names that I see on the BB – remember I used to be FoF admin) and they see mine - I did offer to introduce some of them to Ann but none responded nor have they any new contacts listed – strange that if they were looking for work Linked-in is a good place to start - none took up this offer of an introduction (my Linked-in is BP who’s who senior staffers whom I have worked with based in AZB and now one in Georgia).

Like some have indicated the oil well head taps would be closed as this need to be barrelled and stored. However, the gas directly supplies several villages in the area and GG would not allow this to be turned off so some of the workers will be obliged to continue to work and provide a service to the local community.

Big boys are NOT interested in more Oil but are in any gas find. You can be sure that all that is holding this back is an understanding of who has what and for how long as this will be prime in determining an offer price for the asset. It will take a major two years to get volume gas to market so a short licence time is not worth a major investment in plant/pipeline. Hence they are in the background and not active not only due to the LtO issue but the finalising of the US treaty which could be only weeks away.

IMO we have only a few weeks to wait and what will be the outcome ......that is in the hands of politicians so in one way I do hope the workers demonstrate outside the US embassy as this may prompt the US to ask why the GG are withholding Tax rebates that are hindering the progress of a US company to pay their Georgian employees.

Have a good night all off to my sons pub for a few (as he is paying).

Posted by ZiggyZag on the 9th November :-

Final bit
Some even left the hall in protest and refused to attend the meeting. One of the women in attendance expressed her emotional distress at the families of those present: “If you go into these people's families, you will cry. Some have a student child, some have bank debt, some have health Frontline Western Georgia employees intend to continue fighting for their rights. The only way they can see this is in permanent protests. In the near future, with the demand to receive their salaries, they plan to hold a rally at the US Embassy.i

Posted by ZiggyZag on the 9th November :-
Cont
”
“This is actually the last point we have come to. If necessary, we will arrange a meeting with the board as well. ”
“We will not appeal to the court because we still hoped for negotiations and agreement. In addition, the processes are often ongoing for years, which is still linked to our finances. So we're still looking for ways to improve. "
“Time works against us. It is with these promises and the delay of time that we have come to this situation. ”
It sounds unbelievable, but it is still the sentiment of those who wrote in our newspaper article of October 26, 2019, "Patience for Sisyphus as a Punishment." There was no way out of the hardship and long-suffering of the front-line staff at Frontera Western Georgia. Many months of unpaid salaries, unanswered questions, and still disgruntled employees who spent about a fortnight on the company still misunderstood and came to the meeting hoping that at least some of the promises would come true.
It is said that hope is dying out, but according to the staff of the Frontier Western Georgia, this has been a long time coming for them and they can do nothing. Neither the wait, nor the understanding, nor the respect, nor the many years of working together have helped Zaza Mamulashvili, the CEO of the company, continue to ask them for patience and for the company to overcome the crisis. Still in vain. It is already the second meeting that we hear phrases like "Wait, Wait, Bear" that turned out to be the words of one big, cohesive circle. A circle that has no beginning and no end.
As Zaza Mamulashvili, CEO of the company said, there is progress in the dispute over the company with the government. According to him, virtually all 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 and 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 employee 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 here!)
This statement was followed by dissatisfaction with the gathered staff.

Posted by ZiggyZag on the 9th November :-

Georgian Reporter
Just had update from her , no comment , just the full article re Prods post last night
Frontline Western Georgia VS Staff
Employees of the Oil Company of Frontera Western Georgia in Dedoplistskaro have been protesting for three months. They refused to go out of service and oil wells after failing to get an accurate answer on their ten-month salaries. On October 26, Zaza Mamulashvili, the company's CEO, met with the strikers but failed to reach a consensus. The Director General requested the deadline until November 5. Despite the pessimistic attitude of Dedoplistskaro residents, most of the staff gave it one more chance. However, as it became clear from the November 7 meeting, again in vain ...
“Everything is stopped, or it will stop until our salaries are paid. I don't think this meeting will be resolved positively either. What happened before will be even worse today. Again, there will be an unresolved issue with the government. What else can we expect? I don't believe in anything anymore. The government needs to hear our voice too. Should someone pay attention to us? They will give us our salary and I don't think I will continue to work. "
“We don't know what to expect anymore. We strive to get what we have worked for legally. How things will turn out, I really can't predict. But the fact is that all this has been going on for years. We can't move forward, on the contrary, we go back and forth. Obviously, people's problems cannot be solved. Whoever settles, then let us look and pay attention. We demand, first and foremost, our salaries. Nobody has any other interest. When a man or woman is out of work and waiting for his or her salary at the end of the month, he or she is abused for months without pay. Offers are not fulfilled. "
“I also think these temporary offers are a farce. We can freely demand whatever the company owes for 10 months. ”

