Member Info for Madpunter

Posted by Looed on the 11th Feb :-

Russian article - "Ivanishvili created a problem between Georgia and the USA"
Long article on the USA - Georgia relationship. This is the part that mentions FRR -

"The Georgian opposition in its fight against Ivanishvili receives support from the United States and Europe. Republican Congressman Pete Olson called Ivanishvili "Putin's puppet." Olson spoke in Congress and harshly accused Ivanishvili of assaulting democracy and infringing on the interests of the US oil and gas company Frontera Resources, which operates in Georgia.

“Madam Chairperson, I have a question: what does Oscar Grauch (the character of the American puppet television show“ Sesame Street ”, living in a trash can - NG) have in common with the oligarch Bidzina Ivanishvili? The answer is: they are both puppets who made a mess in their homes. Vladimir Putin's puppet attacked foreign investment in Georgia and destroyed basic human rights. The Texas company has created excellent jobs in the United States and Georgia (referring to Frontera - NG). They created freedom. This was so until the Georgian authorities took their equipment from them. Now they can’t do drilling work there at all.

Of course, Vladimir Putin is happy that he controls Georgian oil. This puppet, oligarch Ivanishvili, is becoming even richer at the expense of the Georgian people. It is time to sober up."

Source - https://ednews.net/ru/news/conflicts/416260-ivanishvili-sozdal-problemu-mejdu-qruziey-i-ssha

Posted by Looed on the 11th Feb :-

RE: Article from Lithuania of the "no pay no oil" variety
Here is an English version of the article. The translation is a bit lazy - Still talks about Sacramento etc!

Source - http://engnews24h.com/in-the-shadow-of-the-shale-gas-conflict-tbilisi-has-been-criticized-by-us-congress-members-for-money/

Posted by Looed on the 11th Feb :-

Russian article on "Infamous American Company"
Infamy, Infamy, the Russians have got it infamy!

This Russian site has linked the press release with the workers protest. The article isn't as scathing as previous ones but he article has pictures and the video of the recent protest. (pics and video same as posted last time)

"Frontera hopes to continue cooperation with Georgia
Over the years of work in Georgia, the company invested $ 580 million, while oil and gas were extracted and sold for $ 60 million.
TBILISI, Feb 10 - The infamous American company Frontera Resources, engaged in the exploration and production of gas and oil in Georgia, is ready to continue working in Georgia, the company said.

A protest rally of former corporation employees who claimed their salaries was held a few days ago in Tbilisi. Employees of the company demand to cover wage arrears for 11 months. This is not the first meeting that they hold. Many lost their jobs after the protest in December 2019, and families were still left without money for the New Year.
The protesters had two basic requirements - to return the salary and restore to work on old conditions. According to the protesters, they will hold campaigns until their conditions are met.

Frontera Resources notes that from the start of oil exploration and production in 1997 to the present, the total investment is $ 580 million, while oil and gas was extracted and sold for $ 60 million. The state also received tens of millions of dollars in taxes.

"It should also be noted that Frontera Resources fully assumes responsibility and risk of investment in the project, and more than half of the profits, oil and gas belong to the state of Georgia," the statement said.
In 2017, the state, as well as the Georgian Oil and Gas Corporation, began an arbitration dispute against Frontera, which "significantly complicated the company's activities and the influx of planned investments in Georgia."

Nevertheless, the company hopes to continue the implementation of the multi-billion dollar oil and gas exploration project, which, as stated in the message, will ensure energy independence of Georgia, and will bring great material benefits to its population).
"It is a great honor for Frontera Resources Corporation to be part of Georgia’s economic revival," the report said.
Frontera Resources Corporation, an American gas and oil exploration and production company, was founded in 1996. The company's strategy is to search for hydrocarbon production prospects in the markets of Eastern Europe, which belong to the Black Sea basin. The company currently operates in Georgia and Moldova."

Source - https://sputnik-georgia.ru/economy/20200211/247699806/Frontera-nadeetsya-prodolzhit-sotrudnichestvo-s-Gruziey.html

Posted by Looed on the 11th Feb :-

Press Release - short article in English
"FRONTERA CLAIMS THAT GEORGIAN GOVERNMENT HAS STARTED HARASSING THE COMPANY SINCE 2013

Frontera Resources Corporation has released a special statement saying that since 1997 the company has invested $ 580 million.
Frontera claims that the state has received tens of millions of dollars in taxes and employs hundreds of people.
The statement also said that the mandatory investment program of the contract between Georgia and Frontera amounted to US $ 18.5 million, but the company exceeded this obligation by about 30 times.
“Since 2013, the government has started harassment of the company, as problems have been created linked to the issuance of various types of operating permits and repeated attempts to revoke the license on oil and gas extraction.
In 2017, the State and the Georgian Oil and Gas Corporation launched an international arbitration dispute against Frontera, which significantly hampered the Company's operations and inflow of the planned investments in Georgia.
Nevertheless, the company hopes to continue implementing the multi-billion dollar oil and gas exploration project that will bring energy independence to Georgia and provide its people with greater material benefits.

