Range are Under starters orders.
We’ve had much contact here with many market-watchers and we have spoken to leading luminaries/analysts over the course of this year on Range Resources. The latest company epistle paints a vivid profitable future for the company yet Range hasn’t budged on it. The company are telling investors as candidly as possible that the future is very bright. The North Chapman Ranch fracture stimulation programme has seen a dramatic increase in oil and gas flow rates from the Russell-Bevly #1 well. Stabilised flow rates are approximately 3.5 MMcfd and 350 Bopd from one zone alone, recovery from the well once co-mingled with the other completed zones is expected to significantly exceed the budgeted 4 MMcfd and 350 Bopd for all the producing zones in the well. I would expect that the final figure from Russel-Beverly#1 to be a multipule of where they are now. The frac has been a complete success. The East Clarksville field, Ross 3H well awaits a similar fate good oil shows have already been observed once fraccing begins further increases in bopd look nailed on! Frac work is expected to begin within the next 2 weeks. Then we have Trinidad where present production is approx 600/700 bopd. Range has invested here and it is clear to all that they would not of invested if they thought that they could not substantially increase production. That’s a 100% interest.The techniques used in Texas will be applied here and that is a pointer.The company are going all in to increase bopd to 4000 barrels in Trinadad. That figure when reached will significantly add to the present cash position. In Georgia Range are targeting structures with a 2 billion barrel oip estimate.They have a 40% stake. In Puntland, Range holds a 20% stake in the highly prospective Dharoor and Nugaal valleys with the
operator and 45% interest holder, Africa Oil they are planning to drill two wells in 2011.Trinidad,Georgia,Puntland are potential game-changers that is why the company are fast-tracking their USA assets vis-avis increased production. Go through the figures here, look at the market Cap take into account the fundamentals and the COS on each and every asset,scratch your head and wonder why is this companys’ sp 15P? They should begin to move upwards on news flow. It’s a matter of time just like Sefton they could explode on good news! Excellent company, well run. Their top man Peter Landau is held in respect by his contemporaries! Significantly under-value with an ever increasing USA production base that underpins the company. It is a question of time before they explode upwards .
Viva!
Dan
Excellent write up
http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/RRL_27_05_11.pdf
Looks like the brokers agree with you as well Dan
Current price (and more) underpinned by existing assets, enormous upside. Bargain of the year at anything under 20p. I expect significant rises as Trinidad, Georgia and Puntland news kick in over literally the next couple of weeks.
Dan,
thanks for the summary – it keeps surprising me how RRL can release positive updates and yet no reaction follows with the sp…one day, as you say, it may do a SER!
o/t – another miner with excellent news this am was TMC with the resumption of their mining operations after a 2-year mothballing…definitely one to watch here at 30p..imo they are good for £1+ in the next 2-3 months with a contract deal
That’s just AIM all over at the moment. A good RNS is one that doesn’t drop the price. It might be a couple of months yet but everything will start lifting when we all feel a little less like there’s another economic melt-down on the cards. You may not have noticed but Greece is having a few problems with the IMF right now. It’ll be resolved, China will pick up again, the US will see positive growth, pigs will fly, XEL will hit six quid and to cap it all I’ll win the lottery. The glass is half full.
BMD – thanks for visiting my blog and the lovely tweet.
Nice write up Dan, this share has been very manipulated for several weeks now. Lets hope we see its true value soon.
Hi,
Good report Daniel, and just what the doctor ordered. Concise and to the point. Thankyou.
Regards.
Good man dan. Just bought a boat load at 15.65. Looks like a good entry point with that recent pullback. Thanks for the heads up. Cheers!
Range is looking like it will really rocket soon with these great flow rates from Texas, the anticipated 9 shallow Trinidad drills and the deep Herrera formation drill. Then Georgia spud next month, and ofcourse Puntland the huge billion barrel play will spud in early Q3. Could easily see the £’s by the end of the year. So much news flow to come in the next half of the year
Range Resources will surely be THE share of 2011 ! So much on offer in the next six months from increased flow rates and more drilling in Texas, a huge play now in Trinidad with massive potential in the Herrera fields identified as well as increased output from existing wells. Georgia in June and Puntland later in the year could send this into orbit with the right results. The BOD are excellent, there is money in the bank and more to come from increased revenues in Texas and Trini. Who wouldn’t want to be a part of that ? Exciting times
This will be THE share of 2011 I am in no doubt. So much upside and potential – great BOD, money in the bank with more to come from increased revenue in Texas and Trinidad. More fields to drill, herrera formations in TT to be added and then we have the Georgia mob and spud within another month and later in the year Puntland with all that has to offer. Who wouldn’t want a piece of that in their PF ? Keep up the reports Dan. Hasta luego.
