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- What happens if I put in a redemption request today?
- When will FROG be available for investment again?
- What is the 1 year plan for FROG going forward?
- Will the quarterlies return to normal or even climb (originally indicated between 6 – 10% per year)?
- Why did this investment not “double in two to three years” as it was marketed in the executive summary?
- Who are the current Board members?
- FR shares in NEO were purchased for a total of $16.6M, what is the current value of those shares?
- It is my understanding that FR is the single largest shareholder in NEO, is this correct?
- NEO’s assets are being put up for tender to satisfy creditors, what is the value of the assets and what is the value of the obligations to creditors?
- Will FR be tendering to buy NEO’s interest in the FR/NEO Cardium wells?
- Will FR be tendering to buy any other NEO assets, specifically the Taber gas field assets?
- Will the redemption process remain the same (promissory note and an undefined return timeline)?
- What are the steps being taken to recover monies from NEO (Lawsuit, court or what)?
- If funds are recovered will investors be reimbursed for any missed quarterly (the Nov 30 payment)?
- Will the acquisition of the rest of White North increase my unit value and if not, why would it drop?
- If there is a drop of unit value, what is the target timeline for recovery?
- Sounds like NEO’s in trouble, what does that mean to FR shares? Is the entire $16 million a loss? How much will the NEO issue affect unit price?
- Were the Manitoba fields also managed by NEO?
- What were the total operating costs before the new team came in and what are the current total operating costs?
- Will FROG send out any necessary tax forms and when?
- What happens if I put in a redemption request today?
You will get a promissory note based on the soon to be released net asset value.
- When will FROG be available for investment again?
We are unable to give any indications of that at this time.
- What is the 1 year plan for FROG going forward?
A strategic plan is currently being formulated and will be communicated to all unit holders shortly.
- Will the quarterlies return to normal or even climb (originally indicated between 6 – 10% per year)?
No distributions are currently being contemplated at this time. The strategic plan will address these issues.
- Why did this investment not “double in two to three years” as it was marketed in the executive summary?
As noted in the letter to investors on the net asset value (NAV) the loss in value was attributed to the Neo shares, value of the wells drilled in the Cardium and land values in Manitoba and Alberta. The value of the assets was determined by a third party evaluation.
- Who are the current Board members of:
The Trustee is 0865701 B.C. Ltd,: Ron Aitkens, Mark McCarthy
Trustee of Business Trust is Foundation Capital Investment Corporation: Ron Aitkens & Mark McCarthy
The General Partner is Foundation Resources GP Corporation: Ron Aitkens is the sole director.
- FR shares in NEO were purchased for a total of $16.6M, what is the current value of those shares?
We are unable to determine this at this time. Neo is in a process to publically sell all their assets as far as we are aware. That process has not started and we are unable to determine a value at this time and there is no public market for Neo shares.
- It is my understanding that FR is the single largest shareholder in NEO, is this correct?
Foundation Resources is one of the largest shareholders of NEO at 14.4%
- NEO’s assets are being put up for tender to satisfy creditors, what is the value of the assets and what is the value of the obligations to creditors?
We are not aware of the value of the assets of NEO and the sales documents outlining the specifics of the property are not yet available.
- Will FR be tendering to buy NEO’s interest in the FR/NEO Cardium wells?
FROG will examine that option once the sales process and information is made available.
- Will FR be tendering to buy any other NEO assets, specifically the Taber gas field assets?
FROG will consider the Cardium and Manitoba assets but will NOT consider Taber as the property is uneconomic at these gas prices.
- Will the redemption process remain the same (promissory note and an undefined return timeline)?
Yes
- What are the steps being taken to recover monies from NEO (Lawsuit, court or what)?
Legal action
- If funds are recovered will investors be reimbursed for any missed quarterly (the Nov 30 payment)?
No. The strategic plan will address these issues.
- Will the acquisition of the rest of White North increase my unit value and if not, why would it drop?
The acquisition of White North is just one factor when determining unit value. Unit value will be determined by the total assets of FROG.
- If there is a drop of unit value, what is the target timeline for recovery?
There cannot be a timeline specifically stated as such. Obviously the trust will do its best to increase unit value
- Sounds like NEO’s in trouble, what does that mean to FR shares? Is the entire $16 million a loss? How much will the NEO issue affect unit price?
We will not know the full impact on FROG until NEO completes its sales process.
- Were the Manitoba fields also managed by NEO?
Yes, until September 1st NEO managed FROG’s assets in Manitoba.
- What were the total operating costs before the new team came in and what are the current total operating costs?
The new team came in October 1, 2011 and the White North acquisition closed Oct. 6, 2011. Operating costs are not yet available for comparison but should be similar. The new team has been out to the field to investigate opportunities to increase efficiency and lower costs.
- Will FROG send out any necessary tax forms and when?
Income tax forms for distributions will be sent out in Q1 2012.
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