Malcy was perhaps told georgia money is coming very soon? hence BUY rec from Malcy re RRL?
Georgia - all to play for. -------------- I tend to take a positive view on things as I do believe the fundamentals are still there. There are lots of rumours around Georgia, to the point we are all hanging on in hope that this gives a recovery. The financial package announced yesterday should be viewed on the basis that Georgia does close and is structured on that basis. You also have to assume that the $15M package needed to be closed first. The second tranche of $5M in 6 months gives range the option of repaying LO the $5M debt we have to them. There is no impact on the balance sheet if this transaction takes place but does unlock RRL from any financial obligations to it’s contractor LO. The $10M loan is secured by a floating note over Texas. If Texas sells to the current purchaser for $25M. RRL have to repay the $10M leaving $15M. Any change on this price appears to be compensated by shares. So Range end up with $30M from Georgia, $15M from Texas and the $5 option to repay LO which all adds up to the original $50M facility that LO offered. RSR had broken away from LO and the control that LO had over financing. He has created the money to cover overheads, increased flexibility in term of how money is used. On the production side. The accounts show that royalties have increased despite a fall in production. This looks to be a tapering effect as the old tax incentives run out and no real activity has been undertaken. A lot of the costs from preparing wells etc are now in last years accounts. The benefit in terms of recovery of costs from the new fiscals all comes in Rory’s new accounts, increasing cash flow and improving profitability. However this has to be done within a rolling 12 month period from the time the costs are incurred. I don’t believe the excuses re the drilling fleet, but regardless RSR will perform a miracle by being seen to use this money quickly and efficiently to step up production. I can understand how this works and some of the reasons for doing this, what I think is appauling is the way he appears to have deliberatley presented this in a manner which will scare of the average PI allowing others to seize an opportunity for a lower entry point. LO will be aware of the real situation on the ground and really do hope they make a move. Take it how you want but this is my view on things. And for Miniboy...all my own work http://www.worldstocks.co.uk/forum/viewtopic.php?f=3&t=11736&p=100427#p100414
they enter perhaps because delay in Georgia proceeds. otherwise they could have released that financing news last week by the time we saw that draft. also, even if we have entered, we can choose when to pay off the darwdown amount, which perhaps, will be paid in full as soon as Georgia is completed. anyway, nobody knows, i wish BOD gave more info,
Is not happening Geoff. why would range enter a financing agreement if Georgia funds were on the way? I don't know of any asset sales that take years to conclude. I did expect a sale a few weeks ago but it looks like rmp will retain this asset
there is analysis in WS which stated that sale proceeds would be cost + assets. the same treatment as per Texas. ie, similar to 2013 figures except being restated for tax benefits to the buyer. so, many still believe proceed to RRL would be around 30m. (as similar to Texas proceed would have been 10m cash should we able to sell it, instead of assets only 1m?) you can see more here. http://www.worldstocks.co.uk/forum/viewtopic.php?f=3&t=11707#p100187 post from OMA in ws also confirmed the same. for me, at this sp, will definately holdings, be it for another many more months.
Not selling just don't see the point in being in an action group if nothing happens
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.