The next 6 months will be an RNS-per-minute. So much positive news flow expected – it’s been years in the making. Rerating on the cards if any of the 10 wells in 2011 come good. Great diversity with Trinidad the sleeping giant. Texas being prepared as the fattened calf. Management is on the ball. I can go on and on. Good weekend to all
RRL is going to go ballistic this summer. The latest short-term broker’s target is 28.1p:
http://www.rangeresources.com.au/fileadmin/user_upload/research_Reports/RRL_27_05_11.pdf
- Drilling Geogia in June
- Puntland late summer – with oil seeps showing and Conoco’s previous exploration activities providing a lot of scope for optimism
- A fast, aggressive and imminent drilling schedule in Trinidad and Tobago
- A regular stream of better than expected results from Texas
- Fantastic, savvy management who show a real understanding of the markets
Make no mistake, this company is going to be one of the stars of 2011.
Dan,
Spot on with this, can’t believe these have dropped over last couple of weeks or so despite good news.
RRL are already producing oil in Trinidad and Texas (both of which will see substantial increases in output / reserves), have their own rigs in Trinidad, have cash in the bank to fund further drills. Add to this the upcoming Georgia and Puntland (onshore and offshore) prospects and the price is only going up from here
Trinidad is a company maker for Range in it’s own right. Never mind the commencement drilling of 9 additional production wells it’s the deeper Herrera formation targets of 500 million barrels of oil in place per target that have the real value here. Range obviously have an adjacent block next to the Primera/Parex Resources light oil discovery in the Herrera formation.
Original Primera RNS which did quote bopd figures:
Primera Energy Resources yesterday announced the first Trinidad onshore light oil discovery in 50 years. In a press release issued to provide a corporate update, the company said its drilling in the Cory Moruga block had tested initial rates up to 1,450 barrels of oil per day and natural gas at rates up to 6.2 MM cubic feet per day. “The zone was then flow tested over a six day period on a three-point test, producing 37 degree API gravity oil at a rate stabilising around 578 barrels per day and a gas rate of 4.6 MMcf/d (total of 1,345 barrel of oil equivalent per day at a 6:1 conversion),” according to the statement.
http://www.primeraenergyresources.com/pdf/News/2011/News%20release%20-%20English%20150211.pdf
Moruga oil discovery raises hope for land exploration
http://guardian.co.tt/business-guardian/2011/02/24/moruga-oil-discove…
Published: Thu, 2011-02-24 07:37
The announcement of a rare oil discovery on land Trinidad, in the Moruga
block has raised hopes of a return to land exploration in Trinidad and,
according to geologist Dr Krishna Persad, is a clear indication that there
are millions of barrels of oil on land still to be discovered. In an
interview on Tuesday with the Business Guardian, Persad said the
announcement was extremely encouraging and augers well for further
discoveries. “When you look back at the discoveries in the Central block
there were three wells and all made discoveries. That was the first block
that used 3d seismic and they were successful, now this is the second block
to use 3 d seismic and they have drilled two wells both of which have been
successful ,so it is clear to me that the use of this technology is giving
us the ability to find oil that we would not have found in the past.”
Primera Oil and Gas Ltd last week announced that its Snowcap 1 exploration
well in the Cory Moruga Block encountered oil in the Hanging Wall of the
Herrera Formation and tested at 1,450 barrels of oil per day (bopd). “The
zone was then flow tested over a six-day period on a three-point test,
producing 37º API oil at a rate a total of 1,345 stabilising around 578 bopd
and gas at 4.6MMscf/d barrels of oil equivalent per day at a 6:1 conversion
rate.” Primera said the results were significant and appraisal wells are
required to determine the a real extent of the productive reservoir,
including structural positions of oil leg and gas cap, as well as potential
hydrocarbon column. Persad said the 3D seismic programme being undertaken by
Petrotrin will also point to several exploration opportunities and he
expected that there will be significant finds. “I am not talking about small
finds here. I am talking about discoveries in the order of 50 million
barrels of oil in place and going as high as 500 million barrels of oil in
place. The use of 3D on land will unlock several large reservoirs that are
still to be discovere“In addition to the Snowcap –1 discovery and the
Firecrown –1 well, the company has several high impact seismically defined
drilling opportunities on the block and regulatory approval is being sought
to conduct future drilling company release. of these prospects.” This
according to the
Persad also pointed out that the land discovery was even more important when
you consider that it is cheaper to explore on land, less costly to develop
and can be produced much quicker than offshore.
