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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

Post by kcac1on Nov 15, 2024 12:26pm
72 Views
Post# 36315132

Selling the Pieces

Selling the PiecesFrank, Who is "They" that are constantly accumulating this stock? The only one's I am aware of are Catalyst and Gramercy. and Gramercy buys and sells FEC in large private blocks often to rebalance their funds.

Catalyst obviously bought enough shares to completely control FEC/CGX and could not have done a worse job in the 9 or so years they have been in control. Catalysts' business model is supposedly to buy distressed companies and build them back better and sell them for a nice profit or break them up and sell the pieces. I think they orignally thought they could make big money on selling FEC intact and assumed the two Guyana wells would each be a huge success add substantial value in doing so. Today, no one knows for sure if CGX is going to be able to retain control of Coretyne.. If anything, many a deal could be made with CNOOC or some party like that to sell what now what appears to be a somewhat disputed interest in who controls the Coretyne block. OYL/FEC or Guyana? 

The only thing I can think regarding why Catalyst went completely dark two years ago is they had not done much to enhance the value of the company if you look at market cap, so they changed strategy and decided to break up the company and sell the pieces.  Which is very common for Venture/Vulture Capitalists. They have now made that public. Citi apparently was not doing enough, so they have now added Goldman to help sell off the company. The stock value of FEC is of little significance if they have multiple bidders for Puerto Bahia or their 35% interest in the ODL pipeline and hopefully the somewhat disputed interest in FEC Guyana. If these assets sell,  I doubt Catalyst want to retain a long term interest in a Colombian Oil company and sells the remaining O and G company.

One last thing, Trump's idiotic picks for his cabinet include Senator Marco Rubio for Sec of State and who is maybe one of the few sensible picks. I think he will be confirmed by the Senate and he is very aware of the Chinese moving into Central and South America and wants to counter their presence as he has mentioned the issue as a Senator. I am assuming the Chinese are clearly interested in the port, due to them acquiring an interest in so many ports worldwide and their New Silk Road Plan. If the port if it is going to be sold outright, it would make sense to seal the deal before Rubio takes office in late Jan. 

again, just my .02
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