Range Resources.. Common Sense investing!

There’s been a flood of emails and comments this morning re’ RRL!

I’ve just checked the Share Price and it would suggest that today’s rather bland Rns ASX Price query has for reasons known only to the Gods of Mammon stirred a wobble. The sp has dropped some 10%!! Quite remarkable!

Bearing in mind that if any thing the RNS is confirming that Range have been in the City of London trumpeting the value of their company and assets. It actually states thus;

***Range recently announced a number of key milestones for the Company across its development and exploration assets, including;the securing of the drilling rig for its Georgian exploration program;

anticipated mobilisation of the Georgian drilling rig expected March
2011, and planned spudding in April 2011;

– commencement of drilling at the East Texas Cotton Valley Project; and

– successful fracture stimulation of the lower two zones on the Russell
Bevly well, with the upper two zones to follow later in March 2011.

It is anticipated that further updates on the Company’s activities will be made with respect of its assets over the coming weeks as events occur, as indicated in the recent announcements from the Company.

The Company also notes that its Executive Directors have been in London on a promotional visit, further increasing the awareness and activities of Range to a wide range of the London investment community, at a time of increased activity across the Company’s portfolio of assets.***

It would seem that some have sold ! This suggests to me that there’s a day-trader following of the stock that is quite significant.

I can only reiterate what the Blog posted yesterday:

Georgia {onshore{ (spud April) where the company will be testing 750 million barrels of oil equivalent of upside.

Puntland “The upside potential is in the billions of barrels. Range has already established itself as a producer in the US (Texas) but the upcoming drilling activity could lead be a company-changer for investors/company.”

“There just seems to be a certain inevitability about them. The exact same inevitability that has seen meteoric rises for Nautical,Encore,GKP etc”.

Now reading this last line about the inevitability of Range and drawing a similarity with the Great success  of the companies mentioned I do recall these very same companies behaving in the EXACTLY same way before they exploded upwards!

Instead of responding second by second  to price fluctuations holders here should ignore intra day movements downwards. Key in your strategy with the company time-line re’ expected news that’s what ALL the professional Brokerages and Institutions do! They have already hit just under 25p and it is inevitable that they will surge ahead. Range have just informed usIt is anticipated that further updates on the Company’s activities will be made with respect of its assets over the coming weeks as events occur” AND “a time of increased activity across the Company’s portfolio of assets”.

What that should be telling investors is crystal clear. How any one can interpret that as a sell signal is beyond my understanding!

Hold your stock here and stick with what you know!

They will always fluctuate it is the nature of the AIM beast! Those who sold at under 20p this morning must be kicking themselves.



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  1. AIMHIGHER says:

    There was also a comment on the back page of the FT today
    ” Among small caps Range Resources put on 7.4 per cent to 21 3/4p as short sellers scrambled to cover positions. Traders said the exploration company had been planning a £5m equity fundraising at 14p but decided to pull the cas call at the last minute ”
    Maybe some truth in the rumour and if so positions now covered ?

  2. Richard says:

    I confess I jumped out on that RNS and piled it into XEL. Right or wrong?? We’ll see. But it released nearly £13k of cash that I did not otherwise have and £3k of that was profit so nearly 900 free XEL shares. :))

  3. chris says:

    a lot of private investors have like myself been in range and still holding since the 2.9p days over a year ago, we know the true potential and risks associated with range.PL is a shrewd business guy who has and still continues adding value to our portfolio of assets.
    The institutions are coming on board and are not fools …they know the risk /rewards and are happy with taking positions prior to spudding in Georgia / Puntland.
    Interesting times ahead.. wonder how many RHPS subscribers are now sitting on the fence and wishing they were still in Range.

    All the best

  4. Steve says:

    Agreed. I have read your MTA blog Dan and agree with many other about you not talking about the patch reefs…THIS IS THE POTENTIAL OF THE MTA FUTURE! It would get more investors on board and provide more clarity to the future.

    At the moment it looks like you are ramping on no facts but you are a well know person in the market/city

  5. Steve says:

    I agree we need more on mta and the patch reefs. Dan has not covered this with us investors

  6. Rick says:

    I agree dan has not mentioned them, not sure if he knows about the potential of them. We really need an to update us on the patch reefs.

    Dan is well known in the capital

  7. wing commander says:

    I sold about a fifth of my holding this morning in RRL,but it just happened to coincide with another stock ive wanted to get involved in hitting my buy target price..Ok so its cost me a thou on the timing but then again that doesnt hurt so much when they were only 5p to start with….
    Personally whilst i agree holding will serve you well,i have traded this stock countless times over the last 18 months and it has always had a day trader mentality which does make it easier to read..Would i have sold on that rns alone of course not,they had to release it due to the asx query….

  8. thethinkingturk says:

    I would be carfull here as the FT is saying their was going to be money raised at 14p, but changed their minds. So now you know!!! money will be raised at some time this year, but at what price!! it’s going to be less than the Market price as the price was around 20p at time so their was a 6p difference, I will wait now till money is raised then get back in. shorters will hammer this down when they know.

  9. Anders Christensen says:

    Hi Dan
    Tower resources could that be an good idea

    • Brokerman says:

      I have barred myself from posting on Trp due to calling the hydrocarbon shows as an oil strike from my Evo source.
      Got it completely wrong.
      Altough funnily enough they are now up over 1005 since I cocked up!
      Funny old world!