Posted by Madpunter on the 9th November :-

Arsenal - The end of the year is the tax year for oil most companies. If Exxon is in the mix, then the following that I posted last November is also relevant (see 10th post down in the Frontera Archive P2) :-
Full Expensing of Tangible Property
This provision could be a significant benefit because the oil and gas industry is very capital intensive.

Tangible drilling costs, lease and well equipment, pipelines, and all other tangible personal property can be fully deducted when acquired and placed in service after September 27, 2017, and before January 1, 2023. The full deduction is phased down by 20% each year in taxable years beginning on or after January 1, 2023:

2023—80%
2024—60%
2025—40%
2026—20%
2027—0%
The new tax law also permits used property to be eligible for the full expensing provision. This change may impact merger and acquisition transactions by motivating buyers to structure deals as actual or deemed asset acquisitions rather than stock acquisitions. This is accomplished by enabling the buyer to immediately deduct a significant portion of the purchase price and generate NOLs in the year of purchase to offset future taxable income.
https://www.mossadams.com/articles/2018/february/tax-law-implications-for-oil-and-gas-companies

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

Posted by Gipps51 on the 9th November :-

It does seem that the issue to be resolved is the extension of the PSA beyond 2027. Personally I dont see this as a problem. The GG will want a SM on board for quick development., not at a pace set by FRR. A SM would want more than a.7 year guarantee.
The crisis period will go on until January 2020. I would be surprised if it does with the Chinese and Russians sniffing around. The USA will want a done deal ASAP.

As for shareholder news after waiting so long I doubt we will hear anything until the final piece of the puzzle is in place.

Personally not expecting a relist ever especially on AIM. I'm happy with that. A special dividend a big one for starters and dividends twice a year will do me.

Sounds like the box is full

Posted by Madpunter on the 9th November :-
IMHO the funding from the investment banks is for the super majors to buy FRR or Block 12. When the super majors buy it's usually with a mix of shares and cash. If they're buying off a similar company there's often more than one payment, but when buying a smaller company they often lend from investment banks and payback over a number of years. Block 12 will produce for decades, therefore why would BP et al pay in one lump sum from earnings and shares, when they can pay over time. This is especially relevant in a low interest era and with an asset with very low costs. Not long now IMHO, as there's tax advantages from getting the deal done before the end of the year.

Posted by Symore_Bottoms on ii on the 9th November :-

Must give ‘the prodigy’ a standing ovation for working on this and delivering this revelation…what a corker. I don’t doubt the authenticity of the article as it makes sense on so many levels.

Perhaps FRR deliberately held back some payments to employees so they could put some pressure on the Georgian Govt to expedite the tax refund and license? Anyway, seems the tax refund issue may be resolved but the extension of the license is still pending.

At the Govt-to-Govt level, lots happening with the introduction of the Georgia Support Act, expected to be passed by the Congress in the next few weeks. Perhaps in this Act, there are special provisions for US companies operating in Georgia and hence strengthens FRR’s case when the next Arbitration hearing takes place in January. Remember according to the above news article, Zaza says that the investment case does not add up unless the license is extended beyond 2027 (now they have creaked the geology and can put these wells in to long term production). He also says funding from investment banks will be possible based on the extension of the license. The gas reserved for the Super Major(s)?

So, only a couple of months to wait (to January) but I think we could have some agreement with the Georgian Govt before year end (would be a great Xmas present!).