It is a great honor for Frontera Resources Corporation to be part of Georgia's economic revival, "the statement reads.

Source - https://bm.ge/en/article/frontera-claims-that-georgian-government-has-started-harassing-the-company-since-2013-/48659

Posted by Looed on the 11th Feb :-

Article from Lithuania of the "no pay no oil" variety
Long rambling article that doesn't google translate well i.e. the nation of 'Sacramento'. Doesn't refer to the latest press release.

Link - https://www.15min.lt/naujiena/aktualu/pasaulis/konflikto-del-skalunu-duju-seselyje-jav-kongreso-nariu-kritika-tbilisiui-uz-pinigus-57-1271758

Posted by R8pilot on the 10th Feb :-

Bidzina Ivanishvili - the house of cards are falling
"It is an unfair and politically motivated decision, and it was personally taken by Ivanishvili, which was executed by the judges who did not even have time to study the case”, Ugulava said, adding that he expected the guilty verdict

http://georgiatoday.ge/news/19409/Gigi-Ugulava%3A-If-Prison-is-a-Path-to-Freedom%2C-I

Posted by bugsy-b on the 10th Feb :-

"The country's Supreme Court announced the sentence at a closed hearing. Neither Ugulava nor his lawyer were allowed to attend"

https://www.dw.com/en/georgia-opposition-leader-gigi-ugulava-slams-his-sentence-for-graft/a-52330476

Posted by R8pilot on the 10th Feb :-

It’s looking more and more like the political measures used in Russia.

Posted by keysersoze on the 10th Feb :-

Adam Kinzonger on twitter 1he ago
Gigi Ugulava, leader of European Georgia, was arrested today and sentenced to 38 months in prison for an old crime he’s already served time over. To say this is disturbing would be an understatement. Using courts as a weapon is NOT democracy.

Posted by Oopsi on the 10th Feb :-

Back in court Cayman
Back in Cayman court this Wednesday - summary judgement application by our old lawyers. Bit of a side issue now

https://www.judicial.ky/wp-content/uploads/courts/grand-court/GrandCourtList10thFebruary2020(F).pdf

Posted by Goit on the 10th Feb :-

MadP this is supposedly an official statement from FRR?

Posted by Madpunter on the 10th Feb :-

Goit - Apart from one statement during the Ukraine court case FRR have remained schtum and until the arbitration is completed or a deal is announced IMHO they will remain schtum. The statement is 'supposedly' from FRR, but it only gives the production based upon rates from the Eldari A prior to the recent fracking. It also greatly increases the sunk costs by $140m. How have these costs increased? IMHO it is propaganda.

Posted by Timster on the 10th Feb :-

Could say your numbers are propaganda too madp :)

Posted by Madpunter on the 10th Feb :-

Timster - The numbers in my recent post are from the RNS's listed. Production of 220bopd for 11.5 years (it was more in the first 18 months before the zone 9's declined), plus the gas = around $6m each year @ $65/bbl. FRR receives a $5 premium to Brent and the price has averaged above $60/bbl since 2008. Facts not propaganda.

Posted by Madpunter on the 10th Feb :-

It's More Propaganda
FRR has been pumping oil since the summer of 2008, which is over 11.5 years. Prior to the oil price decline in 2015, FRR's revenue was around $6m each year from oil and gas sales. The oil price was subdued for around two years (see the 5th link below and click on max under the chart), but FRR had reduced sales in the latter part of 2017 , due to work on T39, T45, Dino-2 and Niko ready for the fracking etc. Therefore, there was reduced revenue for around 2.5 years.

