Member Info for regdik

Ivy - I do not have any form of insider information except my working knowledge of the companies I worked for and contractors associated with them. I will tell you one thing is there are not hordes of "major staff" working in Georgia only a handful of key workers ensuring that what is done by the locals and contractors is providing the information they need. BP have been beefing up in the region (and Georgia) not for a pipeline that is complete (only needs filling). One of the interesting notes I picked up late last year was the increase in investment in AZB as if to give assurance that what they do close by will not impact their relationship. The region is very important to BP and they have an excellent working relationship with Georgia. Yes I have good contacts and I know they would not break the BP code but knowing what the do not say can be telling.
Most posters are not focused on the end picture - making the region energy independent and a key supplier to Europe.
FRR are sitting on a prime piece of real-estate (Georgia, Ukraine and Moldova) and the licence is worth a lot of money. Remember that the licence can revert to GG on a default and any change of ownership requires the Governments approval - Outrider would never get a "fit and proper" approval to own the licence and even if they bring in another oiler it is in the best interest of GG to reclaim the licence and not be subject to the 400M sunk costs. So is hope forcing this to get the 30M as he has little chance of gaining the licence to sell on (you can't sell a lease car as you never own it). The licence would run out (2021) if Outrider tried to take it to court (and they can only do this in Georgia). So why - I think Hope is aware that FRR are trying to get rid of outrider on the cheap and his only hope is to threaten the company to default (he would know about the solvency 12 month rule) so he gets the courts to guarantee his 20/30M as I never see him being granted the licence.

As far as we know the lights are still on workers are still being paid and the drills are turning. We have BH racking up costs and expecting a return on their investment and a PSA being muted for 150M to take the company forward. Two companies who would have done their due diligence on both the O&G that they could extract, GG cooperation and the company (longevity prospects). BH costs and the proposed PSA are not debts but they do need to cover off the Outrider situation. It is not beyond the realms of possibilities that one or both could act as guarantors to FRR as they would be fully conversant in the whole situation and well briefed on proceedings. These two would be fundamental in providing proof of solvency to any court or appointed liquidator.
These companies are convinced that they can extract the wealth and get a good return as they would not be associated with his fiasco. The numbers are potentially huge and they know it.......so how much of the company will they take in return (1.5Bil overhead shares or more).
The 20/30Mil is insignificant compared to the potential but the value to the majors of FRR remaining in business is the potential recovery of 400M sunk costs (no FRR no recovery).
So once the debt is sorted/put to be then over to the Cali courts to recover it from Hopes failing to his FRR duties.

You can be sure that one of the first things a lawyer will do after knowing he will get paid is the case winnable.The next is what impact will the case have if l win/loss the case. Is it worth the risk and hassle as if as advertised he is an hot shot as reputation in the early years is a prime consideration. A two bit O&G company in little old Georgia who have clearly defaulted to sharks that know their business would look a very risky bet. A good lawyer would advise to settle if it were that bad.
However FRR took the fight to outrider with what seems a weak case either they are playing for time (drill/loan) or they have something in their back pocket that will emerge in court (and Troy will get his Christmas card) It seems that the back stop is convincing Cayman court that they can repay in 12months. To do that they need both revenue stream and access to funds (both have to be water tight). Not long to wait now as the key date is almost here just a few days away. GLA.

Why are people getting so hung up on the oil flow rates....the majors are not interested in lots of dribbling wells as its not their current modus operandum. FRR (if they survive) will happily harvest the oil from old and the few deep wells they will drill - the true value in B12 is GAS and lots of it. That is all GG/BP are interested in and hanging around for.
In the time since BH have been on board I suspect a new test gas well has been sunk and that may explain the recient gas auctions. FRR now have to prove they have the ability to pay back in 12 months and I suspect FRR ducking and diving was purely to make time to prove up the commerciality of the gas. Could also explain the new 150M facility (which will also required to be tested by the judge).- (more speculation but Hope is fighting very hard for this block).

