Crikey, CH. 2m!!! And you have siad what your average now is. I reckon you are on a pretty sure bet with Range. If they go to 4p (which they surely will reasonably soon), you can buy the whole of the Rhondda valley. 20p and you will be made Prince of Wales.
My apologies too to manos. I assumed. It amazes me that so-called traders jump on here all the time to try to ramp and deramp to try to make quick money. Does it happen on other boards - haven't noticed it much. For some reason, RRL seems to attract that sort of person; those who hold no shares but, for historic reasons, want RRL to do badly; those who stalk and troll; and those who still think the share should be priced at 40p and it is fault of the present BOD (RSR, CH, Helen and Eva, I think) that it is languishing between 0.61 and 2.7p this year.
But another good day today, and who knows what Tuesday will bring.
I too only have two shareso right now having consolidated my position, Range and Aminex, so we have that in common, I have two million in Range and 1.5 million in Aminex so I figure I only need one of them to fly to make it a worthwhile investment. Personally I think they both will. Apologies if I have misjudged you but if you have read the history of this board you will understand why. Lots of new names appear from nowhere but seem to know a lot of my history. I will reserve judgement for now though and see where this goes (or Aminex). GL :)
i only hold two aim shares PLE AND AEX one doing terrible the other going great so far .sold out of LGO today with a very tidy profit I only dabble in a small way complete amateur. I just think rrl will drift until the black stuff starts to flow if you think otherwise fine each to their own opinion . I Help train kids at ashington amateur boxing club ( hirst centre ) check it out the fat guy in the picture is me ,put a few pounds on since my hey day well 5 stone to be exact ,anyway a few bob curtesy of Leni gas oil will help in a small way
Certainly there is plenty of scope for Trinidad to right the company's finances - there are 22 million barrels of 2P reserves, an impressive 19 million of which are in the 1P category, and plenty of upside – but it needs investment to keep the drillbit spinning, rehabilitate old wells and invest in second recovery techniques.
Of course the blow for shareholders this week was that the big disappointment was another missed production target in Trinidad, where Range has confirmed it won't hit its 2014 exit rate of 1,000 bpd.
Scott Russell is hopeful, however, that the company will meet this target during H1 2015; current production is 564 bpd. Further out, these oilfields could be pumping so much more but Scott Russell has been rightly cautious in releasing production targets.
He is looking forward to chasing down some of the upside in the portfolio. The upcoming onshore exploration well on the Guayaguayare licence, due to spud by Q1 2015, will be the deepest well to be drilled by Range to date and will test two sandstone targets in the highly prospective Gros Morne formation with a combined P50 resource estimate of 22 million barrels.
If this comes in, it would be highly material for the company, not just because of its volume but also the productivity of these sandstones, which have been known to deliver IP rates of 200-400 bpd.
Beyond Trinidad the company has been trimming its exposure to high cost assets. In Colombia, for example Range has this week exited from the PUT-6 and PUT-7, where it faced expensive exploration commitments. Exiting from these blocks means the company has had to write-off a US$3.48 million performance bond – cash it can ill afford to loose but it was in even less of a position to fund the work commitments.
This isn't a total exit from Colombia: the company retains its fully carried 10 per cent interest in the PUT-5, VMM-7, and VSM-1 blocks in the Putumayo and Magdalena Valley Basins, where the next round of exploration work – 2D seismic and one exploration well on each block – will be carried by the operator.
In Guatemala, the company there has been a partial sale of its stake in Citation Resources and in Puntland, while it retains its onshore exposure, it has rightly decided not to exercise its option to participate in offshore exploration. It is also making progress to dispose of its assets in Texas and Georgia, but this moving slowly and is largely out of the company's control.
A lot is riding on the company's ability to realise value from the promising asset base in Trinidad. Shares in the company were back under a penny at 0.85 pence per share on Thursday, having been as high as 2.7 pence over the summer months.
The new management at Range Resources, which is listed on AIM and the ASX, are still sifting through the debris of the company they inherited earlier this year. Much progress has been made in clearing a toxic legacy of numerous short-term and dilutive debt facilities, shedding costs and jettisoning high cost projects but, as revealed by this week's annual financial report, there is still much more to be done.
New CEO Rory Scott Russell, who was appointed in February, acknowledged the “particularly challenging” year to June but said the company was now on a “much more solid footing”.
Even so, the financial statements do not make for easy reading, with an overall loss of US$102 million. This is a tough headline number but it's worth pointing out that 60 per cent of this was a non-cash loss due to discontinued operations and asset write-downs.
There were also substantial costs associated with the historic financing arrangements, although less than US$5 million of the US$22 million total was cash. Extract these non-cash legacy issues and the actual core assets in Trinidad aren't faring too badly, with EBITDA of US$2.1 million. This offers a glimmer of what might yet be once the portfolio and balance sheet has been cleared up.
While Range ended the year free of debt, it has now agreed a US$15 million loan with Lind Asset Management of New York, which the AIM company says provides “flexible, medium-term financing from one single party” in order to improve its rig fleet and push ahead with its plans in Trinidad.
Given Range's rather precarious finances, it will be no surprise to beleaguered shareholders that this loan financing comes at a price – and with no little risk attached.
Scott Russell said the company settled on the Lind arrangement after an extensive review of the potential financing options available and found this agreement to be “the most attractive option available to the company at this point in time”. This is no doubt true but it isn't terribly attractive: it's a 24-month facility, available in two tranches, of up to US$15 million.
The total amount repayable under the facility is US$18.375 million, with each tranche repayable over an 18-month period from date of drawdown either through cash or shares with Lind also granted 46.5 million options. For security, Range will issue Lind with 38 million ordinary shares as well as a share charge and a fixed & floating charge over Range Australia Resources, which holds its Texas assets. These assets are up for sale and when eventually sold the proceeds must initially be directed towards repayment of the Lind loan.
What this means is Range is bound pretty tightly by this new financial arrangement. But it does deliver a financial lifeline so the new management can pump money into Trinidad in order to get this asset earning its keep.
Certainly there is plenty of scope for Trinidad to right the company's finances
There is an expression "heart of stone" which even a thicko knows is what CH meant. The oldest profession includes prostitutes and "those coming on a share chatboard, ramping or deramping a stock with no thought whatsoever for the company or its shareholders".
"...I've also observed you call this wrong 83.6% of the time..." is that since Friday or before admin forced you to re-invent yourself again. Will be interesting to see how long it takes you to revert to type Robert, it has dawned on me where I know you from by the way :)
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