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RGRLF: CUSIP suspended. FINRA deleted symbol.
https://otce.finra.org/otce/dailyList?viewType=Deletions
Range Resources Ltd. changed to Star Phoenix Group Ltd.
https://otce.finra.org/otce/dailyList?viewType=Symbol%2FName%20Changes
Somalia - where is the oil?
The players seems to be moving into the middle of the country after dry holes in Puntland - Soma-Eurasian Drilling, Kilimanjaro (KIMJF) and rumours of Shell returning (RDS):
http://online.wsj.com/article/PR-CO-20140114-908368.html
http://www.bloomberg.com/news/2014-03-26/somalia-hopes-to-see-shell-return-in-2015-as-soma-tests-waters.htm
TEXAS ASSET $30M SALE FINALISED
Nice Gary, it won't matter. Range must consolidate and turn profit on existing wells.
b4
Hi Tony, will you please re-post the Range Rocket music video. I loved that!
b4
Range is tough Gary, news does not move price. I don't know why. The value is obvious.
It has been like 2 years since PL promised a major public awareness project.
b4
GUATEMALA UPDATE
Range Resources Limited (“Range” or “the Company”) would like to draw attention to the announcement released by Citation Resources Limited (ASX: CTR) on the current flow testing program on the Atzam #4 well in Guatemala (in which Range has an indirect attributable interest of 24%).
Citation Resources has announced that following a technical review program on the Atzam#4 well undertaken with Schlumberger, flow testing of the C13 and C14 carbonate sections of the well has commenced with the perforation of these zones currently underway with flow testing of the target zones expected to commence shortly. The C13 and C14 carbonate sections in the well are considered the most prospective oil bearing reservoir units in the well based on the electric log data, and independently confirmed following review of all the well data by industry experts including Schlumberger.
Further details are contained in the Citation Resources announcement, which can be accessed at: http://www.citation.net.au/media/articles/ASX-Announcements/20130530-Atzam-4---Project-Update--207/1225714.pdf
I can see the benefits but it moves the ROI out a couple more years.
b4
Range Resources Q&A on the Proposed Merger with International Petroleum
MM (Mining Maven): Can you outline the key features of this transaction and the principal
benefits you see for Range Resources and International Petroleum shareholders?
RR (Range Resources): Significant production growth: Range has now cemented a world class asset
base and management team capable of delivering 13,000 bopd by 2015 from P1 and P2 reserves on
both conventional and unconventional plays through the proposed merger with International
Petroleum. That doesn't assume any exploration success which now (assuming the merger proceeds)
is underpinned by what we would see as a world class exploration portfolio, including Range's
current acreage and now complemented by key projects in Niger and Kazakhstan. International
have a 10 well re-entry program on their key Yuzhno-Sardakovsky and Zapadno-Novomolodezhny
Russian assets. The wells have been drilled, fracced and ready to be put into production (3-4,000
bopd) as soon at 16 km pipeline is completed in Q1 2014. The pipeline has been purchased, laid and
just requires welding now. The project can then sustain the drilling and development of up to an
additional 40 well locations.
New CEO Chris Hopkinson and his technical team. Chris is a former Shell senior exec with Soviet
Union & Africa expertise, and was CEO of Imperial Energy, which was sold in 2008 to ONGC Videsh of
India for £1.45bn. He has a serious track record and has a big technical team in Russia to support
him. Additionally his expertise on Waterflood can certainly assist us with our program in Trinidad.
We will be able to share people and technical resources and through this merger we can sort out our
historical delays in Trinidad and bring production back on track and achieve stated production
objectives.
Increased reserve and resource base: A package of 76 mmbbls of net attributable 2P reserves, 3P
Reserves of 233 mmbbls of oil and gross mean estimate prospective resources of 761 mmbbls of oil
and 156 Bcf of gas with scope for further increases to come- this is a truly unique opportunity.
Access to further reserve and production based lending facilities that would be able to encompass
the expanded reserve and production base of the merged entity.
Exploration Upside: The Niger exploration acreage (4 blocks totalling 70,950km² with 100% owned
PSC's) is adjacent to and on trend with China National Petroleum Corp's blocks. The Niger PSC's are
very loose in terms of time constraints, so the projects can move forward when capital is available
rather than due to the adherence of strict timetables enforced on the company. Additionally, Niger
has very favourable tax incentives.
Please access announcement released by IP today:
http://www.internationalpetroleum.com.au/IRM/ShowDownloadDoc.aspx?SiteId=200&AnnounceG
uid=d34b72da-e848-4ae1-b972-cd72d228495c
Another 85,000km² block is under negotiation in a similarly prospective North African country.
MM: Why with all Range has got on, would it go and try and double its size and complexity with
the proposed merger with International Petroleum?
