Range Resources Share Discussion Threads

[greatfull dead] 01/6/2010 16:45

OT, well peeved that I set a limit that was a fraction too low on CAZA this a.m and went out for a few hours. Never learn when I set limits.


Instead bought 35k plus share of RRL for my wifes ISA. Now overall our RRL boots are full.

ATB,
GD

[poisson rouge] 01/6/2010 16:25

Captain, I must also thank you massively for the Caza tip – had a good look at it over the weekend and got in this morning. Very happy to be a holder.

PR

[captainnelsonforties] 01/6/2010 16:22

Notarealdr,

I can assure you my RRL boots are currelty filled to spill point eagerly anticipating the upgraded flow rates from Smith-1 and the result of the RB-1 well. Mobilization of the rig on that 2bn bbl prospect in Puntland may just generate a smidgereen of interest too. ;). This week next week, week after TD will be reached and I'm a patient old chap.

Well spotted Poisson.

Captain Nelson Forties

[poisson rouge] 01/6/2010 16:05

Left unchecked, all drips eventually turn into pours...



The first of many notes I suspect. Hold on tight.

PR

[pheonix07] 01/6/2010 16:05

The story sure is starting to get some air play...gonna be a number one hit soon Ü

Old Park Lane Capital has initiated coverage of Range Resources (ASX: RRS, AIM: RRL), praising its "highly attractive spread of exposure" to frontier exploration and stating that the value of just one of its wells alone underpinned the current market value of the company, which could develop into a major player in the E&P (exploration and production) sector.


The broker said that the exposure to frontier exploration was balanced out by low risk assets that were already in production, while the "transformation" of the company could be delivered by its projects in the Puntland region of Somalia, where Range holds a 20% working interest in two PSAs (production sharing agreements) in the Dharoor and Nugaal onshore basins. The interest in Dharoor is contributing, while the interest in Nugaal is carried for about US$16 million.


Old Park Lane expects the first exploration well in Puntland to be spudded before the end of the current year and the second well in early 2011, providing Range Resources with exposure to multi-billion barrel prospects.


The company's 25% interest Smith #1 discovery well on the North Chapman Ranch Project in Texas has commenced production at what the broker said were "impressive rates," stating that just this well underpinned Range Resources' current market value with additional upside offered by the success of the currently drilled Russell Bevly #1 appraisal well at North Chapman, which has recently reached a depth of 6,425 feet. Russel Bevly is located just 570 metres north-northwest of the Smith #1 well.


Following on from the recently released Independent Reserves and Valuations Report, the company anticipates that the well will provide valuable information regarding the size and geometry of the reservoir and move additional reserves into the Proved Producing category.


Petroleum engineers Lonquist & Co LLC (Lonquist) have estimated the total gross commercially recoverable reserves (1P, 2P and 3P) of the North Chapman Ranch Field at 215 Bcf (billion cubic feet) of natural gas with 45 Bcf attributable to Range, 15.9 mmbbl (million barrels) of oil with 3.3 mmbbls attributable to Range and 15.9 mmbbl of natural gas liquids with 3.2 mmbbls attributable to Range, which holds a 20% interest in all subsequent wells to Smith #1.


The report has made an independent PW10 DCF valuation of Range's net interest of US$226 million.
Should the company achieve positive results in Puntland, Old Park said it could transform into a major player in the sector.


Range Resources also has operations in the Republic of Georgia, expecting to "firm up several attractive drill targets" by Q3 and look for farm-in partners to fund future drilling. Range's activities in Georgia included the completion of the heads of agreement with Strait Oil & Gas to complete Phase II of the PSA and subsequent approval form the Georgian government for the Geophysical Institute of Israel to commence the 2D seismic operation on both block VI1 and block VIb.

The seismic operation that started in November has proceeded well with over 150 km (kilometres) of seismic acquisition having been completed despite recent severe weather conditions with the completion of this operation expected to occur in the end of February to early March 2010.


Old Park concluded that in the best case resource estimate and "heavily discounted" risk parameters Rage's interest in Puntland could be valued at 9.5 pence per share and the recoverable reserves in Texas at 3.3 pence per share.

[pheonix07] 01/6/2010 14:18

patience grasshopper Ü

[notarealdr] 01/6/2010 13:39

I think Fairdeal will be right after all, it's a bit premature to expect 5p today. We can live in hope i suppose. Still be tightly controlled by the mm's at these volumes. Bugga.

[sparty1] 01/6/2010 12:39

I may have mentioned on the lse board that I thought caza was a good investment.Also relayed some info from here to there. It has gone mad this morning but still well below modest expectations.I expect to see profit taskers but there has been a problem buying any volume over there.Holding firm.

RRL doing the usual yo yo thing I see.....

Thanks for the excellent ioly info on this thread .If only the miners were served as well.

