RE: Symore B on ii ...New Years Day!2 Jan 2020 13:41
I'll try again...
WhamBoy 20:07
I understand the misgivings and reluctance of many on here to accept the word of a poster (B-2-0) regarding the likely outcome of FRR's present problems. And yet many of these same people are seemingly very keen to accept every word from the sketchy press reports from Georgia, particularly the bad bits. Taken together however, the B-2-0 posts and the press reports seem to point in the same direction: namely that some kind of deal has been struck and that FRR has had to concede up to 50% of its proven reserves to the GG. This I can live with: 50% of a large amount is much better than 100% of nothing.
Does B-2-0 have some inside knowledge and wants to keep us in the loop? I don't know, but I hope he does! For my sake, I'm a good bit more optimistic today, after being a little bit down of late. I see SB on ii has posted a potential timetable for the next couple of months. Fingers crossed that it's good news for all LTHs.
As for the eventual deal, many on here will I know be very pleased just to get our stake back. I too am in that camp, but the potential for substantial gains and a hefty tax bill are keeping me warm at night. GLA
TSBS 21:47
Think b2o is speculating - he’s been doing that for years and he’s never ever been right. So if uncle sam has been looking after frr all this time, I can’t see how the georgians could take back 50%. If frr are fighting it then so will the americans. It would also appear that georgia isn’t the place to do business as contracts aren’t worth paper they are written on. Also thought arbitration was adjourned so how have decisions been taken?
Madpunter 22:28
WHamBoy - Don't forget that under the PSA the GG were getting 51% of the oil after the sunk costs were recovered. If B - 2 - 0 is correct then FRR gain 1% of the proven reserves under a 50/50 split, but only lose the Shallow fields and Basin Edge. The GG would also gain the opportunity of cash/shares upfront, rather than waiting years for the wells, gathering pipelines etc until full production. If this is what the GG wanted, then they will still get future royalties from the oil and gas transported through the pipelines. As there's decades of supply, would the extra from the Shallow fields and Basin Edge add to any buyout valuation?
WHamBoy 22:39
Cheers Madp - I'm not sure if it means 50% of the 49% that we had in the original contract, or as you suggest 50% of the profits from B12 which would mean a broadly unchanged deal (other than in both cases we would be losing the shallow fields and basin edge). Either way, I wouldn't care. Many of us have so much invested that talk of 5p, or 50p, or £3.50 per share just means astronomical gains that almost beggar belief. What I would struggle to cope with however would be a complete wipe out of FRR!
Sign In
Follow the stocks
