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sorry April/May 2018 , should have said.
Rainbow, "Surely, are you referring to May 2019 " no it is April/May 2017. That is the target Agnetha thinks is achievable, after doing his research.
I do not know the figures but isn't the amount of reservoir oil recoverable less than 50% without enhanced recovery techniques?
Celtic, I am not making a valuation just stating the facts. I agree that Range have more upside than Trinity if they can get all of their businesses running well and profitably. In fact RRDSL will hopefully benefit from any drilling or workover business they can get from Trinity. My concerns will always be whether RRL's plans can come to fruition, whether they can get into profit, and whether they can finance and repay the debt. And finally whether they can get people to invest in Range and get the share price up. ATB
Rainbow Range management know more than we do and have set their plans based on how they believe they will get the highest production and highest income. Like you I would like to know their plans for repaying or refinancing the debt but that will not happen. However the first step is to get into profit and the most recent figures show they are heading that way. Investing is always a risk and definitely more of a risk than lending so you are totally correct in advising caution which is what I have been doing most of the time recently. I hope Cantor Fitzgerald is right. One day Rainbow you will be proven right or wrong. I hope you are wrong.
You are basing your valuation of Range purely on current production (which I believe we will see a significant increase on this year), overlooking the asset value we have in known resources in Trinidad and Indonesia as well as having one of the most modern drilling fleets in the Caribbean, which incidentally have just signed a 1 year contract with Shell. With the improving price of oil I am certain we will see an increase of drilling activity both in the region and in South America, resulting in a shortage of drilling capacity.
0.7p would give RRL a Market Cap of �53m whereas Trinity's market cap at 3 times RRL's production is �48.7m. RRL current share price is 0.225p so a target of 0.45p would be acceptable in my view but it is significant that Cantor Fitzgerald haven't even given a timeline for their target. They do however mention that all oil & gas shares would be higher if they had responded to the increase in oil prices. It is a pity that nobody seems to know when this added value will be seen in the price of O&G shares. So a target of 0.45p without thus added value seems reasonable, 0.7p with it. As with all these things the question is when and RRL's case they will need to keep the improvements coming to justify 0.7p by the end of 2018. THIS IS NOT A RAMP, DO YOUR OWN RESEARCH.
kjk You can't short this on IG Index the spread is too great.
For those that missed this: A newly �unbound� Range Resources Ltd (LON:RRL) offers investors upside in the order of 200%, that�s according to Cantor Fitzgerald analyst Ashley Kelty.
Wow rexeo have you got a short on this? As I think this is a steal at this price!!!!
It wasn’t a ramp it was a statement of fact, I don’t care if Candor’s current target is less than previously, it is still a sizeable uplift from where we currently are at, which is undervalued.
All the online reports I have found are saying that Cantor Fitzgerald has REDUCED their price target from 1.7p to 0.7p. So no ramping allowed based on this note
Range Resources: Broker repeats ‘buy’ recommendation with 200% upside Share 11:41 23 Mar 2018 “Like most E&P companies, Range is trading at a material discount; and has not seen a significant uplift in price following the rally in crude prices.” oil and gas operations Cantor has a 0.7p price target A newly ‘unbound’ Range Resources Ltd (LON:RRL) offers investors upside in the order of 200%, that’s according to Cantor Fitzgerald analyst Ashley Kelty. “Range capped a busy week of news with the announcement of an aggressive 2018 work programme at Perlak in Indonesia,” the analyst said in a note. “This followed on from the landmark RRDSL contract win with Shell and interim results.” In the financial results, Range acquired a 23% indirect interest in an established oilfield in Northern Sumatra, Indonesia and took 100% control of Range Resources Drilling Services Limited. Revenues over the half-year rose by 39% to US$5.4mln (US$3.9mln) due largely to the higher production, while the interim pre-tax loss was US$8.5mln (US$37.8mln). Average oil prices received also rose by 13.7% to US$48.1 per barrel. No impairment charges were recognised for the first time since 2013, while Range ended the half year with cash of US$10.9mln. In the Cantor note, Kelty highlighted that the group’s extended waterflooding in Trinidad and its ongoing programme will support production growth, while better crude prices (and thus better net backs per barrel) further boost to the group’s economics. Cantor rates Range as a ‘buy’ with a price target of 0.7p, which compares to a market price of 0.18p. “Like most E&P companies, Range is trading at a material discount; and has not seen a significant uplift in price following the rally in crude prices,” Kelty said. “The Trinidad asset base generates positive NPVs and our forecasts suggest the company will benefit from a materially higher free cash flow position in 2018 as production grows.”
why would I make anything up, the facts speak for themselves. Every well ever drilled gets depleted to a degree, that is what happens when you extract oil, the problem occurs when you lose too much pressure to get the oil to the surface. That is where water flood comes in, it replaces that lost pressure as well as forcing more oil into the reservoir.
