DE ALBA COMMENTS Just to reiterate what was mentioned by de Alba during Frontera's most recent earnings call dated March 4 2021.
"The company [Frontera] will continue to drive down costs out of the business and use its material cash flow to invest in it exciting exploration and development opportunities. The company plans to unlock long-term value from its infrastructure assets and exploration and development portfolio offers exciting value adding opportunities including our upcoming well in the world class offshore Guyana basin. Above all, Frontera will be relentlessly focused, disciplined and committed to delivering maximum value to shareholders..."
"As for the Board's perspective, CGX is a subsidiary of Frontera Energy and holds an economic interest of more than 80%. Frontera has an investment plan in Kawa.
Frontera has allocated the amount required for a JV portion, but it has also reserved what could be a larger amount for the full exploration of that well. If you read closely on our [earnings] statements, you will see that there are comments to reviewing 'strategic alternatives'. So, while we have reserved for the maximum amount, there are other 'strategic alternatives' that are being pursued at this time. That's why the $40 to $90 million dollar range is there."
Richard Hebert (CEO of Frontera) quickly followed up and added: "Yes, Gabriel. I think that is clear and nothing to add. As you said, I mean, we will be pursuing those 'strategic alternatives' and that is why the range is wide."
In conclusion, it would appear Frontera has been 'pursuing' 'strategic alternative(s)' that would 'unlock value' and 'maximize shareholder value' based on statements.
What does 'strategic alternatives' mean? Not sure - but, would assume a number of options are on the table. There is not a large or super-major E&P out there that would not want to be involved in these (as Exxon called "fairy tale") assets. Surrounded by some of the industries lowest breakevens, high quality crude, superior reservoirs, and high flow rate wells.
Opportunities like these don't come around all that often. GLTA.