Member Info for Phil_2018

The greater the risk theoretically the higher the potential reward may be. I wouldn't count this as lost just yet. I knew areas like Georgia were a bit dubious, corrupt, etc upon investing yet there are also political reasons why they need to play by the ball. On top of that there are economic reasons so as such returns can be greater as investment made at a lower price as many other investors won't look at it, sometimes for good reason but here I think times may be different. After all we've gone two years since delisting and got the GG to back down, that's something some other foreign companies in Georgia have not managed. Probably a few weeks wait till the Election now then hopefully better stuff happening thereafter.

People have been saying FRR have had it for the last couple of years, yet it's still here. I say there is a big pot of gold that is being sat on. It's all a question of when and who gets to exploit that pot of gold in the ground that we are waiting upon. Hopefully us shareholders will get our rightful share.

I wonder if it could possibly be if Zaza ended up over eager to keep on attacking the GG/GD on TV when they had backed down and it became unnecessary and refused to give up on it. I assume Zaza is anti-GD and maybe the board felt this was getting in the way a bit, one possible theory perhaps.

I'm guessing the lobbying cost depends on how much they need doing. With the GG having backed down and the Georgia Election looming there is probably not as much need to spend as much on lobbying US politicians, etc.

I'm guessing FRR put the lobbying at the forefront as they had the Arb thing ongoing. Now that is all dealt with I guess the court stuff and other matters are now more pressing.

Oh, thanks ODR, well anyway we as well as the Georgian people are hoping it will all be free & fair enough. The Georgian people rallied to put pressure on the GD to make them agree to PR so hopefully the GD don't have the clout to try it on.

The way I'm seeing it at the moment is Hope etc must know that they would have to come to a deal with FRR rather than push it to the wall as if it goes bankrupt/liquidated they look likely to get nothing. They will be pushing for the best deal for them possible in that circumstance.

FRR meanwhile will likely be looking to strengthen their hand and avoid deals with Hope etc. They can best do this by getting in new investors, finance deals, JV, etc so they can pay Hope etc straight off and get rid of them. The breach of fiduciary case against is uncertain, in the Caymens FRR didn't look to have the best case, that's not till next year though so it may or may not come into play.

That's much talked about at the moment, different posters comments on it can be found towards the bottom of this page. Basically though pro government (GD - Georgia Dream) are pushing the impression that the GD are going to win a majority or at least do very well. The new Proportional Representation system new in for this election means that is going to be a very tall order for GD. The election is supposed to be monitored by foreign observers, checks, etc so that it's supposed to be relatively free and fair so hopefully won't end in a Belarus or Russia style sham. Under the new Proportional Representation system no one party is expected to get an outright majority. GD is likely to be the largest single party but a coalition of opposition parties look likely to in the majority and thereby oust the GD from power. So just a case of seeing how it goes I guess but if that comes true then it should hopefully bode well for Frontera in terms of (hopefully) obstruction to its operations dissapating.

SR14,

1). Yes it is still trading as far as we know but it has a list of court cases pending. ZM & SN also have a court case against them from Hope over personal guarantees they gave against their shares. They meanwhile are still theoretically pursuing the breach of fiduciary duties against Hope. ZM has apparently stepped down as CEO apparently due to 'irreconcilable difference' though we think that it might likely be part of the delaying tactics seemingly going on. There is no one as CEO at the moment in FRR.

2. The Elections we are hoping will bring FRR back to fruition. The GG have backed down already from their threat to take back the block under immense pressure from the US due to FRR lobbying efforts. A new gov could mean a removal of the threat of the GD party and their obstructionist ways. If it allows FRR to get new finance in, a JV, etc then all its problems could be solved but it relies on the 'IF'. At the moment it seems like FRR are sat on an oil & gas field that is worth a lot of money but it looks like it has been starved of money to develop it and has been fairly skint for the past two years with the GG freezing bank accounts and litigation happening all over the place.

I would write this one off just yet, many thought we would not last more than a year after delisting. It all depends on where it all ends up and to us on here at least that is still uncertain at the moment. The big hope at the moment is that a deal may become possible for FRR after the Elections in Georgia at the end of this month on the 31st October.

Steve, Hope & YA can't afford to let FRR go bust or the license reverts to the GG. Hope is after his personal guarantee of shares from Zaza & SN so making FRR going bust to get his loan notes paid would be counterproductive to him. I think he already might have a fair amount of shares in FRR already as well.

I don't know if there is some way of liquidation where a creditor can take over accompany or if he can do this through the courts. Possibly YA might think FRR has somewhere near the $2 mil or so in its bank accounts, so if so then they wouldn't be too bothered about FRR going bust so long as it got most of its money. Then again if they think they could get more in terms of the wealth in the ground then that could be of interest to them and hence again a deal with FRR.

I personally think that all sides are playing this out till it reaches a conclusion. None know for certain where exactly it will end. Each side will want it to end in a way that is favourable to them. End of the day I reckon the big value of what's in the ground means that all parties won't be wanting to pass over on the wealth there.

