We would love to hear your thoughts about our site and services, please take our survey here.
Sounds to me like the loan that was talked about has a few demands on it and one is extension of the PSA.
This makes sense.
However it seems to also indicate that the idea of buyout or JV is not imminent. Possibly BP have looked and walked, or still looking.
Are BHGE producing for us, with a deal to share profits, or does the workers going mean we are not having any revenue?
I suggest this was the treat Zaza used to workers, if they do not continue they may never get paid but if they work this will be resolved. Its a bit like the chicken and the egg scenario. Both sides are pretty much stuck.
If Zaza is so confident the deal with PSA can be reached and therefore the loan, then i would expect him to use some of his own cash to at least make a payment to those owed many months money.
Its not right that Zaza and Steve have vast amounts of money while those who help make his money are left to live in hardship and poverty.
The company may not be in a position to pay right now, but if everything does look like coming to a sucessfull outcome, those two should give at least a bridging loan to ease the suffering and to keep the oil flowing.
What a mess we find ourselves in.
I also think this plays right into the hands of the liquidators , as it demonstrates that we are a company with no revenue to keep the lights on.
The threatening comments were not the way to do this, empty promises and missed timelines are also not the way forward. Honesty about situation and the PSA along with about loan, backed up with a months wages each partly funded by the two in charge. That would show commitment and sincerity to the workers.
Kalan
Pj said that the price would drop to this level then that level, he was a trader and used charts to predict price movements. he told me to sell and buy back in a few weeks time. I did sell and two days later we saw a significant rise that saw me lose 1/3 of my holding.
Those charts were not as accurate as he suggested.
To my knowledge he did not warn this was going to zero, he forecast how long a fall was going to last, sometimes he seemed fairly accurately but trust me when i say he got one particular call very wrong and stopped posting after that wrong call. Not sure if he returned after that. he was i believe strong on iii
I fancied at change Coggy, anyway, ever tried putting lipstick on a sheep?
It does not go well or look good.
Baa Baa
Well i am not going to dress this up and just give real honest thoughts.
you can put lipstick on a pig, but its still a pig. That really refers to the lack of wages to the workers.
But lets put the lipstick on it anyway.
workers not being paid? What do we know about the facts? Do we know that nothing has been paid? It would be reported as not paid if they had a majority held back. Not enough pay to pay the bills and hurt people, but we do not know if sporadic small payments are being made and no one has asked anyone if Zaza has paid small amounts from his own funds. News can be very one sided and report a blacker picture than the reality. We do not know. I do not know many people who would work for months without any money at all. Not only do you look for new job / income but also after months you lose everything (Miners strike in 80s where communities fed miners families)
Then Zaza stating deals with Govt. Thats pretty big and extension of licence till 2027 is a huge step forward. I believe its 5 years already. I would suggest negotiations to extend further would be around FRR hitting certain targets at a certain timescale.
It sounds like the percentage of block to be argues over has also been sorted, plus the tax refund.
In my opinion all this probably comes as one package and the whole package gets signed off in one go on a single bundle of documents. Which i suggest is initially given until january to complete as signing with further negotiations prior. There may be some pressure on Govt with political games that effect employees and although very wrong, so is the Govt in holding tax which could have been used to take FRR forward and not only pay those employees but also we would not have these issues with Hope etc. I think that debt owed to us proves solvency.
It's a real balance on a knife edge and that egg timer is continuing to flow sand. The risk here is that these and other negotiations drag on and that sand runs out. Are we still producing and if so how much.
We have heard nothing from YA so suggest no issues there
Govt have talked and negotiated with FRR
ZM has met and communicated with workers
Lights are definitely still on , flickering but on
So yes we can put lipstick on a pig, yes its still a pig but chuck a wig on top and it may look like my ex
Enjoy your sunday
Back in 2013 Russia supplied 131 bcm of gas to Europe, consumption has increased since.
What must be taken into account is that this is a huge amount towards their gdp
So having new sources on their doorstep that will effect their income for the Country is going to hurt Russia , so yes expect anything as they try to hold on to that market.
