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ZM side introducing exhibits simultaneously that SN side hasn't seen. Hardball move.

Here comes cross examination. This should be interesting.

SN talking about "reserves." Won't be able to prove it.

this is the hearing on the temporary restraining order, and whether to keep it in place pending the trial

Just rejoined and getting a screen that says Rick Torres and no sound. Lunch break?

She's going to object to everything. SN not the best witness for accounting principles--consolidation of financial results.

Parties Coming On-line Now

As Mole has pointed out many times, though, normally lenders even on a secured basis require a CPR or reserve report confirming proved reserves in order to lend against. Frontera have never had such a report, except for a very old report done pre-listing, which would have to be updated based on the results over the last 15 years. The reports they've had since are "resource" estimates, not reserves, and won't normally attract much in the way of financing.

Anybody extending that kind of $ would be on a secured basis. So let's say $20 million gets siphoned off to pay GOGC, Green, Uniserve, YA, Outrider and whomever else, $80 million is loaned on a secured basis to put into drilling. If successful, maybe SH's end up with some return behind the lender, if not, then the lender takes over.

It does seem they really want to be done with Frontera. They had to spend a lot of money in the arbitration to get back the block, then terminated the PSC as to the remainder. Then endured a negative PR campaign accusing them of bad faith and attempted expropriation. They backed off due to political pressure, but according to the single letter they sent are being sticklers about exactly what depths and zones Frontera are allowed to "exploit" from the remainder, exactly as is spelled out in the PSC. They have seemingly ignored the rest of Frontera's increasingly desperate pleas, including the request for an extension of the PSC. Agree with others who have said even if ZM is stopped, there's still a long way to go. Frontera would have to show the money in my view to have a prayer of making a deal with the government and settling with creditors. They owe $ to the government ($6 million), maybe Green, maybe Uniserve, and Hope, before the first dollar goes to the drilling program. Promises of big funding in the past have not come to fruition.

Two signed orders posted, both in company's favor: one denying ZM's special appearance (i.e., that he appeared only to challenge jurisdiction) and the second denying his motion to dismiss.

Jonathan, if they fail to respond within the additional 7 days, a default could be rendered again. But I doubt they would have spent the time and money to instruct UK counsel to fight to set aside the judgment only to default. It appears they intend to defend the claim. YA contended to the Judge that Frontera has no defence, but the Judge was not persuaded that was a reason not to set aside the default judgment.

Bono's name came up because YA attempted to serve Frontera through him as a Frontera representative in their lawsuit in the UK to collect what they say they were owed under their financing agreements and 2018 settlement agreement. Bono at that time was no longer a Frontera employee, but was still listed in some of Frontera's secretary of state documents as a Vice President. Frontera didn't respond to the suit and a default judgement in the amount of GBP 2.3 million was obtained.

Once Frontera awoke from its slumber and decided to defend the case, they had to get the default set aside, and it appears they have successfully done so by challenging the service on Bono as invalid. Basically it means there will now be a contested suit between the parties in UK. Outcome may still be the same but at least Frontera will mount a defense, via Haynes & Boone.

Mole, Green contract and two addendums here:

https://www.hcdistrictclerk.com/edocs/public/ViewFilePage.aspx?Get=BvuC47fSdHfduCCwYF4nv0PpAS/9QQ8+69aKKxO/XC4Og5sDBi7NAgVdcXHH5DKRrRDc8i3EyqextVli9G6eqr1Q3Kk2YNL8nelqjmPiqL2sWR9M8QRAXpUXoljj62C0SUOWSNPxU0o=

I agree SN is coming across better than expected. HIs voice and demeanor are that of a person shaken to core by the betrayal of a long time colleague and friend. ZM appears to be a scoundrel.

Even if the transfer to Green is undone, and even if the transfer to FRUS is belatedly recognized, FTI still likely overturns it as a fraudulent transfer, and then it goes to Uniserve or the GG.

I think SN may know and realize the license is lost, but he's determined to make dam sure ZM will not benefit from it.

This is historic fascinating stuff. Not only for the drama of shareholders current predicament and the dire straits in which the company finds itself, but the history of entry into former Soviet republics by what at the time were a group of extremely heavy hitters. The fact that it turned out so badly by loss of the license in Azerbaijan and probable loss in Georgia is a tale for the ages--greed, incompetence, arrogance, bad luck, bad decisions.

SN says they've spent $1 million -$3 million in Moldova thus far.

Filed as Exhibit H to ZM's declaration filed 27 May 2021 are the following:

Forward Sale and Purchase Contract dated 25 April -- $2.8 million, no security
Addendum #1 dated 24 July 2018 -- $5.0 million, no security
Addendum #2 dated 19 October 2018 -- $10.0 million; security interest in all produced oil and gas in possession; all rights under PSC; all rights under Mineral Use License; all rights to 50% interest in FEGL; all rights to any other property of FRGC or FEGL.

Addendum #2 is arguably when the "steal" began, by mortgaging the entire company for a $5 million increase in the oil forward sale. Was it at that time a deliberate move by ZM? On or about the same time, there was a failure to disclose this to investors on AIM and a deliberate default under the loan notes to Outrider. So did SN know about it? Why didn't the company disclose? Incompetence, negligence, malevolence? What a messed up clown show.

The remainder of the Green Capital documents were filed yesterday. Should show how the amount grew to $5.8 million and came to include a security interest. There are two amendments.