This is another possible incredible winner, Could double all of a sudden, depending
on flows and future discoveries, better send off those (Wben) forms now as
this is an American Stock traded on Aim.

EK certainly needs to as he like many punters are losing a fortune on this one!!

good increase today ....

EK is crap at tipping winners, he's only good at shorting

This is the thread, 150 posts plus on this.

sorry recquired field i only saw the other 2 which were well out of date .todays hybridan report is out and news expected very soon

from hybridan wrap news imminent Be prepared for upcoming news from Frontera, the oil and gas exploration company operating in emerging markets. The company gave a drilling update from the Mirzaani 1 well on block 12 in the country of Georgia. Well logs indicate 146 meters of net sandstones with average porosity values of 20-25% located at seven different horizons between 1200 and 1490 meters. The company is now preparing for production testing to start imminently. A successful test should translate into increased production and cash flow for Frontera

FRR is yet another EK/t1ps dud, they should stick to shorts.

I think that this is starting to look undervalued...the next update could be a very good one....

i agree rf and news anyday . AWESOME RNS from FRONTERA!!! The highlights:
1) Almost 600 boepd of natural gas production ready to come on line in early 2010
2) They continue to think 1000 boepd is doable short term
3) The second Mirzaani well hit total depth this week. This well was drilled in the southeast section. Completion and testing in 2 weeks. This well showed what they thought it should including some oil shows.
4) The next Mirzanni well will start next month. This one is back in the new field extention (northwest). This is designed to appraise the discovery.
5) 4 wells plus ongoing workovers at Mtsare Khevi. Gas wells are now production adders, so they don't have to rely just on the oil layers
6) Reserve updates to come after the work is finished.
7) The 50 million in recoverable that they have been talking about at the two shallow fields has quietly been changed to "over 50 million"
8) Costs continue to decline. Their actual cash costs last month for ongoing operations seem to be around $6 million a quarter. That should continue to drop as they continue to work costs. Most of it continues to be SG&A.
9) Another $1.7 million from the stock sale hits the balance sheet in Q4. Oil sales in Q4 will be $2.4 million. So right there you can see the total cash usage for Q4 will be under $1.9 million
10) They have $9 million in MSTARS investements. This is not counted in short term cash, but it is real money even though some auctions have failed for MSTARS. The $9 million reflects a writedown from face value.
11) I can't find any reference to "Going Concern" anymore. Either I missed it, or the accountants are satisfied that the company has its cash situation handled for at least 12 months. This is very good news.

....So, there you go. Do the math on seeing 1000 boepd coming on line by early 2010 and the company should be cash flow positive. And they still have cash available from MSTARS and the warrants if they are exercised.
....And of course, the most important thing is that the company is heading straight toward a 50+ million reserve estimate in the fairly near future (not guaranteed of course, but derisked a lot). To me, that means a valuation for the company of over $1 billion....and that does not even count Tarabani or Basin C!!

i bought 37k today adding

My thoughts. Cash drain is bad, not as bad as on the surface, but it's bad. If they're able to ramp up production to 1k boepd that would definitely help.

What I see as a possibility that I haven't seen remarked on yet is that frte announced they'll be going for an updated reserves estimate for the shallows. If there's a decent upgrade in the estimates and probabilities, that would increase their options.

Wouldn't be surprised if they calculated how much cash they'd need to complete the current shallows projects and that's where the amount of the execs'/directors' shares purchased came from. The projects' parameters were probably determined in conjunction with what the reserves engineers said they'd need for data to perform a significant increase in the estimates.

Basically, my thinking is that they funded just enough so that they could do the work necessary to get an increased reserves number for the fields. Once they have the projects' work done, they'll turn turtle with expenses while the estimates are reworked.

Once the reserves estimates are increased along with the probability factor, they'll then be able to issue a secondary at a higher share price to fund the next phase of field development. As more wells are brought online, there'll be an eventual tipping point where they'll become cash flow positive and won't need to float additional secondaries.