Although not out of the woods by any means, it’s starting to look a little bit better, with FRR’s voluntary request to withdraw from the Fiduciary Case, plus the personal hearings against SN & ZM in Texas pushed forward to January…Again, according to the above article, ’the crisis period is until the end of January’.

Thanks to the LSE BB Mob for their continued efforts.

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

FRR to sigh deal with investor
The translation is confusing the news we have all hoped for. The negotiations have made it possible to sign the deal to allow the investor to recover the investment. This is an investment into FRR!!!!!!, allowing for development and production beyond 2027. Nearly all negotiations ended positively but the crucial part is the banks are satisfied to progress with the deal - asset security threat has been removed! The message does not suggest the tax rebate has not been paid, or that the employees have not been paid. I will simply say ZZ was willing to provide bridging finance of 5m. The deal will be strategically significant for Georgia, the wider region, and the investors. I understand your doubt and mistrust, but ZZ has always been aligned with the above stakeholders and in the process averted a hostile take over and secured a life changing deal for the long term investors. ZZ and FRR Team you deserve this success. B20

Posted by theprodigy on the 8th November :-

Hot off the press in Georgia
Press release on Zaza meeting the 80 field staff and threat of protest at US embassy
The bit I like is the part that says most issues resolved.

Interesting revelation
Translation to follow

Part I like

As Zaza Mamulashvili, CEO of the company said, there is progress in the dispute over the company with the government. According to him, virtually all 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 and 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 employee 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 here!)

Posted by Madpunter on the 8th November :-

Meeting of Archil Talakvadze with Congressmen Adam Kinzinger and Alex Mooney
07 Nov 2019
Meeting of Archil Talakvadze with Congressmen Adam Kinzinger and Alex Mooney
The Speaker H.E. Archil Talakvadze met with the Co-Chair of the US-Georgia Friendship Group in the House of Representatives, Adam Kinzinger and the Congressman Alex Mooney.

The Speaker thanked the Congressmen for the support provided by the US legislative and executive authorities to our country. In this context, A. Talakvadze emphasized the importance of adopting the "Georgia Support Act" by the House of Representatives.

The meeting focused on the strategic partnership and cooperation agenda between the two countries with a special focus on Georgia’s role as a reliable US partner in the global peace and security efforts.

A. Talakvadze stressed on the situation in the occupied regions of Georgia and highlighted the ongoing democratic reforms and the institutional enhancement of the Parliament.

Pursuant to the Congressmen, the US continues to strongly support Georgia, its territorial integrity and sovereignty, as well as EU and NATO integration.

Gallery
Meeting of Archil Talakvadze with Congressmen Adam Kinzinger and Alex Mooney, November 7, 2019Meeting of Archil Talakvadze with Congressmen Adam Kinzinger and Alex Mooney, November 7, 2019Meeting of Archil Talakvadze with Congressmen Adam Kinzinger and Alex Mooney, November 7, 2019

http://parliament.ge/en/parlamentarebi/chairman/chairmannews/archil-talakvadze-kongresmenebs-adam-kinzingers-da-aleqs-munis-shexvda.page

Posted by Madpunter on the 8th November :-

Georgia Support Act
US Congressman Adam Kinzinger Attends the GDSC Batumi Summit

The Georgia Defense and Security Conference (GDSC) is being held in Batumi, Adjara region, on November 6-7.

The Defense and Security Conference has been a unique form in the region for the last 13 years, where challenges to the Euro-Atlantic security and regional stability are discussed. The 13th conference of its kind is being hosted by the Hilton Hotel in Batumi.

High-ranking Georgian and foreign politicians, military experts and representatives of civil society, mass media and academic circles are taking part in the conference. One of these foreign politicians includes Congressman Adam Kinzinger, who effortlessly advocates for Georgia.

" The Georgia Support Act is the opportunity to impose sanctions against those persons who are involved in occupation," Kinzinger said.