Using the figures before the oil slump the average is $6.25m, which multiplied by 9(11.5 - 2.5)years = $56.25m
During the period of decline the average is $3.4m, which multiplied by 2.5 years = $8.5m.
Total for oil and gas revenue = $64.75m.
Therefore, the figures in the latest article do not include the increased production from the Eldari B. IMHO this article is more propaganda to make it look like Block 12 isn't very productive. They have increased the sunk costs to make it look even worse in terms of revenue verses costs. The figures can be cross referenced by using the 220bopd of historic production, which only requires $65/bbl for 11.5 years to give $60m (that's without the gas and a reduction for the 75bopd of heavy crude which sells for less). FRR's oil sells for around a $5 premium to the Brent price which has been as high as $84.58.

Revenues from crude oil sales for 2013 totaled $6.1 million (see 1st link below).
Revenues from crude oil and gas sales for 2014 totaled $6.4 million (see 2nd link below).
Revenues from crude oil and gas sales for 2015 totaled $3.7 million (see 3rd link below).
Revenues from crude oil and gas sales for 2016 totaled $3.1 million (see 4th link below).

https://www.lse.co.uk/rns/FRR/2013-annual-results-and-operations-update-x6g6gu8u9y4l8oq.html
https://www.lse.co.uk/rns/FRR/2014-annual-results-ttmdc93tdsujj4e.html
https://www.lse.co.uk/rns/FRR/2015-annual-results-uv2krjysmdjfg6v.html
https://www.lse.co.uk/rns/FRR/frontera-resources-releases-2016-annual-results-gaanq4n83f1urzc.html
https://oilprice.com/oil-price-charts/46

Posted by erazzel on the 10th Feb :-

Bidzina Ivanishvili (OLD)

https://www.theguardian.com/world/2012/oct/01/bidzina-ivanishvili-profile-georgia

Posted by R8pilot on the 10th Feb :-

End of the road for the Dream Party?
Makes you wonder whether the deliberate delaying of the arbitration, surfacing of martial on corrupt government officials and involvement of congressman is part of a big plan to remove the DP. A big coincidence that it’s happening now. Are the DP a threat that SMs and the West want removed before progress / investment can continue ie NATO, EU and the investment of $bs?!

http://georgiatoday.ge/news/19403/Opposition-Leader%3A-100-50-System-is-Comical-and-Even-Funny

Posted by Looed on the 10th Feb :-

Same statement - different title
This time - "Frontera: We have invested US $ 580 million since 1997"

Source - https://ipress.ge/new/frontera-1997-tslidan-dghemde-580-milioni-ashsh-dolaris-investitsia-ganvakhortsieleth/

Posted by Devex on ii on the 10th Feb :-

Have to say that is a pretty bold and strong statement - and very welcome. Almost certainly will have been made on the back of legal advice (and I doubt if TT is involved in this bit of the process) Final submissions to Stockholm due this week we believe - is it timed to coincide with that? But arbitrators will not be influenced by public statements of this sort in my view - purely the technical/legal submissions. It is certainly not aimed at us, nor in my view the Georgian public. Aimed rock solid at the Georgian authorities - perhaps to coincide with some behind the scenes court discussions. Most importantly it is positive - and not significantly acrimonious. The saga continues

Posted by Looed on the 10th Feb :-

"Georgian Parliament Speaker Concludes U.S. Visit"
Just heading out so can't cut & paste but all very positive soundbites on bilateral ties. Here is the link -

https://civil.ge/archives/337990

Posted by StarRage on the 10th Feb :-

Mick, sounds like the arbitration is near to releasing news. Nice of the company to release a statement to the press and nothing to shareholders, but they can't do that can they?!!

Sounds to me like Frontera trying to generate a bit of positive PR for themselves. The interesting bit was '"total investment in oil exploration and extraction since 1997 is approximately US $ 580 million, while US $ 60 million worth of oil and natural gas has been extracted and sold during the same period. The state has received tens of millions of dollars in taxes. The project employs hundreds of people."

So $60m in 23 years, whereas the numbers you have all been sucking up from Madpunter - check his post of 12th Jan - is income in 2019 alone of $59m, and that's not including the gas! Lol.

Posted by Looed on the 10th Feb :-

Part 2

It is also noteworthy that Frontera Resources fully assumes the responsibility and risk of capital investment in the project, with more than half of the oil and gas profits owned by the State of Georgia.
The company began harassment from the state in 2013, which resulted in the issuance of various types of operating permits and repeated attempts to revoke the license to extract oil and gas.
In 2017, the State and the Georgian Oil and Gas Corporation launched an international arbitration dispute against Frontera, which significantly hampered the Company's operations and the inflow of planned investments in Georgia.
Nevertheless, the company hopes to continue implementing the multi-billion dollar oil and gas exploration project, which will bring energy independence to Georgia and provide its people with greater material benefits.
It is a great honor for Frontera Resources Corporation to be part of Georgia's economic revival, ”the statement said.

