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New gas well is $5m per the plans and sidetrack will be $2 to $3m per actual costs at Taribani for that depth drill.

2020's is under 2 years away if he can wait................

Puddy why are you talking the price down today? The current trades are going through pretty much where they have been since 9am. There has only been 1 significant trade of 5m at around 10:30. Whatever is happening today to the shareprice it is not driven by volume.

Why is the share price down?

Thombola I did. Now reply to my note or I will just filter you and recommend everyone else does likewise.

Puddy I've been watching what they have been doing on ud2 from the start. The clues have been in them starting the work higher up than they originally planned and keep moving up the well. I think Zaza would have preferred to concentrate on the oil but as shareholders people have indicated a strong desire to progress the gas at UD2. He has done that to the limits of what is possible on that well. That does not mean it is a total failure. Far from it it has shown what they have been saying from the start that it needs new drilled wells into the formation but that gas is there. There is enough o justify a return bit like basin edge in the past. The extra work post Jan was done in between tasks on the oil and really at the cost of the proppant. Worth a try going up the well again i think this time they were in the casing run above but all the time away from the best zones but ultimately it has not come off this time.

Had they stopped working at ud2 in January then they would have been left with the current campaign not fully funded and still needing to see off YA.

So the sequence I think will work out long term for the better. There is clearly little or nothing priced in on the gas now so focus is back on the oil for the time being.

Cheer up Puddy it's not that bad. The WHI figures are conservative and the share price has been higher than their risked valuation in recent months!

The zone 14 and 15 flows will confirm a lower risked valuation which will be higher. If they value it in e fees of .82p a share now and we are at .33p then a proven flow rate will make it look even more undervalued. They have never attributed any value to gas and the models have nothing for the higher flowing and higher graded oil below zone 15.

The low sulphur and high api content of this oil I understand makes it very desirable for refiners.

Volume is actually low but you have some people selling and less people buying while they digest the news. Someone selling at .33 and buying back at .30 would make 10% assuming the market makers will sell them shares in same volume. Its how a market works particularly in a share like FRR that is closely followed by momentum traders and shorters.

Its going to need the sustained flow rate on T45 and Dino to fix a valuation. WHI are correct in their note on that. Once that is available the numbers can be crunched to see what price is fair value and we can then see a sustainable rerate on facts not supposition.

I would say if this result had occured at UKOG we would have gone up exponentially but cynicism and skepticism is a strong anchor here to break free of.

Noloss we are not allowed to flare a production oil well under Georgia oil and gas regulations.

So depending on the flow being sustained they would need to come up with a solution for it. Alternately I suppose they could plug and move back up the well to zone 14 and 15 and come back later. It could be that they now start planning for that when they do Niko which is close by.

Chris I wouldn't be quite that pessimistic! A sidetrack will cost $2 to $3m. It becomes a difficult decision when you can spend same in tarbani and get a guaranteed result with under 1 year payback.

The key next news is the sustained flow from zones 14 and 15. We can look forward to a WHI note a bit later and some podcast type stuff. Perspective required if these wells can do anything from 200 to 1000 bopd the field is valuable. And don't forget the same geology is all around taribani including mirzani and right out to basin edge. There are thousands of potential well locations.

So oil on its own should move the share price up while they decide on approach to the gas including whether a partner comes in to help accelerate it.

Well people have got what they were clamouring for so I hope they are happy.

Let's start with UD2. The Soviets struggled to drill at that lication. UD1 is 10m away from UD2 and was abandoned when the Soviets were unable to carry on. That gives you a clue as to the conditions and quality of the drilling. UD2 they have effectively tried in 3 stages this RNS confirms they went back higher up the bore each time to try and find better area to work with. Remember this well is 5000m deep and we are working in 30m section half way down. I would agree they probably knew in November that the cementing was alot worse than they hoped. But for at most $1m they have learnt alot about the formation. Whether increasing the pumping power was a good idea on a weak cement job I'm not so sure on that. The rate of gas flow i would like to hear more about that as it should have been higher. So the deep gas stays where it is for the moment pending a sidetrack or new well. Its not going anywhere soon. We need to see how Schlumberger get on with their new wells in their campaign.

