Time Bomb ?!Cart before the horse? The money is due before the Wei-1 well is drilled.
Nov 30 is the drop-dead due date for the US$19 million convertible bonds with loan shark15% interest.
Frontera (FEC) predecessor Pacific E & P - once the largest oil co in Columbia with 10,000 employees - was forced to file for bankruptcy protection in 2016. They missed paying some bond payments with total debts of $5.4 billion. They had a takeover bid for $6.50 that shareholders rejected and saw their stock went to zero a few short months later. FEC came out of bankruptcy proceedings rolling back their shares 1-new-for-100,000-old and reopened at $60, now trading at $10.
I see FEC will merge OYL into its fold as a 100 percent subsidiary since OYL holds the titles. They now owned 79% equity. They might then look for a JV partner since no company out there will do a JV with OYL as a minority shareholder. The estimated cost of $130 million for Wei-1 is astronomical.
Before the major discovery in Guyana, Exxon spent $100 million drilling a duster there.