A Very Brief FRR Overview9 Oct 2018 14:19
FRR operations last couple of years
Re-entered an old soviet gas well (UD2). The well required a frac and after a Maximum flow rate of 150,000 scf/d of dry gas has been recorded during the testing period.
This was a massive step for FRR as it proved gas could be flowed for the first time. Unfortunately due to a poor cement job of the 50 year old well the flow test was abandoned.
The recoverable gas from this area of the FRR license is 5+TCF.
Drilled two (dino and T-45) wells into 3 oil bearing zones 9, 14, and 15. These wells need a frac to get them flowing as planned. 250bbl/day and 315bbl/day of light sweet crude was observered they've been on test now for 100+ days and the majors want them kept under wraps.
Drilled another well (T-39) into 4 oil bearing zones 9, 14, 15 and 19. this well flowed naturally 529 bbls/d of oil and 600,000 scf/d of gas using an 8/64" chock size, 347 bbls/d of oil and 425,000 scf/d of gas using an 7/64" chock size and 250 bbls/d of oil and 350,000 scf/d of gas through 6/64" chock, demonstrating excellent well deliverability. The well has been on test 60 days.
These wells are cheap and come in just under 3 million, on shore and near to infrastructure. For these zones initial CPR estimates 689 million barrels of oil in place with 103 million recoverable. CPR also estimates FRR has 202 TCF of gas in place over the whole licencse!
In this period FRR have also taken strides to restructure its debt, you will read many things about YA but in its most basic form FRR was repaying a YA loan by way of share issue which YA then sold. After a restructure they had an agreement that a cash payment of $265k or shares could be made monthly. FRR have stated that they have been paying in cash. But something has broken down with this arrangement in september and it is currently suspended.
We now know that there are two Major oil companies in talks with FRR for a JV or Farm out deal. We were told an NDA had been entered into in September this year and that the Majors were requesting more testing on the existing wells hence why we dont have a final flow rate.
The above is a very brief overview from RNS's I've not included anything that was expanded on in the recent share holder meeting as this is an "unofficial" news outlet. But it was very encouraging to say the least. I'd recommend a listen here:
https://drive.google.com/open?id=1mdK267RpRjHS9FAtuCOfQyoXeRra-DhG
DYOR, GLA
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