Source - https://www.interpressnews.ge/ka/article/584598-kompania-frontera-gancxadebas-avrcelebs/

Its now available on another site, same content but better layout - and what a title -

"Frontera - We hope to continue implementing multi-billion dollar oil and gas exploration projects in Georgia"

Source - https://1tv.ge/news/frontera-vimedovnebt-gavagrdzelebt-saqartveloshi-navtobisa-da-gazis-sabadoebis-atvisebis-mravalmiliardiani-proeqtis-gankhorcielebas/

Posted by Looed on the 10th Feb :-

"FRR Statement"
The Merrick oil company Frontera has issued a statement. It has recently spoken about a company in Georgia that Frontera calls "incorrect and incorrect."
Interpressnews offers the following statement:
“Frontera Resources Corporation responds to recent incorrect and often incorrect information about the company in Georgia. Frontera is an American oil and gas exploration and production company headquartered in Houston, Texas, USA.
The founding shareholders of the company are prominent representatives of the American energy and financial industry, including Baker Hughes, Conoco, JP Morgan, Shell Capital and many more. Since its inception, the company has worked in Texas in the US, Latin America and the Black Sea.
In 1996, Frontera signed two production sharing agreements in Azerbaijan, where it began oil exploration and production that same year, making it the largest foreign oil company in Azerbaijan for several years.
In 1997, the company won a tender announced by the state of Georgia and obtained a license to conduct oil and gas exploration and extraction in the 12th block of East Georgia.
After a year of negotiations with the Government of Georgia and after the terms of the agreement were agreed with the Cabinet of Ministers, the State Investment Council and the Parliament of Georgia, the Company signed a Product Share Distribution Agreement with the State of Georgia and the State Company Saknavobi.
The mandatory contract investment program was $ 18.5 million. The company has exceeded this obligation by about 30 times.
For the first time in its history in Georgia, Frontera:
Together with US banks JPMorgan, Morgan Stanley, Shell Capital and Deutsche Bank, they began investing in the 12th Block Project, successfully performing three-dimensional seismic research, drilling up to 60 wells with modern technology, horizontal drilling of oil wells with leading US companies, Netherland With Sewel & Associates, Ryder Scott and Miller & Lens approved the 12th block of oil and gas reserves. (The acquisition of these supplies will fully meet the country's demand for oil products and natural gas consumption and increase the volume of Georgian oil and gas exports.)
In 2004, he placed shares on the London Stock Exchange for the Georgia Project. This was the first time the Georgian stock market had raised capital. This transaction successfully introduced Georgia to the international stock market capital market.
The first gas pipeline and compressor station was built to supply locally supplied gas to users in various regions of Georgia.
Total investment in oil exploration and extraction since 1997 is approximately US $ 580 million, while US $ 60 million worth of oil and natural gas has been extracted and sold during the same period. The state has received tens of millions of dollars in taxes. The project employs hundreds of people.

Posted by Ivyspivey on the 9th Feb :-

RE: More pressure on Ivanishvili
More background on Ivanishvilli

https://www.politico.eu/article/vladimir-putin-replicates-his-georgia-model-in-the-us/

Also said that Hilary Clinton met up with Ivanishvilli so Donald not likely to be a supporter

Posted by bugsy-b on the 9th Feb :-

More pressure on Ivanishvili
"Mikheil Saakashvili says he is getting actively involved in the "removal of Ivanishvili's regime”

"
Think again about who these people are: destroyer Ivanishvili, reckless Talakvadze, evil Tsulukiani, thief Chkhartishvili, bribe-taker Kaladze and many more are destroying our country"..

https://www.interpressnews.ge/en/article/105724-mikheil-saakashvili-says-he-is-getting-actively-involved-in-the-removal-of-ivanishvilis-regime

Posted by Ivyspivey on the 9th Feb :-

Reminder on Kinzinger
Sent original letter to GG

https://pbs.twimg.com/media/EL6-pByX0AAu-fn?format=jpg&name=medium

More Meetings with US Congressmen
https://civil.ge/archives/337321

Reading between the lines it seems that GG officials are meeting with all Congressmen who sent letters apart from those that directly inferred FRR in their letters.It appears they are trying to separate the two issues so will be interesting if we get any comments about FRR in discussions as oblique references to all questions being addressed may not include FRR specifically.