Some Countries are 100% reliant on Russian gas, as in the past that means Russia can and has held Countries to ransom. They have turned off the taps in the recent past.
Europe may appear to be sleeping, but they are aware of it.
here is a quote
Part of the aim of the Energy Union is to diversify the EU’s gas supplies away from Russia, which has already proved to be an unreliable partner, first in 2006 and then in 2009, and which threatened to become one again at the outbreak of the conflict in Ukraine in 2013–2014.
Here is another logical reason why we may be seeing the FRR team leaving the company.
Frr have been stalling the process and making the administrators job very difficult to complete.
It would have been rather easy for them to demand information on the financial goings on over last 12 months with those team members.
However, if like a freak of magic they suddenly all resigned and no longer worked for the company for a time, then they could not provide the information required by those seeking information and so muddy the waters and further delay any outcome.
So could be a very slick move by FRR although this is on the higher end of fantasy island
That Baker Hughes Employee worked in Taribani until November 2018 then left to work in Abu dahbi in December
Hi phil, i hope your right
So your saying if we were liquidated today, that liquidators would be able to sell the block and make enough to pay off Hope/ OMF, all the court fees etc and even leave us with a payout that would make us breakeven or profit?
Sounds like a no lose situation for us!
However is it not the case, that Georgia would take back the asset and so it would be them to sell, not any liquidators?
I would also fear that it would on best case become a fire sale, not sure about any bidding war, more likely with Liquidators only requirement to be able to recoup loses by clients and courts costs, that any bid that covered that would probably be excepted.
The worry is any plan to satisfy the current cashflow is not 100% in their control. if its increased production rates we could have anything from mechanical breakdown to severe weather conditions that could alter the date we plan to satisfy any financial commitments. You also have oil prices, its again something thats steady now but not a controllable aspect.
If its buyout, farmin or JV that will bail us out, you can have any delay out of the blue. Engineers suddenly asking for further evaluation. request to drill a new well somewhere to confirm a data room analysis and thats before lawyers get involved and start pushing papers back and fore to change a paragraph sentence or word or confirm this or that.
So unless the signing is imminent it can be a very dodgy strategy where a third party can delay or even pull out at anytime.
However i welcome your positivity, just keeping it controlled as this really is a 50/50 right now with the information (lack of) that we hold
Theprodigy,
Unfortunately what you say is correct, but people do move on. Just change of scene or they have reached limit of promotion with current employer.
The fact they have left now suggests either they are desperate for some cash and not being paid has come to break them or more likely its as you say and one way or another things are imminently to come to a head.
I have used some sources to try to gain info and wait to see if i get a reply.
This again could mean any number of things.
1. Employees always looking for better jobs pay
2 Employees need to pay rent, mortgage etc and waiting no longer
3 A deal is imminent and these employees will be surplus to requirements
4. Lights are dimming and last one out to shut the door
I have tried contact on linkedin but without any luck so far
I suspect if a deal imminent they will stay quiet (silent)
If its end of the road i am sure one or more will squeal as a disgruntled ex employee
I do have some worries about the cash flow as there is one very dark possibility with what is happening with the cash for the oil from last 12 months. Its a thought that has worried me for some time, however it all comes down to if Zaza and SN have a plan for FRR to survive and benefit all with their cunning plan, or if they are stalling for time to just fill their own pockets.
I try to remain positive but its a very mixed picture right now and you can read what is happening in many ways.
Firstly, those employees have to see oil production to even believe they may get paid in future. If i saw production as very low i would down tools as it would be obvious that my work may never be paid for.
However not knowing the plan ahead, we do not know what Zaza and SN are working to achieve.
It has to be considered that its is possible they are selling oil to pay back money they have spent in the company, to prolong the production as long as possible to recuperate the cash for them selves, leaving hope to claim a shell of a company and millions of worthless shares .
