Member Info for MontiBurns

Firstly let me also add my gratitude to JimSlade for sharing this recent comm from the company. Secondly, festive seasons greeting to all FRR shareholders and the management.

With regard to the message, my takeaways were that legal cases still continue with little sight to the end unfortunately. Probably the most important one right now is in Georgia with Zaza and his cronies but little details available. However good to know that FRR is working closely with Georgian Govt to facilitate the re-commencement of the Georgian Operations. But one question comes to the fore which is what is the status of the PSA. What I mean is that there is no point in recommencing operations when the expiry of the agreement may only be a matter of months away. Hopefully, talking to the GG also includes conversion of the explorations license to a development one. Also I guess a recent media article that crymo posted on FRR and lobbying may signal that discussions between FRR and GG may be positive.

X-mas message to Mr Nicandros, getting the occasional message from the company really helps to uplift the spirits of your shareholders. It has been a roller coaster ride that has affected our mental state. As a new year resolution, please consider us and try to communicate a little more often even if this means in an unconventional method such as JimSlade or Looed.

God Bless the FRR ship and all those who all sail in it. Happy new year all.

So, let me start by saying a big thank you to Looed et al for their continued updates in the multiple legal cases. This submission by Hope seeking a summary judgment in the Californian Court from Judge Seeborg seems to be a departure from previous agreements to mutually extend trail dates. To me, this signals a couple of things: Firstly it could mean that Hope and Nicandros’ are not talking to each other (for whatever reason), secondly legal fees are getting on top of Hope and he needs an expedient closure and three, maybe Hope has received some insider information that FRR and the Georgian Govt are close to signing a new agreement on PSA. Whatever the case, it could be start of the end of legal battles with Hope. Recall, FRR successfully dealt with Zaza’s underhandedness by obtaining a permanent injunction, which he has flagrantly breached, meaning he will be arrested if he returns to the US.

However, one clarity I could do with is that the recovery of shares for non-payment on interest on FIC loan notes was going through the Texas Court while the Fiduciary Case was being routed through the California Court.

Thanks for the input Looed. Still lots of haze around FRR. For me, it would be helpful if we could find out what is happening with the Georgian PSA. I guess the company continues to remain schtum because of the ongoing legal cases but they could give us a hint in terms of discussions with the Georgian officials. I presume there has been no word from your contact recently?

Yes I agree there is a wonderful opportunity for Georgia to get closer to the US and EU by providing gas/energy from B12. In addition, there is already a built O&G infra pipeline that connects from Azerbaijan, Turkey through to Europe. If you revisit previous RNS’s especially after drilling T39, FRR proved there was a magnificent amounts of gas in deeper zones at Taribani (Eldari B), plus lets not forget the MK gas Complex.

However for this to happen, there needs to be a radical and transparent political change in Georgia and this means that Georgian Dream Party should stop covertly supporting Russia. Plus the financier of the GD Party and de facto ruler, Bidzina Ivanishivli, is still in the country.

Here is some recent coverage:

https://eurasianet.org/the-four-horsemen-of-georgias-anti-western-conspiracy

https://oc-media.org/ukraine-calls-for-sanctions-against-bidzina-ivanishvili/

Worth re-iterating that while there are many unknowns, the fact this company continues to fight legal challenges, tells you that there is still a pulse here. I also suspect that Uncle Sam is involved in some way trying to help our company with GG, especially after the recent Russian indiscretions in Ukraine. Things no doubt will work themselves out in due course, so keep the fire of hope alive for no.

Phil, in terms of ‘official’ news from the company, there has been zero since early 2019 (January) if my old memory serves me well. To be fair to the company, it has been caught between a ‘rock and a hard place’ ever sine. If it was not bad enough trying to find a NOMAD at short notice, it then followed by debt default with Stephen Hope, followed by failed fiduciary case in Cayman Island, and probably worst of all, a trusted long term Company Director trying to run off with the company while the Directors’ attention was focused on trying to deal with Stephen Hope. In between all this, the (Pro-Russian) Georgian Govt took the company to the Tribunal to reduce B12 down to 1% of the original area. We should also not forget about the poor Georgian workers who were not paid for many months.

Against this backdrop, one wonders what the company could have updated us on first? Well, let me give them some advise: start by refreshing the company website, unless the intention is to rename, rebrand the company, also also makes sense in order to save money. The important thing is that shareholders occasionally need to be fed with some information to keep the ‘fire burning’.

