Member Info for Moleinahole

Major DELT current shareprice is 1p - so why offer 3p? RRE with producing assets got taken out at 100% over shareprice at time of their takeout. PREM looks in trouble and likely to go cheap as well. So 3p was never realistic in current market for non producing assets.
You keep bringing up IOG reserves - I'm sure they didn't buy the pipeline and onshore facilities just for the current phases. The attraction of owning your own is that the capex of hooking in existing stranded or no longer being produced assets. Buying prospects is only one option. They have the possibility of selling space in the facilities and pipe to others in addition to future relinquished stranded or end of life assets and merger or acquisition either on their own or with CalE.
10 years is along time and it may be that the world has moved on even from gas investment by then. So opportunities will emerge. What is DELT worth with undrilled licenses or licenses where you drill but come up short?
That is the valuation conundrum and clearly the two are apart. IOG are correctly in my opinion at this time not willing to overpay for unproven reserves. If it was such a sure thing the market would not price DELT at 1p with such a large discount to its NAV. IOG is discounted to its own NAV but by less as its closer to production. DELT has the possibility of being ungraded over time as drilling proves or collapsing. That is the two different risk profiles. Low risk modest return vs high risk high return. Production focus vs exploration focus.

Aligator I think the reason they could not say no interest was the licensing round results. IOG were quite conservative in what they applied for but DELT got some that were of interest and that the IOG board have good knowledge of. I think it was leaked from DELT side to torpedo discussions. The drop in the DELT share price to the around the offer price again showed a remarkable insight!
So I think once it leaked IOG had to complete their look but the timing was unfortunate. IOG will recover and I would be disappointed if this was the only iron in the fire. It probably needed a look given the previous offer for DELT and the licensing round by leaked too early to work anything meaningful up.

Also this may not be the last we hear of the two.
You have the possibility CalE could pick up the baton on DELT and the two could get reconvene at a future date but now was the time to look at a price better for IOG.
That may be a more palatable option for the LOG administrators who could never have agreed anything other than a low offer at this time in their administration process. They need to exit I think within the next year nearer 30p as we near production.
I think both are good prospects for different reasons. So I will be watching DELT now to see how they progress.

Investor the dfference is like chalk and cheese. I'm not sure RRE even got as far as putting a price down on the table. But this was very much a merger proposition.
I think at a sensible price it would make operational and commercial sense. But the dynamics of the two shareholders bases and the lack of firm commitment on the DELT side makes it impossible to reconcile the two positions.
The fact RRE no longer exists shows the board at IOG judged them correctly.
In this case DELT shareholders would have continued to have the opportunity of the upside in IOG as part of a larger entity that has short term cash generating projects.
If RRE only offered a low cash offer you could only have done that by using the cash to buy RRE in the open market at a higher price.
Here DELT wanted a bigger share of the combined pie and IOG thought they only deserved a small portion at this time. Only time will tell if DELT have made a good decision with their drill not till H2 2021 they have a long wait with the risk it slips. IOG can push on.
As I was earlier if you like exploration risk DELT is one I'll keep an eye on but there is plenty of time there.

Plenty of time. We may yet get the revision from Harvey. The initial reaction is in. Under a penny is where DELT is at. Might even think of buying some myself at that price. Whatever you think of Delt assets the market continues to heavily discount them. In current climate DELT are valuing themselves too high. If they were that good CalE would have supported making a deal happen.
How we can concentrate on IOG.

100% behind the IOG board. They have made a couple offers but DELT want to go it alone so obviously value themselves at too high a price. Will be interesting to see the market weighing both companies today. We can now concentrate on phase 1 while DELT ponder when Shell may drill. Plenty of time to pick off the other stranded assets per strategy. In this macro environment I'm happy that IOG concentrate on project execution and not exploration with all its risks.
Right decision to walk away.

Because that I fear is the one case they can't lose - its the one that stops all the others concluding. They simply can't lose that and survive. If there was evidence in discovery it should have concluded. All the others the company would throw in as part of damages if they won or would resolve themselves. If its mediated the others go away with a new funding partner. That has always been the case as I will keep repeating we are in the same place as oct 2018 and June 2016 in that respect.
The ability to attract a partner or funding relies on ending the litigation and there being an asset big enough to attract a partner in a way that does not wipe us out. If T39 proved that then we really should not have endured the last 2 years.
I'll not debate this further as the company have decided to go it alone - in Steve case on his own now.
I shall watch it unfold but it looks more like an end game in a game of chess where Steve is playing for a draw by moving his king back and forth and his opponents haven't worked out how to end it. It should never have happened - if T39 is as good as you think the back to back funding from the Durham loan should have happened in Jan 2019, a nomad would have been found and we could have still been listed enabling YA to to paid off. I admire the optimism in watching and seeing positives in the litigation. I don't share that optimism I'm afraid. Its a dangerous and unpredictable strategy/tactic that I don't like.

