What, When and How Much and at What Cost? The Company has now come back from trading and surged over 70% from pre-suspension levels. We continue to have very little idea as to how the Company is going to generate sufficient cash flow to carry the business forwards, apart from the fact that it will "focus on growing production." Range is still trading due to the largess of its creditors, and with each passing day it requires more and more credit to keep it afloat, but the question isn't now just growing production, but how it will grow production to sufficient levels generating sufficient returns, to take control of it's future once again. Last time we commented that the Company needs to shed its drilling business, which is did at the beginning of the year, so we apologise for missing that in our focus on trying to see where the growth is coming from. That is has shed a liability is a solid step forwards, and we must give credit where it is due for management coming to grips with where they are; the previous management were made a number of solid offers for a share in their rigs which were declined due to ego, so this is refreshing. The key question as to how the Company will trade out of the debt hole that it is in needs to be addressed, or more specifically, what, how much and when. The Company needs to add profitable barrels, not marginal barrels that increase the top line, but do little for the net cash flow. This is nothing new, the adage that "turnover is vanity, profit is sanity, but cash is king," has never been truer than it is for Range today
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