In terms of where we are with all the ‘loose ends’, frankly speaking I have lost track: What I do know is that, thankfully, ZM was legally and permanently banned as a US Company Director and a permanent injunction served on him in Georgia. We have some court statements that says that the PSA was assigned to FRUS. We are also aware the FIC and FRC were liquidated but the call up on the personal guarantees in Texas Case is still ‘in progress’? Then there is the unpaid loan (c.$2.3M) to YA which was heard in London Court).

The Fifocuary case in California was pushed forward to 2023, but again who knows how strong that is.

What happened to Zaza,? Who knows although he still seemed to be crying to Georgian Authorities that the farmout agree,end signed with Green Capital was valid.

What role is the US Govt/Embassy is playing in terms of helping FRR to renew the B12? Again I don’t know but there was some good news that the Georgian Ambassador to the US met some US officials.

What is the status of the B12-PSA? Apparently had a short expiring period (this year).

Are FRR still producing and selling oil? I don’t know.

Anyway, I could go on regaling the FRR story, so over to Looed to fill in some gaps (thx in advance).

Let me also add my thanks to Jim for sharing this communication with us. Reading the message, it’ is clear to me cthat they are working on multiple initiatives and are making ‘continued progression’. Then also using words like confidentiality and strategic, which are normally associated with commercial agreements (could relate to PSA, farmouts etc). Perhaps I am reading the ‘tea leaves’ with my rose tainted glasses this morning but nevertheless this reply from the company is a ‘shot in the arm’ for the long suffering shareholders. Only one suggestion to Jim (and or Looed), perhaps you could seek clarity on the ‘ongoing legal proceeds’ comment: Does this relate to Hope, YA or ZM?

Thanks again for sharing and if FRR team do read this BB, I will be dropping them a knock, knock message again. ATB

Looed, on the matter of of statutory accounts, I would appreciate if you could also ask your contact at he company if they have produced the accounts for FRR PLC and as (private) shareholders, are we not entitled to see these? Also I recollect that the auditor use to be PWC, but they may have changed the to a cheper one. Also does Frontera Resources PLC still exist as a company or all the assets transferred to FRUS? I know lots of questions so will thank you in advance to trying at least.

Thanks for the link JimSlade. I recall the massive political fallout between Georgia and US senators when Ivanshivili instructed his Govt to take FRR to the Arbitration over the PSA; if memory serves me might, around 20+ Senators signed an open letter citing lack of electoral reforms plus inequitable treatment of foreign firms (particularly US) operating inside Georgia. Brian Babin was one of the prominent detractors at that time so the fact that he is now meeting the Ambassador to the US, could be seen as a positive sign. Add to that, any Country showing any (covert) friendliness to Russia is essentially digging its own grave as far as international community is concerned. Having said that, Georgian Govt has a lot to do in terms of repairing its reputation.

As far as engagement with Shareholders is concerned, I think this is still a long stretch given the outstanding legal wranglings, particularly with Stephen Hope. Nicnadros will essentially b arming him and Zaa if he was to disclose any info to his shareholders (which I understandable). However I will still make the plea to the company to at least refresh the company website as this could be a sign to us.

Thanks to Looed, hopefully he can still follow up with the company periodically to see if there is any update.

A fish/man appearing on this BB has to be a very positive sign in my humble opinion.

Thanks Chris. Interesting article and very relevant to FRR as we signed a 50-Yr PSA with the Moldovan Govt back in November 2016. The agreement was housed under FIC but I assume it was transferred to FRUS after Hope put FIC in to liquidation (as the guarantor to the corporate loan notes). While Georgia remains ‘work-in-progress’ as far as renewing the PSA, Mr Nicandros should market Moldovan acreage to a Major in the US or even in Europe as it is relatively proven and an alternative source to Russian gas.

For FRR shareholders, it’s been a frustrating period since the infomous delisting RNS in December 2018.. I too have been emailing the company on a weekly basis but have received no response.

I hope Mr Nicandros can empathize with us poor souls as many of us here are over-invested, and have been in a ‘state of suspense’. Can Team-FRR please at least refresh the company’s website? And a small personal request to our Chairman, how about organizing an investor call to give us a general update as it’s coming to 4yrs since the infamous delisting RNS (December 2018) - isn’t that enough time of waiting?