RR: It's a simple answer – Value. We could ignore the opportunity and focus on our existing assets
with current rig and maintenance upgrades in Trinidad and achieve significant gains over the next 6-
12 months. But when we analysed IP’s assets and the team that runs them, we formed the view that
there was a truly unique ability to create a mid-tier oil and gas company, which is not only
underpinned by the effective doubling in market capitalisation but also increased upside potential at
all levels (2P, 3P, prospective recoverable resource and in ground potential). International
Petroleum have its challenges due to an illiquid exchange, need for capital and liquidity - Range
provide the solution, but our shareholders are asking what's in it for them – it’s the opportunity that
would cover all bases from operational management through to near term production growth (both
conventional and secondary recovery) and low, medium and high exploration risk. Key question that
follows is how will it all be funded and that question is addressed below. The coming weeks will
involve a number of events on both Range's and IP’s sides to ensure the financing solution is
beneficial to all shareholders.
MM: You have stated the merger will build a more robust company with greater financial and technical resources. Given that Range Resources has been operating in the sector, involved with complex transactions and handling challenging geology for some time, why now do you feel shareholders need a more robust company?
RR: Robust from a number of perspectives - the Niger blocks take Range back to its early days with multi billion barrels in ground potential, which now compliments the production potential of Trinidad and Russia. None of our shareholders will deny that operationally we have fallen short with regards to time frames and execution of work programs, which is our responsibility. However it is important to note that from a well by well (bopd) and geological perspective, we are exceeding expectations. With or without the merger, we are implementing a rig overhaul and a maintenance program to significantly improve efficiencies, but the merger goes much further in bringing a proven oilfield and team which adds reserves, production and experience in taking oilfields from 1,000 bopd to over 20,000 bopd and we believe both Russia and Trinidad are capable of being those type of assets based on both current reserves and known exploration upside.
MM: You have stated the current production of the merged entity would be approximately 1,000 barrels oil per day (bopd) and a total targeted production from all sources of 13,000 bopd by 2015. There has been some concern voiced with regard to a slower than anticipated build up in existing company production levels. Therefore, what gives you the confidence that this target is achievable?
RR: Slower than anticipated production ramp up in Trinidad has been a function of capital and timing - as mentioned above with the new capital and operational programs in place on the back of the production based lending facility being drawn down imminently we are confident in the targets being met. The Trinidad team has also been examining horizontal well options following the exciting QUN 135 discovery, which could prove to be an important boost to short term production. On the Russian side, Chris Hopkinson has a proven track record in Russia and brings with him a technical team covering all key areas of bringing known fields into production. The co-mingling of operational resources will also assist in bringing different approaches to drilling and secondary recoveries in the respective fields.
MM: There are many investors who express concerns regarding geopolitical risk associated with operating environments such as Russia and Niger, which will now become key assets of the merged company. What is your view and confidence level regarding these territories and what would you say to address such concerns?
RR: Chris Hopkinson has worked in Russia for 14 years. In his words, if anything the situation has become more stable over the last 6 years. Contrary to popular belief the Russian Oil industry is highly regulated and to high standards. The state recognises that small dynamic and hungry companies like IP are the ones that will push the boundaries to unlock Russia’s huge reserves base. To that end IP have recently seen active support from the various state bodies. In addition to this, IP have excellent connections at all levels both locally and centrally and is confident of its ability to deliver results in Russia as its management team has previously demonstrated.
Niger has a democratically elected government that is highly supportive and active with regards to further development of its hydrocarbon potential. The government has ensured that any unwanted activity post the Libyan and subsequent Mali conflicts have been contained in the far North of the country. International Petroleum’s highly prospective assets are in the south of Niger on the Chad border, in a proved basin where there are no stability or security risks. IP are confident of the Governments continued support and are looking forward to exploration success there.
MM: What approach will the company now take to legacy assets which have formed the basis for investment in Range by many shareholders? In particular we refer to the assets in Puntland and Georgia.
RR: Approach doesn't change from what's already been communicated. In Puntland, we will retain our 20% onshore interest and continue to work with Horn Petroleum in furthering activities to ensure a third well is drilled as quickly as possible. Our offshore block also has a large potential, and
we continue to engage with potential joint venture partners to progress to a first stage exploration program. Georgia is progressing solidly with Georgian Industrial Group (“GIG”) joint venture on the Coal Bed Methane project and finalising the seismic interpretation of the recently completed program. We are confident that we will attract farm in partners for our acreage not covered by the GIG joint venture and have been in advanced negotiations with two parties.
MM: Shareholders have expressed concern with regard to dilution with Range’s share capital structure and financing. If one assumes this merger is to complete can you outline the company’s financing strategy and the key financial instruments you will have in place to support the company’s operations?
