RRL - Range Resources

[hxbro]

RRL now over 13p, this is a good re-rating, hoping it holds

Nothing on the ENEG front still, closed the spread bet, was £50 down today, so decided it wasn't worth the risk. Managed to scrape back £20 so far of that just betting on the up/down on the FTSE, it's a bit boring watching it tick up and down and buying/selling at the right time, but it's possible to make a bit of cash (and lose a lot!)

[hxbro]

License to print money.. 16p!

My profit today is £3500! - not that I'm selling, this is a hold till no mortgage day!

[hxbro]

Two RNS's out (one yesterday)

Frac has started on the Texas well, should take about a week, I'd expect results will be known next week/week after

Rig secured for Georgia - mobilisation to commence March 2011 with well to spud in April 2011

I suspect, 17p today...DYOR

[Dragon_Phantom]

Im happy Frac has started lets see what it brings. Looks like they dipped in to the funding so shares will be given to that company

Defo good news rig is secured as always looks like things are hotting up !

GLA

[hxbro]

From iii, a round up of what's to come:

Next week could be a fantastic week with news on any of the following mentioned by Seacce below. Looks like the price is climbing again as people don't want to be out before market opens Monday, perhaps with another Blockbuster RNS!!

Seeace summary below:
With so much going on, I thought I would try and piece Range's current jigsaw together.

Lets start with NCR.
Russell Beverly 20% interest - fraccing in progress to open up the pay zone from 11 to 130 feet (4 levels) results imminent.
Smith1 25% interest - to be fracced after RB.
Albrecht 20%interest - to be spudded March/April.
Value to Range - approx $248mill - increasing

East Cotton Valley
Ross1 21.75% interest - to drill 1st horizontal drill, expected spud April.

Triniadad and Tobago. Currently in partnership with Monitor (ASX:MON)
Range hold 10% (although these figures may change in favour to Range)
Engaged in programme to increase production from 700 bbls/d to approx 4500 bbls/d from the 3 sites.

Georgia - Blocks VIa and VIb.
Interst 40%, Partners - Strait Oil 40% (private), Redemperor 20% (ASX:RMP)
6 ready to drill targets - value to Range 390mbbls plus cost recovery.
Speculation is that as Strait having acquired Block VIII may invite Range to farm-in (possible 24b bbls) as Strait have a member on the board of Range.
Mobilisation and 1st spud to take place in the coming weeks. Site yet to be identified by Range as they have controlling interest.

Puntland, areas Dharoor and Nugal.
Interest 20%, Partners - Africa Oil 45% (Controlling interest) (TSX:AOI), Redemperor 20%, Lion energy (ASX:LIO) 15%
Targets attributal to Range- Dharoor 1.68b bbls and Nugal 2.48b bbls.
1st spud to be Dharoor by end June and 2nd (area to be announced) by end Sept.

If I have missed anything then please accept my apologies, but this company is turning out to be 1 in a million, and keeping track of it is becoming quite difficult.

DYOR

[hxbro]

I wanted to post this at the weekend, but now it's appeared on iii...

1. ECV making good progress having spudded four days ago, is
encountering shows mid progress, TD soon to be reached
2. Fraccing successful in two of four zones at NCR with well flowing
to plan, crews to return shortly to fracc remaining two zones
3. New well logistics underway for third spud in NCR before end Q2.
4. Georgia drill program locked in with operator publishing timetable
to spudding in April. Three stages of deployment, first stage over
water transport and logisitc 20 days, overland and associated
logistics 20 days, engage rig at location, engineering/setup prep for
spud say 10-15 days, then spud 10 april (ish)
5. This matter of other blocks dealt with.......
6. AOI engages operator with possibly two rigs on the hop (just a
thought and entirely plausible depending on what manner the operator
is engaged.
6. Trinidad deals closed with Range taking a much larger stake, with
cash from raised Dutchees/options conversion and other avenues. Range
could end up with 25-35% of deal with production and cashflow to the
account of the JV forthwith.
7. This other deal that is circulating in my head just won't go
away........could be good for the mind and body.
8. Market considers all the above and the future significant cashflow
and valuation scenarios/implications and

The stock is significantly re-rated and under sustained and heavy
buying pressure establishing price support in a new range north of
30p.

50p becomes the new target as we near spudding in April.

The words of a madman? or a pragmatist?

You be the judge.