So for now that's me done for a bit. I'll watch but won't post further on FRR.

CF and Mad. I'll stop posting for a bit and watch what happens. I'm observing a protracted and unfolding wreck. The reason its taking so long to unfold is in my opinion that there are alot of creditors and only 1 asset. Outrider are secured - YA less so through the preference shares and at back of queue the GG and all the trade creditors and staff.

The money explanation is actually pretty simple if you factor in a drop in oil prices and discount fantasy production volumes. At the time of the delist the company was running at a loss and unable to pay the loan interest - they needed to add at least 500 bopd to break even. We know the first well dropped back. The second probably did as well and the final deeper well will have as well. I think we ended up at around 200 to 250 bopd max and it could be lower if the third well was locked in due to having no gas gathering. Since then they have gradually discarded the staff and the list of unpaid parties grows each time we look. It simply does not look like a careful plan to me.

For what its worth I think the plan was:

1. Start the fiduciary case as leverage.
2. Outrider mediate and allow debt interest rollover or FRR attract farm in or back to back replacement loans.
3. GG give in on the arbitration and things carry on as before hedge with Political lobbying.
4. With 1 to 3 in place go back and carry on in block 12 either with a new partner or new funds with Baker Hughes in the field.

The problem is thats not what happened. Outrider would not back down and using insurance funds could defend the fiduciary case and then use their own funds to engage FIT. The GG far from backing down also dug in and when FRR tried to execute the transfer the two streams collided and converged neither having been resolved.
Meanwhile by not resolving in april 2019 the company had to cut its costs to virtually nil and clearly have either chosen to or can't pay anyone - including YA. Having lost the listing they could not seek help from shareholders to issue equity and YA obviously didn't want the 1bn illiquid shares. With the asset under risk from Outrider and GG the company found getting a loan and a partner nigh on impossible and that issue has been aggravated by the covid induced oil price drop.

Issues and problems have then just fed into each other and gradually the management team has left. The first director left in 2018, then Levan and finally Zaza.

The geo politics plays a part here but at the end of the day I suspect I have lost my money here because the drills in taribani did not flow enough in 2018 to pay the interest on debts we had been told would rollover and being delisted they had nowhere else to go.
YA as preference share holders had rights to share in any takeover farmin gains. If they thought there was a prospect of that they would sit tight . Whilst we owe them $2.8m on paper - they had already recovered their funds by preselling and the extra $1m added at the start.

IOG never rose on the offer. If anything its a total distraction and the uncertainty is weakenning the IOG shareprice. Any leak would have been from the DELT side I think. If there is an offer (or more likely no offer) it will be low that's what the two share prices currently tell you. DELT I think would be more vulnerable to a further sharp pull back if no offer is made than IOG as that rose and caused the premature RNS release in the first place. The bigger risk to both is what is happening in the world. Bit more excitement in Azerbaijan might focus minds on gas supply security and the benefits of the North Sea mind.

Mad - FRUS was set-up well in advance in 2016 in the USA. Have a look at:
https://opencorporates.com/companies/us_tx/0802558654
https://opencorporates.com/companies/us_tx/0802558654/events

The puzzle really is why the address:
1201 LOUISIANA ST STE 2800, HOUSTON, TX, 77002 and not Post Oak address.

And why the changing board in april 2019. Doesn't show Levan left - spending some of the translation money on a cheap search of the texas registry latest entry might show when Zaza and Levan left - assuming they have.

Of course they couldn't transfer the asset because they had mortgaged it as security for the group loans and then provided personal guarantees on top. I am puzzled why anyone would think that is an event that is not at the highest risk of repudiation in a court. Without the fiduciary case I can't see why it hasn't been.
That is the key - it started with a loan that they defaulted on and then claimed the reason was that Outrider blocked funding. Since then they have been in and out of court in the main conducting discovery on each other. That is about to end and then it will be visible who has been swimming without their trunks on. While that is happening as I've said before its moot. Both FIT and GOGC have let FRR carry on till it is resolved. The carry on mind has amounted to not doing much.
On the bank account - simply don't understand on what basis a bank account and oil sales was frozen outside either a liquidation scenario or an unpaid debt complaint (maybe when FRR unwisely decided not to pay the mineral license). Outside that I would have expected FRR to be in court to over turn it - not winging about it in the press. Where is the court case or uncle sam having a word about it?