RR: Dilution implies that there is no corresponding increase in value of the merged company. Our critical task in the next few weeks as we look to complete the due diligence process is to demonstrate to our shareholders why the two companies combined offer a far superior value proposition than maintaining our current path. Understanding the financing is the key to the merger, and we aim to have a clear path set out as we move to complete the merger. Key features being completion of our own Texas sale and Trinidad drawdown, the ability to access further reserve / production based lending facilities to encompass the reserve / production base for Russia and potential asset sales / farm-ins of non-core assets, thus covering the exploration costs. The merger allows IP to progress with various financial initiatives without the immediate pressures which it faced on its own in its current state.
MM: The proposed merger remains subject to various conditions, including due diligence and regulatory approvals. What is the time you expect for these conditions to be satisfied and are there any other conditions?
RR: Four to six weeks is probably a realistic time frame for the merger to become unconditional, subject to final due diligence and regulatory approvals
MM: How can a 30% premium to the current market value be justified? Why is Range paying a premium that appears to be excessive to the market’s own valuation of International Petroleum (IP)?
RR: National Stock Exchange of Australia (NSX) is not liquid and transparent enough market to suggest share price is a true reflection of value, given the volume and trading that has occurred in IOP on the exchange. Key points are to use discounted cashflow, in ground barrel valuation, PV10 net present values and market comparisons and always justify the consideration offered. Additionally, our objective is for IOP shareholders (which include many of the top resource funds in the world) to accept the offer as opposed to other alternatives that were on the table. Essentially, Range offers the ability for IOP shareholders to realise not only the growth potential of their own company but participate in Range's significant growth story - clearly the same applies for Range’s shareholders.
MM: With this merged entity, and a near 5 billion shares in issue, should shareholders really be excited and can you outline the value creating opportunities you see that could drive investor interest and share price appreciation?
RR: The key is to demonstrate to our shareholders and the market that we have as a starting point a potential merged company with a combined market capitalisation of approximately £160m and the ability to exponentially grow significantly from immediate and sustained production increases, realised asset sales and exploration / farm out successes. We believe that upon a completed merger, Range will be in a position to take on a different perception and interest from both retail and institutional investors. Range intends to provide a number of updates over the coming weeks which, in our opinion, will ensure that the benefits of the merger are clearly outlined and the greater value proposition well and truly understood.
I don't like it. I don't see shareholder gains. I have enough shares that I should have got a vote! I guess the market will tell.
b4
Sheesh! Why did PL even announce news if it was not imminent?
b4
Right now they are suspended from quotation until news released.
It is good news but hardly seems worth halting trades over. Maybe there is more.
b4
Looks like a merge with International Petroleum.
Tonight is the night. Assuming Range releases the news on ASX.
b4
These always scare the hell out of me!
b4
Well Tony, I don't need any cardio workouts anymore. Watching my Range shares swing by a few thousand dollars every day keeps my heart rate up just fine.
Cheers,
b4
Hi B4
Not happy about Texas to be honest..
Its not exactly finalised with more dilution thrown in..
Range spiked 28% then closed flat on the day..It just shows a good RNS without added extras and we should move on from here..
Pete does like to throw a curve ball now and again. Lots of long termers getting tired of his games and are moving on..
Its getting traded more than ever now. Guys buying on the dips and taking 10% here and there. Risky but Pete keeps telling people in emails if you don't like it sell, and they are..
Need Texas finalised and BOPD updates this month to get us moving again..
Good Luck
TTT
HeeHee! come be a mod and earn your own sticky!
You should be green on Range if I remember when you got in correctly.
b4
Very good content :]
Hi Tony, what are you guys thinking about the Texas sale?
b4
That adds a lot of capital. I was sort of expecting more.
b4
Woo hoo Texas sale agreement
New Ihub rules! One sticky per mod. This is mine until I change it.
b4
It does not explain much. Maybe PL will put out something.
b4
No news from Citation. Range up on ASX.
b4
Well, we should know in a day. I will be pissed if we diluted to get it.
b4
Other boards are saying that range might have more than the 19% ownership and might have more like 51% now.
I wonder what it means?!
b4
99 printed! Go Range Rocket.
This gem by our beloved Tony the tiger.
CITATION TRADING HALT... Could be interesting
http://www.asx.com.au/asxpdf/20130221/pdf/42d54lt4rr9wwn.pdf
Step by step and soon those 16% will be showing the real $$$$
Thanks gary, I am watching too. Sad that a penny gain is 16 percent but I will take it!!!
b4
Big hits on ASX. at .071 now
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Range Resources Website www.rangeresources.com.au/ Google www.google.com/ Bloomberg www.bloomberg.com/ Oil and Gas International oilandgasinternational.com/default.aspx
Range Resources Limited (“Range” or “the Company”) is both an ASX-listed (ASX: RRS RRSOA) and AIM-listed (AIM: RRL) exploration Company, with its principal activity directed towards finding and delineating natural resources in the oil, gas and mineral sectors in Puntland, Somalia; the Republic of Georgia and onshore Texas, USA.
