Member Info for regdik

The only two O&G companies I would add to Devex list are the two biggest in the world.
Sinopec (biggest) needs oil to keep its refineries running and quality cruse is in very high demand. Then of course number two is Petrochina. Both are Chinese and are looking for new opportunities. China businessmen are more frequent visitors to Georgia and more closely tied into the silk road culture.
Hence I think a lot of US Gov. Play in Georgia is to help US companies against not Russian but Chinese interests. Georgia would b a good fit for China as the both could export and import East and West.

Hi FJ - yet to see anything of value posted by you. This is not my board but a FRR discussion board and what's the point in posting anything on here whilst this Q rubbish drowns any meaning full contribution such as Devex post earlier today which was very good musings.
Another for the filter box.

Getting silly know all this Q lark on a FRR BB.
Another way to pay apart from cards, contactless, mobile phone, google pay (and all the other media type), paypal and not forgetting the old fashioned cheque and cash. If it was that good then it would not need you. Except when the email pops into your inbox that requests that a once in a lifetime opportunity to invest for only $xxxxx.
I agree with Coggy a lot of people will be filtered if this continue so it looks like it will be Coggy, Mole, Devex Bugsy and myself left to chat.
Now...... have you heard about the new great opportunity of five FRR millionaires setting up and investment arm to take over the share dealing world and make their investors rich beyond words. Just send your email details and investment money (any form of payment method) to FoF Q Ltd.

Talk of a dividend is a little premiture as we are at the start of what is going to be an exciting opportunity. Unless lm wrong the deals are looking like an eventual JV with one or more majors. IMO the BHGE MoU was FRR getting the ball rolling and indicating to others that they are not dependent on them joining the party. However, if they delay to long they could miss the party. If it is a JV with a cash injection (cover some of FRR sunk cost) first call would be to clear debt then start the promised Moldova adventure. Prospecting is in FRR DNA and l think that establishing quickly to take advantage of the regional interest created by the Georgian success. It's a journey not a sprint so we will see a growth in the SP in line with success and news of others joining the party. Today's SP will be insignificant compared with what it will be in a few months or even weeks if the majors come on board and take the lead as the last RNS seemed to be structured to allow this to happen. Have a great weekend and good luck Lub.

If the average holding is 5Mil then I recon between 2600 to 2700 PI's (Excluding BoD and ii).

But I know of a number of PI's who have over 100Mil.

So a lot of fairy cake required

10,000bpd @60 is quite a nice revenue per year (full year at 10K is 219Mil) and this excludes that pesky gas that with very little effort can go directly into the network.

Dulwich this seems reasonable for 2019 as the current infrastructure could not support more than 10,000bpd. So the ten wells using bigger drilling (and targeting the deeper free flowing zone) would soon exceed that. BHGE will have the data an know the optimum places to drill. This alone will be 30Mil spend commitment by BHGE. The ground will be prepared and once success is known an infrastructure plan put in place (if not already there). Th majors will then focus on routes to market and ensure that the pipeline is laid during 2020.

Agree Prod, However claw back is always integral to an agreement so very relevant to the RNS of the 29th.
On a production basis 30days is very short time line as lead times of mobilising equipment/ordering specialist equipment is months not days. trust is very much part of this between O&G majors but BHGE are talking to a Mino and therefore terms you would think should/would reflect this. The risks to BHGE are very much greater than contracting with Exxon or BP. BHGE are the many 1000's the size of FRR so I would expect that the MOU would look to protect BHGE cost recovery more.

Good clarification RNS this morning that the second is still in the frame but more significantly to me explains the MOU wording. To me who has been involved with many a MOU within O&G industry no self respecting company would agree to the very one sided terms (FRR get lots of work and expertise done at no risk to them I’m talking Millions). Interestingly still nothing of this agreement on the BHGE web pages which in itself is strange as this is a politically sensitive area, great potential and they have agreed to significantly invest on a profit share arrangement (spending millions in the process but have a 30 day mutual walk away get out clause). This does not happen (or have BHGE gone commercially mad).
This tells me this is not the real deal being done although BHGE will be an integral supporting part.
IMO the real deal is with a known super major who wants to hit the ground running and FR/BHGE are doing the prep work. This will be bigger than I imagined if that is the case.

psx that is not a BH web site.

Significantly the MOU news does not feature at all on their web pages or news updates. This if BH as some suggest is our (or one ) potential JV partners you would think that todays RNS would have reciprocated in a BH update of sorts. Even if you search for Frontera nothing comes up.
So it is either a no news event for them (New activities is a politically sensitive area doing a profit share enterprise that will cost you millions) or they are doing this under instruction of others. As I said earlier a lot of work will need to be done in preparation for a full field development plan to be put in place so that a major can say to its shareholders its done a due diligence on this potential mega enterprise. The numbers are so big I would expect any major to check and double check every aspect on this deal. Getting a known well respected professional team to work with FRR team to prepare and take care of the extensive logistics required. Remember no self respecting major will use a small outfit to drill production wells and lay down infrastructure for long term field development.
An MoU had to be created to allow this work to be started as only one company has a LTO for this field.
An interesting RNS

Just re watched the 24th POD cast as at this time ZaZa would have had the MOU known about and a draft in his back pocket. Read the RNS then look at the pod cast and you will get a better feel of the potential outcome here. A lot of emphasis on technical evaluation and support (BH) and still confident on more than one major and I personally think that BH are working as agents of Exxon.