I still reckon after the Georgia Election will likely be the time deals get done once everyone knows for sure the GD/GG aren't going to threaten taking away block again, etc.

Hmmn, yep something tells me Zaza & Co are waiting for something, the Georgia Election I think. That after then with a new government they will be able to get new finance in. There are a lot of wealthy and well connected Americans who probably aren't just content with lobbying income but also buying in at the right time - when a government that are willing to assure foreign investors their money is safe and will stick to it.

I've look back on the previous history of FRR and it was largely set up by such sorts as stated, wealthy US politicians and people in positions of power and influence. My reckoning is that we will see these people come back into the fore as soon as it looks a safe investment environment now that there is known big reserves of oil and gas to tap into.

Just a case of hold on and see till after the Election at the end of the month, another sit and wait moment, lol.

To my mind it looks as if FRR have been hamstrung and unable to develop the field to bring in more revenue. I think there is big potential in the field but because of the litigation, the arbitration, the obstructiveness of the GG, etc I don't reckon Frontera have been able to make any deals, loans, JV, buyouts, etc as a result of it. That means that FRR have potentially been jogging on these past two years theoretically making a loss but not paying hardly anyone only those that are deemed absolutely necessary too. That they have not found the money to scrap together to pay of YA points to this as does the restructuring of the loan repayments to YA, the smaller repayments could be made leaving the large repayment till the end which FRR probably knew they would be unlikely to pay so thereby putting off legal action to later date.

I still think there is wealth in the field though, it's just stuck in the ground. Zaza, SN, etc would have walked long ago if there wasn't. Hope, YA, etc would have done so too if there wasn't. Then there is all the data and legal statements to say that there is.

To me it's looking like Zaza going is just more delaying tactic, I assume, though we will probably find out for sure along the way somewhere. He and SN have a large amount of shares so stand to lose a lot so they won't want to lose. Until a deal gets done and new big finance comes in though we are going nowhere fast with liquidation potentially looming but not knowing where, when or if.

Big question is whether a deal is now possible now that we are post Arb and the GG have backed down. The Election is coming up and that gives the potential to be rid of the GD and those problems. The litigation remains but if investors see it as money being able to put the litigation to bed will they go for it? It seems it all relies on FRR being in a position for someone to touch it with a barge pole. That or Hope, YA etc and FRR come to terms with each other to get the oil field developed so they can all take their respective cut. Either way it seems something needs to be done.

Ukraine is just as corrupt as Georgia if not more so, getting involved there would likely mean similar sheeit. Then again it's probably a game Zaza knows well now and perhaps enjoys the thrill of navigating it all.

Ivy, I don't see that FRR are the same, in the earlier days of their history it looks that way but since fracking technology has come forward it looks like this is for real. I don't think it would be easy to forcify all that data, RNS, and then have the GG and Hope find it worth having a fight over an empty box, or a nearly empty one. I think FRR tendering for the Ukraine block was probably to entice new investment into the company as well as raise the profile of the company with that in mind. I reckon they don't really care too much about whether they develop them or not at least in the short term, if it gets new investment in to help them deal with Hope etc then they probably saw it as worth a shot. In theory if a company has a few contracts for areas that look viable oil opportunities then that in itself can raise more interest from the Major's.

Whoa! That's a huge fortune MP. If FRR could tap into the oil & gas enough to get enough following through to bring in a string revenue stream they could pay off Hope in next to no time. Even a revenue stream that is reasonably string could probably aid in getting better availability to short term long to pay off Hope I would imagine. I can see why the GG tried to stifle FRR as once the oil and gas really start to flow they would no longer have a crippled company on their hands but instead a company with a lot of economic clout and in Georgia money means power.

Part of the problem we have of course is that we still don't really know if the field has been developed much more in the last couple of years. I believe we've heard rumour on here that it has a bit but also other rumours that say little has been done because of the legal wranglings holding the company up. Baker Hughes was supposedly supposed to be helping to develop the field for a cut but we don't know if they are still a part of it.

Then this latest situation where we are not sure what is happening with ZM going, potentially more time buying it is perhaps starting to look like.

I'm not too fussed about the website being down, if there is really all that wealth at stake I don't reckon anyone is going to be just walking away from it. It's kind of a shame all the respective parties can't be reasonable and just accept their cut and be happy with that. The GG at least seem to have backed down (hopefully permanently) so I'm hoping that this will be the start of FRR unwinding from all its difficulties as I think it's in everyone's interest to get it all straightened out and away from a stagnated situation.

tsbs, I think the field is valued at pretty much the same whether as 1 percent or 100 percent. The 99 percent returned was from what I understand is wasteland. It was never really needed only on the off chance that exploration might be needed there. I think FRR were concerned that handing it back too soon would allow the GG to tender it out to a competitor that would side track to their oil and gas. However, FRR have all the data needed as to where the oil and gas are and how to get to it. That may take another company a while to work out plus then side track across, added to that they may likely be reluctant to want to get involved in Georgia given the GG adversity to foreign investment then being pitted up against another company accessing the same resource.

I thought the company was said to potentially be worth billions with the oil reserves proved up there, $15bn was it? I assume the previous market estimate didn't include the supposed oil & gas reserves that still presumably haven't been fully tapped.

