Range Resources (LON:RRL) is a dual listed (ASX: RRS) Exploration and Production company with interests covering 4 geographical areas; onshore Texas USA, The Republic of Georgia, Puntland Somalia and Trinidad. The major near term focus for Range Resources and its partners will be the high impact exploration drilling in Puntland and Georgia, targeting combined potential structures amounting to multi billion barrels of oil. However, for many, the Range Resources investment case became even more appealing recently when the company announced it had completed the acquisition of SOCA Petroleum which holds 100% ownership of three exploration and production onshore Trinidad oil and gas licences, along with its wholly owned drilling company, including operational staff, rigs and equipment.

Following on from an earlier ‘Could Trinidad be the Game Changer’ article and the recent busy period for Range Resources and its partners which also includes the successful spudding of Mukhiani 1 well in Georgia targeting a prospect with a mean estimate of undiscovered oil in place of 115 million barrels, Peter Landau, the Range Resources Executive Director, has taken time out to discuss various aspects of the business, including the Trinidad acquisition, their stakeholder approach, possible expected news flow, potential new farm-in opportunities, returning value and a potential market capitalisation target.

Q1. Earlier this year it was indicated that Range would not be looking to acquire the whole of the Trinidad asset, and that potentially 20% would be its maximum share, so what changed?

In essence, Range’s market cap – doing a $60-$70m deal with a cap of $90m is vastly different to a cap of $400m. We always loved the asset and the play but were conscious of dilution with upcoming drilling in Georgia and Puntland.

Q2. Does the additional number of shares issued to fund the Trinidad deal hinder the potential upside to shareholders from the Puntland and Georgia prospect?

As per the above, we think we found a good balance between preserving the upside of Georgia and Puntland (15% placement and equity on the deal), providing a genuine underpin to a base valuation of circa $400m for Range and also providing shareholders with significant upside with Trinidad in the form of P1 and P2 development and Herrera exploration success. From our perspective there is no hindrance – the upside is preserved (through additional…

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