Let them have their mouthful now to rubbish this significant RNS.
The big hole in their argument is that this RNS has no commercials and even a stupid poster on here can understand in this world you get nothing for nothing. However, in this case FRR are getting millions of pounds invested and high level expertise for nothing, zero, and no ongoing returns to BH.
BH must be stupid and that's why they are a multi billion dollar SERVICE organisation.

A bit more time now to put down my reasons to why this is a good RNS for FRR.
One BH is one of the best in the business and do thing the right way to ensure HSE and well long life. Hence they are not cheap but when they do something it stays done.
I don’t think that most SH understand how much this will cost BH’s to do this work and the logistics of setting up this project (+ onset of winter).
So we have a major committed to spend millions on an MOU with a walk away clause and no commercial claw back. Just not done would never get through the commercial guys at HO.
Therefore, I think this can only be significant prep work for another.
Why an MOU – easy to set up and not legally binding and can be terminated quickly (hence 30day notice). But one was needed if the work was at the request of another organisation as only FRR can authorise this to be carried out on their field. An MOU with BH therefore has no need to mention others.
A very big indicator that a bigger deal is being worked and is in the final stages so confidence is high to allow the service people start planning their projects and work. It will take several months (hence Sept date) but we will see the other deal well before then.
The fuse has been lit.
GRQ - get rich quick
LTO - licence to Operate for those that asked

sorry about the typos using my mobile.
In short this is a good RNS for all LTH's.

A very interesting RNS that most GRQ guys will not understand (and hopefully sell).
First BH are a very big company that all of the majors use in many parts of the world and their expertise is operational excellence and getting the ground ready for (and participating in) OG field development. So these are the prep guys to allow someone a fast start. Why do I say that I the 30 day termination (on both sides). A O&G major could not instruct their service people to go one site (no LTO) therefore an MOU with FRR to get things rolling.
BH would not spend millions doing this with no commercials in place and a longer 2gareement" than a 30 day walk away. So we have a situation of a no lose deal for FRR - a lot of work being done, enhancing the field/production capabilities and FRR can say thankyou and goodbye.
This has been done at the bequest of the main player and supported by GG.
What some big buys come in from OG brokers this week.= those that understand this RNS.

5....4.....3......2......1.....We have blast off. Houston control this is ZaZa aboard Ud2 gas powered craft orbiting the Mtsare Khevi Gas Complex . We have 2 major problems Houston. The first which offer should we chose. The one with loads of money and shares or the one with even more loads of money. The second one is astronaut HOPE has taken a space walk without a safety line is it OK if we leave him floating off into a black hole.
Houston to ZaZa we have our finest brains working on this
FireG says hang on a while he’s a little SHORT of ideas at moment.
Bomber says hic.... what planet am I on?
Coggy says beam me up Scotty – I’ve got to se this.
Mole says not what I was expecting but the chart says that if we can see a black swan then we are OK to proceed.
Bugsy and Chris found that both offers can be accepted and that the black hole will reject being used as a turd dump here is the link.
YA says can we still get our 10Mil shares you promised
Mapp and Rainbow are out at the Bentley dealers s can’t be reached
Dougal say “it canna be true captain as I gave this share the best years of my life so what do I do now to fill my time”

Diko says I’ii have to stop drinking so early in the evening – have a great weekend all

Yep off to gold in a few minutes
Diko

As its a quite day with no derampers/shorters to poke fun at I thought lets name a well after them
Hummm Armageddon1 or soupkitchen1 after the Majors RNS lands
Or we could honour our greats
Mole1 is great as moles like burrowing underground for snippets of oil info
I would stay away from Cloggy1 (sorry Coggy) as it has a tendency to dribble.
I would back Cheesy1 as it fits in with a smelly gas well and I would ring fence and take a stake in puddy1 but many might sit on the fence on this one.
Bomber64 might struggle as it infers a duffer of a dill so the fracking fleet will be named after him.
ToT1 is like mole and all wells are built around a well hole so a winner
Pyro1 yet again ideal for a flaring gas well
Dev1 might not be good with its Devon link might infer clotting and not produce the cream we need.
Mapp1 and Rainbow1 nah not these names as they always promises a lot but nothing has ever been delivered that lives up to their hype (sorry guys).
Lub1 a definite winner for a oil well.
Buggsy and Chris will have to have a pipeline named after them as they are a conduit of lots good stuff.
Just a bit of fun

Interesting play by Exxon working with GG to fully explore the land in West Georgia.
Some say a sweetener to allow GG announce a great find but that will cost many many millions and a lot of time (3 years minimum) to undertake a full seismic study. A significant number of wells would have to be drilled and tested at each layer. FRR experience/information will help short cut this but a significant commitment to Georgia.
For the negative crew - Has ZaZa held out for a lot more than Exxon expected for a very cash strapped company or others bid too high and they are looking for fresh fields to exploit.
For the positive crew - Or are the 3D imagery so good that they want to tie down more land to block competitors.
I doubt Exxon would be outbid and invest so much time, effort and cash on an empty box or a duster of a country. So the very big boys are investing and the confidence ZaZa has shown it looks as a slice of the cash is coming FRR’s way.
As this is FRR nothing but the majors announcing a deal (their RNS to the market) will impact the SP.
So is this an empty box or a Christmas cracker?
Exxon are excided enough to spend real money on opening the box so those that argue otherwise better ask the question is my understanding of Georgian O&G opportunity better than Exxon’s. Humm are hard one for one or two of the idiot poster on here.