Humbly yours,

Looed, for me, the key difference between BLOE and FRR is that FRR had the biggest and most lucrative O&G block in Georgia which obviously brought them in to the public/politic eye, while Block is a relatively small (under the rader) operator. While it is true that politics played a big hand in the under-development of B12 (mainly from 2013 when the Georgian Dream came to power), you cannot excuse poor (operational & financial) management from FRR. Execution of field development was poorly planned: instead of focusing on a specific field (e.g. Taribani or MK, or Mirzaani) to build up daily production, huge money was invested in exploration drilling in Basin Edge Unit rather than upping daily production. Atlas, hindsight is a wonderful thing. Anyway, what we could really do now with is a ‘pick meup’, so please Team-FRR, give us a sign. Why don’t you just refresh the company website, nothing elaborate, but at least we will know there is still a pulse. Apart from the legal cases, I wonder what is happening with the PSA. Hopefully Uncle Sam is with SN and FRUS.

Thank you for your insights Looed and definitely food for thought. So, regarding your comments about the existing BoD and how they will be accountable to us, it would be interesting to note the constitution of our current BoD (i.e any recent additions or departures). Also, if FRC PLC is still in existence, has the company been in compliance with the UK company law by submitting audited financial accounts at Companies House.

I assume the continued veil of secrecy (ie not communicating to its shareholders) is because of the legal cases in Georgia regarding Green Capital transfer, despite Frontera winning its case against Zaza (& obtaining the permanent injunction).

I thank you for your continued efforts.

Lifeishard - I think this could be positive news for FRR. Why? Well, I would be very surprised if discussions are not happening between the Georgian Govt and FRUS, not least because of the Zaza-factor but also of existing wells/production.

I am also encouraged by the following quote from Levan Davitashvili: “We work very closely with investors and I think that in the near future we will have tangible results in order to gradually reduce our dependence on imported gas, oil and electric energy". We could be in this mix.

From what I recall, FRR was producing around 120bpd so what is happening with this daily production and cash flows noting the recent high PoO.

https://www.youtube.com/watch?v=wA47B2VVSZM

Georgia has always tried to project to the world that it is ‘one of the easiest place to do business’ and this publicity drew in a lot of FDI post the collapse of the soviet-bloc. But the reality on the ground is completely different. What we have learnt is that different political parties/ factions have their own interest at heart rather than fulfilling the desires of their peoples (ie like joining the EU). As far the wider investor community is concerned, Georgia is unfortunately perceived as a small corrupt country and therefore any Georgian company listed on London Stock Exchange is traded at a discount, BLOE being a recent example. May be that is another why FRR struggled to bring a farm-in partner.

Agree with Looed that the tone coming out of GOGC is a complete contrast to the noise FRR received when it announced its gas resources in the MK Gas Complex. FRR identified (including Taribaani field) of around 11 trillion cubic feet. Instead, Georgian Govt mocked FRR’s claim and that undermined investor confidence and company credibility, despite producing independent CPR reports from NS&A and RyderScott. It is now coming to light how pro-Russian the GD Party was (is?) and how difficult they made it for FRR to progress. . And what was the price paid by the Georgian people? EU membership getting further away.

On Block Energy, it has a tough path ahead until the investor community is convinced that the Georgian Govt is not malignant. Also their gas discovery of 16billion meters is equivalent to 560bln cubic feet but has a relative modest market cap of c£10m.

As far as FRR is concerned, a more positive Georgian Govt could lead to a more constructive dialogue with FRR on the way forward. It was a travesty all round to take the PSA to the tribunal but another example of the anti-west agenda driven by Bidzina Ivanishvili and his mob. And to top it all off, we had a rogue/fraudulent CEO and an aggressive opportunistic creditor in Hope. But Nicandros also took his eyes ‘off the ball’ so must take some responsibility as he was the Chairmand & largest shareholder.

Anyway, that aside, we are still here and seemingly still fighting thanks to Steve but please guys throw a bone to your long-standing shareholders (waiting patiently).

For what’s its worth, Looed is a massive plus for us (sidelined) shareholders. Over the last few years, he has proven his genuineness, which started off with organizing the TV and press translations; he continues to be only reliable conduit between us and the company. Having said all that, I am also struggling to understand (after all this time) why the company cannot be a little more engaging with us. One way could be is via the company website; the occasional update will signal to us the lights are still on.

Also, I don’t know if the company would consider holding a one-way conference call with it’s shareholders like it did back in 2017-18? The purpose to give us an update on that ongoing legal cases and the state of operations in Georgia and Moldova.

On sending emails to Frontera, I too have given up after getting nothing. But agree with Looed that we should continue with this, just so they know we are around waiting.

