Frontera Share Discussion Threads

[wshak] 23/1/2018 09:08

Zac Phillips - a proper, and respected, oil and gas analyst, has savaged FRR for their RNS yesterday. He writes, in a note today:

Yesterday’s announcement from the Company, in a nutshell, underlines everything that is wrong with management’s approach to its owners and funders. All the announcement has disclosed is that the well is commercial, but doesn’t say how commercial, for more importantly, in the context of all the investment and shareholder funds, how much will be returned, or what it means for the wider play, especially in the context of the ~9tcf (5.8tcf for Mtsare-Khevi and 3.2tcf for Taribani) of “recoverable gas.”

Here again the Company doesn’t disclose the ~9tcf “recoverable gas” in a manner consistent with SPE PRMS guidelines, as these are the P10 Prospective (undiscovered) Resources estimates offered by NSAI in its various 2015 reports; it must be remembered that P10 is the Prospective Resources equivalent of 3P Reserves. While it might seem trivial to highlight the difference between the Company’s use of recoverable gas and the SPE’s definition of Prospective (undiscovered) Resources, but to our mind this is the very central tenet, that the Company is failing to adequately disclose the risks to its shareholders.


The Company needs to start to tie together the latest well results with the understanding of the asset base as it stood in 2015 and, more importantly, whether there has been any diminution in expectations from the assumptions on which the Prospective Resources assessments were made. We can only assume that the lack of this basic analysis is due to the fact that the management team, with a political science and medical background, lack the engineering discipline to be able to rigorously and adequately examine the assumptions and implications of the data that is being generated.

We have often said before, and we repeat ourselves again today, we lack the confidence in this management team to be able to generate returns for shareholders, which to our mind is manifest in the lack of clarity on its asset base. Shareholders must now demand that the historic expectations (to which the management team so often point towards as being the size of the prize that awaits), are refreshed and updated for the current results.

[richiiiee] 22/1/2018 22:12

I just ignore tbh, not even worth the effort! As long as you have a realistic view it's irrelevant what they say!

[richiiiee] 22/1/2018 21:58

I don't think I have ever seen anything like it with any other stock I have invested in, it's relentless!

[tr4v2] 22/1/2018 21:47

JK1

I've pm'd you with some details I've been given.

[tickboo] 22/1/2018 20:36

Bumpa, why wouldn't the nomad sign that off. I assume Zaza wants to give the flow rates once all 3 zones have been done and stabilised rather than piecemeal. I'd have preferred one zone at a time but hey the news was a little disappointing on my view but at least we ended blue. Earlier I was referring to the remaining share capital once YA have had their remaining shares before June. Obviously they need to be paid off so it might be used for that but if the ud-2 testing is a success and or oil plays other finance will be available.

[bumpa33] 22/1/2018 19:49

Log - I know, they pulled their RSP, wouldn’t pick up the phone and slammed the bid down in the two minutes I was on the phone...

[bumpa33] 22/1/2018 16:25

Tickboo -if you don’t take them seriously, why you bothered reading it ?

You ain’t answered my question about wtf you were going on about 2.25bn shares?

[tickboo] 22/1/2018 16:24

Got a like from me there dodge!

[tickboo] 22/1/2018 16:23

Not sure shareprophets are to be taken too seriously. Can you post here as I'd like to have a read?

[bumpa33] 22/1/2018 16:13

Both TW and NS lay into Frontera today...

[bigsi2] 22/1/2018 15:33

Why is this junk in the blue?Still no flow rate -Laughable

[g2theary] 22/1/2018 13:33

Next step up here id say over 1p by April as a fair bit of news due.

[bumpa33] 22/1/2018 13:33

are you talking about YA?