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That it came up in the ZM trial about a big investor I think at best it was just an Investor that would commit once a new licence agreement was reached. That would only make sense since they like SN, etc wouldn't want to risk money on a non starter. If SN etc made it out to be more then they were probably over egging it.
So now we are down to the crunch soon it appears of whether the company will be wound up and I assume the data sold off or SN, etc digs into their pocket and pays off Mordant to avoid such and take a gamble in doing so.
I'm going to guess again that SN/FRR have been hoping to get in someone else to stump up to invest to pay of the debts rather than themselves are are likely coming up empty as of course no one wants to do that as they don't.
That leaves the court cases and possibly the hope that seeing most of them off in one form or another will allow the GOGC to give them another license. Even if the debt claims have not fully been resolved then going through court cases may show that the courts have dealt with them even if some of the claims remain.
The winding up petition though I think it looks like SN, etc may have to either dig into their pocket or let the company be wound up. I don't see us getting much return for it being wound up in comparison to the field being developed. It all depends who is prepared to dig into their pocket to gamble to see that realised. I don't see it as such a big gamble but then again it's not my money. So just a couple more months or so to wait to find out I assume.
My guess with all of this is that SN/FRR have been kicking the can down the road in the hope of their situation improving. That SN, etc. don't want to put anymore of their money into something where a return is not assured to pay off the debs because of the GG/Licence agreement. I can't see any other explanation for it as the obvious thing is to get the debts out the way and get the licence extended.
Obviously there are no other investors prepared to do the same or we would have likewise gotten rid of these debts/court cases that are holding everything up and be motoring along now with a nice big developed field pulling in millions.
There is that Monti, why as a Creditor push to liquidate a company if there is nothing much of note to liquidate in it? So they must know there is something they can get from it or force SN's hand to defend it by seeing if he will put up the money to protect it. In which case SN would only obviously do if there was something there worth protecting.
So FRR must have some value left in the data they hold, etc. Or it would be a pointless and costly waste of time pursuing.
So we will likely either see SN pull some notes from under the bed or FRR wound up and sold off. As has been said why has SN bothered to continue with FRR unless there is go in it.
I don't think any of us want it to end and walk away empty handed and I am hopeful that will not be the case and seems to be the best thing to do. Again as has been said this does all need to end at some point as I think its p*ssing us all off with it dragging on with seemingly just the wish of SN to drag it on further for no particular purpose it is coming to seem.
Frontera true to form then in not honouring their agreements. So if this the finish line or just the finish of FRR?
The upside of this is that is forces SN and possibly SH to either dig into their pocket to sort out the financial mess the company is in or we get a payout when the company is wound up. Assuming of course the company data and whatever is left of the license agreement and possibility to extend is worth anything much.
My guess/hope is that judging by what is supposed to be there it could be. I think though it would be better financially for everyone if SN, etc dug into their pocket to save this one. As I understand it the company needs to sort out it's financial/legal problems before the GOGC will grant a new license. So better for SN to pay off these debts and get more money back as a result in the near future. A no brainer really, sure he has to in theory risk a few million dollars of his to do it but you have to take calculated risks in life to gain anything, otherwise you just sit their hoping things will get better, hence why this has been dragging out so long.
As gloomy as this news seems I think it could potentially have an upside as at least it stops all the dragging out for seemingly no good reason and we finally get to see if we will get a return.
I'm not sure what FRR have to gain by prolonging payment to YA. As someone has said the money is due somewhere. FRR lost the court case and last we heard were looking to reverse it with court appeal, etc. Even if they win the money is still due to YA at some point, somewhere.
That the dispute would still be outstanding I would assume would be reason for the GG not to extend the licence as they apparently wanted all outstanding disputes resolved and finance ready to grant FRR an extended licence. I can't blame them for that and I don't see it as a political thing, it's merely decent business sense/common sense. Other companies do business with the GG well enough so I see it more as FRR not having played it straight enough with them under ZM and failed to get on as a result.
If either or both SN & SH dug into their pocket to loan money to FRR to pay off YA then we would be in a better position to get that license extension, get further funding and everyone get their money back and make a profit out of this thing.
Instead so much time and effort seems to be being wasted in endless court cases with FRR going nowhere as a result. Life is not infinite for any of us and it makes no sense to carry on this way. It would be better if those in FRR focused on how to get the field developed and get money out of this for all concerned. That's basically all that we all want. I just get a feeling that this field could have been developed by now already and worth a fortune if FRR played it straight from the get go.
It always kind of cheesed me off that FRR didn't pay YA. They had a payment plan but I believe missed the biggest and final payment. My impression that this was Zaza messing about. There was wells dug, oil pumping and probably the ability to get the money from somewhere. In the great scheme of things it's wasn't all that much. It would have better to get shot of YA and push forward with the operation in my opinion. Perhaps there was more at play or the Directors thought there was but who knows.
I notice the verdict is appealable. I don't know if FRR will or just simply settle up somehow.
My guess is that all the value of the site will tend to push those with the most to lose to sort out the situation as there could be way too much for them to lose. The movements over the next few days or so could be telling.
