Anthony Eastman seems slightly taken aback by the huge volumes of shares changing hands between investors in his company. For the executive director of AIM and ASX listed oil and gas group Range Resources (LON:RRL) (ASX:RRS), trading in London since the start of 2010 has been “phenomenal”. The dramatic rise in investor interest was sparked by a remarkable six months last year when Range – once exposed to just a single, albeit exciting, exploration play in the Puntland region of Somalia – got its hands on acreage in the safer haven of Texas, US. By the turn of the year, that interest had turned into a 25% stake in a production well – and there was more to follow.

For Eastman, and Range’s chief executive Peter Landau, spreading risk and diversifying operations have been top priorities alongside efforts to get drilling underway in Puntland. In Texas, the company now holds stakes in the Smith #1 and Russell Bevly wells on the North Chapman Ranch and in June acquired a 13.56% stake in the East Texas Cotton Valley prospect. A recent independent valuation of North Chapman by Lonquist & Co estimated that total gross commercially recoverable reserves stood at 215 billion cubic feet (bcf) of natural gas (with 45bcf attributable to Range); 15.9m barrels of oil (3.3m barrels attributable to Range) and 15.5m barrels of natural gas liquids (3.2m barrels attributable to Range). A similar valuation of the East Texas Cotton Valley prospect estimates that total gross commercially recoverable reserves stand at 5.4m barrels of oil, with 0.7m barrels attributable to Range. Multi-well development programmes are currently being planned for both projects. Elsewhere, the company also holds interests in the Caucasus state of Georgia, where seismic surveying was recently completed and possible well locations are currently being identified.

This week, Range made its latest acquisition, with a deal to take a 10% stake in companies that hold licences over production fields onshore Trinidad. The company described the move as the last of its ‘pre Puntland drilling’ strategic plays and reckons it can take daily production there from 700 barrels of oil to 3,500 barrels over the next three years.

Anthony Eastman spoke to Stockopedia News about Range’s plans in Puntland, Texas, Georgia and Trinidad and why he thinks the company’s strategy has won over investors.

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