Strange thing this exploration business; one day you have nothing but hope and the next day, well.....
Let's say the next day you have a bit more than just hope, you have some real evidence of value within your prospects. Your operating environment has changed for the better. Your ability to achieve your corporate objectives finally, after much delay, start to look like they could become reality....
Your business has been growing wings but previously you were prohibited from flying. You had earned the right to succeed but not, so it seemed until this point, the permission. You were all dressed up, and until December 2009, had nowhere to go.
This rather confusing opening picture is the environment currently occupied by Peter Landau, Executive Director of Range Resources (ASX:RRS)(AIM:RRL).
But it seems Cinderella, or in this case Range Resources, shall at last go to the ball! What happened in December 2009 was transformational for the business; it's just the market hasn't realised the magnitude of transformation....well not yet anyway.
It's a bit of a protracted story, but, in a nut shell, this is where we are at present:
1. has a 25% stake in a Texan prospect from which drilling has identified a commercial oil and gas find;
2. has, with their operating partner Crest Resources, recently increased the size of their Texan oil prospect licence area by some 50% (1120 acres to 1680 acres);
3. has just commenced a seismic review operation in Georgia targeting substantial oil prospects (project revenue share 50/50 with Georgian government pre cost recovery and 35% Range after costs recovered, no tax deducted thereafter);
4. has just received the go ahead for drilling of the Puntland (northern Somalia) onshore oil licences estimated to contain 2-10billion barrels in one basin and a similar amount in a second with drilling now due to commence in 2010. Range hold a 20% interest and are free carried for the first $50million of exploration costs by their partner Africa oil (see comments below re free carry status);
5. holds 100% of offshore oil/gas exploration licences and plan to secure a partner to fund exploration programme in 2010;
6. has a market cap of A$36.5million or £21.1million based on 563million shares currently in issue.
The stock market has a long memory and, like the proverbial elephant, it never forgets. Where…
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Mining Maven
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