Member Info for OneDayRodney1

Thank you for sharing Looed.

No surprise here; do we ever settle a debt? Given this I think we all now can guess the answer to whether the monies owing to GOGC was paid in September ... :(

Thank you Looed.

I must confess that as a holder of a large number of shares in FRR I somewhat take offence at the second part of the (otherwise welcome) communication.

What do they expect when they don't communicate with us?!?!

We have invested huge amounts of our hard earned monies in this Company, keeping them afloat. They do not communicate with us via appropriate channels and, I'm guessing, do not follow proper procedures, in that surely we should be having AGMs and voting on resolutions. They tell us nothing, so it is completely understandable that some of us will try other avenues to find out what on earth they are doing with our Company; the Company we own!

To then issue threats is unacceptable and not ethical imo.

Apologies if this of off the mark, but I am really p***ed off at this statement.

Ahead of the game as always :). Thank you.

Looed: would you be happy/able to ask you contact at the Company if the monies have now been paid to GOGC and whether we have now had the PSA extended as a consequence?

Hi Looed

You should be able to download them from here. The link is to the right of the 2023 interims.

https://www.gogc.ge/en/investors-overview

Copied from the 2022 accounts (part two - final half):

"By way of the Consent Letter dated 11 November 2022, SAOG and the Company approved the

assignment (“Assignment”) of all interests, rights and obligations of Frontera under the PSA to Frontera

Resources US LLC (“FRUS”), subject to certain conditions including a full and final release of Frontera

by SAOG and GOGC from any and all of their claims in the liquidation of the Company arising out

and/or in connection with the PSA, which claims (including obligations and liabilities) have been

assumed by FRUS.

On 14 November 2022 SAOG and GOGC, acting on behalf of the Government of Georgia, on the one

part, and Frontera Resources Corporation (“FRC”), a Houston, Texas USA international oil and gas

exploration company and FRUS (wholly owned subsidiary of FRC) signed a memorandum of

understanding (“MoU”) setting forth their mutual agreement regarding the assignment of the rights,

interests and obligations of Frontera to FRUS. According to the MoU and the FRC and FRUS are

imposed to pay to the Company all sums ordered to be paid to the claimants by Frontera and FRUS

under the Arbitral Award and reimburse damages arising out of non-sharing by Frontera of the

Petroleum produced from the Contract Area. Prior to the date of the payment the Company will

continue operating on respective Contract Area.

Georgian Oil and Gas Corporation JSC

Notes to the Consolidated Financial Statements for 2022

24

According to the arbitral award and MoU, Company has right to claim GEL 16,488 thousand from

FRUS. The receivable is treated as originated credit impaired accounts for balance at nil. Receivable

should have been paid in November 2022, nevertheless due to non-repayment payment term was

prolonged till 15 September 2023."

Copied from the 2022 accounts (part one):

" In July 2018, the Company and SAOG (State Agency of Oil and Gas) submitted their statement of

claim against Frontera Resources Georgia Corporation (Frontera). SAOG and the Company inter alia

are claiming that Frontera has materially breached certain provisions of the PSA (production sharing

agreement) including but not limited to the obligation to relinquish approximately 99% of the Contract

Area.

On 17 April 2020 the Arbitration Tribunal rendered its final award (the “Arbitral Award”) as to the

matters in dispute. The Arbitration Tribunal upheld the Company’s and SAOG`s interpretation of the

PSA as it defines the parties’ respective rights and obligations. The Arbitration Tribunal ruled inter alia

that the respondent - Frontera committed a material breach of the PSA by its refusal to relinquish and

return to the State the exploration area. According to the Arbitral Award, Frontera is obligated to

reimburse the amount of the mineral usage tax paid by the Company on behalf of Frontera as well as

the costs incurred by the Company in the arbitration proceedings, with a total amount of

GEL 18,522 thousand. The Arbitral Award is final and binding on the parties, in accordance with its

terms and the PSA.

On 13 January 2021 an order was made by the Grand Court of Cayman Island pursuant to which the

liquidation of Frontera has been brought under supervision of the Grand Cayman Court and the joint

voluntary liquidators thereof were appointed as joint official liquidators (JOLs) of Frontera.

On 10 February 2021 JOLs made a declaration of Frontera’s insolvency.

