RRS - Range Resources

[prozac]

Been a bit quiet on this thread for a while. Understandable given the bumpy ride.

Observing the high stock volumes being traded at present, 19m traded today on ASX and about 15m on the London AIM last night. The ASX volume today is more than the total traded over the past week, and that has been higher than normal.

Something must be afoot to generate this amount of interest.

I would include a chart if I had some fancy way to aquire and post one.

 

[prozac]

The operator in Puntland for Range, Africa Oil Corporation of Canada announced today it's President Rick Schmitt has "resigned", to be replaced by it's CEO Keith Hill who is by all reports a much nicer human being.
http://cnrp.marketwire.com/client/africa_oil/release.jsp?year=2009&actionFor=1062772&releaseSeq=0

Word is that Scmitt was not much liked or trusted by the the Puntland govt., and perhaps this has been the reason for delays in Africa Oil obtaining an agreement to commence drilling operations. Trust is a large part of Somali culture. I guess President Farole is just a good judge of character.

 

[prozac]

Market reaction to news of the Texas drill (Smith #1) has been subdued IMO. I think within a month or 2 this well will be providing Range a regular steady income which will support Range's other activities.

The arrangement Range has with the operator Crest Resources provides for continued JV within the license area. I think it will also lead into other Texas opportunities with other operators. Keep an eye on this one up to Xmas for more positive news.

 

[prozac]

Range have begun to firm on the recent news. That is the Texas discovery, and the Ratification of PSA between the Puntland Govt., Range and Canadian operator Africa Oil.
Also the seismic survey of the Georgia blocks has commenced and is expected to complete early.

More news toward the end January, early Feb should be the tie-in of the Texas well to the pipeline and disclosure of daily flow rate from Smith #1 well for both oil and gas. This will be the first income earned by Range and should be received well by the market IMO.

 

[prozac]

Did i mention (no I didn't....) that the options RRSO are trading at around 4c under the shares at 2.3c. I think this represents a great opportunity to leverage into Range as the strike price is 5c and the options have 2 full years left to run, expiring on 31/12/2011.

Just quickly, if the shares run to 30c then the options could be expected to be say 25c to as high as 28c? This would allow a max of 5c for the premium. In that case then the shares would have improved about 5 times from today's close of 6.3c, whilst the options would have improved by around 11 times if they traded at the same time for 25c.

I welcome any opinion.

 

[craigj]

trading halt announced with a rights entitlement

interesting time of the year to do this right in between the holiday period

 

[oliviaxanadu]

Is anyone still investing here?

This stock is top of the ADVFN Australian hot stock yet the Aussie forum seems completely empty.

 

[Joe Blow]

Is anyone still investing here?

This stock is top of the ADVFN Australian hot stock yet the Aussie forum seems completely empty.

Olivia, I realise you're new here, but please be aware that we require those posting in stock threads to contribute some meaningful content.

If you have a positive view of RRS then please explain why you feel this way.

 

[noirua]

Range Resources is an Australian Company ASX:RRS that is also quoted on London's AIM market AIM:RRL. It is an oil and gas explorer in Puntland, Somali; The Republic of Georgia and Texas. Raised A$2 million in January.
http://www.rangeresources.com.au

 

[moses]

jumped 25% today on news, highlight below:

Independent Reserves Report Confirms Significant Find at North Chapman Ranch Field
Highlights:
• •
Independent Petroleum Engineers, Lonquist & Co LLC, have completed an independent reserves and valuation report on the North Chapman Ranch Field in Nueces County, Texas, USA Reserves report estimates total gross commercially recoverable Reserves (1P, 2P and 3P) of the North Chapman Ranch Field:
• • •
215 Bcf of natural gas (attributable to Range – 45 Bcf) 15.9 mmbbl of oil (attributable to Range – 3.3 mmbbls) 15.5 mmbbl of natural gas liquids (attributable to Range – 3.2 mmbbls)
• The planned multi‐well program is anticipated to move Possible (P3) Reserves into the Probable (P2) and Proved (P1) Reserve categories
• Independent PW10 DCF valuation of Range’s net interest of US$226m

 

[prozac]

Range should be in for an interesting few weeks. For starters the fraccing of Smith #1 well in texas (North Chapman Ranch) has finished and there will be news on the perforating of the other 2 zones in the well and the co-mingling. Maybe there will be some flow rates. Next also in North Chapman ranch will be the russell-bevly well report at TD. All that news is probably over the next 2 weeks.

After that will be news of the seismic results for georgia, and maybe news on a farm-in partner or drilling program, or both. News soon too on Africa Oil's rig mobilisation in Puntland, Somalia.

Have I missed something? I am sure i have. Oh yes the rumoured buy-out of Straits resources by Range looks to have legs following a write-up by Peter Nesveda of Iintuitive this week regarding same.

 

[Wysiwyg]

After that will be news of the seismic results for georgia, and maybe news on a farm-in partner or drilling program, or both. News soon too on Africa Oil's rig mobilisation in Puntland, Somalia.

It must be a few years ago now I saw some photos of the crew on the ground in Puntland with the drilling equipment 'being mobilised'. Unless that was a mock up photo to keep everyone interested. I will have a dig around in the archives for the photo as I have a distaste for these dog oilers and the bulldung they print.

p.s. no it was the seismic truck convoy in photo. But this also.