Will need a Lawyer to look at the finer points but two very different submissions. FRR looking at the whole picture and Hope's isolating and dissecting various points and looking at jurisdiction and points of law. Its all up to the Judge now how he sees it. The Cali judge can't rule on the company transferring asset as that is Cayman jurisdiction as is the liquidation. What he is to rule on is there a case to keep status quo until a trial or let Outrider seek to chase the asset.

Timing is the all important thing - why take until late September to respond to the April BoD meeting with his terms?

September had Disruption in the boardroom a NY loan looping in the background and Hope trying to appear appeasing to look good in front of any arbitration. He knew that the terms would be unacceptable. Maybee it was Hope forced the showdown and not ZaZa.

I will be first to agree that all we have is speculation and we seek clues based on CC docs, judges views and finds by our super sleuths.

Bugsy posted some interesting points the other day regarding clauses in GG contracts. The one that stood out is any conflict would be dealt with in a Georgian court of law.
We have been looking at a smoking gun or the killer blow could this simple clause be it.
Cali courts had no jurisdiction on Cayman companies. So could the transfer of assets to another FRR entity cloud the issue that GG would step in and claim jurisdiction (after all they own the licence and have only contracted it out to FRR).
Hope will urge to liquidator that the transfer was illegal due to it not being a full board agreement. FRR will counter due to the court case Hope in effect was suspended (FRR articles would cover this) so had no place in the decision making process. Additionally FRR left enough to cover any liabilities in the old company.

Time is Hopes enemy as long as FRR keep ducking and diving the drills keep on turning and ZaZa can keep the majors interested. YJ said we are still working at the well heads and I understand no Georgian worker have been let go..

Still in the hands of the lawyers so nothing is certain apart from our uncertainty of the outcome. We can live without HOPE.

Its obvious that this is now like a runaway train with no one in total control. Tit for Tat court submissions by very expensive lawyers and judges that seem to be shaking their heads at this mess as they see all that is needed is an OOC deal. I think this has gone too far as both sides are not backing down to I see only one winner here.
In black and white FRR did fail to pay the interest and seemed to force a showdown. To go down this route they needed a case based on proof but as we know one judge throw it out however reconsidered that on appeal that have a chance to win an appeal.
To avoid going to court Hope would have to move quickly and seize the company and liquidate prior to the appeal/court case. Game over.
The layers must advised that FRR that their case based on a Judges ruling would be weak and would find it difficult to stop Outrider taking assets.
Hence we see plan B in action – moving of asset to another FRR entity.
This is interesting a if this simply breaks a commercial agreement then any judge would rubber stamp this as unlawful in hours not day/weeks. There does seem a delay by Maples acting on this. They would know that as a Cayman company a Cali judge has NO jurisdiction. So all that was required was a quick call to a judge and yet again – game over.
This of course might still happen next week but as usual we SH have no idea of the full picture.
If we go to court in Cali I think we have a good case but w have to get there as a company.
There are a few scenarios, but as I see it there is only one that would delay the asset grab. If GG to save jobs in Georgia requested FRR to move the asset to safety until they fully review their options. It would be more difficult for Maples to go against a sovereign states request. A very technical point as it would not be FRR moving but the licence owner. If not why are we still business? We have intelligent BoD and a top US/Lawyer team who would be advising what was lawful and would delay the other side. If it was as dead as some on here think these same lawyer would have a duty of care to advise that this case is unwinnable and a waste of company/SH money.
If we are still discussing this next week then I think we have a great chance going to Cali and open court. Not what Hope wants.

Not negative at all but if Hope tries to push this to the end he will get nothing but have lawyers bills as FRR will be a busted flush. GG will revoke their licence as obviously FRR have convinced GG are not fit and proper licence holders and many jobs will be lost. So the brick wall is nothing for all.

So the judge said its not Cali court have no jurisdiction regarding the recovery of Cayman company assets. So back to the Cayman courts. One thing is for sure it will take Maples time to do this and put before a judge and FRR will be able to defend their action and claim the 5% royalty was enough to cover debt payments. One thing for sure is the PSA a change was done with GG blessing which will help. I assume they did agree to protect local jobs and this will make it difficult for Maples as they have to get a sovereign state to agree to move the asset back (after all its their licence).

There will be more twists and turns but what might be left with is GG taking their ball back as FRR goes bust with all of the court costs and delays - so we all end up with nothing.