JR

Now the question is do I cut my losses on BMR and go full in on RRL, BMR could be a long wait, RRL we can see things ahead that keep getting closer, no rumours, just mostly facts, besides the number 7 in the list

[Undertaker]

Interesting

Same dilemma as you, sell BMR for RRL?

I spoke to Masoud over the weekend, he was impressed with my deductions and said I was really clever but did not give much away but did sound very upbeat

I said

Sable want to sell, BMR want to buy the dumps
Sable is a poor performer in metorex group
Sable need money
Sable want to keep its metallurgical plant for it's copper processing
Sable needed to split license, mineral and mining license. Completed in Jan 11
Sable to give mineral processing license to BMR
60 days from getting the license to it being transferred, started in Jan 11
Whats in it for Sable? MA rumoured to be after copper and cobalt tailings, why? Some kind of joint venture?


Now something else I figured out today

The large trades that have been going on for the past 3 weeks, roughly 40-50m,

If we look at the presentations, it says Sable will be given cash as well as shares in BMR for the remaining dumps. 50m of these

It can't be long now though, really need to think about it but I may just stick with BMR for a few more weeks. But at the same time don't want to miss out on RRL

[hxbro]

the question is, in a few weeks, range might be trading 25p+, BMR might still be waiting, BMR probably has a larger short term upside if something happens, but in the same way, I want RRL shares to pay my mortgage via the ISA so need quantity for long term holding on the way to the target SP. Then again, if BMR came realy good at the top end say 35p, I'd be able to buy a truck load of RRL...

I think I'm going to hold it out, I'm just getting the usual, "I'm down enough now, I want to get the return running again" feelings on the cash in BMR, which always leads me to a sell decision just at the wrong time going off past experiences, so I suspect news tomorrow if we go on my "no facts, just sentiment feeling"

[Undertaker]

heads up hxbro

bmr on the move,

bid was 6p now 6.45p ..... not great movement but somethings brewing

[hxbro]

yes, just noticed, I knew I didn't want to sell yesterday

[hxbro]

who's ready for some easy earned cash, a couple of 19p's this morning whilst in auction, looking good for RRL

(come on BMR, the sooner the better...)

[Undertaker]

I think the market is pricing in the frac results on RRL

As i suspected with BMR it's just the transfer of the license, everything else has been agreed (IMO). Lots of different sources saying the same thing now. Just hang in there hxbro, it will come good and you will have probably end up with more RRL's.

Whilst we are waiting, look at CRHL, massively undervalued, not many shares in PI hands and due a listing on the HK exchange and possibly a rerating this month.

[hxbro]

Not confirmed by my usual source of good info...

>From Johnweaver on ADVFN mb, is anyone else aware of this :-

My notes on presentation by Peter Landau 01March. Notes and my views,
usual caveats, DYOR more info on Website. Make up your own mind please
it's your money.
01 02 2011 Range Resources RRL
Mkt cap. £~190m @ 16.65p. (Australian 30c) Cash £17m, Shareholders 73%
AiM. Very liquid.
Assets: Puntland; Oil in Place 905bn barrels, this is a calculated
figure by petroleum geologists based on their opinion of the geology
and the seismic data available. The gross figure is then discounted
heavily and gives a value of 14cents per share.
Drilling contractors from UK have been paid a fee for mobilisation and
will arrive Puntland and start drilling April/May.
This is a lower risk play than many realise. Geological risk is about
as low as any oil exploration can be. Finance risk is reduced by
having funded partners. Management have completed the Seismic Survey
and employ contractors, consultants and own staff who are experienced
and financially stable. As the drill contractor is.
Political Risk is fully understood, including the assistance of a
local politician. The seismic survey which had lines of vehicles
working out in remote areas encountered no problems.

Republic of Georgia: Oil in Place, 2bn barrels, Seismic indicates 68
structures that could be oil bearing. Six targets have been identified
with estimated 728mbarrels in place. Work continuing to select drill
sites. Helium tests on the ground are positive. Helium is released
through the ground by hydrocarbons in underlying deposits. The
contractor was very confident of his work, but this is not a fool
proof test for high quantities.

South Texas: Significant Reserves, 7m barrels oil + 50bn cu ft. of
gas. Cash-flow potential $250/350,000 per month after fraccing and
extra wells are drilled and brought into production this year.
East Texas: Historically prolific at shallow depths. Information
bought by company indicates that a lower formation with Oil is
present; work continues to drill and bring this to production.

