Range Resources are one of the best small E+P performers of 2010 and they look set to rocket on news this year. On expectation alone they should be 25pence! A real bargain!
Puntland: Drilling expected in Q311
20% Interest in two licences: Dharoor and the Nugaal Valley.
This is a potential multi Billion Barrel oil discovery. There are two resource estimates Gaffney Cline; Sproule International.
The more recent of the two penned late 2009 by Gaffney Cline & Associates gives an un-risked oil initially in-place (OIIP) of 12.4bn and 5.8bn barrels in the Nugaal and Dharoor blocks respectively on a gross best-estimate basis. These estimates would translate into 2.5bn barrels and 1.2bn barrels net to Range.
The Sproule Internationalreport of 2007 provided a best estimate for OIIP in the Nugaal block of 4.3bn barrels gross, with a low estimate of 2.2bn barrels and a high estimate of 10.4bn barrels. The Gaffney Cline report has the advantage of better more up to date seismic and analysis, “particularly with regard to Dharoor“. So says Edison’s research note.
Republic of Georgia:
Drilling possible in Q111.
50% interest in V1a V1b
Targeting stacked reservoirs with a OIIP of 2 Billion barrels. There’s a very good chance that the first drill could begin early April this year.
Texas and Trinidad:
These are basically low risk oil/gas plays.
News from Texas is imminent re’ the Russell Bevly.
And Trinidad has assessed gross recoverable P2 reserves in place of
4.8MMbls. Although these are small plays they will help with cash flow and experience. Not to be sniffed at! Range has more oil in Trinidad/Texas than Desire have in the Falklands. That puts it into perspective!
At the moment Range are not on the radar for most although some will claim the glory as being invested long before the Blog wrote on them however we here sit, watch, learn and listen to the musings coming from within the city of London before we herald our opinion . In other words we research our stocks and research some more.
These are woefully under-value and look set to continue to trend up. The 3 month chart confirms a trend is beginning as we cross-reference this with expected news the trend should continue. How high could these go? Well look at GKP they’ve hit 200p+ It all depends on how the news pans out re’ the drills. A 50p target isn’t unrealistic given the Multi-Billion barrel potential.
Any multi billion barrel oil discovery for Range would result in an sp well in excess of 100p. Research them. If they hit oil it’s the big time.