Due to the special relationships  between ROZ AND PFC, this article could be interesting for ROZ shareholders as well. So far I did not know that Georgina Basin also contains phosphate deposits.

 

According to the article below, the western side of Georgina Basin contains the largest phosphate deposits in Australia (see link to news article further below). In the news release of PFC of March 5, 2012, we can find the following information (quote) : “PetroFrontier Corp. (“PetroFrontier”) is pleased to announce that it has been awarded two exploration permit applications (“EPAs”) in the western part of the Southern Georgina Basin, Northern Territory, Australia totaling 3,800 km2 (939,000 acres). EPA 213 (1,527 km2) and EPA 252 (2,273 km2) have been conditionally awarded to PetroFrontier and are dependent on the negotiation of surface access agreements with the Aboriginal stakeholders in the area. These two EPAs are 100% owned by PetroFrontier. These additional EPAs bring the total gross acreage controlled by PetroFrontier to approximately 14.5 million acres.”

Maybe it would be good for PFC to drill or explore for phosphate as well, not only for oil. Anyway, it seems to me that there is quite some value in the ground of Georgina Ground.

 

"Rum Jungle Resources defines Measured phosphate resource at Barrow Creek 1"

http://www.proactiveinvestors.com.au/companies/news/38521/rum-jungle-resources-defines-measured-phosphate-resource-at-barrow-creek-1-38521.html

 

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QUOTE FROM THE GOLD REPORT

http://the-gold-report.blogspot.ch/2012/12/pfc-moves-up-on-buyout-rumours-after.html

Further gains are to be made as The Gold Report reiterates its target of $2.22 a share”.

PetroFrontier Corp: PFC.V
Target Price: $2.22
Potential Gain: 410%
Shares Outstanding: 79,400,768 “


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REGARDING THE SIZE OF PFC LAND

QUOTE FROM PETROFRONTIER WEBSITE

“Formed in 2009, PetroFrontier has amassed 14.1 million acresin the Southern Georgina Basin (net 87% operated working interest). PetroFrontier launched its drilling campaign in 2011 in pursuit of both unconventional and conventional targets with locations based on world-class seismic and geophysical techniques and referencing minor exploration work conducted decades ago. A known petroleum system exits. An independent report, the Ryder Scott Resource Report (November 2010), estimated recoverable oil resources of 27.5 billion barrels (P50, gross average) on PetroFrontier's lands.”


One Acre 1 Acre = 10 Square Chains = 160 Square Rods = 43,560 square feet

Square Mile = 640 Acre (http://en.wikipedia.org/wiki/Acre)



14.1 million acres divided into 640 Acre = 22`031.25 Square Miles

Comparison (get a feeling for the size of the land of PFC) :

West Virginia = 24`230 Square Miles

Maryland = 12`407 Square Miles

Massachusetts = 10`555 Square Miles

Vermont=9615 Square Miles

New Jersey =8`722 Square Miles

Connecticut =5544 Square Miles

Belgium =Approx. 11`787 Square Miles

Austria =Approx. 32,000 Square Miles

Switzerland = Approx. 15`940 Square Miles

Israel= Approx. 20`329 Square Miles

Kuwait = Approx. 11`073 square miles

Luxembourg = Approx. 998 Square Miles

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14.1 million acres (size of land of PFC) divided into 640 Acre = 22`031.25 Square Miles

79`400`768 (Outstanding pfc shares, figures from Stockhouse)

79`400`768 divided into 22`031.25 (square miles)

= Approx. 3604 shares for one Square Mile

3604 shares multiplied by current stock price = Current price for one Square Mile (currently,the result seems to be highly undervalued)

(However, my calculation could be very wrong. So be careful and calculate and check it for yourself and do not rely on it. Maybe you come to a much better or another conclusion)

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ASSETS September                                                                                                   30, 2012

Cash and cash equivalents (note 4)                                                                          11,141,237

Restricted cash (note 5)                                                                                            14,008,376

Term deposits 0

Marketable securities                                                                                                          7,453

Financial derivative instruments (note 13)

Accounts receivable (note 6)                                                                                       11,764,689

Prepaid expenses and deposits (note 7)                                                                       1,119,220

                                                                                                                                     38,040,975

Corporate assets                                                                                                                 60,900

Exploration and evaluation assets                                                                        
 107,691,436

Goodwil                                                                                                                           8,799,180

                                                                                                                                     154,592,491

LIABILITIES

Accounts payable and accrued liabilities (note 9)                                                          21,742,021

Decommissioning liabilities                                                                                                   96,000

                                                                                                                                          21,838,02

Decommissioning liabilities                                                                                               1,108,633

Deferred tax liability                                                                                                        15,994,558

                                                                                                                                        38,941,212

September 30, 2012

154,592,491 (ASSETS) - 38,941,212 (LIABILITIES) = 115,651,279 (Total Equity)

Figures taken from Interim Financial Statements as at and for the Three & Nine Months Ended September 30, 2012 and 2011 (Unaudited), page 2. You can find it on sedar.com.