Trinidad: Range now owns 15% of this project of 20+ wells that need
work overs. There is a fully equipped drilling company ‘in house’
eager to start this work that will produce, potentially 600+ barrels
per day per well. Again there is the expectation of deeper structures
to drill.
The Trinidad company, Soca, will be listing on AiM as soon as it has
finalised the administrative work associated with setting up a new company of about $90million cap.

15% of Trinidad is something new (was 10%)


Re: CRHL, if I get the time I'll take a look, thanks

[hxbro]

good finish to the day 20p, can't say I didn't expect it this week, just didn't know when

next stop 25p...

[wtaylor]

Over 23p this morning next stop 50p

[hxbro]

flying again, it's nice to turn on the computer to see you are a couple of grand up from yesterday

The Columbia news I posted apparently is true, so is the 15% of Trinidad (the deal is related) - don't take my word (I'm just taking the news from elsewhere), we need an RNS to back it up

I think £1 by end of year looking very good providing we strike oil in Georgia and Puntland, 80p if we only strike oil in one.

[hxbro]

Bit of an update from our friend JR:

You ask what might be the next news?


Lets take each asset, one at a time;


1. Texas - NCR - Having successful completed fraccing of RB1, team moved off site and flows are being stabilised - expect report end this week validating work done. Team to return to NCR, but earlier than expected to work on Smith (same work as RB1) go back to RB1. Within the next month all zone in both wells flowing well.


2. Puntland - AOI are a bit on the lax side when it comes to PR and announcements, so when it comes re mobilisation, expect a bit of a woosh of news. Rib operator are on the ground doing early logistics works for modilisation and have been for sometime. This is not that far off.


3. Georgia - Rig is awaiting loading onto ship for transport to Georgian port, then overland and rig prep on site for a spud date scheduled to be 25/4. This has slipped from my original 10/4 due to delays with sourcing a ship to appropriate destination. We are all good to go here and this is a very exciting phase in RRL/S evolution - OR ARE WE CALLING IT TRANSFORMATION NOW??!! Matters relating to block 8 and others are being dealt with in the appropriate manner, so we shall leave that to mgmt to conclude (no luck needed here as we have the best team anyway).


4. Trinidad - it's been a long time coming and finally we are in the home straight. Nothing much to comment on here except to say it's just a matter of a short couple of weeks and this will be sorted out and concluded.


5. Colombia - Well the Evening Standard must have had a wire in with the wide, wide, city boys, as they had everyone on the hop the other night. Funny thing though was that the looney Damien (Omen?) did not pick up on it, as he would have had his merry troup of 15 million minions (or whatever it is) all over it and we might have seen the 500p he is alluding to. Now whilst some may scoff at 500p (and I know we all are) consider this...... when we were bouncing along at 7 or 8p whatever it was, and I came onto the iii scene. I was spouting 140p. Well I was ofcourse shot down in seconds. Remember when I made that call for end Jan 20p, yep shot down by the couple of morons, but many loved the idea. Well I was a month late, but we got our 20p In fact we nearly nudged 25p.


So what happens when we get to 30p (could be next week) and then 50P (quite possibly just before spudding and with proper Puntland mobilisation - lets say early April) then say 80p (when we make a strike at Georgia - remember very shallow targets here) and maybe more as our other babies will be coming off formula and having solids by now..............you know what, that 140p target starts to become quite plausible doesn't it?


Which over a period of time then calls into the validity of 500p (tell me when I should have a lie down please!).


But you see where we are going here don't you?


It's starting to become bloooming obvious.


So, Damien, if you happen to be reading this, keep up your blog, us Range shareholders love you to bits. AND IF YOU EVER THINK OF STOPPING, WE'LL RIP YA BLOODY ARMS OFF!


All the best and enjoy the remainder of this wonderful Range Weekend.

I don't have an official COS for Georgia that I am willing to put out there, but I can say my 'view' is that it is very high. Lets say higher than 50%.


Oh and I see I have made an error in my note, it's not Damien, it's Dan, so good luck if anyone one is not only mad enough to pay attention, but also picked up on my slopping writing. Apologies to those who have taken the time.

Another week of rises ahead I think 25 - 30p ?

[Dragon_Phantom]

Hopefully gonna get some more moeny this weekend and b able to top up early monday! Really wanted sub 20 but dont think i want to wait !

[hxbro]

Up again today, definitely on target for 25p this week

[hoponbaby]

Realllly wish I'd bought these when I was going to at 5p, as they kept jumping then retracking to that level I thought I'd have time to get in but looks like that boat has sailed