RE:RE:Aug 2019 News Release regarding paying 10%+ dividendsI surely don't advocate de Alba is suddenly going back to paying a dividend out of the goodness of his heart for retail shareholders. But 3% is far better than no dividend. I am only aware of two ways that Catalyst and Gramercy can gain cash out of FEC. Sell the entire company or pay substantial dividends since the two of them own about 55% of the stock at last reporting.
They suddenly started paying a substantial dividend about 3 years after taking over PRE for pennies on the $ and actually received an award for putting the deal together that totally screwed PRE shareholders
"Toronto, Canada, December 6, 2018 - Frontera Energy Corporation (TSX: FEC) announces that its board of directors has declared dividend of C$0.33 per common share, which will be paid in cash on January 17, 2019 to shareholders of record at the close of business on January 3, 2019."
Then they declared they would be paying a .205 dividend each quarter. Over 15 months, they paid out $1.85 in dividends, which are substantial dividends for such a small company market cap wise...much of the dividends paid, went through de Alba/FEC to Catalyst. But then they started diverting a large part of their free cash flow into Guyana. At least $500mm as you say.
It is common knowledge that FEC has hired a top Investment banker to advise them and to assist them in selling all or part of the company. This process has been rumored to be ongoing for almost 2 years and officially for over 6 months. I see no way Vulture Capitalists who already have been in this endeavour for 8 years, with little, but a brief period of 10%+ dividends to show for it. Why would they want to be part of some JV deal and tie up their majority share of the C block for another 5 or so years before the chance to see some cash. It seems fairly obvious they would want to cash out Guyana now.
For discussion, let's say that FEC is able to cash totally out of Frontera Guyana for the $500mm+/-, they have invested...but has not been able to sell either of the other two parts. I 100% agree with you that none of Catalyst other investments seem to have paid off and some have gone bankrupt mulitple times, like Advantage Rent a Car, So my guess they badly need cash. If Frontera Guyana is sold for cash, I think that de Alba declares another special dividend to gain cash and some $ likely goes to shore up the FEC balance sheet.
Regardless of whether they sell Frontera Guyana, I doubt FEC puts anymore $ into Guyana unless it is to screw CGX out of more of the concession and keep them afloat. I still have a small lot of CGX shares and have no clue what will happen to them, but certain that de Alba could care less.