The JOLs entered on behalf of Frontera into the letter agreements (the “Letter Agreements”) with the

Company and SAOG dated 25 June 2021 and 25 August 2021. The Letter Agreements set forth express

agreement of the parties that the Company and SAOG take over with the immediate effect the Contract

Area (as this term defined in the PSA), all Petroleum Operations (as this term defined in the PSA), and

the production therein (including disposal of the Petroleum (as this term defined in the PSA))."

Good morning all

I have been checking the GOGC website daily for the past few months awaiting the publication of their audited statutory annual accounts for the year ended 31 December 2022. The reason for wanting to see these accounts is to understand what the latest disclosed position is in relation to the debt owing to GOGC by Frontera. Some of you may recall that in the statutory accounts for 2021 it was reported as purely a note to the accounts under "litigations" and mentioned the debt but ending with the rather ominous sounding statement "On 10 February 2021 JOL made a declaration of Frontera's insolvency".

The update in the accounts for the year ended 31 December 2022 is rather interesting (even to a non accountants!). It appears under receivables on pages 22 and 23, although I will endeavour to copy and paste it on to here directly. Before anyone gets too excited, my reading is that the debt is included in receivables at nil value. So this begs the question as to why it has been reclassified from a contingency to a receivable. (For non-accountants: disclosing a debt as a receivable reflects that the debt it more likely to be recovered than when it is classified as a contingency). If there are any fellow accountants who can provide an explanation that would be most welcome.

It also states that the debt of 16,488,000 GEL (just under £5m) was payable by FRUS to GOGC "in November 2022, nevertheless due to non-repayment payment term was prolonged to 15 September 2023".

Now, the date of these accounts being signed off was 12 September 2023. To explain the significance: despite including all the figures as at 31 December 2022, they would reflect any significant matters that had happened up to the date of sign off. So we can assume that the debt was still due on 15 September at the sign off date.

At the same time they have also published the interim (unaudited) accounts for the six months ended 30 June 2023. Tantalizingly, these are signed on 15 September 2023 and there's no mention (I can find) of the debt. So my assumption would be that it still hasn't been paid.

So, what does this all mean? Well my interpretation is leaning marginally towards the positive as (as at 12 September 2023), GOGC still expected Frontera to pay the c£5m debt, and once it had been paid, permit Frontera to start drawing oil/gas again. (My reading is that GOGC have been doing that in the meantime). And the timing of the scheduled debt repayment suggested Frontera expected to be in a place to repay, presumably having come out the back of all the court cases. Sadly our assumption now has to be that they're still not there yet.

Would be really interested to learn others' thoughts on all this. Would also appreciate others going through the accounts in case I have missed anything.

Dulwichman: very interesting potential consequence; thanks for sharing your muses.

I hope you are keeping well.

Abkaz: I too have a life changing amount "invested" here and I agree that it is just not acceptable for the Company to not communicate with us; they have behaved abominably and continue to treat us with disrespect with their silence. So your ire towards them is understandable and well directed.

However, where I do disagree with you is in your remarks about Looed, who has not only worked tirelessly on all of our behalf, but also very generously shares what facts he does manage to glean. For me, he has provided a beacon of hope for us all.

No problem Baramara.

I was communicating with Bryce Linsenmayer who was at Taylor English at the time (I believe he may be working elsewhere now). I sent details of my holding and then I had a communication back from info@frontera-resources.com answering my original question, but which said first "after verifying your holdings".

Baramara: when I last tried to communicate with the Company in October 2020, they wanted details of my holding and address so they could "cross-reference with the stockholder register" before replying to me.

That suggests they do have such a list.

Tsbs: those of us who have been around similar lengths of time as yourself definitely feel your disillusionment, to put it mildly. But it would be good if you choose to carry on posting as your humour does make us smile regularly, which is no bad thing.

Whatever, I hope you continue to keep "tabs" on the board. It would be wonderful if one day this could come good and we could all meet up for a few beers, and it would be a great shame if that didn't include you.

timescales ****nal ;)?

Looed: many thanks for sharing this update

All the best.

Thank you Cymro.

Thank you for sharing Cymro.

Is there any evidence to support the rumour?

Thank you for sharing Looed.

This implies that the agreement with Hope does not also address the YA situation.

Kaiser (and the other poster who asked about the email): the FSHG email was purely giving shareholders who registered with them way back, a link to this site. So given you are posting here, rest assured you haven't missed anything.

Thank you ****nal ;).
Off topic, but a dreadful result for both our respective football teams yesterday evening. Am gutted.
We will know that outcome five weeks tomorrow... ;).