Frontera Energy Corp T.FEC

From Tonight's SH Energy Report

[kcac1]

"As for Eco, it will now turn its attention to marketing more of its assets to potential joint venturers. Its co-founder and CEO, Mr. Holzman, used today's press release to draw attention to "farm-out processes in Eco's asset portfolio in Guyana and Namibia." Eco has majority interests in four offshore Namibian blocks and one offshore Guyanese block. It is hoping to see quite a bit of interest in the Guyanese block, given that it is next door to Exxon's prolific Stabroek block, now in the process of securing regulatory approval for its seventh production site.

Alas, Guyanese area excitement has done little lately for Dr. Suresh Narine's CGX Energy Inc. (OYL), up three-quarters of a penny to 12.25 cents on 150,000 shares. Although its exploration-stage Corentyne block is also one of Stabroek's neighbours -- and it has a joint venturer, Frontera Energy Corp. (FEC: $7.88) -- CGX's stock has lost half of its value in just a month. Its only news in this time was the release of its second quarter financials on Aug. 7. These made for the usual unpleasant reading (with the long-standing "going concern" red flag, amid a working capital deficit of $14.2-million (U.S.) and no near-term prospect of revenue), but would not seem to explain the sudden cratering. The only farm-out update at the time was that CGX "continues to actively pursue strategic options." It will have to do better than that if it wants to appease investors at its pending annual meeting this Friday.

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[Frank007]

I personally want to thank you Kcac for putting this cr..ap fest into the light of day ....why I still think it's a shake out has to do with the trading action ...how can the value be cut in half in a week with so few trades ...I can see who is trading...."this is being marched down for a reason .......what to reset the stock options at what $.10 ...lol ..crooked managers of the company

[kcac1]

There were 2Mil shares of OYL traded the first two days of the week. With BMO by far the largest seller. Isn't that FEC's broker? Just a coincidence? Like this rest of us lowly retail investors. I have no clue what de Alba's plan is. Or does he even have a plan?  I do know he was part of the plan to force PRE into bankruptcy and then buy it for pennies on the $ and change name

[Kelvin]

Cgx's only viable asset is their 100% owned subsidiary CGX Resources Inc. registered in the Bahamas which is a separate legal entity from CGX Energy and most importantly one of the JV partners in Corentyne, the other being a subdidiary of Frontera registered in Guyana. Is there a way for CGX Energy to be dispossesed of CGX Resources Inc at a steep discount? Now getting way above my head

[Schreibzey]

KCAC, I've been asking myself the same thing, and I can't see it unless the Government of Guyana is complicit. For example, section 60 of the 1986 Petroleum Act, any transfer (currently the 4.5% WI transfer) must be approved by the Guyana Government when under control of a body corporate. There is also an assignment clause on the Corentyne PSA that would need to be agreed upon by the

[kcac1]

Zey, Do you have access to the actual CGX contract?  If so, see how it addresses CGX filing for reorganization bankrupcty. And would laws of Guyana apply or other countries such as Canadian bankruptcy laws apply since multiple countries are involved. And with multiple countries involved, if it could be advantageous for de Alba, FEC and CGX to file for CGX reoganizational bankruptcy and under

[Kelvin]

Thanks kcac1, So cgx has a $14.2 million (US) deficit in working capital. From my financial accounting book: "Working capital is the amount by which total current assets exceed total current liabilties. This is an important measure of liquidity because current liabilties are debts that must be paid or obligations that must be performed within one year, and current assets are assets that will

[Frank007]

I tend to agree with you...Kevin ...exept ....here is the story of  bank debt ....when you owe the the bank ...a milion $ ...you are in trouble .....when you owe the bank    $100, milion $ they are in trouble ....hence the share price of Frontera ....down down down ....they are bank rolling this fiasco ...

[Kelvin]

Yeah Frank you're right. They did bank roll this. At least they still have positive working capital but their total asset side of the balance sheet is taking a huge hit with this sp decline of cgx. If fec thinks that they have commercial value in Corentyne but need more time and money in order to monetize the value then why wouldn't they simply swallow what's left of cgx? The big fish

[a2bman]

whats going to happen to fec if oyl disappears.  right now its only .12 per share.  they have a shiite load. To lose another .12 is going ti hurt, no?  or do you think its already baked in?

[Kelvin]

I think that it's already baked in. On the asset side of their balance sheet under long term investments they probably have an account for oyl shares. I'm guessing that they're already written it down. Under the same long term investments on the asset side they might have an account for Corentyne provable reserves. Maybe they booked it at $1 for now. Then over time Corentyne may well