I regularly check the Georgian registry - no change yet. The other thing that should give you pause for thought is that FRR US were included in the arbitration but the final result was delivered not to them but to the disputed company.

The Georgian sabre rattling on funding and progress started in 2016 not 2018 when they effectively warned FRR to get a move on - Steve and Zaza went to see the President/PM over it with the now well worn copies of the CPR's. But they have never blocked any drilling permits we have been informed of. The debates about gas license goes back to 2013/14 and again the company never raised this as an issue for shareholders when seeking funding for the 2016/2017/2018 fund raises. The discussion point on the scope of the mineral license depth restrictions we have only seen in one press report post arbitration.

You need to be careful in looking at FRR and the Georgian subsidiary now. Its in the odd position of the shares through FRCC having been transferred by the FRR board to FRR US but the transfer wasn't ratified. That is why its such a mess to sort out. Frontera making it political has made it even more complicated. One wrong move by anyone risks more litigation.

Phil and back in the real world..........there are problems with fantasy reserves and hence valuation arguments nice though it is to live in hope!

1. If it was so good uncle sam would have waded in much earlier and much more decisively on the matter. They really have not - FRR resorted to lobbying directly just at the time they dropped out of the type of forums (Atlantic Council) they should be on with such a resource.
2. Why on earth would you risk such a resource over a petty dispute with Outrider? Maybe its an enormous CIA type bluff but I doubt it.
3. If it was so good it could have been farmed out of funded in 2018 with no issues at all. Why did they launch the fiduciary case as the loan interest fell due over $2 to $4m?
4. Why did YA attempt to exit at speed 1 month before that date?
5. Why have we no staff and why was Steve hiding to avoid a summons in 2019, Levan exited same time and now Zaza?
6. Why did FRR go into the final round of arbitration with no legal teams and only 1 witness and not even pay their share of arbitration?
7. We know the Eldari A stack and frack under performed at 1 of the 3 wells. Eldari B was less than hoped and again we do not know what it settled at - it was concealed right up to delist in Dec 2018. If it was good it should have enabled a back to back refinance in April 2019 unless the litigation in arbitration and fiduciary by then made loans/deal impossible hence a smaller oil and gas player maybe is behind the secret mystery farm in/investment.
8. Bid for Ukraine Dolfin - never informed shareholders.

The 1% has all the value argument does not seem correct to me. The presentations from 2017/18 made the key point Eldari B covers a large part of the block and into the 99% - that was the company pitch on the study area. So losing the 99% has to have included alot of the Shah Deniz analogous plays. That being the case if there was a high probability of that - why has it been allowed to be ceded so easily? The 1% definitely contains value - it has producing wells but beyond that the CPR don't help us as they don't enable booking of reserves onto a balance sheet which fully records a mountain and short term liabilities and no assets.

The common sense explanation to me is that there is oil and gas but it is still hard to get out in volume (Steve said as much to Houston Chronicle a few weeks ago) without more drilling and by 2018 FRR have simply run out of cash and the company has arrived at the next capital restructure to resolve the issues the 2010 one left behind in the loan notes. The deeper oil and gas is unknown but Schlumberger exit from block 10 raises further doubts on the size of a likely partner. Again I'm not saying there can't be a deal here but as time goes by my scepticism grows and I tend to gravitate to simpler explanations as to how they have spent 20 years, lost 99% of the block and put no reserves on the balance sheet.

Offline as usual for weekend - so just a quick scan.

I think both myself and starrage have arrived at pretty much the same place. The New York case is key to me (unless there really is proof of fiduciary breaches!) - that action was what FRR were trying to keep an injunction in place in Cayman to stop the security on the mortgage while the fiduciary case was pleaded. When Cayman ended thats when a deal should have been made. But FRR simply moved the litigation to Cali and tansferfed the asset - so Outrider responded with the New York case to unwind the transfer and started the Texas actions against the board. To me its pretty clear ownership of the shares in the company that holds the block 12 license is moot. We appear to be in the odd position that FRR have passed a resolution in the board effecting the transfer but that GG have not approved it so FRR have the shares in the FRR US entity but GG believe the shares to still be in the Georgian entity and as of today neither a court nor FRR have passed a resolution to move them back. While its moot the GG can just sit back and watch as they probably don't want to interfere firstly because they don't need too and secondly because of the political flack interfering might generate.
I also do't think FIT have moved to interfere on the Georgian company (though I have my suspicions that they could be behind the bank account freezing). They may believe the mortgage default has handed them the asset but they seem to have left the FRR management team running it. Again given the dispute with employees and likely costs in trying to run that remotely and Steve/Zaza declaration previously that it was solvent again that makes sense. It makes sense also to take your time building a case. Up until the arbitration result an fallout they didn't even know if there was an asset of value.
Don't forget Levan exited FRR and hence was not able to provide information in cases - Is ZM exit the same "tactic" to delay? The other dark thought I had was could this exit have also resulted in payment of the contract on termination?