The oil at T39 is very positive for 1 zone. Its good high quality oil and on its own is flowing at double our current production profile.

YA is being paid on schedule without dillution which hints at good results from T45 and Dino.

T45 and Dino result is being reserved for later. From RNS you can't read that as either positive or negative. Probably sensible to split the announcements rather than throw it all out there together to allow UD2 news to be digested.

I think it's possible that Niko might go deeper now and target these deeper oil zones when it's done in November.

Overall it's positive on T39 and YA but UD2 will disappoint those who were here just for the gas as it really needs new modern wells and the work has shown that to be definitively the case now.

Pompey opportunity for a bit of research for you! UD2 and the Gareji is dry gas. Not aware of any condensate type from the well to date on the bit we are testing. They will have brought in a testing rig and yes they will be flaring as part of that there is no capacity to store or distribute from the site without the pipeline.

You can do a bit of research on gas testing on internet to get a bit of an idea as to what they are likely to be doing.
Start with something like petro wiki: http://petrowiki.org/Well_test
http://petrowiki.org/Deliverability_testing_of_gas_wells

You will gain a bit of insight into why its not as simple as just flaring the gas. They will be trying to stabilise and measure the reservoir and that will be being complicated by the contamination of the surrounding geology from the soviet drilling. That takes time as this is not a clean modern well that we drilled.

Companies like : http://sunryoil.com/default.html have info on some of the kit used for testing there are lots of others.

In terms of the question of the pipeline. Pipeline has always been conditional on the flow results. The clock starts again on the pipleine once they are confirmed.

The 2 year comment I have only heard once at the May 2018 presentation. Prior to that Zaza had presented at the funding rounds that a 2nd gas well was on the cards for 2018 so something has changed on Q1 2018. No reason offered but given a gas well cost $5m new and given the trouble we have had with UD2 best left till we have stable revenue or someone else stumps up for it. Could be that they have found what they were looking for in UD2 and the logs they have from across the block already. Could be other reasons. We don't know at the moment but they have always planned to release results of all 3 stages of UD2 in a single release of the result.

I think you are already seeing the result and application of that approach with UD2......Say little and still people complain. Give rough guidance and people complain, give them detailed information then people ask for more or critique it...... they can't win and I must admit if someone did that to me at work I would probably react the same way and provide less information, be more "generous" with estimates to create space within which to operate.

The problem is that if they RNS every minor change of timescale on an active program that would be equally problematic. I can imagine the posts now. They simply have to be allowed a reasonable degree of operational flexibility to manage the business (their primary responsibility).

Welcome back Zib if you have been away - just filter them all. My list grows daily.

Rb40 so it is 10 days over on a 60 day test. I can't be bothered to work out the % but that is not long time over in oil and gas considering they said approximately 60 days! There is an almost total lack of perspective here. Others may take a literal interpretation but I would say they are inside an acceptable tolerance given the other work going on at the same time in close priximity and you simply do not know what factors could have occured that mean they need a bit more time to complete the task for perfectly good reasons. They might have finished the test and reviewing the results prior to release. That process could well involve internal as well as external review.

The change in plan on T39 will be a factor here. The plan for zone 9 and 13 I would say falls into the tolerances you smply have to alliow. If people start counting days like this you will end up with even broader and less specific measures to use as a stick to beat the company with.

What did you expect Yellow jersey to send to you?

You have been told what is going on. I don't know how long you have followed or invested as wth the change in being unable to view history it's hard to tell but this is still nothing like the periods of quiet from the past. You have had initial rates on 2 of the 3 wells and the 3rd was only done a few days ago. The next round of rates are for an extended 60 day plus period. Ud2 is under test they have said they did not intend to issue initial flows from ud2 as they intended to issue a full flow and that was when they were looking at 3 intervals. The 2016 campaign issued initial followed by the final flows several months later so this is not as unusual as you think. What has changed since April and coinciding with the arbitration is a change in the detail, frequency of RNS and use of twitter.

