Last week, Range Resources (LON:RRL) (ASX: RRS) released its highly anticipated update from Texas advising that an Independent Reserves Report from Lonquist & Co LLC confirmed a "Significant Find" at North Chapman Ranch Field. This was then followed up with the news of spudding of the Russell Bevly #1.
It's clear that the company is transforming fast and significant news flow is now expected. An overhaul of our original Value Proposition (click here to view) is therefore certainly warranted. However with developments on the ground coming in thick and fast, the Range story is currently a bit of a moving target. In the mean time we wanted to give the company the chance to respond to the latest developments and also the market reaction to their news. We therefore took the opportunity to touch base over the weekend with Directors, Peter Landau & Anthony Eastman, here is what they had to say:
MM: Please could you explain the significance of the Reserves Report, released with regard to operations at North Chapman Ranch, Texas?
PL: The Independent reserves report provides a benchmark for Range’s interests in the North Chapman Ranch Project which can be used to calculate the value to the Company which the Company believes is significantly higher than what the current market cap suggests, without assigning any value to the Company’s Puntland and Georgian interests at all. Third parties can use this information to determine their own value for Range’s interest also – and then compare it to current market cap and determine whether or not they believe the Company is correctly valued by the markets.
MM:How do you feel about the markets’ reaction to this news release, particularly with regard to the share price on the ASX and AIM markets?
PL:As can be expected, very disappointed however one looks at the volatility of the markets over the past couple of weeks and to predict share price in these markets is extremely difficult. That being said, Range continues to look to add value and will continue to report progress on its three assets, and hopefully once some stability returns to the markets, Range will be fairly valued.
MM:You have also recently announced spudding at Russell Bevly. How could this well benefit Range Resources with regard to both revenue generation and confidence in the reserves?
