Frontera Share Discussion Threads

[sux_2bu] 03/11/2017 15:32

Wonder how many mug punters travelled to London to listen to the man with a girls name pull the wool over their eyes....again. lol

[loglorry1] 03/11/2017 15:31

RNS TRANSLATION SERVICE

Further to the filing of its Notice of Feasibility of Commercial Production as announced on 11 April 2017, the Company has commenced implementation of a program to study commerciality of Block 12 (the "Study Program"), in order to reach conclusion regarding sustainability of commercial production.

We declared it was commercial but nobody believed us so now we have started a 5 year “Study Program” to really decide if it was commercial.

Commencement of the Study Program represents another important milestone in Company's ongoing work and its goal to reach commerciality of production, as it is primarily associated with operations targeting the substantial oil bearing Eldari Formation and other related geologic targets where independent assessment by Netherland, Sewell & Associates ("NSA") estimated to contain significant resources.


Once again we are going to really try to show it is commercial now and not just constantly spouting gas in place and oil in place numbers. We’ve been trying for 20+ years and have spent $400m but we think if you can just give us a bit more money we might get there.

Pursuant to the terms and provisions of Frontera Resources' production sharing agreement, the Study Program has a 5-year term and it delineates the entire Block 12 as the area where the Study Program will be implemented. Pending completion of the Study Program and notification of respective results, no relinquishment of any part of Block 12 is due for the duration of the Study Program.

The Study Program which is basically what we were doing before but we’ve given it another name has a 5 year term. It may terminate early who knows but Block 12 won’t be given back unti it completes. It’s unclear who decides it is terminated by the way.

The Study Program provide for combination of work designed to reach conclusion that the commercial production is sustainable. As announced earlier, the immediate program for near term consists of sidetracking and deepening of wells in the Taribani area: Dino-2 and T-45.

As we keep saying the Study Program is basically what we were doing before but we’ve given it a nice name. The Dino-2 and T-45 work is now part of that Study Plan and we are sorry if we actually told you that was to increase production to have any chance of repaying our $37M of debt by 2020. Thanks for the funding though for that – it’s hardly much at all but it will come in useful for our Study Program.


With respect to wells Dino-2 and T-45, the Company has entered into materials and services agreements with various service providers for provision of long lead items such as tubulars, drilling fluids, mud and chemicals. Due to the delivery schedule associated with these long lead items, operations at Dino-2 well are now scheduled to commence in January 2018. Additionally, negotiations are currently underway with drilling and cementing service providers and respective contracts are expected to be entered into shortly.


We actually told you on 10th October that all this was done and sorted and everything was going to plan. We also tweeted a nice picture of how well things were going and also stated at a 121 conference all was on track just days ago. However over the last few hours obviously delays have emerged.

Drilling permit for Dino-2 well has been issued by the State Agency of Oil and Gas.
The well Dino-2 will be drilled to a target depth of 2700m and, as previously announced on 10 October 2017, Zones 9, 14 and 15 of the Eldari reservoir will be stimulated and produced together.
As announced earlier, operations at Dino-2 well will be followed by operations at T-45 well. Subsequently, further wells for drilling and sidetracking will be selected.

As we said all on track – well ermm anyway revised on track next year unless it slips again that is.

With respect to operations at well Ud-2, as announced on 2 October 2017 the Company has commenced extensive testing of the well following successful completion of workover operations. An update will be provided in due course as this work unfolds.


Don’t ask too much about UD-2 its not a good idea to dwell on this too much as we’ve had loads of time to get a result but would rather not give one right now. It’s all fine though HONEST! Did I mention the Study Program?

[tickboo] 03/11/2017 15:30

It's in the PSA. The issue might be confidentiality which is what the Georgians said in their reply.

[loglorry1] 03/11/2017 15:29

@tickboo why is this not in an RNS?

[sux_2bu] 03/11/2017 15:24

Price is starting to capitulate.Fastest finger on the sell button gets more.

[sux_2bu] 03/11/2017 15:22

25 yrs!!! You old codgers will be dead in 2 yrs.

[sux_2bu] 03/11/2017 15:21

You should be worried....

[ccr1958] 03/11/2017 15:19

sux..filtered...Few traders taking profit from earlier ,no worries !!!

[tickboo] 03/11/2017 15:19

They have a 25 year production agreement once they start producing from each well. Day 1 of production from ud-2 is a minimum of 25 years and the same applies to other wells. A good presentation.

[sux_2bu] 03/11/2017 15:15

Market has sucked in more mug punters, now the market is taking them into the gutter.

[mcpaulas] 03/11/2017 14:20

Bets laid plans eh.

[mcpaulas] 03/11/2017 14:19

The lead time with suppliers has put us back a month or two, 6 to 8 week delayThat will soon fly.

[cudmore] 03/11/2017 13:52

Mmmm.....I may have bailed out too early it seems. Oh well.....a 50% profit is better than nothing. GGP is where i’ll see my Xmas come early imho!

[bumpa33] 03/11/2017 13:42

Recovering share price - Zaza & Co must be working their magic - either that or they’re whacking out the free chocolate digestives...!

[nobull] 03/11/2017 13:34

"Successful testing of the Ud-2 well, situated inside the 950 km2 Mtsare Khevi Gas Complex, will help prove the tremendous gas potential of Block 12 in Georgia. According to Netherland Sewell & Associates' estimates, the area contains 8.3 Trillion Cubic Feet of Gas in Place of which 5.8 Trillion Cubic Feet is considered recoverable."

Proving gas 'potential' of Block 12 is not the same as producing gas to pay down the debt. The latter may happen as a result of the former, but only after the production license has expired; the costs are borne by FRR shareholders, while the benefits go to the successor owner of Block 12.

[ccr1958] 03/11/2017 13:26

Hershal K , bang on !! about the ISA account becoming a trading account , Good Innit !!!

[kaisersuzae] 03/11/2017 13:14

Presentation posted at frontera

[kaisersuzae] 03/11/2017 13:12

Moving up fast - better close those shorts

[bumpa33] 03/11/2017 12:59

looks like they’re managing to tap into some more suckers - fresh off the production line :)

[noirua] 03/11/2017 12:54

Reading through the RNS and looking at the positives and negatives, they appear to roughly balance out. With the AGM today, usually nothing much happens except voting, may be slightly positive by the close.

[telbap] 03/11/2017 12:31

Just agendas on going. Logger boy and his merry men all here I see......an whats that, the share price recovered to 8% and possibly going blue....