“We have recently approved the Georgia Support Act. It was my initiative. There is a big chance that it will be backed in the Senate and the White House. We are glad. This means that the US does not recognize Georgia’s occupation by Russia and supports the freedom of Georgia and the Georgian people to elect its government and end the occupation. . . Republicans and Democrats disagree on many things, but we are united when it comes to Georgia,” Kinzinger said.

The US House of Representatives unanimously and collectively ratified a bipartisan Georgia Support Act on October 22. The document will be submitted to the Senate and then to the White House for the US President for signing, after which it will be implemented.

The cross-party act highlights the strong support of the US to ‘Georgia’s sovereignty, independence and territorial integrity’ and it further starts the imposition of sanctions against individuals who infringe human rights across Georgia’s occupied regions. The bill underscores US-Georgia collaboration in defense and security spheres and calls on the ‘Congress for taking active steps for the introduction of negotiations for signing a free trade agreement (FTA) between the U.S. and Georgia.

The bill also backs Georgia’s objective to become incorporated into the Euro-Atlantic and European structures and the right of Georgian citizens to freely determine their future by selecting ‘foreign and security policies’ autonomously.

By Beka Alexishvili

http://georgiatoday.ge/news/18044/US-Congressman-Adam-Kinzinger-Attends-the-GDSC-Batumi-Summit

Posted by Dulwichman on the 8th November :-

Ek
Again I agree in principle with your view on the geo politicle stuff but I would not under estimate the the China /Russian on going battle (It has never really gone away) We know that china has poked its nose in already. Some will correctly say "Does this matter" My own view is that it does and to some extent Georgia is a very much in a position of being a pawn of the big boys and their game playing on the world stage. As I have said before both the oil and the gas is not going away. From a commercial level the big O&G Companies like the asset in the ground as to them it is a cheap resource to make a profit but they are just as much a tool in geo politics area. I do know for instance some of the Government influences on decision making by BP ( and it works both ways) indeed there are British civil servants are are almost embedded within their structure as are all major O&G Companies. The real question for us is who wants our Company to be the public face at the moment. IF we have the support of the big guns we will survive and at the right time be swallowed up one way or another ( to share holders advantage as it is not only pennies to the big boys but will achieve the strategic aims of the west) What is true though is that if we go tXXs up somebody will be put in place to front things until the big boys are ready to go. The only way we will be able to have a clue is if some body can spot plant and equipment orders on a big scale as the big boys have a very much "hit the ground hard and fast" more on the lines almost of a military invasion operation which takes a lot of time to put together in planning etc

I still hold the view as quoted from "kickmuck" that there is a lot of fluff around and should be ignored as long as we can handle all of the fluff however negative it may seem. I can only add that we have one and only one real advantage that being the human contact basis to front things up. That being Zaza being a native speaker and from what I can see has developed relationships with the right people he can of course be replaced but it would take time - he may well be viewed as a very valuable asset ( I hope so).

For those who may not be old enough to remember and to give some idea of how these games can have effect. When the North see opened up it was a surprise to many that the UK did not set up a sovereign wealth fund. The pressures on the UK NOT to set one up were huge from other Countries as it would have been massive but would have placed the UK Government in shall we say an over influential position as far as both in the Markets The pound would have risen hugely and a lot of Countries would have lost position. I could name them but this would open up a very politicle discussion - wrong time and wrong board !

Posted by ZiggyZag on the 8th November :-

Thumbs up
I was accepted as a friend on facebook about 7 months ago by a guy working at Frontera Georgia, he has a technical role I think .
Nothing ever on his posting re work.
I have sent him a couple enquiries over the months but never had a response .
Sent one earlier this week saying we were hearing bad things re , no work , wages , people leaving ....just had a message of thumbs up emogi from him .
Make of it what you will ...could be referring to the overall picture or just him personally , though suppose if overall pic was bad he would be negatively affected .

Posted by pyrotech on the 8th November :-

Russian Gas
Back in 2013 Russia supplied 131 bcm of gas to Europe, consumption has increased since.
What must be taken into account is that this is a huge amount towards their gdp

So having new sources on their doorstep that will effect their income for the Country is going to hurt Russia , so yes expect anything as they try to hold on to that market.

