OK.....some massive moves in the FRR share price in the last couple of days (up 50% yesterday and another 64% today so far)
Does anyone know what is behind it?
Bottom-fishing in an illiquid market?
I can't believe this one is still around - thought it had gone bust long ago and deleted it from my watch list.
Well it does look like someone wanted a lot of stock all of a sudden.
Something cooking under the hood? Basin Edge farm out?
All I can say is, I hope someone wants a heck of a lot of stock, these have been put in the big round filing cabinet for about the last two years!
Never thought they would have any value, other than expensive wall / toil^t paper.
HOWEVER, given the recent share price rise, they still need to multiply by a factor of 10 or add on a zero!
( is that a suitable use of the word? )
Phil
Hehe I know the feeling re expensive wallpaper - I've still got my "Ferranti" certificate adorning the downstairs bathroom wall!
New resource estimates out....stock up 50%!
http://moneyam.uk-wire.com/cgi-bin/articles/201009220700070776T.html
The only way they can survive is to raise money against the shallows (The Basin Edge has covenants stopping the raising of monies without bond holder approval).
To me it looks like the CPR is the first step in that process.
The second step will be a successful multizone frac on Mirzanni #5
The third will be a farmout
With the debt repayment looming in May 2011 they have to then drill Basin Edge 'C' from the farmout proceeds and get a stonking result to allow a refinancing of some sort.
For all the i's to line up I believe this would be worthy of a miracle. My view is that they will fail with the multizone frac.
JonnyT
It was May 2012 but that's sorted now.
Huge volume traded over the last 3 days with 120m traded yesterday - news next week I'd think...a good result from their Mirzaani wells and FRR should make progress back to the 4p placing price. 1.35/1.38 b/o at the close yesterday so plenty of upside.
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