Like others I think some sort of deal is being worked out. Its what such a deal might look like that fills me with dread. Given insurers have paid for alot of the litigation then maybe the price is more humble pie and then down to the discussion of paying off the debts (through new investment via a farm in or loans). Outrider may however want a significant equity stake and a new board. If they play hard then FRR shareholders will not do well. So as I keep saying we are actually where we were in Oct 2018 which was same place as June 2016 but having lost 99% of the Block and spent 2 years in court rather than developing the asset. The "Green" partner allows some hope but they need to stop the litigation.

1. EGM - saw some posts on this. We have no right to call an EGM per articles. Article 75. "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 we can convene a meeting of the company in the event we have no directors - we are 1 closer to that than we were and only now have 2 elderly ones! We have no right really to do anything per the articles except vote when they wanted to change the issued share capital. In the absense of that per article 73: "The annual general meeting shall be held at such time and place as the Directors shall appoint and if no other time and place is prescribed by them, it shall be held at the principal office on the second Thursday in April of each year at 10 a.m."

2. Star - on the letters I know they were for FRCC. But clearly FEGL (or whaever) was a subsiduary and 100% owned and also had directors. Now that is the one with the disputed FRR US transfer. It is the seeming pause in the New York action that means that has not been tested. I would be pretty sure Zaza would have been the name on FEGL. Through that they serve on the joint committee that has the 50/50 ownership of Block 12.

3. When I saw Mapdpunter mentionning the coordination committee

Coordination Committee
The Block 12 PSA provides for a coordination committee to be established comprising six members
(three appointed by Frontera Georgia and three appointed by GOGC) which is given certain powers
under the Block 12 PSA and provides the overall supervision and direction of, and ensures the
performance of, the Petroleum Operations (the “Coordination Committee”).
All actions are to be taken by a unanimous decision of the Coordination Committee. However, if the
parties fail to reach agreement on any matter, then Frontera Georgia’s proposal will prevail, provided
Frontera Georgia gives full reasons for such proposal and GOGC does not reasonably believe that the
proposal would result in serious depletion of a field or reservoir resulting in either permanent damage
to that field or reservoir or materially reduced recovery of Petroleum over the life of the field or
reservoir. If GOGC decides to object to any decision taken by Frontera Georgia on these limited
grounds, such matter will be referred to and finally determined by an independent expert appointed
by Frontera Georgia and GOGC.

Is that the coordination committee referred to or is it another one? Anyway the good news would be GOGC is also the entity to approve any transfer/farmin. So sorting out the Georgian side has always been likely to end up in the operating company coordination committee and with GOGC who will take their lead from above.

End of another crazy week in the world of FRR and the shareprice ended flat with no change on the week yet again

Well first they will have to execute the phase 1. Once that starts to get closer then the gap between the NAV and share price on a producing asset should close. If it doesn't then the company will be at risk itself of a takeover. That move up towards production is what I suspect the LOG administrators will sell into either to someone buying the company or II wanting a business generating cash at low risk - they can't keep the administration running on and on and will have some degree of time after which they have to close it out.
Personally I have a target price I'd like to see and which I think is achieveable. I'd probably derisk holding at anything around 30p (maybe 50%) and leave the rest to run. I won't have my full holding in 10 years time for sure. But that would be driven more by life circumstances than anything IOG do.
Dividends here would take a bit of time would expect them to pay down the euro loan in early years or invest back into business.
So I'd be disappointed if this time next year we were not well on the way or over 30p.

Star the 250m each shares is what I understand the Texas case is all about.

I'm not so sure about how the 500m shares gets offset against the interest - logic suggests it must - you can't just take both - but by not handing them over and delisting they are no longer worth what they were. But my read is that Hope would end up with 500m shares to use for instance to vote or block a restructure or carry into a liquidation given we are suspended. The 500m shares as of today only have any value if the company relists. The rest of the interest and the loan note principle is what the New York /Cayman liquidation cases are all about. Don't forget Steve has some loan notes as well - not many but a few.