Range’s main focus is in Puntland, Somalia where it holds a 20% working interest in two Production Sharing Agreements (PSAs) for the Nogal and Dharoor Blocks. These conscessions encompass two highly prospective hydrocarbon basins covering an area of 81,000sq.km or more than 20 million acres. Range Resources currently has a 100% interest in the sole and exclusive rights to all mineral and hydrocarbon exploration and development in the Somali state of Puntland which covers an area of approximately 100,000km2.
In July 2009, The Company entered into a Heads of Agreement with the private UK company Strait Oil and Gas Ltd. to acquire a 50% interest in two oil and gas blocks in the Republic of Georgia.
In September 2009, Range acquired a 25% interest in the North Chapman Ranch project in Nueces County, Texas. The operator, US-based private oil and gas company Crest Resources Inc., has already commenced drilling the first well. The project area encompasses approximately 1,280 acres in one of the most prolific oil and gas producing trends in the State of Texas.
With Range’s planned onshore drilling program in Puntland, and its progress towards developing a joint exploration strategy with the Puntland Government for offshore Puntland, the Georgia and Texas farm-in are considered by Range to be a significant step towards establishing the company as a diversified international explorer with a growing oil and gas acreage position and significant upside potential.
In September 2009, Range acquired participation interests in the North Chapman Ranch project in Nueces County, Texas from Crest Resources Inc., a US-based private oil and gas company.
This consisted of a 25% interest in the North Chapman Ranch project’s first well – Smith #1 – and 20% in all subsequent wells assuming the exercise of certain clawback provisions by joint venture partners based on the current success of the Smith #1 well. The North Chapman Ranch project area encompasses approximately 1,680 acres in one of the most prolific oil and gas producing trends in the state of Texas.
The Smith # 1 exploration well was spudded on 4 September 2009. On 12 November 2009, the well reached its target depth of 13,975 ft. (4,260m). Based on open-hole logs indicating approximately 120' (37m) of net pay thickness in three zones with no water, 4 ½" production casing was run to target depth and cemented in place. One of the three zones was perforated and after an interval of just 20' (6.2m) bottom-hole pressure was estimated to be approximately 11,650 psi. To date, Gross production for the quarter from the Smith #1 well has been approximately 73k MMcf of natural gas and 5,350 bbls of oil.
On 12 May 2010, Range announced the spudding of the Russell-Bevly Unit #1 appraisal well, the second well in the North Chapman Ranch Field project. The projected total depth of the well is 14,000 ft. (4,260m), and located approximately 1,900 ft. (570m) north-northwest of Smith #1. Well expected to equal or exceed Smith #1, and is awaiting connection to piping infrastructure by end of August 2010.
Puntland www.rangeresources.com.au/Puntland.24.0.html
Range entered into a Heads of Agreement in October 2005 to acquire a 50.1% interest in the sole and exclusive rights to all mineral and hydrocarbon exploration and development in the Somali state of Puntland. In July 2006, the Company reached an agreement to acquire the residual 49.9% interest in the rights to the exploration and development of Puntland’s natural resources. Several major oil companies obtained exploration concessions and conducted considerable exploration and drilling over large parts of the State both onshore and offshore during the late 1980’s and early 90’s. These companies included AGIP, Shell (Pecten), Conoco, Phillips and Amoco. Range has been able to obtain through Government sources previous exploration documentation relating to the hydrocarbon exploration in the Nogal Valley area in Puntland up until 1991. The documentation includes original seismic tapes, well logs and processed seismic sections identifying major targets found prior to exploration activities ceasing in Somalia. Upon review of the data it was noted that the Nogal Valley area demonstrated: Abundant oil shows; Thick, high porosity reservoirs; Many large structures; and An excellent regional seal.
Republic of Georgia www.rangeresources.com.au/Georgia.23.0.html
Range has entered into a Heads of Agreement with unlisted UK company Strait Oil and Gas Limited (“Strait”) to acquire a 50% interest in two oil and gas blocks in the Republic of Georgia, Eastern Europe. The two blocks subject to this agreement, Blocks VIa and Vlb cover a contiguous area of 7,000 sq km (approx 10% of the surface area of the Country) and were subject to significant exploration in the Soviet era. Too much good stuff to individually list here, see link for the goods.
Trinidad www.rangeresources.com.au/fileadmin/user_upload/asx/863750.pdf
Range Resources acquires 10% interest in Trinidad oil fields and local drilling company. Current production is 700 BOPD however Range believes that with a minimal work program coujld lift that to 3500 BOPD within 36 months on the known reserves. Again, too many assets to that deal to list individually, see link for all the goods.
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