Rig mobilisation for Dharoor planned for 4th quarter of 2009. Minimum of 2 back to back wells followed by 2 wells in Nogal Valley.

Oh and Landau was on the board of NUENCO NL(name since changed) another dog stock oiler.

 

[prozac]

I hope things have changed then. I would hate to think it is another false alarm and Range treads water for another year.

 

[prozac]

Boy, things can happen slowly in the O&G industry. There may be some news out this week at least with the impending release of the quarterly report due 30 July.

News of flow rates from North Chapman Ranch wells could be included. The first well, Smith #1 has taken much longer to bring back on line after fraccing of all 3 producing zones due to extreme caution being exercised by operator Crest Resources. This is because of very high bottom well pressures which were the cause of the collapse of the original deep well drilled by Crest more than a year ago.

As a result of this now invaluable experience Crest are taking their time releasing the choke on the Smith #1 well as the high well pressure if released too quickly will create a region of very low pressure (a vacuum) higher up the well casing which could cause the casing to collapse by implosion! This well is likely to show very good flow rates once back on line.

590m away the Russel Bevly appraisal well is also due to be reported. With a greater pay-zone encountered than Smith #1 it is likely to produce better reserves as well. The pay zone for RB is reported as being 130' in total.

In the North of Texas at Cotton Valley word is expected on the commencement of horizontal drilling from the first well in place. Hydrocarbons have been discovered and the construction of a horizontal well will enable the field resource to be better accessed.

 

[prozac]

Range Resources

This has been a bit of an orphan with no-one dropping in for some months so i thought I would resurrect a thread for Range.

For those that do not know this is a dual listed stock with representation on both the ASX and on London's AIM market for 2nd tier companies where it's code is LSE:RRL. To set the mood the total shares traded on ASX yesterday 20 Sept 2010 was about 300,000. Not much. Last night however on the AIM it traded 28m shares and was up at one point by around 13% but settled the day up around 10%. Today on ASX mid afternoon the SP is also up by about 12-13% at 9.4c with 3m traded.

What has suddenly breathed life into this stock? There are a number of announcements due over the coming months that shareholders have been told to expect, but just when is anybody's guess and perhaps that is what the markets are doing right now.

 

[Balder]

Latest update shows P1 Texas resrves up 67% this comes on top of an upbeat directors report, ECV to be spudded later this month, who knows what J.V in Puntland to be announced? Not to forget Georgia etc

So whats the negatives? It is a quiet board, came here looking for some help as to downside risk, personally can't find any at this level.

 

[prozac]

Latest update shows ..............

So whats the negatives? It is a quiet board, came here looking for some help as to downside risk, personally can't find any at this level.

Looking at the current shareprice you would think there were lots of negatives. Very few shares turning-over on ASX and even in London the volumes are well down on average. News is the driver and there just isn't any.......at all.

I bought more over the past 2 days as i think news must be any day on seismic results for Republic of Georgia, and who knows they may even announce that a drilling company has been chosen to drill the first georgia well and is on it's way to the drill site! Fingers crossed.

 

[Balder]

Looking at the current shareprice you would think there were lots of negatives. Very few shares turning-over on ASX and even in London the volumes are well down on average. News is the driver and there just isn't any.......at all.

I bought more over the past 2 days as i think news must be any day on seismic results for Republic of Georgia, and who knows they may even announce that a drilling company has been chosen to drill the first georgia well and is on it's way to the drill site! Fingers crossed.

Hi Prozac,

Did wonder if it was a case Peter Landau in Australia had maybe over promised in the past? Puntland seems discounted as nothing happening for now as per http://www.africaoilcorp.com/s/Presentation.asp

Georgia's uncertainty seems reflected with the price, but could be anything and Texas is generating cashflow. Just seems like there is massive caution probably based on operating areas more than anything else. Gerogia looks the driver but scratching around to find any expectations and can't see much downside with Texas operation, though inevitably if Georgia doesn't excite the market will no doubt punish.

Was fishing for views on downside though.

 

[prozac]

Balder, i do not see much downside from here. As I said i have been buying more this past week as the price is only weak on lack of news.

The market has already punished for non-performance in Puntland. Texas North Chapman Ranch is a champion, pound for pound a performer that will pay the office operating costs very soon and much more over the coming year. Not understood by the market at all.

Trinidad when it gets absorbed into the company structure will have a high rate of return. The formula is simple; it produces now and has cash-flow which if returned into cap-ex will return better dividends in around 2 years.

Georgia. I feel this is the elephant in the room right now. There is so much expectation of something happening that the lack of news is crippling the share-price. Perhaps better not to have suggested a time-line at all and the share-price may have remained stronger. As it is the company is waiting on the seismic interpretation for the drill targets if it does not have these already. Once these are considered expect them to announce drillers have been contracted and the show is on the road. I would expect this would have to happen very very soon. That is why I have been buying whilst the shareprice has been loveless.

 

[Balder]

Prozac your elephant in the room called Georgia would be nice. Not trying to talk it down or anything, but that's just it, Georgia could be anything and for now appears zero value.

Did you see this recent broker note by Old Park? Know they should be taken with a large shovel, but suppose what i'm getting at, the Texas finds virtually underpin the price if taken as per these figures (found O.P to be reasonably conservative, given rightly also had a low puntland expectation).

http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/RRL_08-10-10.pdf