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Frontera: WTF is “sustained deliverability” – where are the Ud-2 flow rates?

By Nigel Somerville, the Deputy Sheriff of AIM | Monday 22 January 2018


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


Oh BBMs, lap up the nonsense coming out of AIM-listed Frontera (FRR) this morning. Please buy lots of shares, for there are lots more coming. We had expected an update on the company’s work on the Ud-2 well in Georgia, but this morning’s effort offered  no numbers to go on and some strange terminology.

Instead of flow rates, we were told that sustained deliverability had been confirmed. With no numbers offered, I can only conclude that the company hasn’t anything useful to offer. If it had any good numbers to put out, they would have been included in today’s release. But they were not - instead we are offered an undefined made-up term.

What we are told is that the quality of the gas is good enough to distribute through Georgia’s natural gas grid. But since we are not told how much, it is all a bit pointless.

We are even told that debris-free natural gas flow has now been successfully established. Oh goodie….except we are not told how much, or for how long.

Apparently  a larger and more advanced mechanical stimulation will greatly enhance natural gas production rates except we are not given the starting point: greatly enhance from what?

And the next phase of testing will focus on establishing larger commercial gas production. Larger than what? And is this a roundabout way of telling us that flow rates have, so far, been non-commercial.

What a complete load of gibberish – there is no useful information in this at all.

On the back of this lack-of-news fest, Zaza Mamulaishvili tells us that:

I am absolutely delighted to report about an early and potentially very material success at the second of the three testing intervals at Ud-2 well

What material success? There are no numbers.

We eagerly await next phase of a scaled up mechanical stimulation and post stimulation flow rate of the second testing interval but I believe the early results of the testing already both prove a material sustained deliverability of the Ud-2 well and provide significant confirmation as to the Block 12 potential of the Gareji reservoir, development of which will be transformational for the Company and Georgia's energy industry.

Note: I believe, material sustained deliverability (whatever that may be), provide significant confirmation (without flow rates, so of what exactly?). But this is all his belief, so he can say what he likes.

Well, I believe this is all bollocks and the Nomad (Cairn Financial), PR ( morally bankrupt Yellow Jersey) and Broker (WH Ireland) should be ashamed of themselves. If there was good news, the flow rates would have been given. They weren’t, so I believe the flow rates were piss poor.

And I believe this stock is a stand-out sell.


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