That's what I think the plan is.

upside hear is massive 50-100p in about 60-90 days they are complaining about cash burn when they should not.

1) If you look at the Q3 earnings statement almost everything is non-cash. Everything after operations is non-cash (even interest expense which is currently paid with more convertible debt). Within operations, depreciation and asset writedowns are non-cash. So, the only cash costs are field operations and General and Administative. But, even General and Administrative is partially non-cash. They don't break it out, but they have been averaging $1.2 million per quarter in non-cash stock compensation (part of G&A). So their operational cash expenditures are field operations plus G&A minus non-stock compensation. So that is 6.1-1.2 or $4.9 million. Also, if you look at one of their posts on Motley Fool, I think they are double counting G&A expenses. They add in G&A to operational expenses, and the Q3 report shows operational losses after adding in G&A.

2) At 250 bpd and $80 oil, their revenues on average are $2.2 per quarter. So, that makes their true snapshot quarterly operational cash burn at $2.7 million

3) They are still reducing costs and increasing production (hopefully the new wells at Mirzaani add in soon). So, that $2.7 million may be closer to $2 millon in Q4.

4) They also still have some cash from the stock offering coming. It was $1.7 million if I remember correctly. That drops Q4 cash burn to around $300K (although the $1.7 million is a one-time injection).

5) So, Q4 operational burn is negligible. And it is definitely not the huge number that the Motley Fool crowd is talking about. I mean, almost zero is a far cry away from over $10 million! :)

6) The pipeline is supposed to be complete early Q1 2010. They indeed get a decent price for the natural gas. I forget exactly, but it is closer to $80 per BOE than $40 per BOE. So, early Q1 2010...say around 65 days from now, the company should be generating cash flow from operations just like the CEO has been saying.

7) Now look at the cash on hand. They have a little over $1 million in working capital. They also have $9 million in MSTARS. So, they have access to $10 million for capital expenditures over the next 65 days or so (before operating cash flow kicks in).

8) Also, did everybody forget about the warrants?? Warrants were issued as part of the "units" in the last financing. There are 46 million of them at 25 cents a share. That means if all of them are cashed in, the company gets an additional $11 million!!!! So, there is the stock issue, there is no need for a secondary right away.

9) Assuming the long term debt converts at the current higher conversion price (not necessarily a good assumption), the total outstanding after all of this is 220 million shares. Not bad considering 150 million was what most were using prior to the crash, and with 220 million outstanding the company is in much better fiscal and operational shape.

10) The talk of restructuring the long term debt does not necessarily mean a debt for equity swap. The company should have access to reserve based lending with a significant reserve boost. The company may be thinking of taking out straight debt and paying down some of the convertible debt as well as add to capital expenditures.

11) If they do a debt for equity swap, it really does not matter too much as long as it is significantly above the current stock price. I mean really, going from assuming 220 million outstanding to say 320 million outstanding shares does not mean much if the shackles finally come off and the company gets going on developing the best lease in the world (IMHO).

12) Seriously, reading what they say, it really looks like this company is going to have 50 million in proved reserves booked within the next 90 days (maybe more). That is what 3 wells on Mirzaani are for and Mtsare Khevi already has many more. Maybe it is not 50 million to start, but it will be proved reserves, not "estimate reserves" like we have been getting from them for years. The net present value of 50 million oil barrels is over $1 billion. That implies a much higher stock price. Also, I am no expert, but with a $1 billion asset, this company should be able to do some serious reserve-based lending

....I don't get the current stock price.

my buy today 01/12/2009 12:24:02 9.85 37,312 O 3,675.23
01/12/2009 10:55:44 9.85 8,283 O 815.88
01/12/2009 08:07:49 10.20 6,712 O 684.62

Tuesday, December 1, 109

Announces Operations Progress at Shallow Fields Production Unit

Shallow Fields Production Unit

Since September, progress has been made in executing the work programs and gas-sales related infrastructure investments announced in connection with the company's September equity placement. These activities are aimed at increasing oil and gas production from the Mirzaani and Mtsare Khevi fields, two of four undeveloped fields within the Shallow Fields Production Unit. Frontera believes that successful completion of these work programs will increase Frontera's total daily production in Georgia to as much as 1,000 barrels of oil equivalent per day (boepd). Current daily production is approximately 250 barrels of oil per day.