I don't blame Starage for seeing the situation in stark terms, I think most people tend to like to see the more rosy tinted view of most situations it's only natural for many really. I find it helpful to have Starage's view without positive notions, at its base level as it were as that is a lot of what exists here it seems. In terms of us shareholders I think the one think that may avoid our shareholding being diluted down too badly is the fact that Zaza, SN, etc have large shareholdings. If our shareholding gets badly diluted down so will theirs presumably. There's several ways Frontera could slice and dice the situation, buyin/takeover, JV, Loan or some sort of agreement like they had with Baker Hughes to develop the field more with Baker Hughes or similar taking a cut of the revenue. Another way could be to get more investment onboard to develop the field. I know the other day someone mentioning existing shareholders might be persuaded to stump up some money, but that of course would rely on FRr disclosing where we are at, what they would do with the money (presumably pay off Hope) and there being a long term viable operation without obstruction from the GG.

At the moment it looks like it might still be games if cat and mouse at FRR. I would be hopefully of a deal and apparently some source was saying ZM going was a positive but in what way we don't know. To me though it sounds like there is more to wait on this share, probably till after this October Election at least.

Either way it looks possible Zaza going as CEO (assuming that is correct) may be a technical move to avoid such court issues. Difficult to know whether for that reason, for some dispute with SN and the board or because a deal is in the making. I think the GG backing down may have made more possible post Arb but I feel it would be moving quickly and quite how much more movement it would allow is difficult to see.

Odds are I'm guessing we'll have to wait until the next piece of news surfaces somehow. Georgian Election is just about a month away now so who knows if that may help at all.

Thanks Starage, MP & Mole, it appears the clock is indeed ticking that FRR need to sort something out before the New York case decides if the asset should be moved back and hence to the liquidators. That seems to under the New York court to decide as I doubt the GG are going to press it as an illegal move now that they have backed down from the Arb ruling. I'm guessing the Arb process and subsequent dispute tied FRR's hands in terms of deals or new finance, whether that now being largely out the way unties their hands is still to be seen I guess. Possibly Zaza etc were playing for time hoping to generate enough revenue from the oil sales over time to pay off the $48 million or at least the defaulted payment to date.

I can't see the New York cases going well for FRR but I'm no expert on that. My thought would be that it would likely be the asset gets moved back if the New York case goes on. In that case though wouldn't the duty of the liquidator be to sell off the asset (block 12) to get the best price possible, pay Hope his $48 million from it an leave the rest in FRR? As I understand it the GG only get it back if FRR as a whole become insolvent. So might even this bad case scenario mean Frontera shareholders finally see the asset sold and a return on their investment?

Thanks Starage, so yeah the New York case sounds the worse. I'm guessing that Frontera should really do a deal one way or another as soon as or get a loan to pay Outrider/the liquidators. Even still if they don't hasn't the field been proved up to be worth many times more than the $46 million that Outrider is owed, surely plenty left over for shareholders?

Thanks Starage most appreciate you clearing that up. So in that respect for us shareholders it's not as bad I thought a while back when thinking it was Hope trying to take the whole company though I guess it could lead to that. FRR no doubt still has to pay the Outrider loan off at some point and the radio silence means we are unaware if FRR are getting enough money in from the Oil to cover that. If not I'm guessing a deal would be best with a SM or just about anyone as a buyout or JV to tackle that one, that or a loan on more corporate terms from someone else I guess.

Are we sure Zaza has actually left Frontera. In the stuff quoted below from Monvant there seems to be a fair few question marks. Could it be that the tone is somewhat satiracal? That they are saying that because they have had no reply back from ZM they are taking that as him no longer being associated with Frontera and must no longer be CEO because he refuses to correspond? Basically the same as we get.

Starage has said that what is at stake is ZM and SN's shareholding in relationship to their dispute with Hope. Is it try that all of the dispute with Hope is about what they guarenteed in terms of their shareholding in case if a default/loan terms? That are shareholding & Frontera as a company would remain unaffected?

Anyway my thought of the day today was as GG gave way on Frontera retaining the license area due to pressure from immense the US then could it not also be likely that they gave way on the rest too? That at much the same time they would of given way on blocking any JV deal/transfer of asset, etc. To my mind it would have been the ideal time for FRR to say, 'by the way US can you make sure they back down from blocking any deal also'. The GG having caved in to FRR retaining the land under the same pressure could have likely conceded other areas such as blocking a deal also so as not to antagonise and alienate the US further. My thought is the GG could have we'll have folded on all of this.

Thanks Mole for clearing that up seems a pain that we apparently cannot call an EGM, but as someone said if a possible buyout/JV kind of deal is in play then we may be in a good place for once.

I think MP is thinking along the right lines that SN and Zaza have differing views and that the board aligned with SN and so Zaza's position became untenable. My guess is that SN and the board want to do a deal and move this all along now. Without knowing the potential deal it would be difficult to say though I think I would tend to favour getting a deal done now also. Hopefully if this is the case we would hear soon through a corporate action notification or similar.