CH, with all respect , you will say and make up absolutely anything, and so it doesn't surprise me to see you argue that black is white. But let me explain for the last time Depletion is simply the removal of Oil from the reservoir. You cant replace that.. Injecting water does not replace the removed DEPLETED Oil. Maintaining reservoir pressure through water injection does not reverse the Oil Depletion. It is simply reversing the pressure decline that has resulted from the oil depletion.
I think it is you that is confused, oil wells are never fully drained, depletion is basically a loss of pressure, you cannot replace the oil extracted but you can replace the pressure required to bring the remaining oil to the surface. Is it really necessary for you to deliberately change a poster's name to be insulting, very childish. depletion The drop in reservoir pressure or hydrocarbon reserves resulting from production of reservoir fluids. At times, a strong waterdrive will maintain reservoir pressure to a substantial degree so that reserves diminish without a corresponding pressure decline. http://www.glossary.oilfield.slb.com/Terms/d/depletion.aspx
Agnetha, unfortunately it is yourself that is not quite understanding and confusing concepts. Let me explain again. As soon as you remove a volume of Oil from the reservoir it has depleted by that amount. Water flood cannot reverse that absolute Oil depletion. "Depletion rate is the rate that the oil reserves are reducing " "Decline rate is the rate that production is declining " Hope that helps. Sorry also to say I'm pretty sure I'll still be posting after May. Indeed I can see why you haven't taken up your side of the bet, and made a lame excuse instead.
While primary production refers to oil that is recovered naturally from a producing well, Enhanced Oil Recovery (EOR) improves the amount of oil recovered from a well by using some form of additional engineering technique. Water injection, also known as waterflood, is a form of this secondary EOR production process. Used in onshore and offshore developments, water injection involves drilling injection wells into a reservoir and introducing water into that reservoir to encourage oil production. While the injected water helps to increase depleted pressure within the reservoir, it also helps to move the oil in place. Whether water injection occurs after production has already been depleted or before production from the reservoir has been drained, waterflood sweeps remaining oil through the reservoir to production wells, where it can be recovered. https://www.rigzone.com/training/insight.asp?insight_id=341
inShare submit to reddit While primary production refers to oil that is recovered naturally from a producing well, Enhanced Oil Recovery (EOR) improves the amount of oil recovered from a well by using some form of additional engineering technique. Water injection, also known as waterflood, is a form of this secondary EOR production process. The Baobab Subsea Production System Baobab Subsea Production System Used in onshore and offshore developments, water injection involves drilling injection wells into a reservoir and introducing water into that reservoir to encourage oil production. While the injected water helps to increase depleted pressure within the reservoir, it also helps to move the oil in place. Whether water injection occurs after production has already been depleted or before production from the reservoir has been drained, waterflood sweeps remaining oil through the reservoir to production wells, where it can be recovered. https://www.rigzone.com/training/insight.asp?insight_id=341
"he has the same expertise as yourself" Agnetha, thanks for that ha ha, yes I really don't have your extensive knowledge about RRL and waterflood. So just for you I'm going to take the bet on myself. If RRL are over a 1000bbls-d by end May I will not post here again. (btw As soon as you extract Oil depletion occurs. Because depletion is simply the removal of oil fluids from the reservoir. Waterflood can only delay the depletion rate, it cant reverse oil depletion like you are thinking )
Athnea, perhaps you could clarify your statement "1000bpd seems achievable by April/May" Is this based on "guestimates or direct knowledge"
It is precisely because of depletion due to primary oil recovery that water flood is introduced in the first place to restore reservoir pressure. There is a reason it is referred to as secondary or enhanced oil recovery as it restores pressure and reverses depletion rates.
Up or down at these prices in a dysfunctional share that lacks liquidity is neither here nor there. It is the medium term that matters.
2 steps forward and now 2 steps back, One day Rodders but not today and not 2018. However hopefully 2018 will see the building of the foundations that RRL needs to be successful for its shareholders
CH " I believe we will close flat again today. " I believe that we will finish down. I stated this view yesterday: "Less than 8 million traded at close, so the perceived rise is overdone IMHO especially in light of the after hours trade 2,272,286 Sell* 4,590O posting a strong sell, because at this price it has to be. Just my view of course" Athena, please keep it on the topic of RRL, I will not be bullied.