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Frontera Energy Corp T.FEC

Alternate Symbol(s):  FECCF

Frontera Energy Corporation is a Canada-based oil and gas company. The Company is involved in the exploration, development, production, transportation, storage, and sale of oil and natural gas in South America, including related investments in both upstream and midstream facilities. The Company has a diversified portfolio of assets with interests in 27 exploration and production blocks in Colombia, Ecuador, and Guyana, and pipeline and port facilities in Colombia. The Company’s segments include Colombia, Ecuador, Guyana, Midstream Colombia, and Canada & Others. Colombia includes all upstream business activities of exploration and production in Colombia. Ecuador includes all upstream business activities of exploration and production in Ecuador. Guyana includes exploration and infrastructure. Midstream Colombia includes the Company’s investments in pipelines, storage, port, and other facilities relating to the distribution and exportation of crude oil products in Colombia.


TSX:FEC - Post by User

Comment by SportyJon May 06, 2024 11:06am
121 Views
Post# 36024931

RE:RE:RE:The Restructuring Plan

RE:RE:RE:The Restructuring Plande Alba stated on Nov 9, 2023:

Importantly, during the quarter, the Company continued to drive costs out of its business, reducing its G&A by 4%.  
Building on this positive momentum and to better position the Company for sustained long-term success, subsequent to the quarter, Frontera's board of directors approved a restructuring plan that will improve organizational and operational efficiencies, reduce costs and better align the Company's workforce with current business needs, top strategic priorities, and key growth opportunities.

Imo, this "restructuring" is different than the debt and segmenting of the 3 businesses previously announced.

But on that subject it reminds me of the NYC street hustlers and The Shell Game. 3 shells (fec business segments) and the pea (the debt).  Mix up the shells and then try and pick the one that has the debt.  The debt never goes away it's just moved around.  Better yet just have a fourth shell and put the pea under it leaving the original 3 shells with no pea.  Again, the pea is always there.  Lol

But answer this curiosity:  with fec having a pile of cash, why does Puerto Bahia need to borrow money from an outside source?  Why not let one fec shell (where the cash is kept) loan the other shell the $?  No need for Macquarie, right?

In summary, 1.  the most recent "restructuring" is about bringing costs down and 2.  the debt of roughly $500m hasn't gone away and will have to be accounted for before shareholders get money in the case of a total or partial sale of the company.

This is my view only and I'm certainly open to any correction or clarification.
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