So we're waiting out to roughly October, about a month's time to hear on the YA court one? Unless of course they come to an agreement first.
My guess is that it's going to go to the court dates and then the parties will work from there on whatever judgement there is. That tends to be the impression I get.
My hope is that FRR is moving towards something eventually positive here?
Just before delisting my shareholding doubled in value over what it was when I bought it. Things were looking very bright then. Then the delisting and all the bad news. A lot of that has been worked through now but we haven't yet resurfaced. Wouldn't it be good to have those times of looking ever upwards back!
They might be legit on their reasons for not communicating much. After all they could just say nothing entirely if they wanted too. So that they are saying anything at all albeit limited might be seen as a good sign.
End of the day either way we are still shareholders so it's probably no big deal for them to say the limited stuff they do or say more (we hope) when the big main litigation is out the way.
If this YA thing can be resolved by October and other stuff is sorted then maybe somewhere out that direction.
Little point in arguing. We're in the situation were in whatever now. It annoys me that they couldn't get it together more quickly. Still we are waiting, in theory possibly some progress but we don't really know until (if) this comes good. To me it looks like we are down to YA and coming to terms with them before the court date, then getting a new license agreement from the GOGC. Preferably the sooner the better. My guess is though we've probably got a good two months to wait for the YA thing at least and will just have to see from there. At the moment at least not too long to wait on that I guess.
I very much doubt FRR have paid any of the $5.7m if they have then it's likely from the GOGC working the field. I'm not sure if the GOGC is actively working the field in any big way if at all. Even if they are then they will be running costs and they will likely be holding onto and monetary gain would be my thought on it. If the GOGC was running the field and FRR benefiting then that could be a plus for us.
My guess is that potentially we're looking at a significant sum, possibly the $5.7m to pay the GOGC plus more to show we can invest a significant sum to develop the field. That is probably not going to thrill an investor. Aside from that settling with YA. Again an offer of shares may be their and our best best there.
I'm thinking possibly Hope decided to settle as he may saw that there's little to gain from a company that's financially knackered out. I don't think FRR had much if any hope in our claims against him. So both sides may have seen the need to just try and get FRR moving instead of drifting if at all possible. I think there is still a chance but it could well take a bit.
So October is not far away for the YA court date, just a little over 2 months. Are we really sure some sort of agreement is going to be hammered out in that time and it's not going to end up being decided in court?
At the moment apart from SN, SH etc wadding in with money that I'm not sure they would want to do only as a last resort. The only other thought I e gir is possible FRR might offer YA shares instead of payment so that on the hope that this comes good they would gain a bit more than the $2.5 million they are after. That to my mind would be the easiest thing to do and presumably would remove the last obstacle to getting a licence extension negotiated and signed off.
Other issue is that if FRR are found in default and/or agree on receiver with YA, what's the chances of a return on this by that route. Am I right in thinking that the appointed receiver is duty bound to get the best price for whatever remains of the company in all or in different parts sold off? So in our case the tail end of the licence agreement, some wells & equipment on site but most importantly the oil & gas data, it's location, etc. After all no point in YA bothering to go after FRR and have a receiver (eventually) appointment unless it thinks it can get at least somewhere near the $2 million it is owed or even near $1 million, half a million, etc. So it must have some idea that one way or another it can extract the money from FRR otherwise a pointless action on its behalf bothering pursuing the case.
So if for argument sake YA believe they can reclaim some money towards its $2 million if not the whole sum, then odds are a buyer is going to be willing to pay a fair bit for FRR. While not anywhere near the money if we had a licence extension then still quite a lot mainly based on the data and the opportunity to then get a license extension from the GG. So my guess is potentially enough for us investors to see our money returned with some profit perhaps??? Could this end up our way out of this mess, perhaps the only way with the GG unwilling to grant a licence extension to FRR given its history with FRR if that is the case.
Great to hear YA can't appoint receivers before the case is heard. Thanks once again for the info Looed.
That YA wanted to appoint receivers so readily does make me wonder if they really are after taking control of FRR rather than a desire to push FRR to a deal. For us this means FRR have until this October at present to get something sorted out. It seems pretty clear to me that FRR defaulted on the debt so I can't see it winning the case. I doubt FRR have any money in the bank from operations as they have all ceased now and for a number of years as far as we know.
So where is FRR to get the money from? Possibly around $2millon.
If it has an investor onboard it might get it from that if they have already invested and might be why YA is pursuing the case. I am not so sure as my guess is any investment would be held back until a new license is agreed and then we would hear particularly of stuff happening in the ground so no no news on that front means no investor with money actually paid in but possibly one waiting in the wings if a new license extension is agreed.
So I can't see an investor waiting in the wings stepping in to save FRR from YA as without money put in already it could just walk off. So then who to save YA?
To my mind it just brings us down to SN, SH and possibly us. SH I don't think would be too eager to invest further although he offered a loan way back that ZM (possibly wrongly) took as an attempt to rest control of the company. He's invested so many stand to lose big if he doesn't stump up at least some of the money, if he still has money to do so.
