Member Info for Spudsoil

Understand that ops costs will grow but until we know the details hard to comment. My point is that when Block get to the point of needing to raise funds, demonstrating revenue is a big positive and opens up further options. With the share price at these levels I’d suggest they will look at other sources as alternative to placing.

If we take Brent at $40, minus transport costs at $9 so call it $30. Schlum contribution of 242bopd plus 155 from WR = 145,000 annual production at $30 = $4.35m revenues. Brent at $30 = $3m revenues. That’s not a bad point from which to secure funds for development of next phase, and it ignores any gas revenue.

Add to that that any company without debt has to (start to) become a more attractive prospect - not sure any central bank intervention will be sufficient to keep all credit markets liquid if CV-19 and oil crash linger for more than a few months

Can’t help but thinking that an investment in BLOE is a decent place to weather the storm with all the current chaos. Whilst energy markets are tanking we have the luxury of a fixed price agreement, and options to store a sizeable quantity of oil, should we so wish. Think recent sell off is linked to broader market sentiment and can’t help but think a decent end to q1 and q2 should see a significant re-rate of optimism and share price.

Not beyond the realms of possibility to suggest Zaza and co have had the nod from the politicians to not worry about the court cases as they have had it explained to them that FRr are hamstrung by Georgia’s initiation of arbitration, meaning no financing deals can be concluded. Just a thought

Rough calc - it’s around 3% of shares in issue, so approx £600k - not sure anyone can read too much in to that. Maybe they need the funds for something else.

I rang the company yesterday. Their IR rep is away, returning next week. My interpretation of what ltd information was given to me was the company is keen to provide an update this side of xmas, if I was a gambler I’d say next week as then the IR rep is back to field questions from investors.

So with a fair wind and a positive perspective....q1 sees conclusion of arbitration, which provides the platform to finalise lending facilities to help grow the business? If we do get access to funds that puts a relist higher up the list of probables i would think as it could be a condition of the funding agreement.

Do we know this has been updated recently? Looks to me like a previous iteration as it excludes the 3rd arbitration case.

Thanks kipper. Without getting too carried away, I’ll take that.

Good work Kipper. Can you clarify what was relayed to you? And was this from an existing FRR employee? No worries if you can’t but worth asking

Even if arbitration hasn’t gone our way there is a decent argument to be made for GOGC providing FRR with a settlement payment in recognition of the funds invested. I unless we’ve been up to some proper dodgy stuff I can’t see how FRR would walk away with nothing. So it’s plausible that the Georgian FRR team are no longer needed but alongside that a payment is made to settle the arbitration. And that, you would hope, will find it’s way to shareholders. Who knows, but colleagues moving on doesn’t have to spell disaster

So is the general consensus..... arbitration is key, the nature of arbitration means we should get something, the other court cases are noise that increasingly feels on the periphery and not critical to our future?

Or did we know this and I’ve missed it?

His cv also implies he’s left FRR?

As much as the docs don’t make pleasant reading it does still seem like we are one credit line away from being okay. We just don’t know if that credit will be forthcoming. Ironically enough the one positive i continue to refer back to is the comments from Hope about significant value enhancement - whether that was based on an offer of funding that has dropped away I don’t know, but for him to say this it at least suggests that there is some hope this will sort itself out. I do wonder if Ukraine is simply because we are done in Georgia

So license excluded from FRCC fire sale = nowt left to sell.
License included = minimum 400m$ if license goes with FRR associated ownership?

And to finish, does that mean even as the lowest on the pecking order shareholders may get a return once secured and unsecured creditors are paid back?

I’d be interested to understand how block 12 license is treated as part of any potential FTI led asset sale. If the license simply reverts to GG if it moves from FRR then one solution might be to sell the license and the part of FRR that holds said license. Would that then entitle the new owner to the sunk cost offset facility? If so the asset is hugely valuable at a basic level. If the GG can simply reclaim then what I’m not sure on is what other value exists within FRCC for the liquidators to realise?

Default - hope lodged a case against zaza and Steve calling up their personal guarantees.
Fid duties - we are now looking for a settlement but hope at this stage not interested?