[topicel] 01/6/2010 11:53

UEN seems a bit like a bear trap at the moment to me. But I never like anything that was suspended for so long and then rockets, whatever the news. It smacks of letting people out who are in the know and leaving mug PIs behind to carry the can - again!

Topicel

[shugmonkey] 01/6/2010 11:45

Captain,

I freed up some money to buy CAZA today, then my bank wouldn't let me wrap them in my ISA, something to do with crest. Missed that one.

Just have to wait for Range to take off.

[notarealdr] 01/6/2010 11:38

CNF I may have been a little casual in my reporting, "wire" instead of "well". Thing is lots of progress and little interest. Boy when they start piling into this they will ask themselves "Why didn't we catch onto this when it was still 6p?". Just stupid I guess boys! Fill yer boots.

[captainnelsonforties] 01/6/2010 10:40

GD, Topicel,

Some confusion on the thread at the moment it seems. Just to clarify I've looked at UEN but not a holder at present.

Notarealdr,

Just when you said they're casing and logging the well I thought you meant TD. You mean intermediate casing then? I was wondering how they speeded up ROP so much over the weekend. They sure have been banging away at this well and we should be close to TD by the end of the week imo. I thought you were referring to wirelining, I would assume you now mean mud logging? Sorry about the confusion I was misreading your post it seems?

SM, FD,

Very clear value on CAZA, valued on cash, $76m of P2 proven and probable reserves in for FREE at present. Lots of large 100Bcf+ targets to drill this year or next. Current well testing at 20% wi and could add +200% to current production (nearby well flowed at 10.9mmcfd that's almost 2,000boepd). Hasn't the real high impact stuff like RRL has in Georgia or Puntland but fundamentals suggest a share price of 49p rather than 6p. No debt clear upside on current well stock. All imo, but looks like a good investment on sound fundamentals of cash and no debt, reserves and a drilling programme. As always people should do their own research, but looking costs nothing. ;) RRL are targeting more P2 from Smith-1 frac and RB, should know more this week.

Captain Nelson Forties

[topicel] 01/6/2010 09:32

CNF, Greatful Dead seems to think you've taken a position in UEN. Not seen you post there, so are you a lurker or you're not in at all over there?

Topicel

[fairdeal2008] 01/6/2010 09:11

Shug,

I have a couple of million range and love the story.

Caza is Texas and Louisiana focussed - no Georgia or Puntland.

But at its tiny £6mn cap (almost all of which is accounted for in cash) it is probably more undervalued percentage wise - at the moment at least..

imho anyway

[shugmonkey] 01/6/2010 09:08

FD,

do you think CAZA has more potential than Range?
It's on my radar, but the story almost seems to good to be true.

[fairdeal2008] 01/6/2010 08:53

Possibly not.. has the momentum now and cheap stock not being fed in any more.


Have a look at CAZA as well. Texas and Louisiana op's which as with Range must be more valuable after the onshore debacle.

Mkt Cap £6million, £5.5million in cash, assets worth tens of millions and lots of prospective near term developmental news. Possibly going to do another thread shortly!!

[greatfull dead] 01/6/2010 08:52

Well I have to go out for a few hours. I expect 5p when I get back home later.

[notarealdr] 01/6/2010 08:50

Mornin' SM. i think with volume stepping up we will hit 5p today.

[shugmonkey] 01/6/2010 08:48

Morning all, nice start to the week.

[notarealdr] 01/6/2010 08:48

Sales now going through at 4.4p plus.

[notarealdr] 01/6/2010 08:32

CNF, maybe a bit ambitious to expect TD this week. Give it 2 weeks possibly though it does look very close.
I think the frac of Smith will do a lot to open the fine sands, and all 3 zones online........well. Share price seems to be firming in anticipation of good news....GREAT news. Stand-by and hold on tight buccaneers!!!...if you get my drift.

[sparty1] 01/6/2010 08:28

Captain. I have had a good look at CAZA and have bought in 100K Looks as interesting if not better than rrl although I like both.. Ta for the post.

[greatfull dead] 01/6/2010 08:26

CNF,

All +ve on the Range front that's for sure. Probably Smith well #1 shut in and fraccing starting on the Crest as I type.

I see your looking at or your in UEN.

ATB,
GD

[captainnelsonforties] 01/6/2010 08:20

Notarealdr,

I too am expecting a TD release on RB this week given the past ROP on this well, you reckon they're already at the point of wirelining and casing this well? Interesting. Also Smith-1 set for frac in the very near-term, that could at least do x2-x3 the current flow rates if that is successful, potentially more as they opening up the rest of the possible 80% of the pay. Exciting stuff. If they get +ve results on these two wells they'll fly. Quick to drill, quick to develop, fingers crossed for a good result(s) from these ops. Puntland rig mobilization news from AOI and its off to the races.

Captain Nelson Forties