You might think the politics is a trivial matter or an excuse I'll just plain disagree on that but on the oil at least is unlikely to be anything to do with what your perceiving as a delay.

The company is engaged in charting a course through a combination of tight finances and difficult geology and politics.

Moaning and gnashing teeth because it's not running to a timeframe that suits your plans will make no difference whatsoever. They need to get this right and if that takes time so be it.

5p - there is no reason to believe the technical design has not been completed for the gas. I would be astounded if when doing it they had not modelled it as different production volumes. The processing facility has a capacity limit unless expanded anyway. Likewise the economic models are modelled at a certain anticipated flow rates.

Equally I would be surprised if once the results are known they then revisit the design and check it again. What they won't do is commit to build the wrong sized pipeline or a pipeline going to a small processing centre feeding Georgian local demand if the future is reworked new wells heading from a jv in a different direction towards the international export pipes. The next work on the pipeline is clearly conditional on the testing results and whose to say they have not progressed some of that once they had enough results since April?

I would not be at all surprised for us to get an RNS on the gas flow and pipeline finance/next steps in the same RNS.

Commy - you miss the point of my post by jumping in and not reading the context of my post. You can get as frustrated as you like and obviously continue to do. .ZEN will have totally different dynamics to FRR. I was not talking about revenue or balance sheet on this occasion I was observing how people react to the share price.

People who have invested recently pre results and YA finishing the current round of preference shares must have invested having done their own research and decided that a price higher than .34p was good value? Given nothing has changed since then except oil price has increased and the program has been executed on time and on budget and YA have been reworked and the next well is funded then if it was seen as good value at a higher price then surely would be a better price at a lower value?

5P get a grip its not about faith its about engineering, politics and finance .

There is not a complete u-turn on Ud2 and complete silence. It was revisited in April/May and is under test as was advised would happen in Jan when the more powerful pumps were needed. They rightly have been used at the oil wells which are quicker to monetise and to save costs were used in between oil operations.

The pipeline was always conditional on the results of the flow tests. Nothing has change don that either. And Zaza has always been of the view that certainly with the gas he wanted to release the final flow rates and not interim ones.

Had the first round of operations at stage 1 and 2 worked using the lower power pumps UD2 would be at a different stage in the gas development. They didn't and the collective wailing and gnashing of teeth on sites like here and displayed at the shareholder meetings is why you will now have to wait in my opinion. To do otherwise now just invites the sort of comments we see almost daily.

The downtrend has been accompanied by a very small overall % of the shares traded by people - the vast majority of shares are being held and only a small % round the edges is being traded and that is inspite of the background politics working through at a macro economic level.

Those who thrive on momentum trading rely on momentum into announcements to scalp some cash - I would not class them at investors in the company - they are absent and chasing shares like UKOG (remind me how long their test window is again please!). They are only interested in following the share price. As for the malevolents who make their money off CFD and spread bets they rely on peddling doom and gloom as they are even worse and care neither for the company or the share price or anyone but themselves.

You could view 0.34p as a bargain opportunity with YA dealt with and neither the Oil or gas has been priced!

Won't be overdue until November 2018......in the interim possibility of a quarterly meeting maybe August. Don't worry by Nov Niko will be underway and current program finished!

Timster: 3 sources they have to play with at the moment to handle YA and the monthly deficit.

1. Revenue from T45 and or increased oil price.
2. The $2m+ funds from the court settlement.
3. The $1.5m contingency funds from when the Institutional investor invested.

The above funds meant the company could have plugged the monthly deficit and still had enough in the bank to get the YA reduced monthly amounts away in time for the increased revenue from Dino and T39. Be under no illusion if YA thought there was a problem they would have wanted to convert quicker not slower!

The finances are still likely to be tight at the moment but executing the program without costly mistakes means that they would have had access to some of the contingency funds - which has also probably allowed them to venture deeper into Zone 19. They would have been unlikely to do that if there were problems at zone 14 and 15 at T45 and Dino.

The Niko funding arrangement also points to short term equity and cash conservation and further confidence that the investor expects to get their $3m back! I suspect the service providers needed to be booked and having Niko lined up and funded enables the service providers to be confirmed.