SN apparently has money so could stump up some or all of the money also. It seems that he has plentiful money to cover the debt from what we here so is he prepared to loan FRR the money with no guarantee of a license extension, i.e getting his money back. Like SN he is invested, he has shares and could make big if FRR came good. Usually business thinking is not to be suckered into using your own money to support a business where return is far from certain. So he may look elsewhere possibly to SN to take that risk which is what Outrider is all about, high risk but possibly high gain investment. Possibly SN might go halves with SH, one mil each or find another investor/venture capitalist? to fund it.
Lastly, us shareholders, we're already invested so have interest in not seeing our investment go south. That said do many of us want to risk throwing good money potentially after bad. Again with no license agreement up front as far as we know. Most here are fed up and reluctant to invest further after already feeling being had and largely cut out of the loop by FRR needless to say with little power to act. So I wonder if they would struggle to raise the money here with a further share issue to shareholders on something that might prove next to worthless with no license extension. My guess is that FRR won't turn to shareholders only as a last resort.
Perhaps the case is FRR trying to recover the money from the oil that ZM took illegally. Possibly there might be a criminal case on that it I'm guessing that FRR may have to go the civil case route in order to reclaim the money, possibly.
Could of course be anything so guess will have to wait and see for sure.
All comes down to whether FRR can get an extended license agreement from what I can see. They don't want to develop the field just for it to be taken over in a year or so time when the present agreement expires & the GG say 'thanks for that'. FRR have the data on the field so theoretically could still be in play. SN I'm guessing doesn't want to pay off FRR's problems by loaning it sone of his plentiful money as until FRR gets a license extension it could all be money lost.
The question is where are they at with this license extension? That might be a question worth emailing the company though I doubt if we would get much in the way of a response. My guess is that we would know fairly quickly once one was signed as the company would be worth a lot overnight and it would be all systems go. That apart from court cases being wrapped up that we are not seeing that at least not yet makes me skeptical.
The GG of course will want a big share likely a bigger share than they presently have but if nothing gets done then that does not help them. Backhanders may be punted forward also who knows. All I get the impression so far is that they are at loggerheads possibly with the GG being so greedy that it would not be worth FRR's while going forward signing up to an unprofitable deal for them. Hence possibly SN alluring to how long it took Conoco a number of months ago. In such a scenario it's not really wanting to wait but having no choice. That situation may take some savvy negotiation to get to a deal of its even possible at the moment. If we had any further idea on what the specific situation is the license deal extension it would be something I guess.
Thanks Looed, sounds like the YA case is likely the most pressing and could likely be up next month. My guess is that is something that needs to be resolved at some point was their $2 million debt they were owed as I recall.
To me it looks like FRR might have struck some sort of a deal with regard to inward investment & possibly license agreement where if they clean up their company legal situations then new investment & license extension deal gets enacted. That's just speculation on my part but would tend to see that as otherwise not sure why parties are coming to terms with each other. I know some do ahead of court cases but think the Hope stuff still had a little more time it could have run if I recall rightly.
My concern at the moment is that YA don't ruin the party by getting some judgement in their favour next month that messes stuff up for FRR. I assume though that SN & SH have enough vested interest to cough up the dough if pressed.
Thanks Looed for clearing that one up, you're right I vaguely recalled it but gir the cases mixed up. Sorry I didn't reply back sooner, stuff kind of came up but all ok. You did a good summary there of where we are at, at present. Hopefully the remaining cases will be resolved as it looks like FRR/SN are moving in that direction, probably tired now of an abundance of cases that were likely never going nowhere.
Tabs, I doubt MO have dropped the case/agreed to dismiss for no reason. If it went the distance my guess is MO would have won as they rendered services and were due payment. So that would force FRR's hand and they would have to pay up or the company go under. SN, SH, etc don't want the company to go under as there is great wealth there so they're not going to let that happen.
So it looks like a settlement has been reached early rather than right before trial and that is telling of a deal being done in my opinion. That it comes hot on the heals of the SH motions to dismiss that I think is even more telling of something happening, finally!
I see no other reason for them to bother otherwise as unless FRR is able to come to fruition it's something they could have left till later before the
final court date cases.
I don't want to get anyone over excited in this that I agree with as we all know with this share 'don't get your hopes up' too much. But so far things look better so I'm willing to hope.
I think MO were solicitors that FRC hadn't paid weren't they?
If so or similar then I'm guessing a settlement has now been reached my guess being that FRC (FRR) put forward some money (or something instead) to sort the situation. I can't see solicitors being happy with being unpaid otherwise.
So maybe this is all due to some pending deal in the pipeline? I can't think of any other reason for all this to be happening. Even if FRR was going to the wall I don't think both parties would be going for motions to dismiss, they would likely just leave the case. We know there is value in the oil & gas field so I can only think maybe, just maybe they are finally wanting to get at it.
i would tend to agree ****nal but my guess is that neither sn, hope or anyone else wants to pay off ya with their own money until they are assured of getting payback and that only comes with a renewed license, etc. they've personally likely got the money it seems but don't want to risk losing it needlessly. i get it as wealthy people only stay wealthy by preserving their wealth. on the other hand if push came to shove and ya looked likely to take frr and frr still looked like it could do it, i reckon either or both would likely step in to protect their investment to date and future potential return.