He said there was real potential to get T&T’s crude oil production over the
200, 000 barrel without a discovery in the deep water, where it is suggested
exists billion barrel fields. He said apart from new oil discoveries, the
country can easily increase production by injecting carbon dioxide as part
of the oil recovery programme. “They are doing it all over the world. I have
been talking about it and we are taking forever to see that, in so doing, we
don’t even have to discover a single new barrel of oil. We have produced
several billion barrels of oil in the past and with this new technique we
can double the recoverable reserves. What are we waiting on?” T&T’s crude
production has fallen below 100,000 bopd for the first time in 40 years and
Energy Minister Carolyn Seepersad-Bachan has revealed that she has
instructed Petrotrin to increase its crude production by 8,000 bopd by the
end of this year.
This company has been growing in strength but the price has been going down, RRL are potentially close to becoming the next GKP. T&T alone are worthy of a share price of 15p, Texas adds to this and to top this off, you’ve got Puntland and Georgia. Georgia seems to be on for spudding soon, with a decent find this will be 60p, a big find and it could hit a quid.
How timely to put this back on your readers’ radar, BMD. It’s a company with continuing good prospects as you have noted before, and a mostly well-read and committed shareholder base.
As langyboy has already remarked and as I am sure you are aware, some forces look to have been at work on the sp for some time, seemingly managing the price down to suit someone for an entry prior to the summer’s major activity. That can be seen on a trade-by-trade basis nearly every day. So arguably not a bad entry point for the well-researched.
Dan,
The SP of Range is up and down like a yo yo, It is to be expected, it is being manipulated by market forces, because it is a progressive Company and all know it’s going to produce. The cry is from ordinary investors who do not really understand the market, and speculate like mad. It is a pity, as most money is lost by those who need it most. It is not for the shallow of this world, but providing one does their homework first on Company potential and fundamentals etc etc, then backed up by your steady hand and otheres too, patience will allow these punters to improve their lot in life………preach over. Regards.
A friend got me into Range resources at the start of the year, within 6 weeks I had multi bagged my £6000 initial investment. Range is a great company and the fact its listed 3rd most watched share on the whole of shareprice.co.uk , just says it all.
The price is super cheap, and I thought we would nevber get to the 14-15 range again. Thats the AIM for you. I love this share, but as usua,l DYOR. Trust me its worth the read!
The Range story is an exciting one. What are your price predictions now Dan what with the TT increase and planned aggresive drilling schedule for 2011 / 2012???
Great stuff dan ,but alot of fast in ,out trading ,this share is being controlled bythem and alot of money is being made.on large buys and selling in the 15p-16.50 area .so frustrating.
Dan sometimes my comments get through other times they dont same with passwords? regards.
It’s the spam filter.
I’ll have a look. But there are hundreds that get spammed /deleted every week. The spam is automatically deleted every two hours. I rarely visit the folder due to the amount of work etc
Sorry
Dan
Hi Dan! Thanks for all the info!
Range looks to be being manipulated the same as GKP before the big rises as quoted on your site…
http://brokermandaniel.com/a-must-read-for-every-serious-private-investor/
Range have a great spread of low – risk low/medium reward plays (Texas and Trinidad) and two medium/high risk – high reward plays (Georgia and Puntland)
They will be rewarding if accumulated and held for the next 12 – 36 months for the long term investors, with some big short term movements soon as we start drilling Georgia and Puntland!
http://www.rangeresources.com.au/investors/research-reports
Good Luck to all the Rangers!
Clicking all your links now mate
Viva
Graeme
Hi Dan
Don’t seem to be able to post?
Please help
Viva
Graeme