Some Countries are 100% reliant on Russian gas, as in the past that means Russia can and has held Countries to ransom. They have turned off the taps in the recent past.

Europe may appear to be sleeping, but they are aware of it.
here is a quote
Part of the aim of the Energy Union is to diversify the EU’s gas supplies away from Russia, which has already proved to be an unreliable partner, first in 2006 and then in 2009, and which threatened to become one again at the outbreak of the conflict in Ukraine in 2013–2014.

Posted by EkXoc on the 8th November :-
The ball seems firmly in the Wests court at the moment. It would be naive to think that Russia is not undermining all attempts to commercialise this resource in any way it can, occupation , cyber attacks, political pressure in Gerogia itself, financial pressure via the markets. But the way I see it short of an all out invasion there isn't a great deal they can do Georgia is firmly Western facing and as we have seen from such events as Russian / Georgian wine despute with Western support Georgia can resist Russia. I think the question is how to let the genie out of the bottle and when. Im inclined to agree with KickMuch the CCs are a side show that is small potatoes and whenthe deal is struck payment will be made and the CCs will just go away in the meantime its a matter of buying time whilst the geopolitical issues are sorted out, how long that could tkae is anyones guess but Im pretty sure the US and Georgia are keen to crack on. Its just a pity the stupid old dinosaur that is Europe is barely awake to the whole thing

Posted by CF73 on the 8th November :-
In the end, Georgia has the right to choose how it exploits the resources within its territory and with whom it works. This is something Russia has to accept and, ultimately, will. I see them as no threat, especially now ties between Georgia and the US being strengthened.

Posted by EkXoc on the 8th November :-
Humans will always 'fight' over resources, the fact this resources was once in Russias borders and is now on thier doorstep will ensure thier desire for it. The US is strengthening ties for good reason, clearly a well defined legal, diplomatic and defenensive framework needs to be in place and I think its that which is taking the time.

Posted by Dulwichman on the 8th November :-
EK
Could not agree more with your post - all I would add is that Energy security needs to be added to the mix. Tensions are building between the east and the west with at present no sign of them abating at present. The EU does have policies on Energy security this but as ever they are stuck in glue. The real issue for us is can we be part of the supply side? at the end of the day somebody will get the gas out of the ground the geo political battle is will the gas go east or west and who will be making the profits?

Posted by EkXoc on the 8th November :-
Yes the US seem to be more interested in European energy security than the Europeans themselves. I personally don't think this is due to the US wanting to sell Europe its gas, firstly I am not sure how that would phyiscally work there is no pipeline and Im not sure of the feasibility of shipping it over. Besides much of thier increase in production is alreay being absorbed (refering back to the BP report).

"Although some of the increase in US gas supplies was used to feed the three new US LNG trains which came on stream last year, the majority was used to quench the thirst of domestic demand. US gas consumption increased by 78 bcm last year – roughly the same growth as the country achieved over the previous six years. This exceptional strength appears to be largely driven by the same weather-related effects, with rising demand for space heating and cooling fuelling increased gas consumption, both directly, and, more importantly, indirectly via growing power demand. The expansion of gas consumption within the US power sector was further boosted by almost 15 gigawatts of coal-fired generation capacity being retired last year."

I honestly think the US need Europe to remain energy secure and for good reason .. it wasn't even 100 years ago since they had to intervene in a European created global disaster at great cost to themselves. To them its not so much a matter of enriching themselves and preventing thier main rival from enriching itself.
Five of the world’s ten richest oil and gas billionaires are from Russia

Posted by EkXoc on the 8th November :-
The biggest picture
https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2019-full-report.pdf

Renewable power is growing at half the rate required to maintain the level of carbon emissions from the power sector.
The same outcome could be achieved by replacing 10% of coal with natural gas.

Global power generation currently uses just over a 1/3 oil then just under a 1/3 for each coal and gas the rest made up renewables and nuclear.
In Europe coal still makes up about 18% so there is plenty of scope to replace that with gas to reduce carbon emissions though some countries like Greece probably can’t afford to do so as they have a lot of coal and replacing that by importing gas would be expensive unless of course penalties for not doing so alter that.

