Range Resources. How shallow is shallow?

Light Up Your Lighter

Range flare up.

I’m going through all the recent contacts,notes,research we’ve had on Range Resources while trying to put yesterdays flare up into perspective.

Investors should note that Range and Red Emperor began yesterdays rise almost simultaneously. Lots of different bits and pieces coming in at the moment. Both companys are tied at the hip re Georgia. So it’s NO coincidence that they both began to rise. News/rumours of hydrocarbon shows have been doing the rounds in the city and online. There are some who make valid points, lots of emails saying that the drill is too early for oil shows. Now I disagree on this point, for thus reasons. It’s generally now accepted that the drill is speeding up since the collar problem was resolved.

If you do some quick research you’ll find that most of these plays in Georgia are based on previous Russian drills which in the most were drilled to relatively shallow depths, to define structural features identified from surface geological mapping, and to assist in planning the location and design of water reservoirs. Deeper wells were drilled for the purpose of detailed identification of the stratigraphy of the area.  Many of these wells encountered oil and gas shows, in which case they were shut in and abandoned without testing.These shows were at shallow levels. So the question is how shallow is shallow? Much of the work carried out by the technical staff of Strait in Georgia has been to collate information from diverse databases/shallow drills and to integrate the data into their own regional interpretation.

It’s not beyond the bounds of reason that Strait have encountered some form of oil/gas show when bearing in mind that oil shows in shallow drills in Georgia were the norm when the Russians were drilling this area. Of course it’s mere speculation at the moment. Even so the Range sp has risen as has RMP. There must be some basis or kernel of truth otherwise both companys would not have risen. The current market value of Range is significantly below where it should be this is in part due to funding,dilution,leverage concerns and of course the world financial crisis that lurches from pillar to post on a daily basis. Indeed the LSE has just announced their worst quarter for 9 years so set against a background of macro geopolitical financial turmoil, companys will suffer until stability returns. An interesting point here is that the Nomads have contacted their respective companys so as ever news will leak out next week. Any expectation of an oil discovery here will certainly spike the stock back up to previous 20p levels. If they hit oil then it should go ballistic. It’s all getting very interesting at Range Resources.

Viva!

Daniel

PS. And remember Range have a terrific portfolio of producing assets that underpin them for the longer term.

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No Responses

  1. Joseph says:

    Good article . You forgot to say” fill ur boots at these silly low levels ” bought at .099p friday . only have these and mta now . Yes plenty are saying the sky is the limit on a big strike .

  2. Dan says:

    Hi dan
    Why will it go ballistic if they find oil? Mxp have found oil 8 times in 6 months and tanked nearly everytime .
    Just because it has risen doesnt automatically mean there is any truth in it whatsoever , take roxi, I know you played devils advocate on that one, but one simply look at the last RNS would have told you a 900m barrels oil find was tripe , as they were not drilling until 2012. No truth yet Rose over 100% – sure the guys inside made a packet though ! Well done.
    Mxp also have many assets to under pin the share price and the deeps are no where near priced in. Fact is the Market doesn’t want to know .
    RRL have no where near the potential of mxp .Fact

  3. Rock Com says:

    Oh please this Range Resources is the second biggest pump and dump scandal, BAO Resources being the first. Both stocks gave you plenty of time to get out during the pump stage…and if you didn’t take your money off the table then, you deserve to get killed by the dump stage which we are still in. People who don’t know how to trade, and the perpetually unemployed guys who saw this as their meal ticket for the next several years, are the only ones still holding the bag on these losers.

  4. Daniel Collingwood says:

    THE 30 METRE GRANITE ‘SEAL’ THAT HAS BEEN THE CAUSE OF THE DRILL DELAYS IS A GOOD INDICATION OF HYDROCARBONS.
    LOSING PARTS OF THE DRILL/COLLAR AND RETRIEVING IT, WAS NO MEAN FEAT…STEADY AS SHE GOES, AS SOON WE WILL DISCOVER THAT THIS ‘GRANITE LID’ COULD BE THE PERFECT SEAL….HOLDING OIP FOR MILLIONS OF YEARS AND WHEN BREACHED CAN LET OFF ONE ALMIGHTY GUSHER OF PENT UP PRESSURE. EARLIER LAST MONTH THE BOP WAS ATTACHED, ANOTHER INDICATION OF ”WHAT LIES BENEATH”….?
    Also, The recent BOUT OF FUNDING , BODES WELL, as BMD, SAYS, ”Hang on to your HATS” …”AND READ THE LABEL” !

  5. Daniel Collingwood says:

    The granite ‘lid’ that has just been breached after weeks of trying to get through it has proved successful. This ‘lid’ is a perfect ‘seal’ holding hydrocarbons in place and when the BOP was fitted earlier last month, pi’s failed to take the carrot…RRL are ready for a massive gusher.
    They KNOW ”What Lies Beneath”….!

  6. Roger Stacey says:

    Thanks for this and all other posts.
    Could you ask you editer to write the plural of ‘company’ as ‘companies’ rather than ‘companys’. Sorry to be a grammar nerd.

  7. Dan says:

    1.7 billion shares in issue
    700bopd
    Targeting 4000 bopd in 3 years

    Mxp – less shares in issue
    3600bopd
    Targeting 1 billion barrels in 3 weeks

  8. johnson says:

    dan. I dont think u have many contacts on rrl or mta if u did why did u blog on mta fri? I checked with the mta bod and they confirm that a12 is on target and funding 4 a14 will be done after the result of a12. I know some1 on lse that has been to site and he is genuine- he confirms workers are doin corrective work on a12. If we get 400bpd where do u see the share price?

  9. BarnstonPickle says:

    Johnson.
    What a load of rubbish. I spke to Matra on thursday . They aren’t telling any one anything . Every one knows that Peter Hind is as tight lipped as a vestel virgin the guy just trots out the usual company line. I cant discuss it due to FSA market restrictions we’ll update investors through the usual channels.
    so stop havin a pop at our Dannyboy . Matra have been on this work over for nearly two sodding months so I’d tend to thock that the rationale is that they should be at the end of it. Not ongoing and as for funding Peter Hind would never tell a investor over the dog 7 bone that funding will be after results on A12 . Now that is market sensitive!
    Your a POOR Blagger while Dans a decent Blogger.

    Pickle

  10. Dan says:

    All this fuss for 400bopd
    Mxp had flow rates last week of over 600bopd
    From 1 of 9 discoveries . Already doing 3600bopd