Delays in revenue generation for the same capital outlays is always a -ve. Someone will comment that the price of oil will rise, however taxes increase by 18% on all revenue once oil hits $50. Debt interest increases and the fiscal benefits are due to expire.
Yes there is a delay as the production has been put back from H2 2016 to Q1 2017. A delay of 2 years using your take on it Oma.
You seem to be annoyed that Range are spending money to develop the company. They have been looking to tie up the Sino deal for around 12 months, maybe longer YET you post a comment implying that Range is now having to do this out of desperation. It is necessity that it is done BUT not a rushed emergency type loan as you appear to imply.
In regards to production increases this year, I tend to agree that there will not be huge jumps in 2016. However, once the 2nd and 3rd drill from MD250 are completed ( yes I firmly believe they will drill all 3 wells) then the BOPD will start on its upward trajectory IMO.
You seem to forget that MD 250 was the most exciting drilling prospect in regard to expected rewards. Also, imo, the fact that they have drilled a second well is an indictation of the positive result on the first.
Maybe you would be better concentrating on your investments. Or if Range is such a basket case, maybe you could put a short on... or is that too much of a bold move to much your money where your considerable mouth is.
More and more delays, with capital outlays increasing and delayed revenues to support the mounting debt. Current injection rates will give an additional circa.150 bopd some-time next year. Significant amounts of capital investment still required for post recovery water separation.
Interesting that they are still looking to borrow a further $50M on top of what must now be approaching $20M of debt to LO.
Can’t see much in the way of production increases in the remainder of this year
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