Forum Archive Index - April 2000

[frank fernandez <frank.fernandez@xtra.co.nz>]

Hi all, 
Me again. I have also been watching with great interest the rise in the
share price of Frontier Petroleum since December when the stock was
languishing at 12c, rose to a high of 40c in the interim period before
settling down to trade around the 34c-37c range in the last few weeks.
On 30 December 1999, the ASX asked Frontier to 'Please explain' about a
price surge from 16.5 to 21 cents on the ASX. The company gave the usual
"can't explain why" answers. (A similar surge on the NZSE that month was
however not noticed by our NZSE)

Frontier first listed on the ASX in 1996 and on the NZSE in 1997. Since
a proposed merger with Australian Worldwide Exploration NL (AWE) failed
to eventuate in March last year (after AWE's acceptance of an offer from
a third party to purchase its SE Australian gas assets on attractive
terms), Frontier has been doing virtually nothing in trying to expand
its oil and gas exploratory business.  In June 1999, it disposed of its
Bonaparte Basin acreage interest to Golden Gate Resources Ltd, a
Canadian oil and gas company. Frontier then announced it was disposing
of its interest in the Bonaparte Basin acreage "as these assets no
longer fit the desired asset criteria of Frontier Petroleum NL."

At this point in time, its only current sources of revenue and business
are:

1. A small gas operation in the USA (Coyanosa Prospect, West Texas)
which is producing just enough oil and gas to pay for its continued
operations.

2. Royalties received annually through its acquisition in 1998 of
Cambridge Petroleum Royalties Ltd  (CPR). Receipts on a before-tax basis
for the year ended December 1999 amounted to A$1,993,908.

As regards shareholdings, NZ Petroleum (Read: Eric Watson) holds just
over 21% stakeholding in Frontier with the other major shareholders
being Eldercare with 3.55%, and DF Mainland Securities Ltd with 2.75%
interest. Some 66% of Frontier is owned by private investors with only
34% in public hands. The company has on issue 90,418,791 fully-paid
shares (and 44,063,718 -30th June 2001- options). 

Why am I writing this article on Frontier Petroleum, you may ask?  

Well, firstly it would be the ideal vehicle for any company wanting to
utilise a backdoor dual listing on the ASX and the NZSE (and possible
co-listing on the NASDAQ sometime in the future). 

Secondly, a week ago, I wrote to Rowley Butters, the Company Secretary
of Frontier in Australia inquiring about the release of FRO's annual
results. She advised me that it would be released at the end of March. 
Less than a minute after receiving her e-mail, I fired back a further
question, "Will Frontier be announcing its new business direction at the
same time as, or soon after the release of its annual results?" I am
still waiting for her reply. (Maybe the internet lines to Australia are
still overloaded....or that WAS a loaded question?) 

Frontier submitted its financial statements to the ASX last Friday (31
March) on a day and during a week when the NASDAQ suffered a major
"correction", and tech stocks in Australia and all over the world were
getting a real pounding.  I guess if I ever wanted to announce a new B2B
eCommerce direction for a company, last week was definitely not the week
for it!  I watch future developments with great interest.
 
Frank Fernandez

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