115,651,279 (Total Equity) divided into 79`400`768 (Outstanding shares, figures from Stockhouse)

= 1.45 Dollar per share


(DO ALWAYS YOUR OWN RESEARCH, CALCULATIONS AND DUE DILIGENCE! THINK, RETHINK, ANALYZE AND DECIDE FOR YOURSELF AND TAKE YOUR OWN RISK AS WELL! BE ALWAYS CAREFUL BEFORE TAKING ANY ACTION OR DECISION. NEVER RELY ON THOUGHTS, CALCULATIONS OR OPINIONS OF OTHERS!)

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Petrofrontier past stock prices (approx.):

Approx. 8 month ago: Over 1 Dollar 17 cents

Approx. 1 year ago over 2 Dollar 20 cents

In 2011: Over 4 Dollar

See Chart of Petrofrontier

http://www.stockhouse.com/companies/overview/v.pfc

Everyone should check current financials of Petrfrontier on sedar.com and calculate! Fundamentals would clearly support a stock price over 1 Dollar! And Haywood Securities has a price target of $1.00 (see links further below).

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I found an article written by James Brewer and published on the website of Jagsreport (Date of publication: Nov 28th, 2012)

His statement regarding Petrofrontier is the following one (I quote, scroll down approx. to the middle):


Petrofrontier (CVE: PFC) had its price target trimmed by Haywood Securities from $5.00 to $1.00. They currently have an outperform rating on the stock.”


http://www.jagsreport.com/2012/11/research-analysts-price-target-changes-for-november-28th-adi-adt-alog-atd-b-cag-cvlt-eqr-expr-fmcn-gil/


See also links regarding the same topic:

http://localizedusa.com/2012/11/28/haywood-securities-lowers-price-target-on-petrofrontier-pfc/

http://www.i3investor.com/servlets/fdnews/98820.jsp

http://www.analystratings.net/stocks/CVE/PFC/?Source=ARNDaily

http://www.dailypolitical.com/finance/stock-market/petrofrontier-pt-lowered-to-1-00-pfc.htm

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Heritage Oil said in the news release the following:

"All Shares acquired and/or held by Heritage in PetroFrontier were acquired for investment purposes."


News Release December 18, 2012

http://www.marketwire.com/press-release/heritage-oil-announces-acquisition-of-common-shares-of-petrofrontier-corp-tsx-hoc-1738760.htm

News Release December 06,2012

http://www.reuters.com/article/2012/12/06/heritageoil-brief-idUSWLB188420121206

http://www.4-traders.com/HERITAGE-OIL-PLC-4008356/news/Heritage-Oil-PLC-Heritage-Announces-Acquisition-of-Common-Shares-in-PetroFrontier-Corp-15579288/

For sure, it is very smart to buy highly undveralued PFC stocks for investment purposes. However, I am wondering if there is much more behind this operation. They have done that now several times. And in the last news release of Petrofrontier they said the following:

"PetroFrontier Corp. ("PetroFrontier" or the "Corporation") announces that its Board of Directors has commenced a strategic review process to identify, examine and consider strategic alternatives for the Corporation. Such strategic alternatives could include a recapitalization of the Corporation, a merger or other business combination of the Corporation with another entity or the sale of the Corporation as a whole."

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In the news release of December 4, 2012 (PFC) are also the following phrases:

“ Laboratory analysis of the Owen-3 coreindicated porosities ranging from 1.6% to 6.7% and low permeability, all as expected. This analysis also indicated that the core fluids contained 90% oil and 10% water. Oil was observed dripping from the core which indicated that it is “movable”. Furthermore, no water was apparent on the logs in either the Owen-3 pilot hole or the Owen-3H well.”

“However, PetroFrontier and Statoil remain positive about the prospectivity of PetroFrontier’s massive exploration acreage, which is supported by thefavourable Owen-3 core analysisand the recent Total/Central Petroleum farm-in announcement.”

“The Corporation’s 2013 exploration program is currently being planned in conjunction with Statoil and is expected to be finalized in the near future.”

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QUOTE FROM PFC NEWS RELEASE OF OCTOBER 12, 2012

“Owen-3H

A successful hydraulic stimulation was performed on the Owen-3H well over ten open-hole stages. PetroFrontier is very encouraged by the low fluid injection pressures and high injection rates evident during the stimulation. Log data and core samples have been obtained and appear positive,confirming the existence of oil in the Lower Arthur Creek and Thorntonia Carbonate Formations.