The plan may be to use all the production money to pay off YA and even soon OMF. Therefore employees take some pain but will see gain with bonus and full payment soon.
Fact is we do not have a clue what is going on, any of those possible reasons would need secrecy for different reasons, as would any deal with 2,16.
Depending how you want to read this, negative or positive, is how you will see the possibility of any of the above being most likely. Personally i prefer to look at every single option that COULD be happening as that makes me look deeper into the fiasco we all face today. Only by exploring every option, are we likely to uncover the truth, unless FRR make a statement before we uncover it.
When that statement comes i hope its one we all want to hear, if its lights off, i want to know what and where the money and production generated has gone on.
Production and revenue has continued and a stalling process is in place, and that does have a reason. They would not continue this if it did not serve a purpose. It would be easier just to throw in the towel. So the question we need answered is, is this to save us all or the favoured few.
ooops
Sorry i started wrong and continued
Gipps
Gibbs, are we thou?
We were in arbitration situation, but as far as i am aware that has gone pretty much silent now.
Did FRR at some stage recently suddenly give data that pretty much destroyed the case. Just a deal done now to share profit and assistance for us to protect what we have.
So many things defy logic, we hear that the lights look like they will go out soon, yet you have workers employed , not being paid. They must feel that that pay will be coming or personally i would have walked months ago.
Critical for me is the BHGE situation, but that seems to be a locked away secret.
Surely thou, if BHGE had walked away that news would have leaked with the shorting crew.
Just working on the maths that Zaza gave at the investors meeting where he talked about the cost of each well and the profit from them. The situation snowballed rather quickly where i believe after 3 months 1 well paid for another, then when completed those two would even quicker pay for well 3 which then paid for two new wells to be exploited , so now doubling up as more and more profit flowed in.
I have to conceive that this was theory and problems occur but it did make perfect sense. The biggest question probably (why not do this 5 years ago).
Now i like this because it also proves the PSA alongside getting creditors off our backs. The beauty of it is, that since middle of 2018 we have had no production fiqures. What could we have achieved in 18 months?
I would suggest using Zaza's model (if it happened) then 6 or more extra wells in production now. Then of course if BHGE were to have also made progress maybe a percentage profit from them too.
All this proves is that there is chances that we may succeed and be nicely rewarded. we just need to remove that "may" from that sentence and replace with "will"
That would also account for the playing for time and be the plan that Zaza had all along.
God i hope this is close to the mark
It could be that we are making high production and the Staff have been asked to bare with FRR whilst that huge production makes revenue to clear debts. I.E YA and possibly even OMF.
That could be the priority to safe guard the company and the jobs in long term.
This of course would be difficult times for the staff, however they would see that production and light at end of the tunnel.
I can not see any reason why people would work without full or any pay for many months unless something told them they would get paid in the end. (Personally i hope with a bonus gift for Xmas)
Anyway we need to find out what BHGE are doing or not doing out there. Are they still working with FRR and if so in what capacity - any sleuths able to find out?
This i repeat does not look to good for SN and Zaza. Therefore FRR
However as many said today it could be playing for time.
I have no doubt the box is full, i stand by that. However its a case now of out running the wolf until we reach safety. Its a race to the finish line where although SN and Zaza may have clever lawyers stalling the process, OMF will equally be trying to hurry the process up.
I will not begin to guess who finishes first
Talk about the dog eventually catching the car ...as Zaza said in 2018
The problem is we do not know if deals with companies or GG are in the pipeline or not. Are Zaza and SN stalling with just hopeful fantasies of a good outcome or with a cunning plan and knowledge of a good outcome.
We are in the dark, but thankfully FRR still has some lights on, for now at least.
I worry that the legal system may move to quick and the samd in the timer runs out.
What is OMF actually trying to gain here?
If GG take away block 12 everyone loses except the GG, Hope wins a case with nothing of value. That really would be shooting himself in the foot. With that angle surely its in his uinterest to force a deal that benefits all to some extent. 5% of 500m is worth more than 100% of nothing.
