Frontera Share Discussion Threads

[tickboo] 02/1/2019 11:12

I assume the thinking is that FRR will reach a decent settlement with OLM which will be announced before appointing a new NOMAD and relisting and then gap up.

[loglorry1] 02/1/2019 11:10

Well I am heavily short FRR and I have absolutely no worries about it. The equity is totally without value. The block 12 assets are being transferred to Hope due to a default on the huge debts and they still owe money to YA. The directors have been shown over and over to be liars.

I'm sure there are lots of other creditors also waiting to be paid on top of the ones we know about.

[loglorry1] 02/1/2019 10:58

AMER looks good value as does Wentworth Resources.

To be honest though the simplest way for inexperienced investors to avoid losses is to avoid ALL Aim resource companies. Given that about 30pc of AIM companies go bust and most of those are resource companies by avoiding this sector you already have a better chance.

[jayrh] 02/1/2019 10:54

If it rises from the ashes the ashes will be transferred to the shorters it's that simple. They post relentlessly because deep down they know they may have a major issue. Just hope they carry fire extinguishers.

[bbmsionlypostafter] 02/1/2019 10:24

Mick,

£14M/£4M or 14M/4M shares?

[sweet karolina] 02/1/2019 09:56

This is the sort of news a competently run oil company produces.

[mick1909] 02/1/2019 09:48

I have 100% investment in FRR but have reduced holding from last year from 14 mil to 4 mil just trying to understand why you suddenly appear with a hungry appetite to post so much when you have no financial ties to this share seems bizzare you must have too much time on your hands

[sweet karolina] 02/1/2019 09:42

None. None via a spreadbet either and none through any other form of shorting.

The last company I shorted was via spreadbet and was Yell over 10 years ago - made a nice profit on that one, which counterbalanced losses on other dogs that got spiked by mugpunter buying and stopped me out. I quit shorting whilst overall marginally behind.

How much have you pumped into FRR? Can you afford to lose that much? What proportion of your overall portfolio is in FRR and what proportion is in AIM shares and other high risk investments?

[mick1909] 02/1/2019 09:20

How much money have you got locked in via a cfd shorting frr??

[papillon] 01/1/2019 23:31

Freeatlast
Posts: 1,915
Opinion: No Opinion
Price: 0.2875
RE: PuddyToday 22:48 Puddy.....all I can say mate ...is thank goodness we've got Pyro thinking this through, and keeping our spirits up.
Respect.

Got all my years of Isa in this.
I'm single....so no help there if this delists...re-lists.
120K......28,000,000 shares.
Lost house due to break up two years back.
Still got small farm...living in squalor now
............This is my ticket out of the gutter.....truly golden tickets to me....life savers.
Zaza.....I'm trusting you. You know how some long term investors are relying on you......
GO....GET....HIM. !!!!

( also good posts from you jester...I agree)

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

I saw this posted on the lse bb. How could anyone put all of their life savings of £120k in FRR? It beggars belief! Would I stick all of my life savings, like Freeatlast has, in a speculative, very risky, AIM listed O&G like FRR? NO WAY! He must be truly desperate if he thinks FRR "is my ticket out of the gutter". The FRR chart is a disaster. The share price has gone from around £1.50 14 years ago to the present 0.2875p. FRR has failed to deliver ever since it listed 14 years ago. It's a fantasy company; forever promising and never delivering!

And why goes he trust another poster, "pyro", "thank goodness we've got Pyro thinking this through"?

[sweet karolina] 01/1/2019 18:01

I wonder what impact the FCA investigation might have on the court case against Hope, the willingness of BP to farm in and the NY loan sharks? It will certainly have a major impact on the willingness of any Nomad to take FRR on.

[sweet karolina] 01/1/2019 17:54

I am also a bit concerned about what Zac Philips (who really knows his onions and no doubt what the 2P reserves are) said at the time of the loan term sheet agreement:

"Frontera Resources (0.36p) – A Fool and their Money: The announcement that funding might have been secured, or at least an LOI has been entered in to is nothing short of a miracle for this company, especially when they have been so deficient in their approach to their asset base. It even took BakerHughes to point out to this management team what it had to do to test its assets to secure vendor financing.

While it is not possible to know to what extent this LOI is based on an expectation of completion, we find it curious that any lender would consider a 5-year loan in to an inadequately tested asset base, with an inadequate Management that has a track record of trying to wriggle out of its legal obligation to repay its previous creditors.

Given the stages that a competent lender will have to go through to clear its credit committee, we believe that the Company will need to raise at least $3mm to pay for it, and will demand, at the least, a: (i) development plan, which needs to be state approved under the terms of the PSC; (ii) CPR to provide a valuation basis for the TLVs; (iii) flow assurance; (iii) title; and (iv) litigation clearance.

This programme is likely to take at least 4 – 6 months, especially as the company still appears to be at odds with the Georgian Oil and Gas Corporation and the Georgian State Agency of Oil and Gas over Block 12. Even then, it may not even complete.

Lending can only really be against development (opposed to appraisal), and the company is yet to confirm that the Ministry of Energy has been satisfied that work outlined in the Ministry’s statement on the 12th of July (2017) that “…The technical and economic feasibility of these targets has yet to be determined and requires further work which will necessitate significant investment…221; has been satisfied. If it has, why hasn’t the CPR been produced to confirm the reserves and the declaration of commerciality been announced?

This all supposes that lender can get comfortable that if the Company has to enforce a security package, that the Georgian Government will approve it, as it has the right to do under Article 22 (Transfer of the rights and obligations to other persons by the investors) of the General Provisions of the Georgian Oil & Gas law (1999).

If it does, such is the paucity of management, its poor attention to its asset base, that we think it merely delays the day of reckoning for the Company’s demise. Add to that, the margin of the resulting loan, and we believe that this will be the final nail in the coffin for the whole company, just driven in slowly and fully.

So, given all of that, we do not see that management can, in all honesty, say that this will be a good deal for the Company, or its shareholders if they are discharging their fiduciary duty fully. They say a fool and their money are easily parted, but we struggle to believe that anybody is $60,000,000 foolish"

[sweet karolina] 01/1/2019 17:45

kemche,

Thanks why didn't I think of that! How many shorts will get burned? - there are no disclosable short positions.

Also I was doing a bit of research on Term Sheets, because a lot seems to be riding on the NY loan which is at Term Sheet stage.



A term sheet is a nonbinding agreement setting forth the basic terms and conditions under which an investment will be made. A term sheet serves as a template to develop more detailed legal documents. Once the parties involved reach an agreement on the details laid out in the term sheet, a binding agreement or contract that conforms to the term sheet details is then drawn up.

Do you think FRR maintaining a Market Listing would be one of the basic terms and conditions or do you think that is something that would be part of the details to be agreed in the binding agreement? Or do you think Zaza has told the NY loan sharks what the 2P reserves are and that BP are desperate for a share of them and therefore that the listing really does not matter? I think any lender would still want the comfort blanket of being able to force the company to issue gazzilions more shares, for example if the oil price were to drop like a knife and production becomes non commercial. Does FRR have any commercial production? If so at what price does it cost more to get out of the ground and distribute than it is worth when sold?

[compacta bold] 01/1/2019 17:28

Pedalo Joe come in now your time is up!

[joe king1] 01/1/2019 17:28

Why does everyone think the demise of FRR is because of shorters, the truth is, because the company is a SCAM and the management attempted to mislead a director of the truth.

The rampers have been done over, good and proper.

[kemche] 01/1/2019 17:22

SK - it's a secret. It will be revealed to burn the shorts.