PetroFrontier is now preparing to conduct an extended flow-test of the Owen-3H well prior to the wet season. PetroFrontier and its joint venture partner (Statoil Australia Oil & Gas AS) are encouraged by these early stage results and look forward to flow-testing this well. This data will be used to guide the 2013 capital program as it supports the potential for oil recovery in PetroFrontier’s unconventional acreage.”

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QUOTE FROM PFC NEWS RELEASE OF SEPTEMBER 4, 2012

"Owen-3H

PetroFrontier’s third horizontal well, Owen-3H, located in EP 104, Northern Territory, Australia has successfully reached total depth. Final measured depth of the well was 2,153 metres, of which the horizontal section was 966 metres targeting the Lower Arthur Creek and Upper Thorntonia Formations. A multistage open-hole completion string has now been placed in the well in preparation for a completion program targeting the Lower Arthur Creek and the Upper Thorntonia Formations.

During the drilling of the horizontal section at Owen-3H, numerous positive hydrocarbon indicators were observed including:

Oil staining

Milky yellow fluorescing cut

Strong gas recordings of C1 to C5

Petroliferous odour

Oil spots in the mud at the shaker

On August 9, 2012, PetroFrontier announced that a total of 32.5 metres of core was cut and retrieved from the Owen-3 inclined wellbore. Core evaluations are ongoing and PetroFrontier is encouraged by the initial assessment of these cores, which seeped oil upon retrieval and had extensive fluorescence throughout.The well was also wire line logged with equally encouraging results indicating over 25 metres total of vertical thickness of hydrocarbon bearing formations.

PetroFrontier is very pleased by the results to date and the fact that three horizontal wells (MacIntyre-2H, Baldwin 2-H and Owen-3H) have shown very encouraging oil and gas indications. The completion and testing results from these three wells have the potential to add significant value for PetroFrontier shareholders. However, readers are cautioned that no reserves have been proven to date by any of these wells."

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QUOTE FROM PFC NEWS RELEASE OF NOVEMBER 11, 2012 (see page 1 and 2)

“ On November 6, 2012 Central Petroleum Ltd (“Central”) (ASX: CTP) announced that the French supermajor Total SA (“Total”) had agreed to a multi-staged farmin on four of Central’s application permits in the Georgina basin onshore Northern Territory and Queensland, Australia. The farmin lands cover application area EP(A) 132 in the Northern Territory as well as application areas ATP(A)s 909, 911, and 912 in northwestern Queensland and is subject to approvals from Queensland state and Northern Territory regulators and Australia’s Foreign Investment Review Board. These farmin lands are adjacent to PetroFrontier’s lands in the Northern Territory. will earn in increments to a total of 68 percent in the permits. Total is required to fund 80 percent of exploration and appraisal costs over four years to which Total has committed the first US$48 million of expenditure for stage one after which Central will fund the next US$12 million.” PetroFrontier is very pleased to see another major global energy company commencing exploration in the Southern Georgina Basin. This farmin arrangement has confirmed again the play potential that PetroFrontier has identified and is currently developing in the Southern Georgina Basin. “

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A QUOTE FROM RYDER SCOTT RESOURCE REPORT (NOVEMBER 2010, PAGE 11)

“The Southern Georgina Basin, onshore Australia, hosts high quality source beds and potential conventional and unconventional reservoir rocks. We believe that this basin is one of the most prospective onshore basins in Australia with potential for both very large conventional and unconventional oil and gas deposits.”

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Next news release (possibly, maybe) could concern something about the following content:

"PetroFrontier Corp. ("PetroFrontier" or the "Corporation") announces that its Board of Directors has commenced a strategic review process to identify, examine and consider strategic alternatives for the Corporation. Such strategic alternatives could include a recapitalization of the Corporation, a merger or other business combination of the Corporation with another entity or the sale of the Corporation as a whole. " (Quote from Petrofrontier news release, December 4, 2012)

And you all know what this would mean for the stock price in case of:

  • a merger or
  • a business combination with another entity or
  • a sale of the corporation as whole

And the last news release of January 14, 2012 did exactly concern something about this topic, see below:

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Quote from PFC news release January 14, 2012

"Over the past few weeks, the Corporation has received a number of inquiries, has opened an electronic data room and has already signed confidentiality agreements with several parties."

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(IN REGARD TO ALL THOSE INFORMATION ABOVE: DO ALWAYS YOUR OWN CALCULATIONS AND DUE DILIGENCE! THINK, RETHINK, ANALYZE AND DECIDE FOR YOURSELF AND TAKE YOUR OWN RISK AS WELL. BE ALWAYS VERY CAREFUL BEFORE TAKING ANY DECISION OR ACTION. NEVER RELY ON OPINIONS, THOUGHTS AND CALCULATIONS OF OTHERS! THEY COULD BE VERY WRONG!)