Solid reserve base: 1P of 17.3 mmboe, 2P of 24.4 mmboe, and 3P of 36.9 mmboe Exploration upside: 2C resources of 3.1 mmboe and prospective resources of 14.8 mmboe Focused on delivery of waterflood projects in Trinidad, aiming towards production growth Continuing to pursue growth opportunities through acquisition of new assets Strong Board and experienced management team, aligned with shareholders' interests
Range is focused on growth through acquisition of transformational new projects, whilst continuing production and reserves growth in Trinidad. The Company has a robust balance sheet, streamlined operations, support from strategic partner, and the Board and management fully aligned with shareholder interests.
And once again Oma shows his true colours even if not his true name. No doubt we will now be subjected to a bombardment of mis-information and half truths. That in itself tells me Range are on the right track. One point mentioned was consolidation, maybe that would not be such a bad thing. I did like the subtle mention of if we relist though, pure Oma.
Range Resources Nothing in the Range interim update that we didnt already know, revenue was in line and the loss after impairments as expected. Production remains at 495 b/d but is increasing fast particularly as the waterflood projects are moving ahead with one in production. The shares are suspended at present owing to the recent rig deal being a technical RTO but the management are still talking about making ‘value enhancing acquisitions’ which should they come off make Range a most interesting prospect for 2H 2017. With the balance sheet in much better shape after this deal which should increase efficiency and reduce costs the outlook looks increasingly optimistic.
Carve, I think you will probably prevoke a reaction but I think you have been reasonable in your assessment of Range over our discussions going back years now. I wish, I had stayed away but genuinely felt that the waterflood project coming onboard would have been a gamechanger and it appears this is clearly not the case.
I think the cash burn over the next few months will be critical to how we come out of the suspension. I really don’t see it as a feasible option to buy anything else whilst our “diamond” is close to completion. It would, imo, be irresponsible to squander money on an acquisition (unless it was a serious cash generator – but why would it be going cheap) when we need significant investment into the waterflood project to get it completed.
I do wonder whether having RRSDL “may” reduce some of the costs so funding “may” not be quite as tight as having LO do it all for us and them taking their cut, but I do wonder how much this can save on such a big project that requires electrical installs etc, I have to hope it is significant.
That said, if we effectively have RRDSL back under the wing, I don’t see why we don’t try and hit some high return wells. Maybe Herrera is a bit risky but even if we were to drill like LGO to turn Trin into swiss cheese, this must be worth a punt to try and generate some revenue?
I am not a master of business and am armed with little information. But based on what I can see I cant see an acquisition being favourable and only reason to purchase RRDSL is to use them as outsourcing the drills will not make enough money to solve our problems!
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