The most interesting part of the non real/fake arbitration document was the bit around who was left to run FRCC and hence FEGL. The mortgage had the signed resignation letters copies. But were they ever served certainly not before the attempt to transfer and possibly even not by today. Hence why Zaza was able to carry on in Georgia post arbitration result. I'm watching for any movement on those letters showing up in Georgia registry or US cases.
WE seem to be in the bizarre position that FIT have control of FRCC but may have left the FRR board in role because even they are not sure of the outcome and need to be careful with the asset. Having secured the 1% will the letters now been served I wonder?
It is that battle over the asset that I believe is having to be worked through and the Georgian politics have just added another layer of complexity to an already complicated mess.

Couple of reasons spring to mind.

First he can't be sure on the fidcuiary until its settled either in or out of court.
Second, a judge Kawaley observed there is a real animosity and mutual displike. The Texas case is pretty cheap to run and on a fairly solid basis. That may also be less about the shares themselves than the leverage it gives.
If it was me I'd do exactly what Hope is doing if someone tried to drag me through the courts.
Third, not fighting the security side would look odd given the wider mortgage default battle.
What do you think he should do?

For the avoidance of any doubt and I think I've been consistent I never rule out a surprise outcome here. However, the way the last 3years have played out it looks much more like the Madagaskar oil scenario with outrider than a surprise deal. So I have conditioned myself to expect to lose most or all my investment here but be surprised if that is not then the case.
The end seems to be approaching and there is nothing we could have done about it since agreeing the changes to the articles (was that 2014?) and the restructure votes in 2016 and 2017.
Hope is secured and will get something back (unless he loses in Cali) even if he has to drag off the old machinery and stock of materials at taribani. We are at the back of a long cue of creditors before we get a chance on whats left. With Shares Hope would have two chances at the assets - first as a secured creditor and then with a tidy share of whats left.

Cazbraz for me its always about primary documents as evidence to inform theories. I don't know where he/she would get the first set of docs/info but the exit of Zaza may have been visible on either the Texas or Cayman company registry. Its not price sensitive as we are delisted! The weight of those primary documents in last 3 years has been persistently negative.
I think some sort of sell on is a real possibility. But what is the price/risk of terminating litigation and net of the loan notes and mountain of other debts is 1% of the block now worth in a strategic or fire sale and what would be left for shareholders once the company is liquidated? The other option is capitulation and walking away.
I can't see how the company continues there is nothing really left apart from some leases. The company is really a shell.

The fiduciary driven cases should never have happened in my opinion unless they had absolute solid evidence before hand. The timing leaving it right to the default in that crazy 6 weeks period with YA attempting to bail by pre-selling shares and then the majors under NDA, the default of a debt we never knew was due and litigation has never felt right to me.

Major - what I think is irrelevant. I think I've been clear I did not invest here for exploration risk. Equally I'd be surprised if the LOG administrators with 30% would want to see the share price of IOG hammered by a deal at 3p+ transferring too much of the company to DELT investors and making their job of explaining the increased risk and possible lower payout to creditors - who are where they are because they thought guaranteed £ notes were easy to grow. What risk profile is appropriate for an administrator? DELT as of today is trading even more below is asset value than at the start and falling back. Recommending an inflated offer while DELT remains weak will require some confidence that the drilling will deliver results. LOG admin stayed for Harvey - do they want more drilling risk or a reliable return?
Its what LOG admin and Lombard and CalE think that matters on the IOG side.
In a weak market no one in their right mind should overpay when you have companies like Premier teetering on the brink cash is king and IOG are funded to production and have a working partnership with CalE.
I've put my numbers in a model and anything over 2.5p would be too much in my opinion and I'm obviously happier more towards 2p than 3p. I would be astounded if IOG paid 3p+ - CalE might its pocket money for them mind but for IOG using paper on its own its a bigger risk. Maybe there is a carve up of the DELT portfolio some assets into IOG with IOG paper and cash for the bits that CalE take or put the exploration assets into some co-owned subsidiary.
Either way I don't think the broader market will look better - so IOG can wait and let the current market apply some gravity to DELT share price and expectations.

It was taken out because they gave personal guarantees on the shares and then failed to deliver them.

Hence I'm intrigued why they believe its now a conflict of interest to represent Steve through Frontera but Zaza is cut adrift now he seems to have no connection but presumably holds the shares they were after for the personal guarantee.

What discovery request would you issue in this case I wonder - I have to say other than claiming it should be moot till the cali case is resolved I'm struggling to see how you defend making a personal guarantee and then not handing over the security on default. They seem to be pushing this case in advance of Cali - to farm evidence or test some of the evidence here maybe?

Checked Georgia registrations and no obvious new items on first glance.

Ta - I did say I thought the action would kick off in US the other day. Whatever the politics and intrigue at the end of the day legal due process will play out unless they come to a mediated agreement (again). I'm checking Georgia links again now. I have a pacer account if you need any docs pulling down.