So we are going in front of the judge on the 6th to plead our case we know what plan B is (transfer of assets) - but do we have a plan C.
Its now been several months that BH have been on site and to come up with a 5% royalty figure then we need to prove that this % will cover the full payment to Outrider in 12 months (previous docs).
Remember Outrider cannot gain from any sell off they can only take what is owed to them (20/30M) and the rest comes back to any other creditors and then shareholders (back of the queue).
If the judge rule plan B is invalid and Outrider can take the field (assuming GG allows this but very doubtful) then the value by that date will be far in advance of the sum owed and should leave a surplus.
All FRR lawyer need to do is show the flow rates/revenue (must be some as to seek a 10M credit line) and ask the judge that their is no need for a fire sale but that this is now a commercial operation. The judge has the power to instruct Outrider to get a fair market value of the block.

This is my own view
First you have to remember this is a rebuttal of the Hope document and therefore is a response to counter their claims.
Second that the 2M is part of the core action and Hopes blocking finance to pay this off hence no direct reference.
This is all this document had to do was redress the Hopes claim and give valid reasons why this should go to court and therefore put a hold on any Hope actions.

Key points to me was bring the judges attention to the attempt to misdirect the Cayman court by omitting vital information. You could ague that in Hopes submission (that this addresses) he did the same by omitting this part of the Judges comments.
Reference to new finance is key as the judge would need to see that this is a business that has a future.
Showing that moving the case was without prejudice was agreed between lawyers.

No new claims or evidence would have been required at this stage so moving assets was not required (FRR’s plan B) to be revealed.

However, reference to Hope/Outriders knowingly using third parties is the killer part as this infers FRR have evidence as the judge will surly ask that this claim be substantiated (this was not required to defend the Hope argument).

A strong defence but is it legally sound in the eyes of the law. I hope (that word) the judge sees fit to grant a TRO. Due to Hopes action I would expect a swift response by the judge (within a day or two).

Grimbold good post I was thinking along the same lines. By leaving a percentage in the company the lawyers can argue that FRR has made provision for the debt and not tried to default the payment/judges ruling. They would use the NSA value of asset as fact of value (judges like expert evidence/facts). Hope would have to call his own experts to defunct this and as NSA are one of the best in their field they might find this difficult.
I now think we are in the end game as thing are moving so fast the judge will have to enforce a closed period to digest all of this new activity and the FRR submission on the 7th. The kitchen sink has now been thrown into the ring and there is too much information and fake news for us to know what is about happen so sit back and watch this unfold/unravel to one sides final advantage.

As you would expect from a high paid lawyer a good submission defending and supporting his clients position. A lot of history and showing how excluded his client was and that he only sort the best for FRR. A big play on the first judgements but strangely nothing on his/hope sailing close to the wind on the second ruling. At least we know more now and the truth will be somewhere in the middle.
Both are playing for their futures only one side will come out alive.
However l thought that the document ran out of steam towards the end but what do l know but l bet the judge I'me will be in contact with the Cayman court to check all the claims and counter claims.

As you would expect from a high paid lawyer a good submission defending and supporting his clients position. A lot of history and showing how excluded his client was and that he only sort the best for FRR. A big play on the first judgements but strangely nothing on his/hope sailing close to the wind on the second ruling. At least we know more now and the truth will be somewhere in the middle.
Both are playing for their futures only one side will come out alive.
However l thought that the document ran out of steam towards the end but what do l know but l bet the judge will be in contact with the Cayman court to check all the claims and counter claims.

