Star Phoenix Group Ltd (fka RGRLF)

[TONY THE TIGER UK]

New Leaf By Kev...

Here you go I may as well make myself a nice big target for the vocal few to shoot at again personal opinion only coupled with extensive research and chats with members of the BOD. Not all pleasant as for a number of months I've been unhappy with certain aspects and campaigning for change as have others behind the scenes.
There was no point doing this in rants on here or other boards much better giving these guys a shareholder perspective in a non confrontational manner. A list of items raised below not all my own some forwarded to me in many emails.



Range Re-Orientated

Well the company are now trying a new tack after listening to complaints so how long before you all complain about this one.

Number one complaint was too much communication with investors via the "Ipad RNS" well I'm sure now you should of seen a decrease in communication from Pete via email..........the company have listened and acted so don't now moan about lack of communication or not answering emails.

Number two complaint Petrotrin delays where bullshit it was the company manipulating news flow.............I MYSELF THOUGHT THIS INITIALLY. Right believe or not it’s up to you guys I was copied in on certain emails that proved to my satisfaction news flow delays in Trinidad are in fact due to Petrotrin with the last RNS only being cleared for release a matter of hours before it was released (sorry I can't copy these as I was shown on condition of it staying confidential)

Number three complaint multiple news items in a single RNS I myself have complained about this many times, all being well they will listen they have with other points raised................let’s hope so though no commitment given!

Number four complaint the share price is manipulated up and down for placings etc.............visually it appears so at times and it is AIM after all. However this is not to say it’s the BOD doing the manipulation if it is happening......What’s equally possible or probably more likely is its Socius or the guys doing the placing involved not the BOD if it’s happening. There are also posters on the boards a few of which are about at the minute that have agenda’s looking to further damage sentiment for lower entry points..................think about this if Puntland news was bad would they be doing this!

Number five too many shares in issue they've listened and come up with a plan let’s give them a chance to implement this prior to knocking it. Personally I think it will work, the mere fact that funds will be set aside for buyback simultaneously will probably mean they will not be required, as its nullifying a possible play for the shorters/traders (they won't trade/short if they know the SP will be supported)

Number six share price crap Trinidad/Texas not being valued. Well they're addressing that one splitting the stable. Don't worry you'll still have all the runners in your portfolio just in two different stables..........ignore the crap about only seeing 20% of the new Co as a RRL shareholder majority holdings will go in specie to existing holders with the company retaining some direct holding possibly 10-15%. There will likely be a rights issue for operating cash but again no line your pockets Mr HNW or Institution but a rights issue open to existing holders YOU GUYS!

Number seven the company doesn't have a F'ing clue about Oil being laywers/accountants. That’s why they employ people that do Mark P, Walter the company that will be running Georgian operations etc..........yes they've made operational mistakes in the past Georgia a prime example but are learning from this and have held their hands up for mistakes. To quote the company both “operational and technical mistakes were made in Georgia” and so long as they're learnt from them it’s part of the cycle to a mid tier producer.

Number eight Pete always over ambitious giving bullshit timelines and targets. Again they’ve listened to us..................................................look at this drill plan you say they won’t manage it http://screencast.com/t/FC1Yy8rHh there allowing a full month per shallow drill these wells are often coming in within two weeks. You want a new conservative Pete you’ve got it underplaying and if you give them time over performing. Another example he’s only working on 500bopd with the Hererra’s yet many wells in the country coming in with stabilised rates 100% above this or more, I think the lowest one I’ve seen is approx 600bopd stabilized. Likewise giving low conservative recoverable figures for the Hererra’s.



Right that’s the shit sentiment stuff out of the way good stuff now.

Texas cost peanuts and will be worth a plantation true not worth $300mill but it was never going to be, that being a reserves value not a on market value and if only sold for $40mill how many of you guys would complain at that sort of percentage profit in your portfolio.
ECV was looking dodgy once upon a time but we look to be on a winner here now also.
Georgia not the massive first drill we wanted but it’ll be another Texas given a couple of years.

Puntland not the massive 3billion OIP YET some dreamers where bullshitting you about it’s only ever been about a single producing horizon except from a CPR here http://screencast.com/t/4sSsgRanbU
And for whatever reason we’d need to ask K Hill the answer we seem to be drilling in field appraisal mode not going for big numbers first so the fact we have OIP on the first drill is excellent news as per Yemen massive thick payzones are not the norm and 12m more than enough for multi million barrel fields when you think in three dimensions! A bit rough and ready but Shab 1, Shab N and Darin 1 are drawn onto this shot showing there location in the basin and show the wells starting on the extremities of the basin and working in. http://screencast.com/t/4HGSmkxQonW not marked on here but the kitchen thought to be in the centre of the basin.

Trinidad every single Range well has struck 100% record not a lot to say there really and how many companies could say this. Yes they screwed up on initial timeframes but have gone ultra conservative now and personally I can see them far exceeding their targets look at the latest Ministry release for a indication of how the drills are ramping up http://screencast.com/t/csxwkuGCZV http://screencast.com/t/vRQyXPu0 but don’t expect to see headline figures coming through yet. All BOPD figures are retrospective, after drilling wells need putting into production then testing for both initial and stabilised flow rates prior to going to Petrotrin for another bout of delays. Six rigs drilling plus deeper targets if the get rich quick guys can hold on a while longer they’ll see true value start to emerge here.

Not worked into any of my thoughts above and what many don't seem to of picked up on in the presentation is the new target horizons being found on a seemingly monthly basis and what this adds to the company value once the new reserves estimates are calculated............you all want no dilution so it means debt and its these reserves the debt it secured on so all very very good news for the company and us. Range have gone through there dilution phase of growth and are entering the cash growth phase, Pete's right in this if you can't see this or wait sell up. I personally see very little dilution if any from here on in with cash from the Trinidad production funding the companies growth and eventually dividends on a regular basis to us............do the maths its all in the presentation current new wells are averaging 60bopd but many including the latest to come online substantially more than this (again due to the nature of the operation it'll maybe be weeks before you see this) and that's before we enter the well deepening program (something else not commented on) and five back to back Hererra's with drill times of approx 45 days per well.
Next year I'm expecting the UC into the mix as well once cash reserves and more importantly Hererra drilling experience for the crews have been gained.

Right there you go hopefully that mean some of the crap being posted of late may at least be put into context with a more positive slant. Yes the BOD have had their screw up’s and successes and have now held their hands up to these. You wanted change they listened so give them time to show it..................some of the projects I’ve left out of this as they deserve dealing with in there own right at another time.
I’m not a blind holder in Range and will ask tough questions of the BOD as and when required (they could testify to this) but when reappraising my investment something I’ve done a few times recently I come back to the following questions and answers.
Do I personally trust the BOD............Yes
Where else will I find a more diverse company with the upside.......someone tell me if they know one
Do I think I’ll get the rate of return I want over the next few years......................Yes
(its not a get rich quick scheme though)
Can I sleep at night happy with my investment..........................Yes
Do I want to be in a binary play like USOP/Horn...........................for Me no
(I want diversity even if it means lower but safer gains)
Right after all that bullshit go out and do your own research because you can blame no one but yourself for your investment decisions. Ignore my thoughts because the buck stops with you and my thoughts are posted purely for my own benefit and to maybe give direction to your own research.


Kev