So, Looed, from what I understood, the reason for your recent absence from this Board, is because ZM has switched political sides and continues to be a real threat to FRR (now siding with GG). Anyway (and sorry for asking this), I have lost track of all the legal cases especially in Georgia, and would appreciate if you could give us small bullet points of where we are. The transfer to Green Capital was cancelled, FRR’s transfer to FRUS was completed? The Texas case closed after FRR obtained a permanent injunction on ZM. Cayman Proceedings still ongoing or closed? What happened to the London YA case?

Whatever you can share, would be greatly appreciated by all FRR shareholders (thanks in advance).

Thanks for finding and sharing Bugsy (OG), much appreciated. Any thing that’s directly coming out of the mouth of the Georgian Govt on Oil and Gas resources in the Country deserves close examination. For what’s its worth, here is my take: Firstly, it’s great to see that the Govt is now openly acknowledging that Georgia has huge hydrocarbon resources. Under the previous regime, every time FRR announced it has identified and delineated massive gas resources (mainly known as the MK Gas Complex) or oil in the Tribaani Field (plus more gas below the Gareji zones), they were openly ridiculed by the Georgian Govt. Instead, they were promoting hydropower projects and/or signing supply agreements with Gazprom. It is now pretty apparent that FRR were combating huge political forces against US Companies. With the news that Finland and Sweden now hastily expediting NATO membership, hopefully it will open up an easier path to membership for countries like Georgia, Moldova.

As far as FRC not been named in the article, I think that is completely understandable given the acrimonious history between the two. In addition, there is still a lot of ‘toxic’ legal news around FRC, whether it relates to Zaza, unpaid wages or the tribunal. The bigger question is whether Nicandros (+ US political friends) have managed to convince the Georgian Govt that previous failings have been due to Zaza and political headwinds.

So, the bigger question is what blocks are Georgian Govt going to tender out and where does that leave FRR and B12? The best option would be for FRR to team up with another credible partner and put in bid for the same block. They have all the field data and experience to bring these fields in to production. I also wonder what happened to the cost recovery pool which was part of the original PSA?

My thanks to contributors on this BB and for keeping the flame alive.

As usual, many thanks to Looed for this article. Very interesting to see that Georgia and US continuing to publically promote bi-lateral relations especially on the spectre of signing a trade free agreement, which could be used as a ‘stepping stone’ to other signing other membership agreements such EU.

Also agree with Arsenal, FRR use to be gold sponsors of this event but I guess with all the legal wranglings, they have wisely chosen to keep a low public profile. Having said, I don’t doubt for a second that Steve Nicandros would not have been at that event to re-inforce Frontera ties with these important Georgian Officials. Conversely, let us hope that Georgians are not up to their old tricks of just paying ‘lip service’ to US investors while on the ground, reality is completely different. I personally remain sceptical of their weak politics and judiciary (we have experienced this first hand with FRR via the tribunal, illegal PSA transfer to Zaza). Anyway, perhaps there is a seismic shift in politics now in the former soviet states after the Ukraine war.

Finally, good to see from the event-name list (Click the below link from Looed) that Levan Bakhutashvili was present, and for those who are unaware, Levan was Frontera’s long time, head Legal counsel.

From my observations, i would hardly say that Natia Turnava was a supportive of FRC, far from it. Under her regime, she was the force behind taking FRC to the arbitration. As far as the Foreign Minister Zalkaliani is concerned, well, to me its all lip service.. Unfortunately, the Georgian Dream Party is still being controlled/run by the Kremlin. Let us see who the new appointees are: we could have a wind of change or more of the same, but the standoff with Ukraine is currently having a knock on effect across the former CIS.

Firstly a happy new year to everybody. I guess with a new year, there are new anticipations with FRR. But I would argue that FRR is still in a bit of a mire with regard to multiple legal cases involving many stakeholders. What do I mean by that? Well, you got Directors fighting each other (Hope-Nicandros-ZM via Cayman, California, Texas) plus creditors via YA & OMF. Also liquidation of FIC continues. Who know what is the status or where the Georgian and Moldovan PSES reside or the current relations between the two Govts..

So, with this backdrop, I am not sure what the company can say to us right now. But I do get the frustrations of shareholders. Perhaps occasionally, just to get some official commutation from the company that it is still ‘kicking’ would provide some solace to the constant gnawing shareholders are feeling. So, come on Mr Nicandros, plz show us a sign.

For Looed. I don’t think any one is questioning your integrity, far from it. I would say 99.9% of Shareholders are enormously grateful for your efforts, during this vacuum period of no official company communication, so thank you; you are very much appreciated. We all hope you continue to be the pivot between the company & us.