In terms of proven gas reserves Russia is by far and away the richest in the world with 33 tcm with Iran second at 22.8 the Netherlands by comparison ( our previous best source before decommissioned due to fear of geological instability) has 1.7. This suggests that the Russia zone is very rich supporting the idea that Georgia is highly likely to have large reserves as well. Also Europe is highly reliant of the Russian area for its natural gas going forward which is the cleanest for of energy available for the period transitioning to zero carbon sources.

All in all BP(and others) is going to be VERY interested in increasing its natural gas reserves, it will arguably be the primary business driver for BP in the transitionary period to zero carbon sources. On top if this it is very clear where these SMs are going to need to be looking to gain exposure to large reserves.

It is also very clear that achieving this is very much going to be softly softly catchy monkey from a geopolitical and commercial view point.. entities from country size to supermajor company size will be jostling for such a reserve as it is an absolute game changer. As such it is hardly surprising we are witnessing such shenanigans behind closed doors.
The fact such a minnow currently owns the rights to such a reserve is intriguing.

The other intriguing aspect of all this is that apart from this board I know of no other person who has the slightest knowledge or interest in where the gas they burn in their boiler and hob comes from, the importance of it in rebalancing the global carbon emissions and our energy security/dependency on Russia.

Winners or losers we are privileged witnesses indeed participants in a titanic struggle in which I can asure you more is at stake than just a few thousand in a ISA somewhere.

Posted by regdik on the 8th November :-

IMO the arbitration has been thee main feature here and not the CC's as all hope could get from Texas was the shares or the 2Mil plus interest and considerable legal fees. However, this bought FRR time to come to an agreement with the GG around who gets what of B12. A deal could only be done with other parties when ownership is guaranteed (all or part). FRR would still look good to a major at the sunk cost could be recovered (400Mil) in time rather than go to open bid for a block that seems to have proven reserves. The Chinese are very active at the moment in Georgia and I assume this is why the rather active activities of the US.

Posted by Contra on the 7th November :-

Liquidation
A company that has been liquidated is simply that. It doesn't have employees or assets. Those that were there have left. It is a dead parrot. Now I have no idea what redundancy pay employees in Georgia are due, but if block12 is now sold and whatever assets, including money, have been transferred to another Frontera company I would very much hope that these employees will be looked after. Maybe we will find out soon.

Posted by Symore_Bottoms on ii on the 7th November :-

Fozz - seems like there has been a spate of departures from the Georgian subsidiary FEGL, which is a subsidiary of FRCC, which in turn is in the hands of the liquidators. Perhaps the departures are linked to the accruing staff costs which the liquidator cannot cover due to the 95% farmout of B12 to FRUS [i.e. all oil proceeds going to FRUS now?]. Remember this is not a transfer of the PSA as this is restricted by the CLNs but a separate commercial agreement presumably approved by the Georgian Govt. If this is correct, then it will not go down well with the GoG, laying off long standing [innocent] Georgian employees. Perhaps its a tit-for-tat retaliation because the GoG approved the farmout? I don’t know?

There were also some very important revelations uncovered by the LSE crew that FRR’s lawyers submitted a motion to withdraw representation from the Fiduciary case, mainly as the two parties could not come to an agreement on how to voluntary withdraw from legal proceedings (FRR wanted to withdraw it ‘without prejudice’ meaning that they still had a right to re-initiate legal action in the future if they wanted to while Hope’s lawyers wanted it ‘with prejudice’).

The motion of withdrawal was granted by the Judge and gave FRR 30-days to appoint new Counsel. I believe a telephonic conference call will be held on the 8th January 2020.

So what does this all mean for us? Could it be the beginning of the end? Is it good or bad news?

My personal view is that if the Arbitration has been resolved and FRR given the production license, the farmout will be completed and OMF repaid. If it was the other way, I think everyone would have been fired in one shot [as is the case in liquidation cases e.g. Thomas cook] and bad news would have been leaked to all the main media outlets by now.