Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
Thanks Looed.
Presumably there is no rush in FRR paying those sums unless a production sharing agreement crosses the line for the 1% that was awarded.
I'm guessing much larger sums will have to be paid to obtain the PSA for the 1% ?
Hi Looed,
Thanks again for your posts.
"Frontera", which has a desire to continue working here, but with the condition of fulfilling the terms that were put forward by the arbitration, because the amount has to be paid. So there is an opportunity for” Frontera " to return."
Do we know the entirety of what it is FRR is expected to pay and what for exactly ?
Apologies if I've missed any of your posts answering the same questions..
"There doesn't seem to be any moves on the Georgian side to sell either 99% or the 1%, so it seems for now that both sides are still trying to figure things out."
Thanks Looed.
Regarding the above, my understanding was that FRR were legally awarded the 1% following its associated hearing and ruling.
Therefore does the Georgian side have the right to sell the 1% ?
From memory I think the 1% was the proven bit of the overall acreage ?
Thanks Looed
Much is happening.
Could you confirm what deal you are referring to and with who ?
Thanks Looed..
Do you have any details on the settlement ?
If the criteria to gain control of the asset requires proof of funds and operational expertise, what interest would SN have in seeking to reverse the Green Capital acquisition.
Great summary Looed !
This information will most likely be disclosed whilst we are delisted so that when we do relist, well, I will leave it there and leave it to your own thoughts as to what you think may happen on the sound of the opening bell.
The case that FRR have lost but indirectly won has resulted in FRR retaining the assets under watchful eye, without giving any of the assets away, mission accomplished.
The follow up case is compensation sought, in excess of $50 million, a figure that FRR believes reflects the ground they have lost having had Hope thwart progress and voting against the prospect of applied loans assisting the company to move forward.
There was always the prospect of FRR losing the first case involving the injunction and of course FRR’s get out of jail card would be to state their “solvency” and that is what has been done.
FRR’s approach and behaviour has been severely looked down upon by the Judge in relation to FRR’S lack of disclosure. The question is, what type of disclosure has FRR denied the Court?
I have no doubt that disclosure denied would in part relate to financials. This would be the very disclosure Hope was denied getting his hands on during his time when he was serving on the Board, the same disclosure we as shareholders have been denied from receiving to date and it now becomes very clear as to why that was.
The very obvious point that is pinned to this question is that it was never the intention of our Directors to relinquish the assets and see those assets return to the Georgian Government through default as some have alluded to on here as they have now committed their livelihood to making the company work else risking a prison sentence for false declaration. If this is the case, one could ask the question is FRR broke ? Well it’s possible in the lead in to Court proceedings towards the back end of 2018 I am of the mind that FRR may well have been experiencing issues relating to cash flow but in light of the recent event involving declaration of solvency, FRR have/will have the funds secured to pay all their bills and fund future operations, this has to be considered a given.
What is obvious is that FRR issued Court proceedings, as many have already implied on this board, to buy time. The outcome of the first hearing whilst from a legal perspective seems a dreadful result, it has never the less served the purpose to buy the company time that was crucially needed to secure funds and progress.
The fact that FRR have chosen to deny open disclosure to the Court suggests it was their strategy not to disclose their open position. The key fact here is that if FRR did not intend to disclose their open position to the Court, it would be impossible for FRR to disclose their open position to us shareholders whether that be directly linked to production or financial statements, hence the radio silence
What I am certain of now is that all will soon be revealed, FRR’s open position which would include current production, financials, partner deals, detailed plan to grow operations, booked reserves and valuation, will all come to light.
This information will most likely be disclosed whilst we are delisted so that when we do relis
Thanks RR, this was my understanding..
The ruling was necessary but the outcome not important is what I thought..
I thought failing the injunction, FRR were in a locked in period of 12 months which presented FRR time to settle all that was owed before the assets would be liquidated, is this not the case or have I misunderstood that point ?
Thanks Zeron..
Having read back the related RNS's, is my understanding correct that there are 2 separate cases ongoing, the first which has already been ruled and ordered against concerning the monies FRR owe to Hope and is currently, one would hope, proceeding on an out of court settlement and the second concerning Hope's breach of fiduciary duties which hasn't been heard / ruled against as yet ?
Forgive me, I know this is going over, painfully, old ground for most as it is with myself but its not entirely clear from my reading what the state of play is and would be grateful to those who have a clearer understanding if you could pass on comment.
Thanks.
Thanks Mole,
I take it we are reading from the same page 11.
6000 – 7000 boe / d
Lets say 6000 boe as there will be no gas we would need to convert 6000 boe back to bopd
6000 boe = 840,000 Kg of oil equivalent
1000 Kg in a tonne and 7 barells of oil per tonne
Therefore 840,000 Kg of oil equivalent divide by 1000 Kg = 840 tonnes of oil equivalent
840 tonnes of oil equvalent x 7 Barrels = 5,880 bopd or 6,000 bopd nominal as extrapolated from pg 11
If I’ve missed anything, I’m happy to be corrected.
What appears obvious is that each time we receive an RNS relating to well flow rates we never appear to have full well completed target rates.
What I mean by this is that from Zaza’s previous video he alludes to well flow rates of circa 800 bopd from comingled zones 9 ; 14 ; 15 from Eldari A formation.
The RNS yesterday alludes to comingled out put of 960 bopd from zones 19 and Eldari B formation zones 23 & 25
This suggests that the total flow capability of a single well, when zones are comingled from Eldari A & B is in the region of 1500 – 2000 bopd.
As far we have not had a single well completion hitting the total expected well flow capability target of 1500 – 2000 bopd and each piece of news we receive concentrates on a small segment of progress for example, zones 14 & 15 have been worked on and a stimulated pay zone of only 6 metres (3m +3m) developed from a total possible of 22 metres of stimulated pay zone producing flow rates between 300 – 400 bopd from zones 14 & 15. Why hasn’t the full 22 metres been stimulated to give us the flow rates that one would expect. I asked Zaza this question during our last meeting in Mayand his reply was that the pressures they would be dealing with could create problems that would impact on the budget remaining for each well and that he was not prepared to run that risk and that once more data had been captured, wells would be revisited to complete full stimulation.
This tells me that the maximum flow rate targets expected from each well is not the all important mile stone that is expected to be reached at this time and may be the reason why the share price happens to be where it is at the moment.
By achieving part flow rates for each well serves two purposes. Reduced but sustained flow rates over a period of time proves volume recoverability for that particular pay zone and over time will allow a value to placed on the amount of oil that can be recovered from that particular zone. Once each zone has a value both Eldari A & Eldari B plays have a valuation. Once a valuation for both plays have been obtained JV or sale negotiations can be concluded and then and only then do I believe that each well will be completed to deliver all comingled zones from Eldari A & B and it will be at this time when the share price will really start to move.
Pg 11 of Share Holders Update meeting ( May this year) shows that the expected flow rates to be achieved by the end of 2018 is between 6000 – 7000 bopd, ( thats with the 4 well completion program T45 ; Dino ; T39 ; Niko ) therefore expecting each well to deliver in the region of 1500 – 2000 bopd.
So time lines :-
Valuation of Eldari A & B formation by End of November with JV / Sale nearing completion and
Maximum flow capability for all wells by December end, 2018.
Well on reflection after reading today's RNS ..I think it's safe to say that where things stand, it's not about the Gas and it's not about oil flow rates..