At the Mtsare Khevi Field, the next phase of drilling operations began as planned in September and is scheduled to be completed prior to year end. Three of four new planned wells were drilled, completed and placed into production in continuation of the development drilling campaign that commenced in August 2008. The fourth well is expected to be completed in December, which would bring the total wells drilled in the program to 18. Ongoing work is designed to develop both oil and gas reservoirs associated with the Akchagil formation, situated between 200 meters and 350 meters in depth.

Oil production operations are currently focused on maintaining and increasing current daily production rates. To mitigate anticipated natural well decline rates and enhance the low recovery characteristics of the Akchagil's oil bearing reservoirs, investments are also underway to implement pump optimization programs, waterflood and frac-stimulation initiatives prior to year end. Current daily oil production is approximately 100 barrels per day from eight of the wells drilled to date and these production engineering initiatives are expected to help maintain and increase production from month to month.

The remaining nine wells are classified as gas wells, and efforts to commence gas production and associated sales from these wells are also underway. Current plans call for installation of new infrastructure for the transportation of as much as 100,000 cubic meters of gas per day (589 boepd) to a pipeline within twelve kilometers of the field. This work is expected to be completed early in the first quarter of 2010.

At the Mirzaani Field during the month of October, the Mirzaani #1 well commenced drilling in the underdeveloped southeastern portion of the field and reached a planned total depth of approximately 1,500 meters during the second week of November. While drilling, the well encountered multiple known field reservoir horizons associated with the Lower Pliocene age Shiraki formation between 1,000 meters and 1,500 meters, as well as multiple associated oil shows. An eighteen meter core sample was taken in one of these reservoir horizons in order to provide a fresh understanding of the field's reservoirs. Open-hole logging operations are currently underway, and once associated analysis is complete, the well is expected to be completed and tested in approximately two weeks.

Frontera's next well at the Mirzaani Field, the Mirzaani #5, is planned to commence in early December at a location situated in an undeveloped area of the field known as Mirzaani Field Northwest. The well is expected to reach a total depth of 1,250 meters by the end of December and is located 600 meters northwest of the Mirzaani #2 discovery well that Frontera drilled earlier this year. The new #5 well is planned to appraise the recent field extension discovery.

While technical complications associated with cementing and completion of the Mirzaani #2 well have prevented sustained production from being achieved, the data obtained from the well established the presence of potentially significant undeveloped oil reserves in both the previously undeveloped Mirzaani Field Northwest area and in the Mirzaani Field proper. This data provided the technical basis for drilling both the #1 and #5 wells.

Based on analysis of programs to date at both fields, Frontera estimates the two fields contain over 50 million barrels of prospective resources within the Shallow Fields Production Unit. New reserve reports are expected to be completed following the current work programs.

Frontera's Shallow Fields Production Unit is located in the central portion of Block 12 and represents what the company believes to be an extensive trend of low-cost, low-risk undeveloped oil and gas reserves. Containing four discovered yet undeveloped or underdeveloped fields that have additional exploration potential, objectives are considered to be traditional, well-known reservoirs of Pliocene and Miocene age that are situated at depths from 10 meters to 1,500 meters.

does the chart lie?

volume building and up 20% in usa overnight

3v1 and 25k@ full ask

OH god another newsflash!!

http://www.earthtimes.org/articles/show/frontera-resources-announces-drilling-update-at-shallow-fields-production-unit,1060388.shtml