I can not say today is positive as it risks the judge looking at FRR in a bad light if that clock runs down, i just hope that FRR have a strategy and this is all part of that plan.
Hope wanted shares, he would not want worthless shares so we have value , that i am sure. I worry BP if interested in Block 12 do not have quiet discreet calls from GG saying they get a great price if they wait.
I may not be quite as positive today, but thats how i feel. I still have everything crossed that this comes good for us.
We can paint lipstick on a pig, but its still a pig
FRR have not shown clarity and been open and honest with the liquidator and that is not a good place to be. A court will most often have many versions of a story from two or more parties. Where facts are difficult to concur, the court will often take in account any dishonesty from one party.
We could be playing for time, but thats a very risky strategy. Often it would be the case that FRR are not in control of the time for what is needed. Any offers from another company could be delayed for any number of reasons. The Gerogian Government may also not run a timeline to what FRR want or need. Meanwhile the sand in that egg timer continues to flow and that top glass starts to become empty.
If we are found to have misled the court on solvency then that would be frowned upon and the Judge could decide that things need closure quickly without further chances for SN and Zaza.
Hiding away like a ostrich with its head in the sand could be our downfall or a stroke of genius.
What happened to that large loan we had coming? BP, not 100% they are even still interested and no one knows if BHGE are still on site or not.
I am more inclined to fear the worst today. Although lights are still on, i fear they are flickering now.
This has weeks or months to go one way or other and i have no idea which way it will go.
Nervous but hopeful
I will give you one fact
Many aim oil companies on here, including Char, vog and SRSP
They are all listed and in operations
but ......
The board is not as busy as this one - a share delisted.
Interesting in a funny kind of way
Many reasons why people could be exiting the doors
I have to concede that one is of course because company is gone, the GOG taken back the block etc etc.
However those who have been here a long time will know that bad news flows much quicker than good news. In that respect i would expect that the implosion of FRR would be very much news if it had happened - probably before our sleuths found the moving of CFO etc.
We could be in a JV or Farmin where some jobs are no longer needed and so people become excess to requirements. Possibly on the brink of a Takeover or buyout, and again people being thanked and walking away with a golden handshake.
Again we are guessing and trying to read numbers (often having 2+ 2 = 29)
As far as i am concerned this is still alive and kicking until i hear from official source evidence to the contrary.
Ex employees would not all be shut up, they can not be threatened with loss of job, they have already moved onwards. So for a number of employees to be in a position to leak something and be negative about FRR and not doing so - suggests to me that there is no definitive negative statement to make.
Those pushing for news!
If we were about to start finalising a deal with BP, BHGE or any other big company, a leak that goes to their shareholders would be a massive trading tool, so FRR giving any clue about that would be suicidal. I think others are working the majority of Block 12 and FRR are profiting almost like a silent partner. I may be wrong.
Arbitration - again the silence is deafening , Did GOG suddenly realise that BP were involved and so pulled back at last minute with perhaps a sweetener offered by FRR in regards to tax owed or a small portion of editional cake from the block.
I can not say everything is fine and we will be laughing in 6 months, but today we are still in the same position as we were in January. Nothing has changed and until Arbitration, if went ahead, is announced and until results of final court case - that is where we remain. The other option is all debts payed off with a buyout including to Hope and OMF
Lights are still on and remember - you do not fight over an empty box.!!!
DRPs
Civil DRPs
Plaintiff: FRONTERA RESOURCES CORPORATION, FRONTERA INTERNATIONAL CORPORATION
Filed: 10/11/2018
Court/Case No.: IN THE GRAND COURT OF THE CAYMAN ISLANDS, FINANCIAL SERVICES DIVISION CAUSE NO: FSD 193 OF 2018
Allegations: THE PLAINTIFFS ALLEGE THAT THE FUND CONSPIRED WITH ITS PRINCIPAL STEVE HOPE TO CONTRIVE THEIR DEFAULT ON DEBT OBLIGATIONS.
Fine: $