Some top quality post today and some utter rubbish.
However, it seems everyone has put a positive or negative spin according to their own position. This adds to confusion, moments of joy/disappointment and frustration on those just seeking news.
Its good that all news be shared but too many are putting their own spin as the “one truth” and not just focusing on the facts. The key fact is that we do not have access to the full picture and supporting evidence. We should not look for those with expertise to analyse based on documents from one side or another as it puts them under pressure.
The first Cayman judges notes had some ready to jump off the Humber bridge and the second had those looking to buy it based on BB comments.
A picture is building slowly but as we are in the hands of the lawyers I will only move at the speed they dictate. ZaZa/SN/Hope do not submit these court notes but high paid lawyers and they will take every opportunity to put their side/view forward but one thing is sure they need to back this up with evidence. If not the judge will not be slow in calling them out (second judges note on Hope/Lawyers).
So lets wait and see if the new judge agrees with FRR lawyers view but I’m sure some of the wording will be changes for sure – if not it would be pointless going to court.
Good to read the documents and posts but read the BB’s with what they are one persons interpretation based on limited picture. No one knows the final outcome. I am disappointed that we are in this position but was it engineered to remove Hope/Outrider or just plain out of control and we FRR are reacting to events. If we are out of control then we would have trouble attracting a top lawyer to the case as why rubbish his reputation on a lost cause. Remember this is my view and not a fact.

i see on ii someone has researched and found that all of the BH rigs are accounted for and none are in Georgia.
BP have a policy of use local wherever possible and FRR use local suppliers - good for the local economy. How they drill and what drill bit they use and well cement/shielding is key.
However, the mangers (toolpusher) will supervise and ensure the well bore and cementation are up to standard these specialist will be BH staffers. Once the dust settles the key new wells may be done by the majors but as their main contractors are just a few hundred miles away (Azerbaijan) it would not take long to mobilise.

FRR should in all truth be dead and buried
Fortune spent fighting the topography of prospecting next to two tectonic plates producing tremendous pressure and lakes well of clogging mud. However, you can smell the oil and grass in the air.
FRR have made too many mistakes by continuing to try and make the hundreds of old soviet wells more productive (early flow rates were encouraging) rather than adopt more expensive wester techniques and drill new wells (as BH have brought to the table).
FRR are a busted flush re finance but somehow they are still fighting and must have some very understanding backers (BP and BH?). The block is rich in resources and they have been banging on the table at every chance telling anyone that would listen. Then it seemed to finally got through last year they even had and even GG are singing the same song (who needs the fat lady now).
FRR BoD are well connected and obviously have friends in high places and have clout far in excess of their size.
FRR seemed to have treated the data gathering as a priority and that the big boys would see the potential and buy in to the dream but things obviously did not work to plan (PoO and Politics) and as the funds ran out and YA offered cash for shares which resulted in the shorter’s following as the SP was put under dilution and falling SP. FRR must have paid for their Rolex’s and flash cars.
Then Hope as an opportunist bought distressed debt shares at a fraction of the value (So Outrider put NO money into FRR). What did he see back then as at first he was not a director (only after restructuring) so what value could he see as FRR were cash poor and a high risk of defaulting. However, he has now tried twice to take the control of he FRR asset. Did he see a short opportunity and finally drive the SP into the dust therefore closing off cash raising opportunity.
Will he win that is down to the Judge and smart lawyers and we as mere SH’s can only sit and wait. There is nothing we can do and talk of SH legal action will drive FRR deeper down the black hole of radio silence. WE KNOW NOTHING about what the lawyers are discussing so how can we tell we as SH have a case of the BoD not protecting our interests. The California CC if by jury will reveal a lot of information so we can only wait and see what comes from this. I for one will not support a class action until we know more.
The big boys will not have stayed around if they thought the work/support they have given would be lost is the block was recovered by GG and put out to bid.
I reiterate who is keeping the lights on and providing backing that allows FRR to survive and go into very expensive legal action in California. Find that out and you find the truth to what is going to happen.
The fact we are not already dead and buried must ne a worry to those with shorts as we are still alive and about to kick Hope into touch. This alone will be THE game changer for FRR as we have someone with deep pockets keeping us afloat.

Just a clarification point. The default was over the 2Mil and not the full loan amount. this will be subject to the original loan T&C. I expect that all outrider will get is what is due and not a dollar more. So the offer of payment of what is due will seem reasonable to any court. Also any advance payment could not be refused if it was offered unless unusual t&C were added at the start.
So linking what is happening now has no bearings on any loan agreement signed two yeas ago.

I would not accept any funding as I am lucky to have funds and good pensions (BP) to pay for this.
Plus I will be taking my manager (wife)

Might visit hotel California and meet the rest of you as we have all been residents for a while